CUBE CO.,LTD. (7112) AI Stock Analysis

• Market Cap: ¥4.47B
• Dividend Yield: N/A
• Average Volume (3M): 8.08K
• Price to Earnings (P/E): 127.3
• Beta (1Y): 0.62
• Revenue Growth: 6.54%
• EPS Growth: -58.94%
• Country: JP
• Employees: 85
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 5.40
• Shares Outstanding: 6,139,647
• 10 Day Avg. Volume: 5,990
• 30 Day Avg. Volume: 8,083
• PEG Ratio: -1.54
• Price to Book (P/B): 0.90
• Price to Sales (P/S): 0.75
• P/FCF Ratio: -9.62
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: ¥730.00 ▲(24.79% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by solid financial resilience from a zero-debt balance sheet, but weighed down by thin recent profitability and negative 2025 cash flows. Technicals are moderately supportive over longer timeframes, while the very high P/E meaningfully detracts from the overall score.

Positive Factors

Balance sheet strength

Zero reported debt from 2021–2025 provides durable financial flexibility and low solvency risk. This allows management to fund operations, absorb shocks, and pursue strategic investments without reliance on external debt markets, supporting long-term resilience and optionality.

High gross margin

A roughly 58% gross margin indicates lasting product-level pricing power or efficient sourcing/manufacturing. This structural margin buffer can absorb input cost swings and underpins potential margin recovery if operating costs are reined in, supporting sustainable profitability upside.

Low market volatility (beta)

A low beta (~0.62) denotes lower sensitivity to market swings, implying more stable earnings and cash flows over time. Coupled with zero debt, this defensive profile improves the firm's ability to endure downturns and maintain operations without aggressive external financing.

Negative Factors

Compressed profitability

Margins have collapsed from 2022 levels to very thin operating and net margins in 2025, signaling persistent cost or mix pressures. Sustained low margins limit reinvestment capacity, reduce returns on equity, and make the business vulnerable unless structural cost or revenue improvements occur.

Weak cash conversion

Negative operating and free cash flow despite positive net income points to working-capital swings or non-cash distortions that impair cash generation. This undermines self-funding of growth, increases funding risk for capex/dividends, and raises questions about earnings quality over time.

Stagnant revenue

Flat top-line trends since 2023 indicate limited market expansion or demand growth. Prolonged revenue stagnation constrains operating leverage and makes margin recovery harder, risking longer-term competitive erosion unless the company can shift strategy or find new growth vectors.

CUBE CO.,LTD. Business Overview & Revenue Model

Company Description

CUBE CO.,LTD. engages in the planning, manufacturing, wholesaling, retailing, and sale of apparel in Japan and internationally. The company is involved in brand consulting, graphic and web production, and licensing businesses. It sells its products under the MARK & LONA and HORN GARMENT brand names through retail and online stores. CUBE CO.,LTD. was incorporated in 1994 and is based in Tokyo, Japan.

How the Company Makes Money

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CUBE CO.,LTD. Financial Statement Overview

Summary

Balance sheet strength (zero debt, stable equity base) supports a higher score, but is offset by sharply compressed profitability (operating margin ~1.2%, net margin ~0.7% in 2025) and inconsistent cash conversion with negative operating and free cash flow in 2025.

Income Statement

Revenue has been essentially flat since 2023, with 2025 showing no meaningful growth. Profitability has compressed sharply versus the 2021–2022 peak: net margin fell from ~11% (2022) to ~0.7% (2025) and operating margin declined to ~1.2% (2025). A positive is that gross margin remains strong (~58% in 2025), but the weak operating and bottom-line results indicate elevated operating costs and limited earnings power in the most recent year.

Balance Sheet

The balance sheet is a clear strength: total debt is zero from 2021–2025, implying low financial risk and high flexibility. Equity is sizable and stable (about ¥4.0B in 2024–2025) relative to assets (about ¥4.6B in 2025). The main weakness is returns on shareholder capital have moderated meaningfully since 2022, consistent with the decline in profitability.

Cash Flow

Cash generation is volatile and weakened recently. Operating cash flow and free cash flow turned negative in 2025 (and were also negative in 2023), despite positive net income, suggesting working-capital or investment swings are pressuring cash conversion. 2024 was positive but modest, and the sharp deterioration into 2025 raises near-term quality-of-earnings and funding-of-growth concerns (even though the company has no debt).

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.86B	4.86B	4.86B	5.56B	3.90B
Gross Profit	2.81B	2.71B	2.69B	2.94B	2.35B
EBITDA	193.62M	263.63M	360.47M	933.95M	730.53M
Net Income	34.85M	108.77M	190.87M	609.82M	681.99M
Balance Sheet
Total Assets	4.61B	4.79B	4.51B	4.62B	2.59B
Cash, Cash Equivalents and Short-Term Investments	2.11B	2.90B	2.84B	3.26B	1.58B
Total Debt	0.00	0.00	0.00	0.00	0.00
Total Liabilities	569.05M	809.18M	646.62M	948.62M	963.78M
Stockholders Equity	4.04B	3.98B	3.86B	3.67B	1.63B
Cash Flow
Free Cash Flow	-379.93M	73.72M	-377.54M	360.28M	997.51M
Operating Cash Flow	-254.38M	238.12M	-177.85M	393.77M	1.02B
Investing Cash Flow	-1.24B	-172.62M	-250.12M	-137.52M	-39.05M
Financing Cash Flow	0.00	-25.00K	0.00	1.43B	-746.66M

CUBE CO.,LTD. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 585.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7112, the sentiment is Neutral. The current price of 585 is below the 20-day moving average (MA) of 739.25, below the 50-day MA of 688.50, and above the 200-day MA of 573.80, indicating a neutral trend. The MACD of 14.81 indicates Positive momentum. The RSI at 50.03 is Neutral, neither overbought nor oversold. The STOCH value of 48.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7112.

CUBE CO.,LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8115	69 Neutral	¥6.07B	11.77	―	4.33%	6.79%	15.83%
8123	68 Neutral	¥2.80B	7.88	―	3.56%	2.89%	35.17%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7112	56 Neutral	¥4.47B	127.34	―	―	6.54%	-58.94%
8166	47 Neutral	¥4.13B	3.82	―	―	-5.25%	-77.53%
8105	44 Neutral	¥12.76B	-22.16	―	―	-8.93%	-395.73%
3598	43 Neutral	¥2.41B	179.34	―	1.78%	-4.17%	9.23%

CUBE CO.,LTD. Corporate Events

CUBE CO., LTD. Sees Profit Slump in 2025 but Targets Earnings Rebound in 2026

CUBE CO., LTD. reported flat non-consolidated net sales of ¥4,863 million for the fiscal year ended December 31, 2025, but saw sharp declines in profitability, with operating profit down 64.3% to ¥59 million and profit falling 68.0% to ¥34 million. Despite weaker earnings, the company’s financial position remained sound, as total assets stood at ¥4,611 million and the equity-to-asset ratio improved to 87.7%, although operating cash flow turned negative and cash and cash equivalents dropped significantly.

The company continued its no-dividend policy for 2025 and also forecasts no dividends for 2026, underscoring a focus on preserving capital amid earnings pressure. For the year ending December 31, 2026, CUBE projects a modest 2.1% increase in net sales to ¥4,965 million and a near-doubling of operating profit to ¥115 million, signaling expectations of a profit rebound that, if achieved, could improve returns while maintaining its already strong balance sheet.

The most recent analyst rating on (JP:7112) stock is a Hold with a Yen854.00 price target. To see the full list of analyst forecasts on CUBE CO.,LTD. stock, see the JP:7112 Stock Forecast page.

CUBE’s January Sales Climb 7.7% on Strong Winter and Early Spring Demand

CUBE CO., LTD. reported that total January 2026 sales at its directly managed stores, combining physical outlets and e-commerce, rose to 107.7% of the prior-year level, driven by solid demand for winter items and a strong initial performance from Spring 2026 products launched mid-month. Physical store sales showed particularly robust year-on-year growth, while e-commerce lagged, underscoring a channel mix shift that favors brick-and-mortar. The company signaled it will keep expanding its business and bolstering brand value through further Spring/Summer 2026 product rollouts in February, with investors and other stakeholders awaiting the imminent release of FY2025 financial results for a fuller picture of its earnings trajectory.

The most recent analyst rating on (JP:7112) stock is a Hold with a Yen836.00 price target. To see the full list of analyst forecasts on CUBE CO.,LTD. stock, see the JP:7112 Stock Forecast page.

CUBE Posts Double-Digit December Sales Growth on New Products and Promotions

CUBE CO., LTD. reported that total December 2025 sales across its directly managed physical stores and e-commerce channels rose to 111.2% of the previous year, driven by strong performance of newly launched products and aggressive year-end promotional activities, despite some existing products underperforming. The company plans to leverage this momentum by rolling out its spring-summer 2026 collection from mid-January, targeting further business expansion and enhancement of brand value, while detailed FY2025 financial results are scheduled for release in February.

The most recent analyst rating on (JP:7112) stock is a Hold with a Yen602.00 price target. To see the full list of analyst forecasts on CUBE CO.,LTD. stock, see the JP:7112 Stock Forecast page.