Global Style Co., Ltd. (7126) AI Stock Analysis

• Market Cap: ¥4.89B
• Dividend Yield: 2.36%
• Average Volume (3M): 3.72K
• Price to Earnings (P/E): 10.0
• Beta (1Y): 0.48
• Revenue Growth: 2.14%
• EPS Growth: -0.39%
• Country: JP
• Employees: 267
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): -43.70
• Shares Outstanding: 3,502,744
• 10 Day Avg. Volume: 2,170
• 30 Day Avg. Volume: 3,723
• PEG Ratio: 0.99
• Price to Book (P/B): 1.74
• Price to Sales (P/S): 0.44
• P/FCF Ratio: 12.57
• 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: 63 Neutral
• Price Target: ¥1,622.00 ▲(10.42% Upside)

The overall stock score reflects strong valuation metrics, with a low P/E ratio and reasonable dividend yield. However, financial performance is hindered by high debt levels and inconsistent cash flows. Technical analysis indicates bearish momentum, which poses a risk to short-term performance.

Positive Factors

High Gross Margins

Consistently >50% gross margins indicate durable cost advantage in sourcing or pricing power. High margins provide long-term flexibility to invest in design, omnichannel retailing and marketing, while absorbing inflation or promotional pressure without eroding core profitability.

Positive Operating Cash Flow

Sustained, growing operating cash flow supports reinvestment, working capital and debt service over multiple quarters. Reliable OCF underpins operational resilience and funds strategic initiatives without dependence on external financing, strengthening long-term financial stability.

Improving Leverage and Strong ROE

Improving leverage alongside strong ROE signals better capital allocation and operational efficiency. Gradual deleveraging enhances financial flexibility and lowers refinancing risk, while high ROE suggests the business converts equity into profit effectively over the medium term.

Negative Factors

Elevated Debt Levels

Persistently high debt increases interest burden and reduces spare capacity to fund growth or absorb shocks. Over a 2–6 month horizon, elevated leverage constrains strategic investments, raises refinancing risk, and makes margins more sensitive to higher rates or demand weakness.

Volatile Free Cash Flow

Significant FCF volatility undermines predictability of funding for capex, dividends and debt reduction. Even with positive OCF, inconsistent FCF complicates planning and increases reliance on working capital or external funding, weakening long-term financial resilience.

Weak Recent Revenue Trend

Negative recent revenue growth signals demand or market-share pressure that can erode scale benefits over time. Without consistent top-line expansion, sustaining margins, absorbing fixed costs, and funding strategic initiatives becomes harder, risking medium-term profitability.

Global Style Co., Ltd. Business Overview & Revenue Model

Company Description

Global Style Co.,Ltd. engages in the management of specialty stores. It manufactures and wholesales men's clothing, including suit and coat fabrics, and custom-made suits and shirts for men, women, kids, and juniors, as well as offers espresso coffee under the Borbone brand name through cafes and restaurants. The company provides custom coats and shoes, and ready-made products, such as ties and belts, etc. It operates stores under the TANGOYA and Global Style brand names. The company was formerly known as Tangoya Co.,Ltd. and changed its name to Global Style Co.,Ltd. in November 2022. Global Style Co.,Ltd. was founded in 1928 and is headquartered in Osaka, Japan.

How the Company Makes Money

Global Style Co., Ltd. generates revenue primarily through the sale of its fashion products, which include clothing, shoes, and accessories. The company leverages multiple revenue streams, including direct sales through its branded retail outlets and e-commerce platforms, as well as wholesale partnerships with other retailers. Significant revenue also comes from seasonal collections and promotional campaigns that drive consumer engagement. Additionally, the company may benefit from collaborations with designers or influencers, which can enhance brand visibility and attract new customers, further contributing to its overall earnings.

Global Style Co., Ltd. Financial Statement Overview

Summary

Global Style Co., Ltd. demonstrates strong profitability and improving leverage, but faces challenges in revenue growth and cash flow stability. The company has managed to maintain solid margins, yet high debt levels and inconsistent cash flows pose risks.

Income Statement

Global Style Co., Ltd. has shown strong gross profit margins consistently above 50%, indicating efficient cost management. However, the recent revenue growth rate is negative, which is a concern. The net profit margin has improved over the years, reflecting better profitability. Overall, the company demonstrates solid profitability but faces challenges in revenue growth.

Balance Sheet

The company's debt-to-equity ratio has improved from previous years, indicating better leverage management, but it remains relatively high, posing a risk. The return on equity is strong, suggesting effective use of equity to generate profits. The equity ratio is moderate, indicating a balanced asset structure. While there are improvements, the high leverage remains a concern.

Cash Flow

Operating cash flow has been positive and growing, which is a positive sign for liquidity. However, free cash flow has been volatile, with significant fluctuations over the years. The free cash flow to net income ratio indicates some inconsistency in converting profits into free cash flow. Overall, cash flow management shows potential but needs stabilization.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	11.46B	11.46B	11.17B	10.41B	9.09B	8.33B
Gross Profit	6.39B	6.39B	5.99B	5.57B	4.85B	4.30B
EBITDA	1.09B	1.05B	907.37M	864.78M	793.25M	551.28M
Net Income	504.15M	503.00M	443.76M	473.24M	343.05M	244.31M
Balance Sheet
Total Assets	7.46B	7.46B	7.51B	7.32B	6.68B	5.80B
Cash, Cash Equivalents and Short-Term Investments	669.00M	669.00M	901.35M	1.11B	1.34B	1.33B
Total Debt	2.46B	2.46B	3.04B	3.36B	3.27B	3.09B
Total Liabilities	4.55B	4.55B	5.06B	5.26B	5.08B	4.76B
Stockholders Equity	2.91B	2.91B	2.46B	2.06B	1.61B	1.04B
Cash Flow
Free Cash Flow	0.00	403.00M	220.30M	-244.54M	-316.44M	687.52M
Operating Cash Flow	0.00	725.00M	625.67M	267.46M	550.15M	782.80M
Investing Cash Flow	0.00	-283.00M	-449.38M	-550.95M	-950.57M	-109.88M
Financing Cash Flow	0.00	-675.00M	-386.39M	52.46M	401.68M	-760.30M

Global Style Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1469.00
• 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:7126, the sentiment is Positive. The current price of 1469 is below the 20-day moving average (MA) of 1508.40, above the 50-day MA of 1429.74, and below the 200-day MA of 1502.28, indicating a bullish trend. The MACD of 28.68 indicates Positive momentum. The RSI at 66.31 is Neutral, neither overbought nor oversold. The STOCH value of 34.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7126.

Global Style Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3123	70 Outperform	¥8.01B	7.55	―	2.75%	-4.76%	8.43%
3524	70 Outperform	¥4.13B	8.68	―	3.18%	3.21%	-21.80%
8115	69 Neutral	¥6.00B	8.83	―	4.33%	6.79%	15.83%
2776	65 Neutral	¥7.36B	154.95	―	―	157.12%	―
7126	63 Neutral	¥4.89B	9.96	―	2.36%	2.14%	-0.39%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3409	48 Neutral	¥4.15B	-75.28	―	―	16.33%	75.48%