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

• Market Cap: ¥4.87B
• Dividend Yield: 2.36%
• Average Volume (3M): 3.72K
• Price to Earnings (P/E): ―
• 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: ¥1,623.00 ▲(10.48% Upside)
• Action: Reiterated Date: 11/28/25
• Date: Action: Reiterated 11/28/25

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

Gross margins above 50% provide a durable profitability cushion, signaling efficient sourcing and pricing power. This margin buffer supports reinvestment, tolerance for input cost swings, and sustained operating profitability even if sales fluctuate over the medium term.

Improving Leverage & ROE

An improving debt-to-equity ratio alongside strong ROE indicates management is deploying capital effectively while reducing leverage pressure. This trend enhances financial flexibility, lowers refinancing strain, and supports medium-term strategic investments or balance sheet repair.

Positive Operating Cash Flow

Consistent growth in operating cash flow shows the core retail business reliably converts sales into cash, enabling debt servicing, working capital funding and targeted reinvestment. Durable OCF underpins liquidity and operational stability despite other volatility.

Negative Factors

High Leverage Remains

Despite improvement, elevated absolute debt levels remain a structural risk. High leverage raises interest expense sensitivity, reduces flexibility for inventory/capex, and increases refinancing and solvency risk if operating cash flows weaken in a downturn.

Volatile Free Cash Flow

Significant FCF volatility shows inconsistent ability to turn earnings into discretionary cash. That unpredictability constrains dividends, deleveraging and strategic investments, complicating capital allocation and weakening resilience to prolonged market pressures.

Recent Revenue Weakness

A recent negative revenue growth rate suggests demand or market-share pressure that limits sustainable profit expansion. Even with healthy margins, lack of top-line growth constrains long-term earnings scalability and makes margin-led gains harder to sustain over time.

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. primarily makes money by selling apparel and related products to end customers. Core revenue is generated from retail transactions (in-store and any company-operated sales channels) where the company captures the margin between its product costs (materials, manufacturing/sourcing, logistics) and the selling price. Additional monetization typically comes from selling higher-value items and add-ons within its assortment (e.g., coordinating items and services bundled with core apparel purchases), but specific breakdowns of revenue streams, product mix, channel mix, and the role of partnerships (e.g., manufacturing partners, franchise/wholesale arrangements, or strategic alliances) are not available from the provided information and are therefore null.

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	Jul 2025	Jul 2024	Jul 2023	Jul 2022	Jul 2021
Income Statement
Total Revenue	11.46B	11.17B	10.41B	9.09B	8.33B
Gross Profit	6.39B	5.99B	5.57B	4.85B	4.30B
EBITDA	1.05B	907.37M	864.78M	793.25M	551.28M
Net Income	503.00M	443.76M	473.24M	343.05M	244.31M
Balance Sheet
Total Assets	7.46B	7.51B	7.32B	6.68B	5.80B
Cash, Cash Equivalents and Short-Term Investments	669.00M	901.35M	1.11B	1.34B	1.33B
Total Debt	2.46B	3.04B	3.36B	3.27B	3.09B
Total Liabilities	4.55B	5.06B	5.26B	5.08B	4.76B
Stockholders Equity	2.91B	2.46B	2.06B	1.61B	1.04B
Cash Flow
Free Cash Flow	403.00M	220.30M	-244.54M	-316.44M	687.52M
Operating Cash Flow	725.00M	625.67M	267.46M	550.15M	782.80M
Investing Cash Flow	-283.00M	-449.38M	-550.95M	-950.57M	-109.88M
Financing Cash Flow	-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 1531.20, below the 50-day MA of 1516.02, and below the 200-day MA of 1502.79, indicating a neutral trend. The MACD of 1.31 indicates Positive momentum. The RSI at 50.42 is Neutral, neither overbought nor oversold. The STOCH value of 30.63 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
3608	68 Neutral	¥53.17B	7.26	18.28%	6.12%	-6.22%	679.61%
8040	66 Neutral	¥3.66B	-11.36	―	4.01%	3.98%	89.81%
2685	64 Neutral	¥134.30B	9.43	11.70%	3.59%	3.96%	-36.24%
7126	63 Neutral	¥4.87B	-8.31	―	2.36%	2.14%	-0.39%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8166	47 Neutral	¥3.98B	1.99	―	―	-5.25%	-77.53%