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

• Market Cap: ¥4.83B
• Dividend Yield: 2.36%
• Average Volume (3M): 3.72K
• Price to Earnings (P/E): 4.1
• 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): 93.66
• Shares Outstanding: 3,502,744
• 10 Day Avg. Volume: 2,170
• 30 Day Avg. Volume: 3,723
• PEG Ratio: 0.97
• Price to Book (P/B): 1.72
• Price to Sales (P/S): 0.44
• P/FCF Ratio: 12.36
• 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: ¥1,600.00 ▲(8.92% 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

Sustained gross margins above 50% indicate durable cost controls and pricing power in apparel sourcing and product mix. This margin cushion supports profitability through volume swings, funds SG&A and reinvestment, and helps preserve net margins over the medium term.

Improving leverage and strong ROE

An improving debt-to-equity profile and strong ROE point to better capital efficiency and deleveraging progress. That enhances financial flexibility, reduces refinancing pressure, and implies management can generate attractive returns on shareholder capital over multiple quarters.

Positive operating cash flow

Growing positive operating cash flow demonstrates the core retail business generates real cash from operations. This underpins liquidity, supports working capital needs, enables debt servicing or targeted reinvestment, and is a durable source for funding strategic initiatives.

Negative Factors

High leverage remains a risk

Despite improvements, relatively high leverage still elevates interest and refinancing risk. In a retail cycle or cost-pressure environment, elevated debt limits strategic options, increases fixed financial costs, and constrains capital allocation for growth or margin-enhancing investments.

Weak recent revenue growth

Negative recent revenue growth signals demand or market-share weakness that can erode scale benefits. Persistent top-line decline pressures gross profit expansion and limits ability to absorb SG&A, making margin and cash generation improvements harder to sustain over multiple quarters.

Volatile free cash flow conversion

Significant FCF volatility and inconsistent conversion of net income to free cash flow weaken planning and capital allocation. This unpredictability reduces safety for debt repayment, dividends, or capex, and raises execution risk for multi-quarter strategic investments.

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	6.14B	5.76B	5.34B	4.63B	4.10B
EBITDA	1.05B	876.56M	910.38M	760.59M	507.58M
Net Income	503.15M	443.76M	473.24M	343.05M	244.31M
Balance Sheet
Total Assets	7.46B	7.51B	7.32B	6.80B	5.92B
Cash, Cash Equivalents and Short-Term Investments	669.79M	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	5.20B	4.88B
Stockholders Equity	2.91B	2.46B	2.06B	1.61B	1.04B
Cash Flow
Free Cash Flow	404.38M	254.05M	-206.90M	-307.95M	699.16M
Operating Cash Flow	725.66M	625.67M	267.46M	550.15M	782.80M
Investing Cash Flow	-283.15M	-449.38M	-550.95M	-950.57M	-109.88M
Financing Cash Flow	-675.95M	-386.39M	52.46M	401.68M	-760.30M

Global Style Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1469.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7126, the sentiment is Negative. The current price of 1469 is below the 20-day moving average (MA) of 1524.55, below the 50-day MA of 1521.90, and below the 200-day MA of 1498.90, indicating a neutral trend. The MACD of -4.76 indicates Positive momentum. The RSI at 42.47 is Neutral, neither overbought nor oversold. The STOCH value of 10.71 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥50.65B	7.26	18.28%	6.12%	-6.22%	679.61%
8011	66 Neutral	¥39.16B	13.45	―	5.23%	―	―
8040	66 Neutral	¥3.59B	-11.36	―	4.01%	3.98%	89.81%
2685	64 Neutral	¥128.50B	9.43	11.70%	3.59%	3.96%	-36.24%
7126	63 Neutral	¥4.83B	4.07	―	2.36%	2.14%	-0.39%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8166	47 Neutral	¥3.93B	1.99	―	―	-5.25%	-77.53%