Ikka Holdings Co.,Ltd. (7127) AI Stock Analysis

• Market Cap: ¥4.94B
• Dividend Yield: N/A
• Average Volume (3M): 11.79K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.24
• Revenue Growth: 10.73%
• EPS Growth: -6550.91%
• Country: JP
• Employees: 349
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Personal Products & Services
• EPS (TTM): -3.26
• Shares Outstanding: 7,252,600
• 10 Day Avg. Volume: 6,100
• 30 Day Avg. Volume: 11,786
• PEG Ratio: 0.09
• Price to Book (P/B): 5.28
• Price to Sales (P/S): 0.46
• P/FCF Ratio: -14.70
• 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: ¥699.00
• Price Target Upside: 1.90% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 54 Neutral
• Price Target: ¥699.00 ▲(1.90% Upside)

The overall stock score is primarily influenced by the company's financial performance and technical analysis. While the company shows strong revenue growth, its high debt levels and negative net income are significant concerns. The technical indicators suggest a bearish trend, and the negative P/E ratio further impacts the stock's attractiveness. The absence of earnings call data and corporate events means these factors do not influence the score.

Ikka Holdings Co.,Ltd. Business Overview & Revenue Model

Company Description

Ikka Holdings Co., Ltd. (7127) is a Japan-based company primarily engaged in the production and sale of apparel products. The company operates through various sectors, including retail and wholesale of clothing and fashion accessories. Ikka Holdings is known for offering a wide range of fashion items catering to diverse customer needs, emphasizing quality and contemporary design.

How the Company Makes Money

Ikka Holdings Co., Ltd. generates revenue through multiple channels. The primary source of income is its retail operations, where the company sells clothing and fashion accessories directly to consumers through its network of stores. Additionally, the company engages in wholesale activities, supplying products to other retailers and distributors. Ikka Holdings also benefits from strategic partnerships with designers and manufacturers to enhance its product offerings and market reach. The company's earnings are further supported by its efforts in brand development and marketing initiatives, which help to attract and retain a loyal customer base.

Ikka Holdings Co.,Ltd. Financial Statement Overview

Summary

Ikka Holdings Co., Ltd. demonstrates strong revenue growth and operational efficiency, but faces challenges with profitability and leverage. The high debt levels and negative net income are key areas of concern. While operational cash flow remains robust, the company needs to manage its capital expenditures better to improve free cash flow and reduce financial risk.

Income Statement

The company has shown consistent revenue growth over the years, with a significant increase from 2022 to 2025. However, profitability remains a concern as evidenced by negative net income in the latest period and fluctuating EBIT and EBITDA margins. The gross profit margin is healthy, indicating efficient production, but the net profit margin is negative due to high operating expenses.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio, indicating significant leverage which poses a risk. The equity ratio is relatively low, suggesting a reliance on debt financing. Return on equity has been inconsistent, with recent periods showing negative returns due to net losses. The company needs to improve its capital structure to enhance financial stability.

Cash Flow

Cash flow from operations has been positive, showing the company's ability to generate cash from its core activities. However, free cash flow has been negative in recent years, indicating high capital expenditures. The operating cash flow to net income ratio is strong, suggesting efficient cash generation relative to net income, but the free cash flow to net income ratio is concerning due to negative free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.37B	10.09B	9.23B	8.38B	4.42B	3.43B
Gross Profit	6.82B	6.68B	6.13B	5.52B	2.84B	2.09B
EBITDA	216.71M	114.48M	447.27M	384.28M	530.48M	-1.07B
Net Income	-140.67M	-172.20M	79.00M	80.05M	189.55M	-949.78M
Balance Sheet
Total Assets	5.85B	5.71B	5.38B	4.77B	4.66B	4.26B
Cash, Cash Equivalents and Short-Term Investments	1.33B	1.45B	1.58B	1.18B	1.09B	632.24M
Total Debt	3.34B	3.39B	3.00B	2.62B	2.90B	3.09B
Total Liabilities	4.94B	4.81B	4.32B	3.83B	4.06B	3.91B
Stockholders Equity	905.86M	887.27M	1.05B	929.97M	598.39M	353.75M
Cash Flow
Free Cash Flow	0.00	-318.60M	225.98M	193.45M	1.06B	-1.98B
Operating Cash Flow	0.00	182.59M	537.02M	483.30M	1.15B	-1.41B
Investing Cash Flow	0.00	-670.61M	-417.90M	-340.92M	-563.37M	-620.15M
Financing Cash Flow	0.00	356.12M	269.77M	-53.24M	-140.04M	1.97B

Ikka Holdings Co.,Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 686.00
• 50DMA: Negative
• 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:7127, the sentiment is Positive. The current price of 686 is below the 20-day moving average (MA) of 692.90, below the 50-day MA of 698.64, and above the 200-day MA of 669.02, indicating a neutral trend. The MACD of -6.55 indicates Positive momentum. The RSI at 43.53 is Neutral, neither overbought nor oversold. The STOCH value of 73.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7127.

Ikka Holdings Co.,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6060	73 Outperform	¥4.00B	7.15	―	2.88%	-0.58%	1.09%
2424	69 Neutral	¥3.70B	8.47	―	1.22%	6.57%	52.89%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
2196	57 Neutral	¥2.70B	21.34	―	―	-3.96%	-73.55%
7127	54 Neutral	¥4.94B	―	―	―	10.73%	-6550.91%
2437	42 Neutral	¥2.95B	―	―	―	-24.31%	56.72%
6181	41 Neutral	¥3.69B	―	―	―	6.32%	-3428.60%