JAPAN CRAFT HOLDINGS CO.,LTD. (7135) AI Stock Analysis

• Market Cap: ¥9.15B
• Dividend Yield: 1.22%
• Average Volume (3M): 105.25K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.44
• Revenue Growth: -10.89%
• EPS Growth: 82.42%
• Country: JP
• Employees: 194
• Sector: Consumer Cyclical
• Sector Strength: 68
• Industry: Apparel - Retail
• EPS (TTM): 5.12
• Shares Outstanding: 37,341,680
• 10 Day Avg. Volume: 95,060
• 30 Day Avg. Volume: 105,246
• PEG Ratio: -0.26
• Price to Book (P/B): 2.09
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥235.00
• Price Target Upside: -4.08% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 51 Neutral
• Price Target: ¥226.00 ▼(-7.76%Downside)

The most significant factor affecting the score is the company's weak financial performance, with declining revenues and profitability issues. Technical analysis provides some positive signals with a bullish trend, but the negative valuation metrics indicate financial struggles. Overall, the stock score reflects the financial challenges overshadowing the positive technical indicators.

JAPAN CRAFT HOLDINGS CO.,LTD. Business Overview & Revenue Model

Company Description

JAPAN CRAFT HOLDINGS CO.,LTD. (7135) is a company based in Japan that operates within the retail and distribution sectors. The company is primarily engaged in the business of importing, exporting, and selling a variety of artisanal and craft products. Its core offerings include traditional Japanese crafts, textiles, ceramics, and other culturally significant items that reflect Japan's rich heritage. The company aims to promote and preserve traditional Japanese craftsmanship by offering these unique products both domestically and internationally.

How the Company Makes Money

JAPAN CRAFT HOLDINGS CO.,LTD. generates revenue through the sale of its curated collection of artisanal and craft products. The company's key revenue streams include direct sales through its retail outlets and online platforms, where customers can purchase a wide array of traditional Japanese crafts. Additionally, the company engages in business-to-business transactions, supplying its products to other retailers and distributors. Significant partnerships with artisans and craftsmen add value by ensuring authenticity and quality, enhancing the appeal of their products to both local and international markets. The company also benefits from participation in cultural exhibitions and promotional events that increase brand visibility and drive sales.

JAPAN CRAFT HOLDINGS CO.,LTD. Financial Statement Overview

Summary

Japan Craft Holdings Co., Ltd. faces significant financial challenges, with declining revenues and profitability issues impacting its income statement. The balance sheet reflects increased leverage, while cash flow struggles indicate liquidity concerns. Overall, the company needs to address these financial weaknesses to improve its financial health.

Income Statement

The company has experienced a decline in revenue from the previous year, with a significant negative net profit margin indicating substantial losses. The negative EBIT and EBITDA margins also highlight ongoing operational challenges.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio, suggesting increased leverage risk. However, the equity ratio is decent, indicating a fair proportion of equity financing. The consistent decline in stockholders' equity over time is a concern.

Cash Flow

The company has negative free cash flow growth, and the operating cash flow is lower than the net income, indicating cash flow issues. The free cash flow to net income ratio also suggests inefficiencies in converting income into cash.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	15.39B	16.99B	15.71B	20.69M	22.35M
Gross Profit	8.31B	9.52B	8.62B	12.19M	13.01M
EBITDA	-1.79B	-2.85B	-2.23B	973.00K	997.00K
Net Income	-2.09B	-3.28B	-2.69B	757.00K	282.00K
Balance Sheet
Total Assets	11.29B	12.71B	10.19B	13.57B	14.47B
Cash, Cash Equivalents and Short-Term Investments	1.91B	2.08B	1.33B	4.37B	5.14B
Total Debt	3.34B	1.89B	30.63M	84.64M	168.05M
Total Liabilities	8.32B	7.69B	3.96B	4.24B	5.59B
Stockholders Equity	2.97B	5.03B	6.23B	9.33B	8.88B
Cash Flow
Free Cash Flow	-1.73B	-1.19B	-2.71B	-527.68M	2.33B
Operating Cash Flow	-1.53B	-882.86M	-2.33B	-103.27M	2.44B
Investing Cash Flow	-60.59M	730.58M	-305.41M	-386.44M	3.19M
Financing Cash Flow	1.42B	-614.21M	-293.31M	-390.91M	-286.31M

JAPAN CRAFT HOLDINGS CO.,LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 245.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7135, the sentiment is Positive. The current price of 245 is above the 20-day moving average (MA) of 221.30, above the 50-day MA of 210.40, and above the 200-day MA of 159.02, indicating a bullish trend. The MACD of 6.82 indicates Negative momentum. The RSI at 64.90 is Neutral, neither overbought nor oversold. The STOCH value of 86.50 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7135.

JAPAN CRAFT HOLDINGS CO.,LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3566	79 Outperform	¥6.27B	16.28		0.58%	12.62%	-8.36%
Sector *	61 Neutral	$16.08B	9.94	-8.64%	3.35%	1.36%	-20.44%
8025	61 Neutral	¥5.34B	38.27		2.25%	-1.20%	-317.90%
3070	52 Neutral	¥9.96B	―		―	-9.74%	46.74%
7135	51 Neutral	¥9.15B	―		1.22%	-10.89%	82.42%
7494	50 Neutral	¥8.19B	―		2.02%	-9.83%	-371.31%