Petgo Corporation (7140) AI Stock Analysis

• Market Cap: ¥1.56B
• Dividend Yield: N/A
• Average Volume (3M): 4.67K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.36
• Revenue Growth: -11.46%
• EPS Growth: -134.90%
• Country: JP
• Employees: 52
• Sector: Healthcare
• Sector Strength: 45
• Industry: Household & Personal Products
• EPS (TTM): -5.24
• Shares Outstanding: 1,889,200
• 10 Day Avg. Volume: 5,040
• 30 Day Avg. Volume: 4,670
• PEG Ratio: -0.54
• Price to Book (P/B): 1.48
• Price to Sales (P/S): 0.20
• P/FCF Ratio: 20.94
• 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: 65 Neutral
• Price Target: ¥945.00 ▲(17.10% Upside)
• Action: Reiterated Date: 10/29/25
• Date: Action: Reiterated 10/29/25

Petgo Corporation's overall stock score reflects strong financial performance with effective cost management and a solid balance sheet. However, technical indicators suggest weak market momentum, and valuation metrics indicate moderate attractiveness. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Strong equity base

A strong equity position provides durable financial flexibility, allowing Petgo to absorb shocks, fund strategic initiatives, and access capital on better terms. This cushioning supports medium-term stability and the ability to invest in product development or marketing without immediate reliance on external funding.

Stable gross margins

Stable gross margins signal structural cost control and pricing discipline, enabling Petgo to maintain profitability through cycles. Consistent gross margin underpins sustainable operating profits, supports reinvestment in the business, and reduces sensitivity to moderate top-line swings over a 2-6 month horizon.

Positive cash conversion

A positive free cash flow to net income ratio reflects efficient conversion of accounting profits into cash, supporting capex, debt servicing, or reinvestment. This operational cash generation is a durable strength that improves solvency and strategic optionality even if earnings face short-term fluctuations.

Negative Factors

Declining revenue

A near-18% revenue decline is a structural concern: shrinking top line reduces scale, weakens bargaining power, and compresses future profit potential. Unless reversed by product or market actions, persistent revenue contraction undermines margin sustainability and long-term growth prospects.

Falling return on equity

Declining ROE signals deteriorating effectiveness at converting equity into returns, eroding shareholder value over time. Persistently lower net income reduces internal funding capacity, may pressure strategic investments, and heightens reliance on external financing to pursue growth.

Rising leverage

An uptick in debt-to-equity increases fixed obligations and financial risk, especially given volatile operating cash flow. Higher leverage reduces margin for error, constrains capital allocation flexibility, and raises vulnerability to rate shifts or demand shocks over the medium term.

Petgo Corporation Business Overview & Revenue Model

Company Description

Petgo Corporation operates an e-commerce platform for pet health care products. The company also operates DX platform to manage pet data. It owns and operates stores for dog and cat consumer goods. Petgo Corporation was incorporated in 2004 and is headquartered in Tokyo, Japan.

Petgo Corporation Financial Statement Overview

Summary

Petgo Corporation demonstrates strong revenue generation and effective cost management. However, profitability and cash flow stability need improvement. The balance sheet is solid with a healthy equity base, but increased leverage could pose risks if not managed carefully.

Income Statement

Petgo Corporation has demonstrated consistent revenue generation with a slight decline in revenue in the most recent year. The gross profit margin remains stable, indicating effective cost management. However, the net profit margin has decreased due to reduced net income. The EBIT and EBITDA margins show moderate profitability, which is typical for the industry.

Balance Sheet

The company's balance sheet shows a strong equity position with a favorable equity ratio. The debt-to-equity ratio has increased slightly, which could imply rising leverage but remains manageable. Return on equity has decreased due to lower net income, indicating a need for improved profitability.

Cash Flow

Petgo's operating cash flow has shown volatility, impacting the free cash flow growth negatively. Despite this, the company has managed to maintain a positive free cash flow to net income ratio, highlighting operational resilience. The cash flow from operations relative to net income signifies efficient cash conversion, albeit with room for stability improvement.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	8.74B	9.03B	9.91B	10.03B	9.65B	9.46B
Gross Profit	2.76B	2.81B	2.77B	2.85B	2.57B	2.58B
EBITDA	179.20M	237.75M	262.35M	254.52M	180.34M	122.70M
Net Income	67.68M	128.34M	172.33M	153.30M	105.13M	71.13M
Balance Sheet
Total Assets	3.30B	3.31B	3.30B	3.08B	2.49B	2.30B
Cash, Cash Equivalents and Short-Term Investments	980.26M	1.26B	901.43M	844.06M	782.89M	861.96M
Total Debt	1.08B	1.11B	763.39M	874.25M	884.23M	736.27M
Total Liabilities	2.04B	2.09B	2.18B	2.14B	2.04B	1.95B
Stockholders Equity	1.23B	1.23B	1.12B	935.39M	454.79M	349.31M
Cash Flow
Free Cash Flow	0.00	86.89M	160.23M	-255.50M	-226.13M	230.63M
Operating Cash Flow	0.00	89.42M	163.47M	-244.26M	-220.67M	242.55M
Investing Cash Flow	0.00	-37.34M	-3.24M	-11.88M	-6.36M	-15.65M
Financing Cash Flow	0.00	310.08M	-102.86M	317.32M	147.96M	-216.47M

Petgo Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 807.00
• 50DMA: Negative
• 100DMA: Negative
• 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:7140, the sentiment is Negative. The current price of 807 is below the 20-day moving average (MA) of 880.75, below the 50-day MA of 862.50, and below the 200-day MA of 810.89, indicating a neutral trend. The MACD of -6.18 indicates Positive momentum. The RSI at 38.60 is Neutral, neither overbought nor oversold. The STOCH value of 18.76 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7140.

Petgo Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8113	78 Outperform	¥1.68T	23.99	10.79%	3.47%	-1.56%	-1.15%
7956	77 Outperform	¥192.02B	22.49	―	4.66%	11.38%	79.21%
4912	76 Outperform	¥442.65B	16.83	9.09%	1.73%	2.18%	60.81%
8283	75 Outperform	¥283.91B	11.95	7.40%	2.30%	3.75%	3.77%
4452	70 Outperform	¥2.72T	24.05	11.50%	2.41%	4.62%	47.68%
7140	65 Neutral	¥1.56B	-37.95	―	―	-11.46%	-134.90%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%