Poppins Corporation (7358) AI Stock Analysis

• Market Cap: ¥14.12B
• Dividend Yield: 2.82%
• Average Volume (3M): 22.18K
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.74
• Revenue Growth: 7.95%
• EPS Growth: 13.67%
• Country: JP
• Employees: 3,204
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Personal Products & Services
• EPS (TTM): 29.53
• Shares Outstanding: 10,177,300
• 10 Day Avg. Volume: 32,400
• 30 Day Avg. Volume: 22,176
• PEG Ratio: 0.26
• Price to Book (P/B): 1.49
• Price to Sales (P/S): 0.40
• P/FCF Ratio: 15.64
• 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): 123.1
• Revenue Forecast (FY): ¥35.00B

• Rating: 68 Neutral
• Price Target: ¥1,518.00 ▲(7.36% Upside)
• Action: Downgraded Date: 02/18/26
• Date: Action: Downgraded 02/18/26

The score is driven primarily by solid financial performance (steady growth and a sound balance sheet) and supportive valuation (moderate P/E and ~3.1% yield). These strengths are tempered by inconsistent historical cash-flow generation and mixed technical signals with only modest momentum.

Positive Factors

Consistent Revenue Growth

Multi-year revenue expansion demonstrates durable demand for Poppins' household, personal care and children's products. Steady top-line growth supports scale advantages, distributor leverage and product development funding, making sales trends a reliable foundation for earnings over the medium term.

Healthy Balance Sheet and Improved Leverage

A strong equity base and moderate debt provide financial flexibility to invest, withstand shocks, and pursue partnerships. Improved leverage versus 2020 lowers refinancing risk and interest burden, supporting capital allocation choices and long-term stability of operations and strategy execution.

Return to Positive Free Cash Flow

Sustained positive free cash flow after prior deficits indicates improving cash conversion and the capacity to fund organic growth, repay debt, and support product R&D. Durable FCF generation over 2024–2025 enhances financial resilience and reduces reliance on external financing.

Negative Factors

Thin Profit Margins

Low net and EBIT margins leave limited buffer against input cost inflation or competitive price pressure. Thin profitability constrains retained earnings for reinvestment, reduces return on capital, and makes long-term earnings sensitive to modest revenue or cost swings.

Volatile Historical Cash Flow

Material FCF swings across recent years indicate inconsistent cash conversion and episodic heavy investment or working-capital strain. This volatility raises execution risk for sustaining capex, dividends, or buybacks, and complicates medium-term financial planning.

Variability in Leverage / Capital Decisions

Fluctuations in leverage suggest episodic financing or inconsistent capital-allocation choices. Management variability on debt levels can increase refinancing and strategic execution risk, potentially limiting predictability of funding for M&A, R&D, or sustained shareholder returns.

Poppins Corporation Business Overview & Revenue Model

Company Description

Poppins Corporation provides family care and edu-care services in Japan. It offers child-rearing support services, including nanny services, nursery school, kids rooms, in-house nursery facilities, test preparation classes for kindergarten and elementary school, preschool, school for early childhood education, and after school; infant/early childhood education support services comprising training and education of nannies and infant/early childhood professionals, and training and study-abroad programs for staff of nursery and/or preschool facilities, as well as research services for govt and educational institutions; child-rearing business consulting services; and elderly care support services, such as home care services for seniors, daytime care services, and training and education support services for elderly care professionals. The company was founded in 1987 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Poppins Corporation generates revenue primarily through the sale of its core products, including cleaning supplies, personal care items, and children's products. The company utilizes a multi-channel distribution model, selling its products through retail stores, online platforms, and direct-to-consumer channels. Key revenue streams include wholesale partnerships with major retailers, e-commerce sales through its website and third-party platforms, and subscription services for replenishable products. Additionally, Poppins benefits from strategic partnerships with eco-friendly organizations, which enhance its brand reputation and expand its market reach. The company's investment in research and development allows it to introduce new products that meet evolving consumer preferences, thereby driving sales growth.

Poppins Corporation Financial Statement Overview

Summary

Fundamentals are solid: steady revenue growth through 2025 and a healthy balance sheet with manageable debt and improved leverage. The main constraints are thin profitability (e.g., 2024 net margin ~2.4%) and historically volatile free cash flow, despite a rebound to positive FCF in 2024–2025.

Income Statement

Revenue has grown steadily from 2020 to 2025 (about 34.4B in 2025, up from ~23.0B in 2020), showing consistent demand and execution. Profitability, however, has moderated versus earlier years: 2024 net margin was ~2.4% and EBIT margin ~3.9%, and 2025 shows higher absolute profit (net income ~1.14B) but margins are not provided and the multi-year trend points to tighter profitability than 2020–2022. Overall: solid growth and positive earnings, offset by margin compression and a relatively thin net margin profile.

Balance Sheet

The balance sheet looks sound with sizable equity (~9.26B in 2025) against moderate debt (~2.44B in 2025). Leverage improved meaningfully versus 2020 (debt-to-equity was ~0.63 in 2020 and ~0.47 in 2024), which reduces financial risk. Total assets are stable around the mid-teens (about 16.5B in 2025). The main watch-out is that leverage rose in 2024 versus 2023 before improving again in 2025, suggesting some variability in capital structure decisions.

Cash Flow

Cash generation is positive recently with operating cash flow of ~1.84B in 2024 and ~1.54B in 2025, and free cash flow turning solidly positive in 2024 (~1.18B) and staying positive in 2025 (~0.88B). That said, cash flow has been volatile over the cycle: free cash flow was materially negative in 2022 and 2023, indicating periods of heavy investment or weaker cash conversion. Recent improvement is a strength, but the history of swings keeps the score below the income statement and balance sheet.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	33.18B	34.41B	31.69B	28.89B	26.26B	24.75B
Gross Profit	7.08B	7.49B	6.58B	5.94B	5.60B	5.34B
EBITDA	1.67B	2.08B	1.51B	1.37B	1.47B	1.75B
Net Income	916.00M	1.14B	776.00M	677.00M	824.00M	966.00M
Balance Sheet
Total Assets	16.33B	16.50B	16.71B	14.62B	12.55B	13.13B
Cash, Cash Equivalents and Short-Term Investments	8.13B	7.61B	8.37B	5.00B	4.24B	6.35B
Total Debt	2.29B	2.44B	3.98B	2.65B	1.45B	2.26B
Total Liabilities	7.61B	7.24B	8.21B	6.51B	4.73B	5.75B
Stockholders Equity	8.72B	9.26B	8.51B	8.12B	7.82B	7.38B
Cash Flow
Free Cash Flow	0.00	882.00M	1.18B	-825.00M	-1.46B	453.00M
Operating Cash Flow	0.00	1.53B	1.84B	771.00M	304.00M	1.28B
Investing Cash Flow	0.00	-366.00M	598.00M	-827.00M	-1.21B	-690.00M
Financing Cash Flow	0.00	-1.94B	933.00M	815.00M	-1.20B	-2.36B

Poppins Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1414.00
• 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:7358, the sentiment is Positive. The current price of 1414 is below the 20-day moving average (MA) of 1415.45, below the 50-day MA of 1414.80, and above the 200-day MA of 1363.83, indicating a bullish trend. The MACD of 9.18 indicates Negative momentum. The RSI at 59.70 is Neutral, neither overbought nor oversold. The STOCH value of 82.28 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7358.

Poppins Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7378	78 Outperform	¥15.79B	15.23	―	2.78%	38.54%	619.34%
7523	73 Outperform	¥14.86B	10.35	―	2.67%	1.90%	7.25%
7358	68 Neutral	¥14.12B	12.43	―	2.82%	7.95%	13.67%
6571	62 Neutral	¥18.02B	16.16	―	2.53%	4.71%	-0.41%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
9262	61 Neutral	¥9.03B	12.60	―	2.04%	10.87%	14.80%
7578	44 Neutral	¥2.07B	4.60	―	―	-15.38%	―