Decollte Holdings Corporation (7372) AI Stock Analysis

• Market Cap: ¥2.14B
• Dividend Yield: N/A
• Average Volume (3M): 16.74K
• Price to Earnings (P/E): 14.8
• Beta (1Y): 1.18
• Revenue Growth: 8.17%
• EPS Growth: 37.03%
• Country: JP
• Employees: 444
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Personal Products & Services
• EPS (TTM): -19.02
• Shares Outstanding: 5,670,000
• 10 Day Avg. Volume: 8,670
• 30 Day Avg. Volume: 16,736
• PEG Ratio: 0.44
• Price to Book (P/B): 0.47
• Price to Sales (P/S): 0.39
• P/FCF Ratio: 1.97
• 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: 71 Outperform
• Price Target: ¥451.00 ▲(11.91% Upside)

Decollte Holdings Corporation's stock score is primarily driven by its solid financial performance and positive technical indicators. The company's stable revenue growth and operational efficiency are significant strengths, although profitability and leverage management require attention. The stock's valuation is reasonable, making it attractive for growth investors. The technical analysis supports a bullish outlook, contributing positively to the overall score.

Positive Factors

Consistent Revenue Growth

Sustained revenue growth supports long-term business durability in consumer-facing beauty and wellness. It indicates steady demand and market penetration, enabling predictable top-line cash generation that underpins reinvestment for product, store, or service expansion over the next 2–6 months and beyond.

Strong Operating Cash Flow

Growing operating cash flow and healthy conversion from net income indicate the core business reliably generates cash. This underpins spending on capex, working capital and debt service without relying solely on external financing, supporting medium-term operational resilience and strategic investments.

Improving Capital Structure

An improving debt-to-equity and equity ratio shows progress in leverage management, enhancing financial flexibility. This trend reduces refinancing risk and strengthens the balance sheet, making the company better positioned to absorb shocks or fund growth initiatives over the coming months.

Negative Factors

Negative Free Cash Flow Growth

Persistent negative free cash flow growth constrains the firm’s ability to fund expansion, repay debt or return capital without external financing. Over a 2–6 month horizon this raises dependency on borrowing or equity, limiting strategic optionality and increasing financial vulnerability.

Declining Profit Margins

Eroding gross and net margins point to rising costs or weaker pricing power in core beauty and wellness operations. Margin compression reduces sustainable profitability and cash available for reinvestment or deleveraging, pressuring returns to shareholders unless cost or pricing improvements are enacted.

Remaining High Leverage & Falling ROE

Although leverage has improved, the debt-to-equity ratio remains elevated and ROE has fallen, indicating reduced shareholder profitability and higher interest exposure. High leverage magnifies earnings volatility and constrains strategic moves, increasing downside risk in adverse conditions.

Decollte Holdings Corporation Business Overview & Revenue Model

Company Description

Decollte Holdings Corporation, through its subsidiaries, primarily engages in the photo studio business. It operates wedding photo studios under the Studio AQUA, Studio TVB, Studio 8, Studio AN, Studio SUNS, and Studio Sola brands; and anniversary photo studio under the HAPISTA brand name. It is also involved in the operation of fitness gyms under the Forty Minutes brand. The company was founded in 2001 and is headquartered in Kobe, Japan.

How the Company Makes Money

Decollte Holdings Corporation generates revenue through the sale of its electronic components and systems, which are integral to various applications in multiple industries. Key revenue streams include the direct sale of semiconductor devices and integrated circuits, as well as licensing fees for software solutions associated with its products. The company also engages in partnerships with major technology firms and manufacturers, allowing for collaborative development and distribution of specialized products, which further enhances its income. Additionally, Decollte Holdings benefits from long-term contracts with clients in critical sectors, ensuring a steady flow of revenue and positioning itself as a reliable supplier in the competitive electronics market.

Decollte Holdings Corporation Financial Statement Overview

Summary

Decollte Holdings Corporation demonstrates solid revenue growth and operational efficiency, but faces challenges in maintaining profitability and managing leverage. While the company generates strong operating cash flow, negative free cash flow growth could hinder future expansion. Overall, the financial health is stable but requires attention to profitability and leverage management.

Income Statement

Decollte Holdings Corporation has shown consistent revenue growth over the years, with a slight dip in 2024. The gross profit margin has decreased from 2021 to 2025, indicating rising costs or pricing pressures. The net profit margin has also declined, suggesting reduced profitability. However, the company maintains a positive EBIT and EBITDA margin, reflecting operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved slightly from 2020 to 2025, indicating better leverage management. However, the ratio remains relatively high, posing potential financial risk. Return on equity has decreased over the years, reflecting reduced profitability for shareholders. The equity ratio has improved, suggesting a stronger financial position.

Cash Flow

Operating cash flow has shown growth, indicating strong cash generation capabilities. However, free cash flow growth has been negative in recent years, which could impact future investments. The operating cash flow to net income ratio is healthy, suggesting efficient cash conversion from earnings.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.05B	6.05B	5.59B	5.85B	5.32B	4.59B
Gross Profit	2.08B	2.08B	1.84B	2.33B	2.22B	1.97B
EBITDA	1.14B	1.14B	1.10B	1.72B	2.03B	1.38B
Net Income	145.31M	145.54M	106.15M	492.01M	1.02B	574.98M
Balance Sheet
Total Assets	12.32B	12.32B	12.78B	13.65B	12.59B	11.15B
Cash, Cash Equivalents and Short-Term Investments	329.70M	329.70M	222.50M	808.51M	1.35B	1.29B
Total Debt	5.88B	5.88B	6.80B	7.53B	6.93B	5.97B
Total Liabilities	7.34B	7.34B	7.95B	8.89B	8.33B	7.33B
Stockholders Equity	4.98B	4.98B	4.83B	4.76B	4.26B	3.83B
Cash Flow
Free Cash Flow	1.19B	1.19B	515.00M	599.74M	915.23M	959.67M
Operating Cash Flow	1.37B	1.37B	715.87M	1.24B	1.15B	1.25B
Investing Cash Flow	-263.83M	-264.55M	-212.56M	-732.84M	198.89M	-356.94M
Financing Cash Flow	-993.87M	-994.79M	-1.09B	-1.05B	-1.29B	-1.19B

Decollte Holdings Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 403.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7372, the sentiment is Positive. The current price of 403 is below the 20-day moving average (MA) of 409.50, below the 50-day MA of 423.28, and above the 200-day MA of 391.13, indicating a bullish trend. The MACD of 0.87 indicates Negative momentum. The RSI at 56.44 is Neutral, neither overbought nor oversold. The STOCH value of 67.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7372.

Decollte Holdings Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7372	71 Outperform	¥2.14B	14.84	―	―	8.17%	37.03%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
6186	61 Neutral	¥2.19B	-54.84	―	3.76%	-2.06%	-109.18%
3041	49 Neutral	¥1.93B	140.69	―	1.19%	6.83%	1654.82%
4679	47 Neutral	¥2.55B	314.66	―	―	-6.45%	99.39%
7062	41 Neutral	¥2.14B	28.25	―	―	31.45%	―