Decollte Holdings Corporation (7372) AI Stock Analysis

• Market Cap: ¥2.02B
• Dividend Yield: N/A
• Average Volume (3M): 16.74K
• Price to Earnings (P/E): 11.8
• Beta (1Y): 1.13
• Revenue Growth: 8.17%
• EPS Growth: 37.03%
• Country: JP
• Employees: 444
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Personal Products & Services
• EPS (TTM): 55.42
• 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: 57 Neutral
• Price Target: ¥410.00 ▲(1.74% Upside)
• Action: Downgraded Date: 02/07/26
• Date: Action: Downgraded 02/07/26

The score is primarily driven by improving financial momentum and solid cash generation, tempered by compressed profitability and elevated leverage. Technically, the stock’s trend is weak versus key moving averages, while valuation is moderately supportive with a reasonable P/E.

Positive Factors

Cash generation

Consistent positive operating and free cash flow provides durable internal funding for operations, capital spending, and debt service. That cash generation supports reinvestment and resilience through cycles, giving flexibility despite elevated leverage.

Revenue rebound

A sharp TTM revenue rebound implies restored demand and recovering top-line scale across the core beauty/wellness business. Sustained revenue recovery supports fixed-cost absorption and provides a foundation for margin recovery if maintained over coming quarters.

Operating margin profile

Relatively healthy gross margin and positive EBIT margin show the business retains pricing power or cost control at the operating level. Stable operating margins indicate structural ability to generate operating profits even if net margins are currently compressed.

Negative Factors

Elevated leverage

Meaningful debt-to-equity increases financial risk and limits strategic flexibility. Higher leverage raises interest and refinancing exposure, constraining the firm's ability to invest or absorb shocks and making performance more sensitive to cash-flow volatility.

Thin net profitability

Low net margins reduce the earnings cushion available to fund growth, service debt, and withstand downturns. Even with operating profits, weak bottom-line conversion suggests higher non-operating costs or tax/interest drag that can impair long-term capital accumulation.

Weak returns on equity

A subdued ROE signals lower capital efficiency versus prior years, implying the business is not currently delivering strong shareholder returns. Persistently weak ROE can limit reinvestment payoff and deter long-term scale unless profitability metrics improve.

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

Revenue rebounded sharply in TTM and cash flow remains solid, but profitability is still thin (net margin ~2.8%) and well below prior FY2021–FY2023 levels. Leverage is elevated (debt-to-equity ~1.62), limiting balance-sheet flexibility.

Income Statement

TTM (Trailing-Twelve-Months) revenue rebounded strongly (up ~187%), and profitability has improved versus FY2024, with gross margin ~35% and EBIT margin ~5.7%. However, earnings power remains modest: net margin is only ~2.8% in TTM and is far below FY2021–FY2023 levels, showing the business has not yet regained its prior profitability profile.

Balance Sheet

Leverage is meaningful: TTM debt-to-equity is ~1.62 (up from ~1.18 in FY2025), which reduces balance-sheet flexibility. Equity is positive and the company is generating a small return on equity (~2.9% TTM), but returns are well below earlier years (double-digit in FY2022–FY2023), suggesting weaker efficiency and higher financial risk than peers with cleaner balance sheets.

Cash Flow

Cash generation is a relative strength. TTM operating cash flow (~¥1.26B) and free cash flow (~¥1.09B) are solid and remain positive, supporting reinvestment and debt capacity. Still, free cash flow is down ~8.5% year over year in TTM, and cash conversion versus earnings is good but not exceptional (free cash flow is ~86% of net income), indicating some volatility and limited cushion if profits weaken.

Breakdown	TTM	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	6.16B	6.05B	5.59B	5.85B	5.32B	4.59B
Gross Profit	2.15B	2.08B	1.84B	2.33B	2.22B	1.97B
EBITDA	1.19B	1.14B	1.10B	1.72B	2.03B	1.38B
Net Income	171.46M	145.54M	106.15M	492.01M	1.02B	574.98M
Balance Sheet
Total Assets	12.49B	12.32B	12.78B	13.65B	12.59B	11.15B
Cash, Cash Equivalents and Short-Term Investments	747.64M	329.70M	222.50M	808.51M	1.35B	1.29B
Total Debt	8.55B	5.88B	6.80B	7.53B	6.93B	5.97B
Total Liabilities	7.22B	7.34B	7.95B	8.89B	8.33B	7.33B
Stockholders Equity	5.27B	4.98B	4.83B	4.76B	4.26B	3.83B
Cash Flow
Free Cash Flow	1.09B	1.19B	515.00M	599.74M	915.23M	959.67M
Operating Cash Flow	1.26B	1.37B	715.87M	1.24B	1.15B	1.25B
Investing Cash Flow	-241.09M	-264.55M	-212.56M	-732.84M	198.89M	-356.94M
Financing Cash Flow	-1.00B	-994.79M	-1.09B	-1.05B	-1.29B	-1.19B

Decollte Holdings Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 403.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Neutral. The current price of 403 is above the 20-day moving average (MA) of 398.15, above the 50-day MA of 401.44, and above the 200-day MA of 399.34, indicating a bearish trend. The MACD of -5.05 indicates Negative momentum. The RSI at 47.31 is Neutral, neither overbought nor oversold. The STOCH value of 65.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7372.

Decollte Holdings Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7042	71 Outperform	¥2.31B	12.99	―	2.09%	―	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
6186	61 Neutral	¥2.16B	-14.45	―	3.76%	-2.06%	-109.18%
7372	57 Neutral	¥2.02B	11.84	―	―	8.17%	37.03%
3041	49 Neutral	¥2.09B	-1,680.78	―	1.19%	6.83%	1654.82%
4679	47 Neutral	¥2.89B	347.83	―	―	-6.45%	99.39%
7062	41 Neutral	¥2.39B	7.21	―	―	31.45%	―