Haruyama Holdings Inc. (7416) AI Stock Analysis

• Market Cap: ¥12.35B
• Dividend Yield: 2.24%
• Average Volume (3M): 4.13K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.17
• Revenue Growth: 0.49%
• EPS Growth: -169.64%
• Country: JP
• Employees: 1,119
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): -88.64
• Shares Outstanding: 16,485,079
• 10 Day Avg. Volume: 4,410
• 30 Day Avg. Volume: 4,130
• PEG Ratio: 0.23
• Price to Book (P/B): 0.42
• Price to Sales (P/S): 0.28
• P/FCF Ratio: -9.86
• 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: 54 Neutral
• Price Target: ¥798.00 ▲(5.00% Upside)

The overall stock score of 54 reflects a mixed financial performance with notable improvements in profitability but challenges in cash flow management. Technical analysis indicates bearish momentum, with the stock trading below key moving averages and oversold conditions. Valuation concerns are highlighted by a negative P/E ratio, though the dividend yield offers some investor appeal.

Positive Factors

Profitability Turnaround

A sustained shift from loss to profit reflects structural improvements in cost control and pricing power. This durable recovery increases internal funding capacity for inventory, store investments or strategic initiatives, improves stakeholder confidence and supports multi-quarter operational stability.

Balance Sheet Strength

A strong equity base and healthy cash buffers provide financial resilience against retail cycles and unexpected shocks. Controlled leverage and liquidity give the company durable flexibility to finance working capital, pursue selective store or product investments, and withstand seasonal volatility.

High Reported Revenue Growth

Elevated revenue growth indicates expanding sales scale or improving product-market fit. Over a multi-month horizon this supports fixed-cost absorption, potential margin expansion if maintained, and a stronger platform to invest in omnichannel capabilities or category expansion for sustainable top-line momentum.

Negative Factors

Cash Flow Volatility

Inconsistent operating cash generation limits the firm's ability to self-fund inventory, capex and growth initiatives without external financing. Persistent volatility raises refinancing and execution risk, constraining durable investment plans and weakening resilience through retail seasonality.

Margin Volatility and Modest Sales

Fluctuating EBIT margins and only modest revenue expansion reduce earnings predictability and make long-term planning harder. Margin instability can erode returns on incremental sales and makes the business more vulnerable to cost inflation or weaker demand over a multi-month horizon.

Concentrated Store-Based Apparel Model

Heavy dependence on in-store sales and a narrow formalwear mix exposes the company to secular shifts (workplace dress changes, foot-traffic trends) and limits revenue diversification. Structural reliance on stores increases exposure to longer-term demand changes and retail operating cost pressures.

Haruyama Holdings Inc. Business Overview & Revenue Model

Company Description

Haruyama Holdings Inc. engages in the sale of menswear, womenswear, and related accessories in Japan. It provides suits and ties, as well as casual, and business clothes. As of March 31, 2020, it operated 464 stores. The company was formerly known as Haruyama Trading Company Limited. and changed its name to Haruyama Holdings Inc. in January 2017. Haruyama Holdings Inc. was founded in 1974 and is headquartered in Okayama, Japan.

How the Company Makes Money

Haruyama Holdings generates revenue primarily through the sale of apparel and accessories in both its brick-and-mortar stores and online platforms. The company’s revenue model is driven by a combination of direct sales to consumers and wholesale distribution to other retailers. Key revenue streams include the sale of formal wear, casual clothing, and seasonal fashion collections. Additionally, the company may benefit from partnerships with other brands or retail platforms, enhancing its market presence and distribution capabilities. Factors contributing to its earnings include effective inventory management, marketing strategies, and a focus on customer experience, which helps to build brand loyalty and repeat business.

Haruyama Holdings Inc. Financial Statement Overview

Summary

Haruyama Holdings Inc. has shown notable improvement in profitability and has maintained a stable balance sheet. The recent turnaround in net income is a positive signal. However, cash flow management remains an area of concern, with inconsistencies potentially impacting future investments and growth. Continued focus on enhancing revenue and operational efficiency will be crucial for sustained financial health.

Income Statement

The income statement shows considerable improvement in recent years. The company has managed to turn around its net income from a significant loss in 2022 to a profit in 2025. Gross Profit Margin has been relatively stable, indicating consistent cost management. However, EBIT margins have fluctuated, suggesting potential volatility. Revenue growth has been modest, and a focus on increasing sales could further strengthen financial performance.

Balance Sheet

The balance sheet reveals a solid equity position with a satisfactory equity ratio. The debt-to-equity ratio has been stable, reflecting controlled leverage levels. The company has maintained a healthy cash and cash equivalents balance, improving liquidity. However, some caution is warranted due to the fluctuations in total assets and liabilities over the reviewed period.

Cash Flow

The cash flow statement indicates challenges in maintaining consistent positive cash flows. Operating cash flow has been volatile, with recent periods showing negative figures. The free cash flow has also experienced fluctuations, impacting the company's ability to reinvest independently. Positive free cash flow in earlier years is a strength, but recent negative trends need addressing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	36.03B	36.14B	35.92B	36.89B	36.69B	38.22B
Gross Profit	21.36B	21.47B	21.49B	22.00B	20.76B	21.19B
EBITDA	678.42M	1.51B	1.09B	1.44B	-3.29B	-4.11B
Net Income	88.89M	670.01M	405.62M	247.06M	-7.90B	-4.88B
Balance Sheet
Total Assets	41.04B	43.45B	47.29B	48.60B	51.13B	57.93B
Cash, Cash Equivalents and Short-Term Investments	7.68B	10.55B	13.83B	14.62B	12.36B	11.81B
Total Debt	7.22B	8.77B	10.23B	12.24B	13.33B	11.62B
Total Liabilities	18.19B	19.28B	23.35B	24.85B	27.64B	26.31B
Stockholders Equity	22.85B	24.17B	23.94B	23.75B	23.49B	31.63B
Cash Flow
Free Cash Flow	0.00	-1.02B	571.56M	3.27B	-2.03B	-4.78B
Operating Cash Flow	0.00	-138.95M	1.28B	4.17B	-1.82B	-4.20B
Investing Cash Flow	0.00	-1.19B	537.58M	-468.93M	162.94M	-674.73M
Financing Cash Flow	0.00	-1.95B	-2.60B	-1.44B	2.20B	4.58B

Haruyama Holdings Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 760.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7416, the sentiment is Neutral. The current price of 760 is below the 20-day moving average (MA) of 766.95, above the 50-day MA of 731.14, and above the 200-day MA of 722.78, indicating a neutral trend. The MACD of 18.19 indicates Positive momentum. The RSI at 47.40 is Neutral, neither overbought nor oversold. The STOCH value of 35.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7416.

Haruyama Holdings Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8214	72 Outperform	¥153.88B	17.90	―	4.49%	2.21%	4.36%
8219	71 Outperform	¥132.32B	14.00	5.53%	6.09%	-1.03%	4.12%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3415	55 Neutral	¥15.19B	16.49	―	1.08%	17.48%	83.54%
7416	54 Neutral	¥12.35B	-30.67	―	2.24%	0.49%	-169.64%
7603	48 Neutral	¥4.66B	-1.96	―	―	-7.88%	-11.22%
7494	47 Neutral	¥8.32B	17.58	―	4.13%	-10.82%	―