Haruyama Holdings Inc. (7416) AI Stock Analysis

• Market Cap: ¥14.23B
• Dividend Yield: 2.24%
• Average Volume (3M): 4.13K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.14
• Revenue Growth: 0.49%
• EPS Growth: -169.64%
• Country: JP
• Employees: 1,119
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): -5.86
• 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: ¥887.00 ▲(16.71% Upside)
• Action: Reiterated Date: 11/22/25
• Date: Action: Reiterated 11/22/25

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

Recovering from a multi-year loss to post net income by 2025 demonstrates operational improvement and management execution. A durable return to profitability improves internal funding capacity, supports reinvestment, and reduces reliance on external financing over the next several quarters.

Balance sheet strength

A solid equity base and adequate cash balances provide financial flexibility to withstand retail volatility, fund inventory and store operations, and support strategic initiatives. Controlled leverage reduces refinancing risk and underpins stability in uncertain retail cycles.

Consistent gross margin

Stable gross margins signal durable sourcing and pricing discipline in apparel retail, protecting core profitability despite revenue swings. Predictable product margins help planning for inventory, promotions, and maintain long-term margin sustainability if sales trends stabilize.

Negative Factors

Declining revenue

A roughly 40% decline in revenue is a structural red flag for a retail apparel chain: it erodes scale economics, weakens negotiating power with suppliers, pressures store economics, and forces management to rely on margin fixes rather than top-line expansion for durable earnings recovery.

Volatile cash flow

Inconsistent operating and free cash flow constrains the company's ability to reinvest in stores, inventory, or omnichannel capabilities. Persistent volatility raises financing needs, limits capital allocation flexibility, and increases execution risk for multi-quarter recovery plans.

Earnings volatility (EPS)

Extremely negative EPS growth reflects large swings in reported earnings, undermining forecasting reliability and investor confidence. Earnings volatility complicates long-term planning, dividend sustainability, and makes funding strategic initiatives more difficult without clearer profit consistency.

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 makes money primarily by retailing apparel through its store network. Its core revenue stream is merchandise sales to consumers, especially suits, business/formal clothing, and related accessories (e.g., shirts, ties, belts) purchased in-store. Earnings are driven by sales volume, product mix (higher-priced formalwear vs. lower-priced items), and gross margin management via sourcing, inventory control, and promotional pricing/seasonal campaigns typical of apparel retail. Additional revenue streams (e.g., e-commerce, tailoring/alteration services, licensing, wholesale, or other non-retail income) and any significant partnerships are null.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	36.03B	36.14B	35.92B	36.89B	36.69B	38.22B
Gross Profit	21.36B	20.87B	21.00B	21.44B	19.96B	19.99B
EBITDA	727.13M	1.25B	1.44B	1.40B	-1.85B	-2.36B
Net Income	89.33M	670.01M	405.62M	247.06M	-7.90B	-4.88B
Balance Sheet
Total Assets	41.04B	43.51B	47.60B	48.65B	51.18B	58.03B
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	10.26B	12.24B	13.33B	11.62B
Total Liabilities	18.19B	19.34B	23.65B	24.90B	27.70B	26.40B
Stockholders Equity	22.85B	24.17B	23.94B	23.75B	23.49B	31.63B
Cash Flow
Free Cash Flow	0.00	-1.02B	855.91M	3.92B	-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: Positive
• Last Price: 760.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7416, the sentiment is Positive. The current price of 760 is below the 20-day moving average (MA) of 793.40, below the 50-day MA of 783.18, and above the 200-day MA of 745.42, indicating a bullish trend. The MACD of 12.60 indicates Negative momentum. The RSI at 75.95 is Negative, neither overbought nor oversold. The STOCH value of 79.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7416.

Haruyama Holdings Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2792	72 Outperform	¥41.52B	10.95	―	3.62%	-0.98%	-29.86%
8214	72 Outperform	¥139.45B	20.46	―	4.49%	2.21%	4.36%
8219	71 Outperform	¥122.90B	24.22	5.53%	6.09%	-1.03%	4.12%
2726	70 Outperform	¥262.97B	19.60	―	1.46%	12.02%	-15.70%
8227	68 Neutral	¥746.94B	16.45	8.48%	2.02%	―	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7416	54 Neutral	¥14.23B	-34.34	―	2.24%	0.49%	-169.64%