Nakayamafuku Co., Ltd. (7442) AI Stock Analysis

• Market Cap: ¥9.46B
• Dividend Yield: 2.33%
• Average Volume (3M): 13.66K
• Price to Earnings (P/E): 17.8
• Beta (1Y): 0.32
• Revenue Growth: 3.93%
• EPS Growth: 3458.02%
• Country: JP
• Employees: 433
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 7.12
• Shares Outstanding: 20,214,480
• 10 Day Avg. Volume: 10,790
• 30 Day Avg. Volume: 13,663
• PEG Ratio: <0.01
• Price to Book (P/B): 0.33
• Price to Sales (P/S): 0.18
• P/FCF Ratio: -13.44
• 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: 64 Neutral
• Price Target: ¥515.00 ▲(15.73% Upside)

The overall stock score of 64 reflects a balanced view of Nakayamafuku Co., Ltd. The company's strong balance sheet and fair valuation are positive factors. However, challenges in cash flow management and neutral technical indicators suggest caution. The absence of earnings call and corporate events data limits additional insights.

Positive Factors

Balance Sheet Strength

Low leverage and a high equity ratio provide durable financial flexibility, reducing refinancing and solvency risk. With D/E around 0.20 and robust equity, the company can fund strategic investments or weather demand shocks without large debt raises, supporting long-term stability.

Recovering Revenue Trend

Top-line recovery to ¥40.9bn from ¥38.5bn shows renewing demand and market traction. Sustained revenue growth improves fixed-cost absorption and creates room for scale-driven margin improvement, enabling reinvestment in stores, inventory, or omnichannel channels over the medium term.

Improving Profitability Metrics

Improving net margin and ROE indicate management is enhancing profitability after prior weakness. While still modest, consistent margin recovery points to better cost control and operational efficiency that can compound into stronger free cash flow and capital returns if sustained.

Negative Factors

Negative Free Cash Flow

Negative FCF and a very low operating-cash-to-income ratio show weak cash conversion. This undermines the company's ability to fund capex, inventory, dividends or debt service from operations, increasing reliance on external financing and constraining strategic flexibility.

Declining Gross Profit Margin

A falling gross margin to 19.1% signals structural pressure on core retail economics—from supplier costs, pricing, or product mix shifts. Sustained erosion here compresses operating profitability and limits scope for marketing or investment without sacrificing returns.

Very Thin Operating Margins

Operating margins near break-even offer little buffer against cost inflation or demand downturns. Persistently thin EBIT/EBITDA restricts reinvestment and debt reduction, increasing sensitivity to competitive pricing and making long-term growth financing more difficult.

Nakayamafuku Co., Ltd. Business Overview & Revenue Model

Company Description

Nakayamafuku Co.,Ltd. trades in a range of home-use products in Japan and internationally. The company is involved in the wholesale, import, and export of household metal ware, cooking appliances, lifestyle products, etc., as well as sanitary and storage products. It also manufactures and sells gardening products, furniture, fittings, and interior goods. The company offers its products through home centers and supermarkets, as well as internet. Nakayamafuku Co.,Ltd. was founded in 1925 and is based in Osaka, Japan.

How the Company Makes Money

Nakayamafuku Co., Ltd. generates revenue through multiple key streams, primarily by selling its processed food products to supermarkets, restaurants, and food service providers. The company capitalizes on its strong brand reputation and product quality to command premium pricing in the market. Additionally, Nakayamafuku has established partnerships with various distributors and retailers, which enhances its market reach and distribution efficiency. The company also engages in export activities, tapping into international markets, thereby diversifying its revenue sources. Seasonal promotions and strategic marketing initiatives further contribute to boosting sales and enhancing profitability.

Nakayamafuku Co., Ltd. Financial Statement Overview

Summary

Nakayamafuku Co., Ltd. shows a mixed financial performance. The income statement indicates recovering revenue and improved profitability, but gross profit margins have decreased. The balance sheet is strong with low leverage and high equity ratios, suggesting financial stability. However, cash flow management is a concern, with negative free cash flow and inefficiencies in cash generation.

Income Statement

The income statement shows a recovery in revenue from a dip in 2022, with growth to ¥40.9 billion in 2025 from ¥38.5 billion in 2024. However, gross profit margin has decreased from earlier periods, currently at 19.1%. Net profit margin improved significantly to 1.29% in 2025, after a low of 0.03% in 2024, indicating better profitability management. The EBIT and EBITDA margins have also shown signs of recovery, with EBIT margin reaching 0.38% and EBITDA margin at 3.26% in 2025, but remain lower compared to earlier years. These mixed results suggest moderate performance improvements with room for growth.

Balance Sheet

The balance sheet reflects a strong equity position with a debt-to-equity ratio at approximately 0.20 in 2025, indicating low leverage and financial stability. Return on equity (ROE) has improved to 2.35% in 2025, up from just 0.06% in 2024, showcasing better profitability on shareholders’ equity. The equity ratio remains robust at 68.3%, supporting the company's stability and low-risk profile. Overall, the company's balance sheet demonstrates solid financial health and low risk from debt.

Cash Flow

Cash flow statements indicate challenges, with free cash flow turning negative in 2025 at -¥551 million from a positive position in 2024. Operating cash flow to net income ratio dropped significantly to 0.08, indicating inefficiency in cash generation relative to net income. The free cash flow to net income ratio also turned negative, reflecting operational cash struggles. These factors suggest that while profitability has improved, cash generation and management need significant improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	41.48B	40.95B	38.59B	39.89B	42.72B	47.87B
Gross Profit	7.99B	7.82B	7.18B	7.91B	8.38B	9.76B
EBITDA	1.83B	1.34B	631.60M	1.40B	1.35B	1.94B
Net Income	783.13M	526.98M	14.44M	600.55M	568.03M	1.00B
Balance Sheet
Total Assets	30.64B	32.80B	32.89B	31.39B	31.04B	32.02B
Cash, Cash Equivalents and Short-Term Investments	4.88B	7.25B	6.44B	5.76B	5.00B	5.36B
Total Debt	2.64B	4.44B	3.34B	3.80B	4.21B	4.09B
Total Liabilities	8.29B	10.39B	10.46B	9.62B	9.77B	10.32B
Stockholders Equity	22.36B	22.40B	22.43B	21.77B	21.26B	21.70B
Cash Flow
Free Cash Flow	0.00	-551.22M	954.57M	677.57M	-8.84M	801.90M
Operating Cash Flow	0.00	43.84M	1.35B	739.22M	1.14B	1.45B
Investing Cash Flow	0.00	22.31M	57.12M	742.29M	-1.16B	403.81M
Financing Cash Flow	0.00	747.71M	-731.70M	-717.65M	-341.45M	-260.32M

Nakayamafuku Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 445.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7442, the sentiment is Positive. The current price of 445 is below the 20-day moving average (MA) of 474.00, above the 50-day MA of 442.56, and above the 200-day MA of 414.09, indicating a bullish trend. The MACD of 11.04 indicates Positive momentum. The RSI at 70.31 is Negative, neither overbought nor oversold. The STOCH value of 30.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7442.

Nakayamafuku Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7442	64 Neutral	¥9.46B	17.81	―	2.33%	3.93%	3458.02%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3135	61 Neutral	¥7.47B	17.51	―	―	25.60%	―
3396	60 Neutral	¥5.66B	10.55	―	1.76%	2.24%	―
7695	59 Neutral	¥6.03B	223.10	―	―	22.39%	-83.33%
3556	49 Neutral	¥16.83B	33.82	―	―	-10.83%	―
2769	45 Neutral	¥7.64B	-2.22	―	―	-4.54%	-261.55%