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

• Market Cap: ¥9.14B
• Dividend Yield: 2.33%
• Average Volume (3M): 13.66K
• Price to Earnings (P/E): 15.6
• Beta (1Y): 0.35
• 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: ¥498.00 ▲(11.91% Upside)
• Action: Reiterated Date: 10/28/25
• Date: Action: Reiterated 10/28/25

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

A low debt-to-equity ratio (~0.20) and a high equity ratio (68.3%) provide durable financial flexibility, reducing refinancing risk and enabling investment or weathering retail cyclicality. Improved ROE signals that shareholders’ capital is being deployed more effectively over time.

Revenue recovery

Consistent top-line recovery to ¥40.9bn and positive multi-year revenue growth indicate stable demand and potential market share stabilization in specialty retail. Durable revenue improvement supports capacity utilization and underpins longer-term margin and cash generation recovery if sustained.

Improving profitability metrics

Meaningful EPS and ROE improvement alongside rising net margin point to operational fixes and better cost control. Persistent margin expansion would improve reinvestment capacity and shareholder returns, making modest profitability gains more sustainable over several quarters.

Negative Factors

Negative free cash flow

Negative free cash flow and a steep drop in operating cash flow relative to net income signal cash conversion issues. Over time, weak cash generation can constrain capex, inventory management and dividends, forcing reliance on financing despite a strong balance sheet.

Gross margin compression

A declining gross margin to 19.1% suggests pressure on pricing or rising input/operating costs in specialty retail. Sustained margin compression would erode the operating buffer, requiring either price increases or cost restructuring to maintain durable profitability.

Thin operating and net margins

Very low EBIT and net margins leave limited cushion against demand shocks and reduce free cash flow potential. Even with recent improvements, persistently thin margins constrain reinvestment, limit strategic flexibility and increase dependence on operational efficiency gains.

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

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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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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	771.06M	594.18M	-37.76M	534.73M	938.53M	1.26B
Net Income	783.75M	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	4.66B	3.54B	3.96B	4.35B	4.15B
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	973.59M	689.44M	4.52M	813.33M
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: Negative
• Last Price: 445.00
• 50DMA: Negative
• 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:7442, the sentiment is Negative. The current price of 445 is below the 20-day moving average (MA) of 474.70, below the 50-day MA of 479.82, and above the 200-day MA of 430.10, indicating a neutral trend. The MACD of -3.06 indicates Positive momentum. The RSI at 43.33 is Neutral, neither overbought nor oversold. The STOCH value of 77.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7442.

Nakayamafuku Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3092	65 Neutral	¥960.48B	17.87	49.14%	2.82%	6.80%	0.62%
7442	64 Neutral	¥9.14B	15.62	―	2.33%	3.93%	3458.02%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3396	60 Neutral	¥5.79B	13.21	―	1.76%	2.24%	―
3192	56 Neutral	¥1.90B	4.66	―	―	0.06%	―
9557	52 Neutral	¥1.96B	-3.09	―	―	13.90%	-2872.89%
8165	45 Neutral	¥5.77B	33.76	―	―	-4.10%	―