RIGHT ON Co., Ltd. (7445) AI Stock Analysis

• Market Cap: ¥10.04B
• Dividend Yield: N/A
• Average Volume (3M): 64.02K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.40
• Revenue Growth: -22.83%
• EPS Growth: -106.69%
• Country: JP
• Employees: 776
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): 0.34
• Shares Outstanding: 35,540,592
• 10 Day Avg. Volume: 24,670
• 30 Day Avg. Volume: 64,016
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥296.37
• Price Target Upside: 4.73% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 44 Neutral
• Price Target: ¥297.00 ▲(4.95% Upside)

The overall stock score is primarily impacted by the company's weak financial performance, characterized by declining revenues and persistent losses. Technical analysis suggests potential for a short-term rebound, but valuation metrics are unattractive due to negative earnings. The absence of earnings call data and corporate events leaves these areas unaddressed.

RIGHT ON Co., Ltd. Business Overview & Revenue Model

Company Description

RIGHT ON Co., Ltd. operates a chain of casual wear specialty stores in Japan. Its stores primarily offer jeans, as well as other casual wear products to male and female customers. The company also sells its products through online. As of February 28, 2021, it operated approximately 426 stores. RIGHT ON Co., Ltd. was founded in 1980 and is headquartered in Tokyo, Japan.

How the Company Makes Money

RIGHT ON Co., Ltd. generates revenue primarily through the sale of clothing and accessories in its retail stores located throughout Japan. The company's revenue model centers around direct-to-consumer sales, leveraging its extensive network of physical stores to reach a broad customer base. A significant portion of RIGHT ON's earnings is derived from its private label products, which offer higher margins compared to third-party brands. Additionally, the company may engage in online sales through its e-commerce platform, expanding its reach beyond physical locations. Partnerships with popular clothing brands and exclusive collaborations also contribute to its revenue by attracting diverse customer segments and enhancing its product offerings.

RIGHT ON Co., Ltd. Financial Statement Overview

Summary

RIGHT ON Co., Ltd. faces significant financial challenges with declining revenues, persistent losses, and negative margins. The balance sheet shows increased leverage and decreased equity, raising solvency concerns. Negative operating and free cash flows highlight liquidity issues, indicating weak overall financial health.

Income Statement

RIGHT ON Co., Ltd. has experienced a significant decline in total revenue from 2019 through 2024, with a noticeable drop from 73.96 billion yen in 2019 to 38.81 billion yen in 2024. The gross profit margin has decreased, and the company consistently reported negative net income, indicating persistent profitability challenges. The EBIT and EBITDA margins are negative, reflecting operational inefficiencies and potential cost management issues. Overall, the income statement points to a struggling financial performance with declining revenues and negative profitability margins.

Balance Sheet

The balance sheet of RIGHT ON Co., Ltd. shows a concerning trend with declining total assets and stockholders' equity, reducing from 46.61 billion yen in 2019 to 15.3 billion yen in 2024. The debt-to-equity ratio has worsened, indicating increased financial leverage and potential solvency risk. The equity ratio has decreased significantly, reflecting reduced financial stability. Despite a decrease in total liabilities, the substantial reduction in equity is alarming. Overall, the balance sheet suggests weakened financial health and increased leverage risk.

Cash Flow

The cash flow analysis reveals operational challenges, with negative operating cash flows for most years, although there was a brief positive in 2022. Free cash flow remains negative, highlighting cash generation issues. The operating cash flow to net income ratio consistently reflects poor cash conversion. Although capital expenditures are relatively low, the negative free cash flow and operating cash flow trends indicate ongoing liquidity and operational efficiency issues. Overall, the cash flow statement shows cash management difficulties and liquidity risks.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	38.81B	46.93B	48.23B	49.60B	52.97B
Gross Profit	14.98B	22.57B	23.76B	25.16B	24.61B
EBITDA	-11.44B	-1.56B	429.00M	-1.03B	-4.54B
Net Income	-12.14B	-2.54B	-1.17B	-2.07B	-5.72B
Balance Sheet
Total Assets	15.30B	27.00B	34.04B	34.27B	39.72B
Cash, Cash Equivalents and Short-Term Investments	1.16B	3.48B	8.22B	6.18B	10.20B
Total Debt	2.44B	5.15B	7.68B	7.32B	10.34B
Total Liabilities	14.98B	14.44B	19.01B	19.32B	22.75B
Stockholders Equity	316.00M	12.56B	15.03B	14.75B	16.97B
Cash Flow
Free Cash Flow	-717.00M	-2.31B	88.00M	-1.02B	-5.03B
Operating Cash Flow	-577.00M	-1.72B	682.00M	-528.00M	-3.54B
Investing Cash Flow	823.00M	-460.00M	-287.00M	-471.00M	-1.52B
Financing Cash Flow	-2.77B	-2.56B	1.67B	-3.02B	1.70B

RIGHT ON Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 283.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7445, the sentiment is Neutral. The current price of 283 is below the 20-day moving average (MA) of 292.35, below the 50-day MA of 313.12, and above the 200-day MA of 253.04, indicating a neutral trend. The MACD of -9.43 indicates Negative momentum. The RSI at 38.80 is Neutral, neither overbought nor oversold. The STOCH value of 45.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7445.

RIGHT ON Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3415	60 Neutral	19.11B	20.67	15.21%	1.07%	10.04%	152.67%
7416	55 Neutral	12.68B	122.52	2.77%	2.00%	0.77%	-69.77%
7494	50 Neutral	9.02B	-5.22	-18.86%	1.85%	-10.02%	-37.15%
7445	44 Neutral	¥10.04B	―	-188.10%	―	-22.83%	-106.69%
3189	43 Neutral	19.34B	7.28	57.17%	―	-55.76%	―
7603	40 Underperform	6.69B	-2.79	-119.29%	―	-10.95%	-19.17%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%