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

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JP:7445

RIGHT ON Co., Ltd.

(Frankfurt:7445)

Rating:50Neutral
Price Target:
¥320.00
▲(0.00%Upside)
RIGHT ON Co., Ltd. faces significant financial performance challenges, including declining revenues, persistent losses, and liquidity issues, leading to a low financial performance score. The technical analysis provides a more positive outlook with bullish indicators. However, weak valuation metrics due to the negative P/E ratio and lack of dividends further constrain the overall stock score. The combination of these factors results in a below-average stock score.

RIGHT ON Co., Ltd. (7445) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionRIGHT ON Co., Ltd. (7445) is a retail company primarily engaged in the apparel sector, specializing in casual clothing and accessories. The company operates a chain of stores across Japan and caters to a wide demographic, offering a variety of products including jeans, shirts, outerwear, and related apparel items. RIGHT ON is known for its focus on providing trendy, high-quality clothing at competitive prices, appealing to both men and women.
How the Company Makes MoneyRIGHT 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. is experiencing significant financial challenges. The income statement reveals declining revenues and persistent losses. The balance sheet indicates increased leverage and reduced equity, raising solvency concerns. Cash flow difficulties are evident with negative operating and free cash flows, highlighting liquidity risks. Overall, the company's financial health is weak and requires strategic improvements.
Income Statement
20
Very Negative
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
30
Negative
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
25
Negative
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.
BreakdownSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income Statement
Total Revenue38.81B46.93B48.23B49.60B52.97B
Gross Profit14.98B22.57B23.76B25.16B24.61B
EBITDA-11.44B-1.56B429.00M-1.03B-4.54B
Net Income-12.14B-2.54B-1.17B-2.07B-5.72B
Balance Sheet
Total Assets15.30B27.00B34.04B34.27B39.72B
Cash, Cash Equivalents and Short-Term Investments1.16B3.48B8.22B6.18B10.20B
Total Debt2.44B5.15B7.68B7.32B10.34B
Total Liabilities14.98B14.44B19.01B19.32B22.75B
Stockholders Equity316.00M12.56B15.03B14.94B16.97B
Cash Flow
Free Cash Flow-717.00M-2.31B88.00M-1.02B-5.03B
Operating Cash Flow-577.00M-1.72B682.00M-528.00M-3.54B
Investing Cash Flow823.00M-460.00M-287.00M-471.00M-1.52B
Financing Cash Flow-2.77B-2.56B1.67B-3.02B1.70B

RIGHT ON Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price320.00
Price Trends
50DMA
295.44
Positive
100DMA
258.68
Positive
200DMA
236.19
Positive
Market Momentum
MACD
6.82
Negative
RSI
62.36
Neutral
STOCH
60.75
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7445, the sentiment is Positive. The current price of 320 is above the 20-day moving average (MA) of 307.40, above the 50-day MA of 295.44, and above the 200-day MA of 236.19, indicating a bullish trend. The MACD of 6.82 indicates Negative momentum. The RSI at 62.36 is Neutral, neither overbought nor oversold. The STOCH value of 60.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7445.

RIGHT ON Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
¥12.19B18.06
0.60%0.61%74.55%
65
Neutral
€19.74B9.837.83%3.22%0.76%-42.17%
58
Neutral
¥19.15B23.28
1.07%1.73%108.90%
55
Neutral
¥36.10B14.70
-55.76%
50
Neutral
¥8.09B
2.06%-9.83%-371.31%
50
Neutral
¥11.36B-188.10%-22.83%-106.69%
49
Neutral
¥9.95B
-10.95%-19.17%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7445
RIGHT ON Co., Ltd.
320.00
-67.00
-17.31%
JP:3189
ANAP Inc.
998.00
601.00
151.39%
JP:3415
TOKYO BASE Co., Ltd.
469.00
198.34
73.28%
JP:7416
Haruyama Holdings Inc.
745.00
153.77
26.01%
JP:7494
Konaka Co., Ltd.
243.00
-28.37
-10.45%
JP:7603
Mac House Co., Ltd.
443.00
74.00
20.05%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 11, 2025