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

• Market Cap: ¥11.82B
• Dividend Yield: N/A
• Average Volume (3M): 119.79K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.34
• Revenue Growth: -27.51%
• EPS Growth: 96.20%
• Country: JP
• Employees: 776
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): -20.13
• Shares Outstanding: 35,540,592
• 10 Day Avg. Volume: 77,610
• 30 Day Avg. Volume: 119,793
• PEG Ratio: 0.23
• Price to Book (P/B): 19.73
• Price to Sales (P/S): 0.35
• P/FCF Ratio: -2.23
• 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: 50 Neutral
• Price Target: ¥333.00 ▲(29.07% Upside)
• Action: Upgraded Date: 01/04/26
• Date: Action: Upgraded 01/04/26

The score is held back mainly by weak financial performance (ongoing losses, heavy leverage, and significant 2025 cash burn). Technical indicators provide a meaningful offset with above-average momentum and trend strength, while valuation remains constrained by negative earnings and no stated dividend yield.

Positive Factors

Gross margin recovery

A recovery of gross margin above 50% materially improves unit economics and provides headroom to absorb operating costs. Sustained higher gross margins make it easier to reach profitability as revenues stabilize, and support long-term margin sustainability if product mix and sourcing remain controlled.

Niche specialty retail model

A focused specialty apparel model centered on jeans and casual wear supports brand identity and repeat customers. This concentrated market positioning can enable targeted merchandising, inventory efficiency and customer loyalty, offering structural resilience versus undifferentiated mass retail over the medium term.

Profitability trend improvement

Evidence of a sharper improvement year-over-year and a smaller net loss signals operational leverage and management execution on cost or margin initiatives. A demonstrable path toward reduced losses is a durable positive that lowers restructuring risk and increases options for strategic recovery over several quarters.

Negative Factors

Very high leverage

Debt materially exceeding equity indicates a weakened capital structure that reduces financial flexibility. High leverage increases refinancing and insolvency risk, limits ability to invest in growth or inventory, and can force dilutive or restrictive financing decisions that impair long-term recovery prospects.

Negative operating and free cash flow

Deeply negative operating and free cash flow imply meaningful cash burn and dependence on external funding or asset cushions. Persistent cash outflows restrict strategic options, shorten runway for turnaround plans, and raise the probability of capital raises or asset sales that could be dilutive or disruptive.

Sustained revenue decline

A multi-year revenue decline of nearly 30% erodes scale and fixed-cost absorption, pressuring margins even with gross margin recovery. Continued top-line shrinkage signals demand weakening or share loss, requiring structural fixes in product, pricing, or distribution to restore stable revenue and long-term viability.

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

Company Description

RIGHT 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 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

Financial health is weak: the company remains loss-making with declining revenue, very high leverage relative to equity, and deeply negative operating/free cash flow in 2025. Gross margin improvement and a smaller net loss versus 2024 are positives but not yet enough to offset balance-sheet and cash-burn risk.

Income Statement

Profitability remains weak despite a sharp improvement versus 2024: the company is still loss-making in 2025 with negative operating profit and a slightly negative net margin. Revenue has been shrinking for several years, including a steep decline in 2025, which pressures scale and fixed-cost absorption. A key positive is gross margin recovery in 2025 (back above 50%), but it has not yet translated into consistent operating or bottom-line profits.

Balance Sheet

The balance sheet shows elevated financial risk: leverage is very high in 2025 with debt far exceeding equity, and equity is thin relative to assets. Returns on equity are negative, reflecting ongoing losses and limited capital cushion. While leverage was much more conservative earlier in the period, the latest year indicates a materially weaker capital structure and reduced flexibility.

Cash Flow

Cash generation deteriorated materially in 2025: operating cash flow and free cash flow are deeply negative, signaling meaningful cash burn. Free cash flow was slightly positive in 2022 and less negative in 2024, but the latest year reverses that progress. With negative operating cash flow alongside net losses, the business appears reliant on external funding or balance-sheet resources to sustain operations.

Breakdown	Aug 2025	Aug 2024	Aug 2023	Aug 2022	Aug 2021
Income Statement
Total Revenue	28.13B	38.81B	46.93B	48.23B	49.60B
Gross Profit	14.62B	14.98B	22.57B	23.76B	25.16B
EBITDA	0.00	-11.44B	-1.56B	429.00M	-1.03B
Net Income	-449.00M	-12.14B	-2.54B	-1.17B	-2.07B
Balance Sheet
Total Assets	11.99B	15.30B	27.00B	34.04B	34.27B
Cash, Cash Equivalents and Short-Term Investments	578.00M	1.16B	3.48B	8.22B	6.18B
Total Debt	4.64B	2.44B	5.15B	7.68B	7.32B
Total Liabilities	11.50B	14.98B	14.44B	19.01B	19.32B
Stockholders Equity	497.00M	316.00M	12.56B	15.03B	14.75B
Cash Flow
Free Cash Flow	-4.40B	-717.00M	-2.31B	88.00M	-1.02B
Operating Cash Flow	-4.22B	-577.00M	-1.72B	682.00M	-528.00M
Investing Cash Flow	769.00M	823.00M	-460.00M	-287.00M	-471.00M
Financing Cash Flow	3.08B	-2.77B	-2.56B	1.67B	-3.02B

RIGHT ON Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 258.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 258 is below the 20-day moving average (MA) of 316.20, below the 50-day MA of 307.60, and below the 200-day MA of 296.10, indicating a bullish trend. The MACD of 7.15 indicates Negative momentum. The RSI at 82.37 is Negative, neither overbought nor oversold. The STOCH value of 96.67 is Negative, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9983	75 Outperform	¥21.70T	47.22	19.84%	0.90%	9.56%	16.37%
2792	72 Outperform	¥42.97B	12.56	―	3.62%	-0.98%	-29.86%
7606	72 Outperform	¥76.28B	12.50	―	2.73%	10.48%	-34.38%
8227	68 Neutral	¥795.86B	18.28	8.78%	2.02%	―	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7445	50 Neutral	¥11.82B	-17.84	-111.30%	―	-27.51%	96.20%
7603	47 Neutral	¥3.79B	-1.60	―	―	-7.88%	-11.22%