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

• Market Cap: ¥11.36B
• Dividend Yield: N/A
• Average Volume (3M): 63.17K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.35
• Revenue Growth: -22.83%
• EPS Growth: -106.69%
• Country: JP
• Employees: 776
• Sector: Consumer Cyclical
• Sector Strength: 71
• Industry: Apparel - Retail
• EPS (TTM): 0.34
• Shares Outstanding: 35,540,592
• 10 Day Avg. Volume: 53,080
• 30 Day Avg. Volume: 63,173
• PEG Ratio: -0.10
• Price to Book (P/B): 15.19
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 44.14
• 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: ¥303.29
• Price Target Upside: -5.22% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 50 Neutral
• 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. 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

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

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	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 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	14.94B	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: Positive
• Last Price: 320.00
• 50DMA: Positive
• 100DMA: Positive
• 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 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7416	72 Outperform	¥12.19B	18.06		0.60%	0.61%	74.55%
Sector *	65 Neutral	€19.74B	9.83	7.83%	3.22%	0.76%	-42.17%
3415	58 Neutral	¥19.15B	23.28		1.07%	1.73%	108.90%
3189	55 Neutral	¥36.10B	14.70		―	-55.76%	―
7494	50 Neutral	¥8.09B	―		2.06%	-9.83%	-371.31%
7445	50 Neutral	¥11.36B	―	-188.10%	―	-22.83%	-106.69%
7603	49 Neutral	¥9.95B	―		―	-10.95%	-19.17%