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

• Market Cap: €10.68B
• Dividend Yield: N/A
• Average Volume (3M): 64.23K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.35
• Revenue Growth: -21.09%
• EPS Growth: -165.71%
• Country: JP
• Employees: 776
• Sector: Consumer Cyclical
• Sector Strength: 60
• Industry: Apparel - Retail
• EPS (TTM): 9.69
• Shares Outstanding: 35,540,592
• 10 Day Avg. Volume: 41,520
• 30 Day Avg. Volume: 64,233
• PEG Ratio: -0.08
• Price to Book (P/B): 12.26
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 35.63
• 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

• Rating: 51 Neutral
• Price Target: ¥304.00 ▲(2.01%Upside)

The stock's overall score is driven by weak financial performance due to declining revenues and persistent losses. While technical analysis shows strong momentum, the overbought conditions warrant caution. The negative P/E ratio further undermines the valuation, leading to an overall middling score.

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

Company Description

RIGHT ON Co., Ltd. (7445) is a Japan-based company primarily engaged in the retail sale of casual clothing and related accessories. The company operates a chain of retail stores across Japan, offering a wide range of apparel products such as jeans, shirts, outerwear, and accessories for men, women, and children. RIGHT ON is known for its diverse product lineup, including both private label and popular international brands, targeting a broad demographic of fashion-conscious consumers.

How the Company Makes Money

RIGHT ON Co., Ltd. generates revenue primarily through the sale of apparel and accessories in its retail stores and online platform. The company earns money by purchasing clothing items in bulk from manufacturers and selling them at a markup to consumers. RIGHT ON operates numerous retail outlets across Japan, which serve as the primary distribution channels for its products. Additionally, the company has an e-commerce platform that extends its reach to customers who prefer online shopping. Significant partnerships with well-known fashion brands enhance its product offerings, attracting a larger customer base. Seasonal promotions, loyalty programs, and strategic store locations also contribute to the company's revenue streams by driving foot traffic and encouraging repeat purchases.

RIGHT ON Co., Ltd. Financial Statement Overview

Summary

RIGHT ON Co., Ltd. faces significant financial challenges with declining revenues, persistent losses, negative margins, increased leverage, and negative operating and free cash flows. These factors indicate poor financial health with substantial risks.

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	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	45.21B	38.81B	46.93B	48.23B	49.60B	52.97B
Gross Profit	21.33B	14.98B	22.57B	23.76B	25.16B	24.61B
EBITDA	-2.29B	-11.44B	-1.56B	429.00M	-1.03B	-4.54B
Net Income	-3.21B	-12.14B	-2.54B	-1.17B	-2.07B	-5.72B
Balance Sheet
Total Assets	58.53B	15.30B	27.00B	34.04B	34.27B	39.72B
Cash, Cash Equivalents and Short-Term Investments	14.84B	1.16B	3.48B	8.22B	6.18B	10.20B
Total Debt	11.27B	2.44B	5.15B	7.68B	7.32B	10.34B
Total Liabilities	30.14B	14.98B	14.44B	19.01B	19.32B	22.75B
Stockholders Equity	28.39B	316.00M	12.56B	15.03B	14.94B	16.97B
Cash Flow
Free Cash Flow	1.06B	-717.00M	-2.31B	88.00M	-1.02B	-5.03B
Operating Cash Flow	1.15B	-577.00M	-1.72B	682.00M	-528.00M	-3.54B
Investing Cash Flow	-119.00M	823.00M	-460.00M	-287.00M	-471.00M	-1.52B
Financing Cash Flow	-827.50M	-2.77B	-2.56B	1.67B	-3.02B	1.70B

RIGHT ON Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 298.00
• 50DMA: Positive
• 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:7445, the sentiment is Positive. The current price of 298 is above the 20-day moving average (MA) of 294.80, above the 50-day MA of 274.26, and above the 200-day MA of 239.18, indicating a bullish trend. The MACD of 7.03 indicates Positive momentum. The RSI at 58.87 is Neutral, neither overbought nor oversold. The STOCH value of 45.52 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	¥11.48B	17.06		0.64%	0.61%	74.55%
Sector *	62 Neutral	$16.85B	11.50	-7.38%	2.96%	1.59%	-23.36%
3415	58 Neutral	¥17.07B	20.92		1.20%	1.73%	108.90%
7603	52 Neutral	¥7.97B	―		―	-14.86%	-27.89%
7445	51 Neutral	€10.68B	―	-180.01%	―	-21.09%	-165.71%
7494	50 Neutral	¥8.02B	―		2.07%	-9.83%	-371.31%
3189	49 Neutral	¥20.92B	29.50		―	-55.47%	―