Sunday Co., Ltd. (7450) AI Stock Analysis

• Market Cap: ¥13.65B
• Dividend Yield: 0.5%
• Average Volume (3M): 3.25K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.26
• Revenue Growth: -0.60%
• EPS Growth: -386.40%
• Country: JP
• Employees: 583
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Home Improvement
• EPS (TTM): -10.39
• Shares Outstanding: 10,786,100
• 10 Day Avg. Volume: 1,880
• 30 Day Avg. Volume: 3,253
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.27
• Price to Sales (P/S): 0.25
• P/FCF Ratio: -20.65
• 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: 48 Neutral
• Price Target: ¥1,257.00 ▲(25.95% Upside)
• Action: Reiterated Date: 08/28/25
• Date: Action: Reiterated 08/28/25

The overall stock score is primarily impacted by weak financial performance, with declining revenues and profitability challenges. Technical analysis shows neutral indicators, while valuation is low due to negative earnings and low dividend yield.

Positive Factors

Stable capital structure

Moderate leverage and a stable equity ratio indicate the company retains structural solvency and financing flexibility. Over 2-6 months this reduces refinancing risk and supports continued store operations, inventory funding, and measured investment without forcing distressed asset sales.

Operating cash generation

Positive operating cash flow demonstrates the core retail business converts sales into cash, supporting working capital and day-to-day execution. This operational cash base is a durable source to stabilize the business while management works to restore profitability and funding needs.

Gross margin resilience

Relatively stable gross margins point to consistent purchasing, pricing and product mix control at the merchandise level. That structural resilience gives management room to recover operating margins by cutting SG&A or improving sales mix without eroding core product economics.

Negative Factors

Declining revenue trend

Sustained revenue declines damage scale economics, reduce store-level throughput and bargaining power with suppliers, and make fixed-cost absorption harder. Over months this structural top-line weakness risks prolonged margin pressure unless market share or channel mix is reversed.

Negative free cash flow

Persistent negative free cash flow, driven by heavy capex, erodes liquidity and constrains strategic optionality. Without improved cash conversion or external funding, this structural cash drain increases dependence on financing and limits the ability to invest in growth or weather slower sales periods.

Negative profitability and ROE

Repeated net losses and negative ROE signal an inability to convert sales into shareholder returns, eroding capital and investor confidence. This structural profitability gap reduces retained earnings for reinvestment and complicates access to low-cost capital over the medium term.

Sunday Co., Ltd. Business Overview & Revenue Model

Company Description

Sunday Co.,Ltd. operates a chain of home improvement stores in Japan. The company's stores masks, wet wipes, hand soaps, antiseptic solutions, thermometers, and sanitizing sprays; heating supplies, including electric stoves, kerosine stives, gas stoves, kerosene tanks/pumps, wood/casting stoves, chimneys, stove guards, and fuel; electric carpets; electric blankets; hot water bottles; window paste sheets, and duct for hot air heaters, as well as gap/insulation tapes, snow removal supplies. It also provides security, horticulture, gardening articles, food products, seasonal products, food and beverages, stationery products, housing equipment, work clothes, cooking/kitchen supplies, and cleaning/laundry supplies, as well as daily consumables, pet supplies, interior products, furniture/storage products, air conditioners, household appliances, cooking appliances, audio visual equipment, electric appliances, car supplies, work tools, architectural hardware, paint/repair/packaging products, wood/building, fitness equipment, health meters, healthy food, disaster prevention products, outdoor sports, bicycles, and agricultural materials. The company was formerly known as Sunday Years Mart Co., Ltd. and changed its name to Sunday Co.,Ltd. in November 1976. The company was founded in 1930 and is headquartered in Hachinohe, Japan. Sunday Co.,Ltd. operates as a subsidiary of Aeon Co., Ltd.

How the Company Makes Money

Sunday Co., Ltd. primarily makes money by selling merchandise through its home-center retail stores. Key revenue streams include (1) retail sales of DIY and home-improvement-related goods (e.g., tools, hardware, building materials, repair supplies), (2) retail sales of lifestyle and consumable categories commonly carried by home centers (e.g., household goods and daily necessities), and (3) seasonal and project-driven categories such as gardening and outdoor products that tend to lift sales during peak periods. Revenue is recognized mainly at the point of sale to consumers; earnings are driven by store traffic, average basket size, merchandise mix/margins, and inventory procurement efficiency. Specific disclosures on material partnerships, wholesale/B2B proportions, e-commerce contribution, or service/installation revenue are null.

Sunday Co., Ltd. Financial Statement Overview

Summary

Sunday Co., Ltd. faces challenges in revenue growth and profitability, with declining revenues and negative profit margins. The balance sheet is stable with moderate leverage, but negative return on equity and cash flow issues, particularly negative free cash flow, highlight the need for improved cash management.

Income Statement

Sunday Co., Ltd. has experienced a decline in revenue over the past few years, with a negative revenue growth rate from 2021 to 2025. The company also shows a negative net profit margin and EBIT margin in the most recent year, indicating challenges in maintaining profitability. However, the gross profit margin remains relatively stable, suggesting some level of operational efficiency.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio, indicating a balanced approach to leverage. However, the return on equity has been negative in recent years due to net losses, which is a concern for investors. The equity ratio is stable, reflecting a consistent capital structure.

Cash Flow

The cash flow statement highlights a concerning trend with negative free cash flow in recent years, driven by high capital expenditures. The operating cash flow to net income ratio is positive, suggesting that the company generates cash from operations, but the free cash flow to net income ratio is negative, indicating insufficient cash generation to cover investments.

Breakdown	Feb 2025	Feb 2024	Feb 2023	Feb 2022	Feb 2021
Income Statement
Total Revenue	46.59B	47.38B	49.09B	49.74B	52.10B
Gross Profit	13.65B	13.96B	14.44B	14.53B	15.11B
EBITDA	619.78M	1.41B	1.95B	2.15B	2.84B
Net Income	-2.12B	-149.69M	508.22M	719.77M	1.11B
Balance Sheet
Total Assets	33.00B	35.32B	34.54B	33.51B	33.67B
Cash, Cash Equivalents and Short-Term Investments	577.78M	532.84M	632.61M	921.52M	988.18M
Total Debt	13.63B	12.91B	11.50B	10.74B	9.01B
Total Liabilities	23.78B	23.80B	22.73B	22.07B	22.80B
Stockholders Equity	9.22B	11.53B	11.81B	11.44B	10.87B
Cash Flow
Free Cash Flow	-564.91M	-1.22B	-883.54M	-1.63B	2.96B
Operating Cash Flow	107.65M	170.78M	776.22M	-193.96M	3.74B
Investing Cash Flow	-551.21M	-1.51B	-1.66B	-1.40B	-1.13B
Financing Cash Flow	488.51M	1.24B	592.22M	1.53B	-2.50B

Sunday Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 998.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7450, the sentiment is Positive. The current price of 998 is below the 20-day moving average (MA) of 1271.10, below the 50-day MA of 1274.58, and below the 200-day MA of 1087.31, indicating a neutral trend. The MACD of 3.41 indicates Positive momentum. The RSI at 63.78 is Neutral, neither overbought nor oversold. The STOCH value of 91.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7450.

Sunday Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3050	73 Outperform	¥218.71B	16.88	―	2.83%	1.49%	-21.76%
3191	68 Neutral	¥123.83B	8.26	―	3.43%	0.73%	-9.78%
8218	67 Neutral	¥171.25B	11.31	―	1.58%	1.69%	3.90%
7516	67 Neutral	¥128.67B	12.62	―	2.85%	3.83%	7.24%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
2790	55 Neutral	¥63.15B	19.77	0.36%	2.78%	-6.21%	-29.75%
7450	48 Neutral	¥13.65B	-23.95	―	0.50%	-0.60%	-386.40%