Yagi & Co., Ltd. (7460) AI Stock Analysis

• Market Cap: ¥36.00B
• Dividend Yield: 4.12%
• Average Volume (3M): 12.33K
• Price to Earnings (P/E): 8.5
• Beta (1Y): 0.71
• Revenue Growth: 3.07%
• EPS Growth: 67.53%
• Country: JP
• Employees: 762
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 230.84
• Shares Outstanding: 9,140,000
• 10 Day Avg. Volume: 12,450
• 30 Day Avg. Volume: 12,326
• PEG Ratio: 0.26
• Price to Book (P/B): 0.40
• Price to Sales (P/S): 0.21
• P/FCF Ratio: 4.46
• 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: 75 Outperform
• Price Target: ¥5,046.00 ▲(45.84% Upside)
• Action: Reiterated Date: 03/01/26
• Date: Action: Reiterated 03/01/26

The score is driven primarily by improving financial performance and a stable balance sheet, supported by attractive valuation (low P/E and ~3.12% dividend yield). The main offset is technical overbought risk (RSI ~80.7; Stoch ~95) despite a strong uptrend above key moving averages.

Positive Factors

Balance Sheet Strength

A 54% equity ratio and stable debt profile signal a durable capital structure that reduces refinancing and solvency risk. This financial headroom supports investment in sourcing, inventory and logistics, enables consistent dividend policy or buybacks, and cushions cyclical apparel demand.

Margin Expansion

Sustained gross and net margin improvement reflects durable operating improvements: better sourcing, product mix and cost control. Higher margins enhance cash conversion and return on equity, making earnings less dependent on top-line growth and improving resilience through industry cycles.

Improving Cash Generation

Growing free cash flow and a 1.7 OCF-to-net-income ratio indicate stronger cash conversion from operations. That improves capacity to fund working capital, capex and distributions without levering the balance sheet, supporting sustainable operations and strategic investments in supply-chain capabilities.

Negative Factors

Modest Revenue Growth

Top-line growth is modest and uneven, constraining the company's ability to scale fixed-cost leverage. In a trading-led apparel model, limited revenue momentum means earnings gains depend heavily on margin and cost improvements rather than expanding market share.

Cash Flow Volatility

Historic swings in operating cash flow suggest exposure to working-capital cycles, inventory timing and receivables variability. Persistent volatility can complicate cash planning, raise short-term financing needs, and pressure dividend or investment decisions during weaker retail/timing periods.

Low‑Margin, Competitive Business Mix

A trading and distribution business in textiles is structurally competitive and margin-sensitive to commodity prices and supplier mix. Despite recent margin gains, the core model remains exposed to price competition and limited differentiation, capping sustained margin expansion over time.

Yagi & Co., Ltd. Business Overview & Revenue Model

Company Description

Yagi & Co.,Ltd. operates as a fiber trading company in Japan. The company offers cotton/synthetic yarn and other fiber raw materials; knits/textiles; sportswear; nighties/innerwear; and bedding, interior products, lifestyle products, and industrial fiber materials. It also imports, exports, and sells fiber and related products, fiber product raw materials, fabrics, and secondary fiber products; and plans and sells apparel fabrics and products. In addition, the company manufactures and sells raschel knits, powder puffs and outerwear, twisted yarns and textiles, towels and bath towels, menswear, ladieswear, fashion accessories, and clothing products. Further, it offers uniforms, workwear, kids' wear, and Femtech products, as well as engages in real estate rental business. The company provides materials to automotive use, interiors, industrial materials, and the apparel industries. The company was founded in 1893 and is headquartered in Osaka, Japan.

How the Company Makes Money

Yagi & Co., Ltd. generates revenue through multiple streams, primarily by selling its manufactured products to both domestic and international markets. Its key revenue streams include sales from telecommunications equipment, which are used in networking and communication infrastructure, as well as consumer electronics products, which cater to individual customers. The company also engages in partnerships with major telecommunications companies and electronic manufacturers, enhancing its market presence and driving sales. Additionally, Yagi & Co. may benefit from service agreements related to installation, maintenance, and support for its products, contributing further to its earnings.

Yagi & Co., Ltd. Financial Statement Overview

Summary

Financial statements show improving profitability (gross margin up from 22% in 2022 to 29% in 2025; net margin up to 3.1%) and a solid balance sheet (54% equity ratio; ROE improved to 6.1%). Cash generation is healthier in 2025, but prior operating cash flow volatility tempers the score.

Income Statement

Yagi & Co., Ltd. has demonstrated consistent growth in gross profit margins, increasing from 22% in 2022 to 29% in 2025. The net profit margin also improved from 0.5% in 2022 to 3.1% in 2025, indicating better cost management and operational efficiency. Revenue growth has been moderate, with a slight decline in 2023 followed by recovery in 2025. However, the EBIT and EBITDA margins have shown improvement over the years, pointing towards enhanced operational performance.

Balance Sheet

The company's debt-to-equity ratio has remained stable, indicating a balanced capital structure. The equity ratio is strong at 54% in 2025, reflecting a solid asset base funded by equity. Return on equity improved significantly from 1% in 2022 to 6.1% in 2025, showcasing effective utilization of shareholder funds. Overall, the balance sheet reflects financial stability and a strong equity position.

Cash Flow

Free cash flow has grown steadily, with a notable increase in 2025. The operating cash flow to net income ratio improved from a negative figure in 2021 to 1.7 in 2025, indicating robust cash generation relative to net income. The free cash flow to net income ratio also reflects healthy cash generation capabilities. However, fluctuations in operating cash flow in previous years suggest potential volatility.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	83.15B	83.38B	82.85B	86.42B	77.52B	114.24B
Gross Profit	24.85B	24.15B	21.98B	19.83B	17.03B	18.07B
EBITDA	4.73B	4.65B	3.98B	2.40B	1.75B	2.90B
Net Income	2.78B	2.63B	2.08B	1.01B	366.57M	1.53B
Balance Sheet
Total Assets	77.28B	79.20B	74.07B	73.03B	64.70B	68.10B
Cash, Cash Equivalents and Short-Term Investments	9.46B	11.96B	10.24B	11.11B	6.81B	7.22B
Total Debt	14.68B	13.34B	12.34B	14.03B	9.40B	11.13B
Total Liabilities	34.41B	36.02B	34.03B	36.75B	29.55B	31.85B
Stockholders Equity	42.86B	43.18B	40.04B	36.28B	34.72B	35.85B
Cash Flow
Free Cash Flow	0.00	3.88B	1.29B	726.87M	2.73B	-1.56B
Operating Cash Flow	0.00	4.56B	2.12B	1.09B	3.02B	-881.96M
Investing Cash Flow	0.00	-3.37B	-1.39B	-1.06B	-1.37B	-876.84M
Financing Cash Flow	0.00	436.00M	-2.11B	3.76B	-2.14B	4.27B

Yagi & Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3460.00
• 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:7460, the sentiment is Positive. The current price of 3460 is below the 20-day moving average (MA) of 4086.25, below the 50-day MA of 3727.20, and above the 200-day MA of 3145.03, indicating a bullish trend. The MACD of 213.65 indicates Negative momentum. The RSI at 69.70 is Neutral, neither overbought nor oversold. The STOCH value of 77.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7460.

Yagi & Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7460	75 Outperform	¥36.00B	8.53	―	4.12%	3.07%	67.53%
8101	74 Outperform	¥32.80B	12.36	―	3.91%	9.88%	25.92%
3611	74 Outperform	¥25.33B	10.09	―	3.75%	6.29%	22.08%
3501	68 Neutral	¥19.40B	26.57	―	3.46%	1.50%	241.33%
8118	68 Neutral	¥19.90B	28.65	―	1.99%	-3.60%	15.74%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3529	57 Neutral	¥17.34B	-9.22	―	―	4.15%	-289.87%