Konaka Co., Ltd. (7494) AI Stock Analysis

• Market Cap: ¥8.36B
• Dividend Yield: 4.13%
• Average Volume (3M): 49.09K
• Price to Earnings (P/E): 17.6
• Beta (1Y): 0.61
• Revenue Growth: -10.82%
• EPS Growth: N/A
• Country: JP
• Employees: 2,139
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): -31.63
• Shares Outstanding: 35,322,525
• 10 Day Avg. Volume: 72,460
• 30 Day Avg. Volume: 49,093
• PEG Ratio: -0.16
• Price to Book (P/B): 0.52
• Price to Sales (P/S): 0.16
• P/FCF Ratio: 18.07
• 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: 47 Neutral
• Price Target: ¥236.00 ▼(-1.67% Downside)

The overall stock score of 47 reflects significant financial performance challenges, including declining revenue and weak cash flow generation. Technical analysis indicates bearish momentum, further weighing on the score. While the valuation offers some support with a reasonable P/E ratio and attractive dividend yield, it is not sufficient to overcome the financial and technical weaknesses.

Positive Factors

Gross Profit Margin

A strong gross profit margin indicates effective cost management, which is crucial for maintaining profitability despite revenue challenges.

Market Position

Being a prominent player in the industry suggests a strong brand reputation, which can drive customer loyalty and support long-term revenue stability.

Product Diversification

Diverse revenue streams through collaborations and seasonal collections can mitigate risks and enhance market adaptability, supporting long-term growth.

Negative Factors

Revenue Decline

A declining revenue trend indicates challenges in market demand or competitiveness, which can hinder long-term growth and financial stability.

Low Profit Margins

Low profit margins reflect operational inefficiencies, which can strain financial resources and limit the company's ability to reinvest for growth.

Weak Cash Flow Generation

Weak cash flow generation limits financial flexibility and can affect the company's ability to invest in growth opportunities or manage debt effectively.

Konaka Co., Ltd. Business Overview & Revenue Model

Company Description

Konaka Co., Ltd. (7494) is a Japanese company primarily engaged in the retail and distribution of men's and women's apparel, including suits, casual wear, and accessories. Established in 1954, the company operates through various retail outlets and franchises, catering to both individual consumers and corporate clients. Konaka is recognized for its high-quality tailored clothing and has positioned itself as a prominent player in the Japanese fashion industry.

How the Company Makes Money

Konaka Co., Ltd. generates revenue primarily through the sale of apparel and related accessories in its retail stores and online platforms. The company's revenue model includes direct sales to consumers, as well as bulk sales to corporate clients for uniforms and business attire. Key revenue streams come from seasonal collections, promotions, and collaborations with other brands. Additionally, Konaka may benefit from strategic partnerships with local designers and manufacturers, enhancing its product offerings and market reach. The company's established reputation for quality and customer service also contributes to repeat business and customer loyalty.

Konaka Co., Ltd. Financial Statement Overview

Summary

Konaka Co., Ltd. is facing financial difficulties marked by declining revenues, consistent losses, and cash flow challenges. The income statement shows a negative net income and declining revenues, while the balance sheet reflects moderate leverage. Cash flow issues are significant, with negative operating and free cash flows.

Income Statement

The company's income statement shows challenges with profitability, as evidenced by a negative net income and declining revenues over the last year. The TTM data highlights a negative EBIT margin, suggesting operational inefficiencies. However, the gross profit margin is relatively decent, indicating some control over production costs. Revenue growth is volatile, with recent declines after previous growth.

Balance Sheet

The balance sheet reflects moderate leverage with a debt-to-equity ratio of approximately 0.93, which could signify potential financial risk if not managed properly. Stockholders' equity has decreased, reducing the equity ratio to around 35.7%. Despite these challenges, the company maintains a reasonable level of assets relative to its liabilities.

Cash Flow

Cash flow analysis reveals liquidity issues, as indicated by negative operating and free cash flows. The company has struggled to generate positive cash flow from operations, impacting its ability to invest and service debt. The cash flow to net income ratios are concerning, suggesting challenges in converting profit to cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	57.11B	55.49B	62.22B	65.80B	63.17B	58.58B
Gross Profit	34.21B	33.32B	36.04B	38.14B	36.05B	32.83B
EBITDA	142.75M	587.00M	-1.60B	150.00M	-2.64B	-1.94B
Net Income	-1.42B	478.00M	-3.06B	-161.00M	-3.23B	-1.94B
Balance Sheet
Total Assets	46.15B	42.27B	44.46B	50.61B	54.31B	58.84B
Cash, Cash Equivalents and Short-Term Investments	4.61B	3.20B	2.18B	5.89B	6.74B	6.34B
Total Debt	14.61B	14.33B	15.40B	19.81B	21.96B	22.22B
Total Liabilities	28.53B	25.63B	28.22B	31.18B	34.51B	33.79B
Stockholders Equity	17.62B	16.63B	16.23B	18.97B	19.13B	23.34B
Cash Flow
Free Cash Flow	0.00	478.00M	-2.40B	-1.06B	356.00M	-4.34B
Operating Cash Flow	0.00	1.22B	-228.00M	415.00M	1.64B	-3.28B
Investing Cash Flow	0.00	1.03B	2.02B	1.25B	-567.00M	5.40B
Financing Cash Flow	0.00	-1.24B	-4.81B	-2.73B	-844.00M	-2.02B

Konaka Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 240.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7494, the sentiment is Positive. The current price of 240 is below the 20-day moving average (MA) of 243.35, below the 50-day MA of 243.74, and below the 200-day MA of 241.25, indicating a bullish trend. The MACD of 1.61 indicates Negative momentum. The RSI at 77.26 is Negative, neither overbought nor oversold. The STOCH value of 69.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7494.

Konaka Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7606	74 Outperform	¥69.73B	19.24	―	2.73%	10.48%	-34.38%
8219	71 Outperform	¥130.67B	13.96	5.53%	6.09%	-1.03%	4.12%
8185	66 Neutral	¥34.80B	16.98	―	4.07%	-9.86%	-14.02%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3415	55 Neutral	¥19.07B	18.83	―	1.08%	17.48%	83.54%
7416	54 Neutral	¥12.01B	-29.82	―	2.24%	0.49%	-169.64%
7494	47 Neutral	¥8.36B	17.65	―	4.13%	-10.82%	―

Konaka Co., Ltd. Corporate Events

Konaka Co., Ltd. Reports Improved Profit Amid Decline in Sales

Konaka Co., Ltd. reported a decrease in net sales for the fiscal year ending September 30, 2025, with a 12.1% decline compared to the previous year. Despite the drop in sales, the company managed to achieve a profit attributable to owners of the parent, marking a significant improvement from the previous year’s loss. The company’s financial position showed a slight increase in equity ratio, and cash dividends were reinstated, reflecting a positive outlook for stakeholders.

The most recent analyst rating on (JP:7494) stock is a Hold with a Yen242.00 price target. To see the full list of analyst forecasts on Konaka Co., Ltd. stock, see the JP:7494 Stock Forecast page.