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

• Market Cap: ¥7.89B
• Dividend Yield: 2.11%
• Average Volume (3M): 40.87K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.60
• Revenue Growth: -9.83%
• EPS Growth: -371.31%
• Country: JP
• Employees: 2,139
• Sector: Consumer Cyclical
• Sector Strength: 62
• Industry: Apparel - Retail
• EPS (TTM): 34.07
• Shares Outstanding: 35,322,525
• 10 Day Avg. Volume: 34,610
• 30 Day Avg. Volume: 40,866
• PEG Ratio: -0.25
• Price to Book (P/B): 0.46
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 50 Neutral
• Price Target: ―

The overall score reflects significant financial challenges facing Konaka Co., Ltd., particularly in terms of profitability and cash flow generation. This is somewhat offset by neutral-to-positive technical indicators, suggesting some recent positive momentum. However, the valuation remains constrained by a negative P/E ratio, indicating ongoing profitability issues despite a reasonable dividend yield. Strategic improvements are necessary to enhance the company's financial health and market performance.

Konaka Co., Ltd. Business Overview & Revenue Model

Company Description

Konaka Co.,Ltd. operates specialty stores in Japan. The company's stores primarily offer men's apparel and related clothing products. As of April 30, 2020, it operates 459 shops under the Men's clothing Konaka Futata, Futata The Flag, and DIFFERENCE names. Konaka Co.,Ltd. was founded in 1952 and is headquartered in Yokohama, Japan.

How the Company Makes Money

Konaka Co., Ltd. generates revenue primarily through the sale of men's and women's apparel, with a strong focus on business suits and formal wear. The company operates a network of retail stores, which serve as the primary sales channel, allowing customers to purchase directly from their physical locations. Additionally, Konaka has embraced e-commerce, offering online shopping options to extend its reach and cater to a growing digital consumer base. Strategic partnerships with fabric suppliers and designers help Konaka maintain a competitive edge in quality and design, supporting its revenue growth. Seasonal promotions and loyalty programs further drive sales and customer retention, contributing to the company's overall financial performance.

Konaka Co., Ltd. Financial Statement Overview

Summary

Konaka Co., Ltd. is facing financial difficulties marked by declining revenues, consistent losses, and cash flow challenges. While the company maintains some control over production costs, it struggles with profitability and cash generation. The balance sheet shows moderate leverage, but liquidity issues could pose risks if not addressed. Strategic financial and operational improvements are essential for future stability.

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	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
60.18B	62.22B	65.80B	63.17B	58.58B	47.84B
	Gross Profit
35.18B	36.04B	38.14B	36.05B	32.83B	24.70B
	EBIT
-1.18B	-1.35B	-912.00M	-3.26B	-7.83B	-4.94B
	EBITDA
-442.00M	-1.60B	153.00M	-2.64B	-1.94B	-11.73B
	Net Income Common Stockholders
-2.66B	-3.06B	-161.00M	-4.20B	-3.64B	-13.21B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.54B	2.18B	5.89B	6.74B	6.34B	6.13B
	Total Assets
52.27B	44.46B	50.61B	54.31B	58.84B	69.49B
	Total Debt
19.69B	15.40B	19.81B	21.96B	22.22B	23.92B
	Net Debt
15.15B	13.21B	13.92B	15.21B	15.88B	17.79B
	Total Liabilities
32.87B	28.22B	31.18B	34.51B	33.79B	37.47B
	Stockholders Equity
18.91B	16.23B	18.97B	19.13B	23.34B	28.61B
Cash Flow		Free Cash Flow
0.00	-2.40B	-1.06B	356.00M	-4.34B	-4.68B
	Operating Cash Flow
0.00	-228.00M	415.00M	1.64B	-3.28B	-3.31B
	Investing Cash Flow
0.00	2.02B	1.25B	-567.00M	5.40B	-1.43B
	Financing Cash Flow
0.00	-4.81B	-2.73B	-844.00M	-2.02B	63.00M

Konaka Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 237.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 237 is above the 20-day moving average (MA) of 233.95, above the 50-day MA of 228.00, and above the 200-day MA of 228.59, indicating a bullish trend. The MACD of 2.30 indicates Negative momentum. The RSI at 59.80 is Neutral, neither overbought nor oversold. The STOCH value of 85.71 is Negative, 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
8185	75 Outperform	¥39.14B	14.56		2.81%	-1.59%	57.60%
7606	73 Outperform	¥60.10B	13.60		2.99%	12.39%	-11.38%
7416	70 Outperform	¥10.88B	16.16		3.01%	0.61%	66.79%
3415	66 Neutral	¥15.84B	21.73		1.29%	1.11%	144.56%
Sector *	62 Neutral	$6.88B	11.32	2.90%	3.87%	2.70%	-24.57%
7494	50 Neutral	¥7.89B	―		2.11%	-9.83%	-371.31%
9B7		€653.42M	11.27	5.34%	6.35%	―	―

Konaka Co., Ltd. Corporate Events

Konaka Co., Ltd. Reports Increased Profitability Amid Declining Sales

Konaka Co., Ltd. reported a decrease in net sales by 11.1% for the six months ended March 31, 2025, compared to the previous year. However, the company saw a significant increase in profit attributable to owners of the parent, which rose by 129.2%. This improvement in profitability indicates effective cost management and operational efficiency despite the decline in sales. The company also announced a dividend payment plan, reflecting a positive outlook for stakeholders.