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

• Market Cap: ¥8.16B
• Dividend Yield: 4.13%
• Average Volume (3M): 49.09K
• Price to Earnings (P/E): 1.2
• Beta (1Y): 0.57
• Revenue Growth: -10.82%
• EPS Growth: N/A
• Country: JP
• Employees: 2,139
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): 52.16
• 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)
• Action: Reiterated Date: 12/18/25
• Date: Action: Reiterated 12/18/25

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. 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 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. faces challenges in revenue growth and profitability, with declining revenue and low profit margins. The balance sheet shows moderate leverage, but returns on equity are low. Cash flow generation is weak, impacting financial flexibility. The company needs to focus on improving profitability and cash flow to strengthen its financial position.

Income Statement

Konaka Co., Ltd. has shown a declining revenue trend with a negative revenue growth rate of -2.85% in the most recent year. The gross profit margin remains relatively strong at 60.05%, indicating efficient cost management. However, the net profit margin is low at 0.86%, and EBIT margin is negative, reflecting operational challenges. The company needs to improve its profitability metrics to enhance financial health.

Balance Sheet

The debt-to-equity ratio of 0.86 indicates moderate leverage, which is manageable but requires monitoring. Return on equity is low at 2.87%, suggesting limited returns for shareholders. The equity ratio is not explicitly calculated, but the balance sheet shows a stable equity base relative to assets. Overall, the balance sheet reflects moderate financial stability with room for improvement in equity returns.

Cash Flow

The cash flow statement shows a positive operating cash flow, but the free cash flow growth rate is negative, indicating cash flow challenges. The operating cash flow to net income ratio is low, suggesting limited cash generation relative to earnings. The free cash flow to net income ratio is 39.31%, indicating some cash flow support for earnings. Improving cash flow generation is crucial for financial flexibility.

Breakdown	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	55.49B	62.22B	65.80B	63.17B	58.58B
Gross Profit	33.32B	36.04B	38.14B	36.05B	32.83B
EBITDA	587.00M	-1.60B	150.00M	-2.64B	-1.94B
Net Income	478.00M	-3.06B	-161.00M	-3.23B	-1.94B
Balance Sheet
Total Assets	42.27B	44.46B	53.13B	54.32B	58.84B
Cash, Cash Equivalents and Short-Term Investments	3.20B	2.18B	5.89B	6.74B	6.34B
Total Debt	14.36B	15.43B	19.85B	22.00B	22.28B
Total Liabilities	25.64B	28.22B	33.64B	34.52B	33.78B
Stockholders Equity	16.63B	16.23B	19.05B	19.13B	23.34B
Cash Flow
Free Cash Flow	478.00M	-2.40B	-1.06B	356.00M	-4.34B
Operating Cash Flow	1.22B	-228.00M	415.00M	1.64B	-3.28B
Investing Cash Flow	1.03B	2.02B	1.25B	-567.00M	5.40B
Financing Cash Flow	-1.24B	-4.81B	-2.73B	-844.00M	-2.02B

Konaka Co., Ltd. Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7494, the sentiment is Negative. The current price of 240 is below the 20-day moving average (MA) of 246.50, below the 50-day MA of 248.94, and below the 200-day MA of 247.44, indicating a bearish trend. The MACD of -0.84 indicates Positive momentum. The RSI at 45.41 is Neutral, neither overbought nor oversold. The STOCH value of 46.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7494.

Konaka Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7564	74 Outperform	¥525.57B	19.71	―	1.04%	10.84%	16.83%
2792	72 Outperform	¥41.52B	10.95	―	3.62%	-0.98%	-29.86%
8214	72 Outperform	¥139.45B	20.46	―	4.49%	2.21%	4.36%
8219	71 Outperform	¥122.90B	24.22	5.53%	6.09%	-1.03%	4.12%
3566	68 Neutral	¥6.93B	13.03	―	0.51%	16.10%	36.89%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7494	47 Neutral	¥8.16B	1.17	―	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.