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

• Market Cap: ¥8.02B
• Dividend Yield: 4.13%
• Average Volume (3M): 49.09K
• Price to Earnings (P/E): 16.9
• 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): -31.71
• Shares Outstanding: 35,322,525
• 10 Day Avg. Volume: 72,460
• 30 Day Avg. Volume: 49,093
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.46
• Price to Sales (P/S): 0.12
• P/FCF Ratio: -3.09
• 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: 43 Neutral
• Price Target: ¥242.00 ▲(0.00% Upside)

Konaka Co., Ltd. faces significant financial challenges, with declining revenues and cash flow issues being the most impactful factors. Technical analysis indicates bearish momentum, and the negative P/E ratio reflects unprofitability. The high dividend yield is a minor positive but does not offset the overall financial difficulties.

Positive Factors

Established Market Position

Konaka's strong market position and brand recognition in the Japanese fashion industry provide a durable competitive advantage, supporting long-term customer loyalty and market share.

Diverse Revenue Streams

Konaka's diverse revenue streams, including consumer sales and corporate partnerships, enhance resilience against market fluctuations and support sustainable growth.

Product Quality and Customer Loyalty

A strong reputation for quality and customer service fosters repeat business and loyalty, which are crucial for long-term revenue stability and competitive differentiation.

Negative Factors

Declining Revenue

Declining revenues indicate potential loss of market share or demand, which could undermine long-term financial health and strategic initiatives.

Negative Cash Flow

Negative cash flows limit Konaka's ability to invest in growth opportunities and service debt, posing risks to financial stability and operational flexibility.

Profitability Challenges

Ongoing profitability challenges, reflected in negative net income, may hinder Konaka's capacity to reinvest in the business and improve competitive positioning.

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. 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 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	57.11B	62.22B	65.80B	63.17B	58.58B	47.84B
Gross Profit	34.21B	36.04B	38.14B	36.05B	32.83B	24.70B
EBITDA	142.75M	-1.60B	150.00M	-2.64B	-1.94B	-11.73B
Net Income	-1.42B	-3.06B	-161.00M	-3.23B	-1.94B	-12.95B
Balance Sheet
Total Assets	46.15B	44.46B	50.61B	54.31B	58.84B	69.49B
Cash, Cash Equivalents and Short-Term Investments	4.61B	2.18B	5.89B	6.74B	6.34B	6.13B
Total Debt	14.61B	15.40B	19.81B	21.96B	22.22B	23.92B
Total Liabilities	28.53B	28.22B	31.18B	34.51B	33.79B	37.47B
Stockholders Equity	17.62B	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: Neutral
• Last Price: 242.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• 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 Neutral. The current price of 242 is below the 20-day moving average (MA) of 245.45, below the 50-day MA of 251.65, and above the 200-day MA of 238.49, indicating a neutral trend. The MACD of -3.07 indicates Positive momentum. The RSI at 41.29 is Neutral, neither overbought nor oversold. The STOCH value of 28.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7494.

Konaka Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8219	71 Outperform	€115.63B	12.21	5.53%	6.44%	-1.03%	4.12%
7606	71 Outperform	¥54.97B	13.37	―	3.10%	10.48%	-34.38%
8185	66 Neutral	¥30.45B	15.35	―	4.37%	-9.86%	-14.02%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3415	55 Neutral	¥16.25B	17.58	―	1.25%	10.04%	152.67%
7416	54 Neutral	¥11.19B	―	―	2.22%	0.49%	-169.64%
7494	43 Neutral	¥8.02B	16.95	―	4.13%	-10.82%	―

Konaka Co., Ltd. Corporate Events

Konaka Co., Ltd. Reports Increased Profits Despite Decline in Sales

Konaka Co., Ltd. reported a decline in net sales by 11.4% for the nine months ending June 30, 2025, compared to the previous year. Despite this, the company achieved significant increases in operating and ordinary profits, indicating improved operational efficiency. The company also announced a dividend of 5 yen per share for the fiscal year ending September 30, 2025, reflecting a positive outlook for shareholders.