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

• Market Cap: ¥8.12B
• Dividend Yield: 2.04%
• Average Volume (3M): 40.30K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.61
• Revenue Growth: -9.83%
• EPS Growth: -371.31%
• Country: JP
• Employees: 2,139
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Apparel - Retail
• EPS (TTM): 34.07
• Shares Outstanding: 35,322,525
• 10 Day Avg. Volume: 49,370
• 30 Day Avg. Volume: 40,300
• PEG Ratio: -0.15
• Price to Book (P/B): 0.50
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 27.07
• 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

• 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. is a Japanese company primarily engaged in the manufacturing and retailing of men's and women's apparel. The company specializes in business wear, casual clothing, and accessories, offering a diverse range of fashion products through its various retail outlets across Japan. Konaka is well-known for its tailored suits and formal wear, appealing to a wide range of customers seeking quality and style.

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
EBITDA	-442.00M	-1.60B	153.00M	-2.64B	-1.94B	-11.73B
Net Income	-2.66B	-3.06B	-161.00M	-4.20B	-3.64B	-13.21B
Balance Sheet
Total Assets	45.97B	44.46B	50.61B	54.31B	58.84B	69.49B
Cash, Cash Equivalents and Short-Term Investments	2.74B	2.18B	5.89B	6.74B	6.34B	6.13B
Total Debt	15.27B	15.40B	19.81B	21.96B	22.22B	23.92B
Total Liabilities	29.57B	28.22B	31.18B	34.51B	33.79B	37.47B
Stockholders Equity	16.40B	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: 246.00
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 246 is above the 20-day moving average (MA) of 241.60, above the 50-day MA of 234.54, and above the 200-day MA of 228.66, indicating a bullish trend. The MACD of 2.96 indicates Positive momentum. The RSI at 63.52 is Neutral, neither overbought nor oversold. The STOCH value of 38.73 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
8219	84 Outperform	¥110.40B	11.64	5.34%	8.86%	0.57%	-4.69%
7416	72 Outperform	¥11.14B	16.55		0.65%	0.61%	74.55%
7606	71 Outperform	¥59.98B	13.57		3.55%	12.39%	-11.38%
8185	68 Neutral	¥38.72B	14.41		2.85%	-1.59%	57.60%
Sector *	67 Neutral	¥251.03B	12.88	6.57%	2.80%	5.06%	-11.39%
3415	58 Neutral	¥17.03B	20.87		1.19%	1.73%	108.90%
7494	50 Neutral	¥8.12B	―		2.04%	-9.83%	-371.31%

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.