PLAZA HOLDINGS CO.,LTD. (7502) AI Stock Analysis

• Market Cap: ¥1.73B
• Dividend Yield: 2.66%
• Average Volume (3M): 640.00
• Price to Earnings (P/E): 14.6
• Beta (1Y): 0.14
• Revenue Growth: 9.34%
• EPS Growth: -9.97%
• Country: JP
• Employees: 559
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Personal Products & Services
• EPS (TTM): 8.54
• Shares Outstanding: 2,439,433
• 10 Day Avg. Volume: 1,050
• 30 Day Avg. Volume: 640
• PEG Ratio: 0.04
• Price to Book (P/B): 1.88
• Price to Sales (P/S): 0.22
• P/FCF Ratio: 7.29
• 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: ¥1,977.00
• Price Target Upside: 7.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 70 Outperform
• Price Target: ¥1,977.00 ▲(7.45% Upside)

PLAZA HOLDINGS CO.,LTD. receives a solid overall score due to strong technical indicators and reasonable valuation. Financial performance shows improving profitability and cash flow, though concerns about revenue decline and high leverage persist. The stock benefits from a stable dividend yield and positive market momentum.

PLAZA HOLDINGS CO.,LTD. Business Overview & Revenue Model

Company Description

PLAZA HOLDINGS CO., LTD. (7502) is a diversified company engaged in the retail sector, primarily focusing on the operation of lifestyle and variety stores. The company offers a wide range of products, including household goods, cosmetics, fashion accessories, and stationery. With a strong presence in Japan, PLAZA HOLDINGS CO., LTD. operates numerous retail outlets and aims to provide unique and trendy products to its customers.

How the Company Makes Money

PLAZA HOLDINGS CO., LTD. generates revenue through its extensive network of retail stores, which sell a variety of lifestyle products. The company earns money by purchasing goods from suppliers and manufacturers and then retailing these products to consumers at a markup. Additionally, the company may engage in partnerships with brands to offer exclusive products or limited-time collections, enhancing its appeal and driving sales. Revenue streams are predominantly driven by in-store sales, but may also include online sales channels, promotional events, and collaborations with other companies to expand its market reach. The company's earnings are influenced by factors such as consumer trends, product selection, and effective merchandising strategies.

PLAZA HOLDINGS CO.,LTD. Financial Statement Overview

Summary

PLAZA HOLDINGS CO.,LTD. shows strengths in cash flow generation and improving profitability metrics, particularly in net income recovery. However, challenges exist with declining revenue and high leverage, which could impact long-term stability.

Income Statement

PLAZA HOLDINGS CO.,LTD. shows a moderate financial performance with a Gross Profit Margin of 36.5% for the latest annual report, indicating decent profitability. The Net Profit Margin improved significantly to 1.48% from previous year’s 0.33%, showing positive earnings recovery. However, Revenue Growth Rate is negative at -4.51% compared to the previous year, suggesting a decline in sales. The EBIT Margin is modest at 1.80%, showing operational challenges. Overall, profitability metrics are improving but revenue decline is a concern.

Balance Sheet

The balance sheet reveals a Debt-to-Equity Ratio of 2.95, indicating high leverage which poses potential risk. Return on Equity (ROE) improved to 12.43% from 2.62%, reflecting better profitability relative to shareholder equity. However, the Equity Ratio is low at 19.09%, suggesting reliance on debt financing. Despite improvement in ROE, high debt levels could be a concern for financial stability.

Cash Flow

Cash flow analysis shows strong Free Cash Flow Growth Rate of 72.61%, indicating better cash management and operational efficiency. The Operating Cash Flow to Net Income Ratio is healthy at 2.73, reflecting strong cash generation relative to earnings. Free Cash Flow to Net Income Ratio is also robust at 2.08, supporting good cash flow conversion. Overall, cash flow metrics display strong liquidity and operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.34B	18.64B	17.64B	19.13B	21.72B	20.67B
Gross Profit	7.14B	6.80B	6.29B	6.54B	7.04B	7.50B
EBITDA	659.73M	696.29M	463.03M	235.42M	534.08M	1.42B
Net Income	289.89M	275.86M	58.77M	-204.37M	120.75M	732.99M
Balance Sheet
Total Assets	10.61B	11.62B	11.03B	11.68B	12.13B	12.24B
Cash, Cash Equivalents and Short-Term Investments	1.53B	1.68B	1.24B	1.17B	1.41B	1.70B
Total Debt	6.20B	6.54B	6.19B	6.63B	6.73B	6.52B
Total Liabilities	8.48B	9.40B	8.78B	9.37B	9.45B	9.43B
Stockholders Equity	2.13B	2.22B	2.25B	2.31B	2.68B	2.81B
Cash Flow
Free Cash Flow	0.00	573.17M	332.04M	-150.07M	-300.63M	-480.88M
Operating Cash Flow	0.00	753.70M	525.87M	439.53M	9.99M	-68.12M
Investing Cash Flow	0.00	-184.44M	108.88M	-433.41M	-287.32M	560.78M
Financing Cash Flow	0.00	-122.43M	-573.41M	-242.12M	-17.33M	-436.57M

PLAZA HOLDINGS CO.,LTD. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1840.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7502, the sentiment is Neutral. The current price of 1840 is below the 20-day moving average (MA) of 1857.95, above the 50-day MA of 1836.32, and above the 200-day MA of 1787.46, indicating a neutral trend. The MACD of 6.00 indicates Positive momentum. The RSI at 38.89 is Neutral, neither overbought nor oversold. The STOCH value of 15.26 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7502.

PLAZA HOLDINGS CO.,LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7523	81 Outperform	¥16.13B	13.97	8.27%	2.54%	-1.20%	-8.71%
7372	74 Outperform	¥2.29B	10.29	4.20%	―	5.26%	25.64%
9160	73 Outperform	¥8.47B	9.38	9.90%	―	11.07%	5.85%
7502	70 Outperform	¥1.73B	14.56	―	2.66%	9.34%	-9.97%
2485	69 Neutral	¥11.14B	9.20	9.19%	4.05%	25.26%	65.66%
7578	48 Neutral	¥2.29B	-6.22	-5.91%	―	-18.74%	-1062.47%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%