HOUSE OF ROSE Co.,Ltd. (7506) AI Stock Analysis

• Market Cap: ¥6.49B
• Dividend Yield: 1.81%
• Average Volume (3M): 2.06K
• Price to Earnings (P/E): 81.0
• Beta (1Y): 0.08
• Revenue Growth: -3.92%
• EPS Growth: -129.57%
• Country: JP
• Employees: 1,068
• Sector: Consumer Cyclical
• Sector Strength: 79
• Industry: Department Stores
• EPS (TTM): -50.99
• Shares Outstanding: 4,703,063
• 10 Day Avg. Volume: 2,300
• 30 Day Avg. Volume: 2,056
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,443.00
• Price Target Upside: 4.19% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 61 Neutral
• Price Target: ¥1,443.00 ▲(4.19% Upside)

The overall stock score is primarily influenced by the company's strong cost management and stable balance sheet, despite challenges in profitability and cash flow. Technical indicators suggest moderate market momentum, while valuation concerns due to a negative P/E ratio weigh heavily on the score. The dividend yield provides a slight positive offset.

Positive Factors

Strong Cost Management

Effective cost management helps sustain high gross profit margins, ensuring the company can maintain profitability despite revenue fluctuations.

Stable Balance Sheet

A strong equity base and low leverage provide financial stability, reducing risk and enhancing the company's ability to withstand economic downturns.

Healthy Gross Profit Margin

A high gross profit margin indicates efficient production and pricing strategies, allowing the company to generate substantial profits from sales.

Negative Factors

Declining Profitability

Reduced profitability can hinder reinvestment and growth opportunities, challenging the company's ability to improve shareholder value.

Decreasing Cash Flow

Lower cash flow limits the company's ability to fund operations and investments, potentially impacting long-term growth and financial health.

Revenue Decline

Persistent revenue decline suggests challenges in market demand or competition, potentially affecting the company's market position and growth prospects.

HOUSE OF ROSE Co.,Ltd. Business Overview & Revenue Model

Company Description

HOUSE OF ROSE Co., Ltd. is a Japanese company that operates within the cosmetics and personal care industry. The company specializes in the development, production, and sale of a wide range of beauty and skincare products. Its core product offerings include skincare, haircare, and body care products, targeting both domestic and international markets. HOUSE OF ROSE Co., Ltd. is renowned for utilizing natural ingredients and innovative formulas to cater to consumer preferences for high-quality personal care items.

How the Company Makes Money

HOUSE OF ROSE Co., Ltd. generates revenue primarily through the sale of its diverse product line, which includes skincare, haircare, and body care products. The company markets its products through various channels, including retail stores, online platforms, and selective partnerships with distributors and retailers. Revenue streams are supplemented by the company's efforts to expand its brand presence in international markets, leveraging its reputation for quality and natural ingredient-based formulations. Additionally, HOUSE OF ROSE Co., Ltd. may engage in collaborations or partnerships with other beauty and personal care companies to broaden its product distribution and market reach.

HOUSE OF ROSE Co.,Ltd. Financial Statement Overview

Summary

HOUSE OF ROSE Co.,Ltd. demonstrates strong cost management and a stable balance sheet with low leverage. However, recent declines in profitability and cash flow pose potential challenges. The company needs to focus on improving revenue growth and cash flow generation to enhance overall financial performance.

Income Statement

HOUSE OF ROSE Co.,Ltd. has experienced fluctuations in total revenue over the past few years, with a notable decline in revenue from 2020 to 2025. The gross profit margin remains healthy at approximately 70.7% in 2025, indicating strong cost management. However, the net profit margin has decreased significantly to 0.69% in 2025 due to reduced net income. The EBIT and EBITDA margins also reflect this decline, suggesting challenges in maintaining profitability.

Balance Sheet

The company maintains a solid equity base with an equity ratio of 67.8% in 2025. The debt-to-equity ratio is low at 0.013, indicating minimal leverage risk. Return on equity (ROE) has decreased to 1.41% in 2025, reflecting lower profitability. Despite this, the company's financial stability remains strong due to its low debt levels.

Cash Flow

Operating cash flow has decreased significantly from 2024 to 2025, impacting free cash flow, which also saw a notable decline. The free cash flow to net income ratio stands at 0.33, highlighting challenges in converting income into cash. Despite the decrease in cash flow, the company maintains a positive free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.96B	11.59B	11.99B	11.91B	11.28B	10.68B
Gross Profit	8.50B	8.19B	8.52B	8.51B	8.10B	7.61B
EBITDA	655.05M	282.27M	463.77M	640.17M	432.33M	215.46M
Net Income	555.94M	79.62M	122.01M	511.95M	103.92M	-67.62M
Balance Sheet
Total Assets	8.96B	8.33B	8.67B	8.83B	8.94B	9.15B
Cash, Cash Equivalents and Short-Term Investments	2.82B	3.03B	3.15B	3.30B	3.02B	3.08B
Total Debt	37.56M	73.01M	80.16M	386.85M	811.74M	1.41B
Total Liabilities	3.26B	2.68B	2.94B	3.09B	3.61B	3.81B
Stockholders Equity	5.70B	5.65B	5.73B	5.74B	5.33B	5.34B
Cash Flow
Free Cash Flow	233.64M	26.01M	471.66M	291.36M	300.15M	676.81M
Operating Cash Flow	233.64M	57.90M	490.06M	322.86M	310.16M	690.67M
Investing Cash Flow	0.00	2.14M	-194.39M	583.64M	392.20M	3.12M
Financing Cash Flow	0.00	-182.44M	-449.58M	-628.98M	-760.27M	828.83M

HOUSE OF ROSE Co.,Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1385.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7506, the sentiment is Positive. The current price of 1385 is above the 20-day moving average (MA) of 1375.45, above the 50-day MA of 1371.80, and below the 200-day MA of 1405.40, indicating a neutral trend. The MACD of 3.19 indicates Negative momentum. The RSI at 72.53 is Negative, neither overbought nor oversold. The STOCH value of 83.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7506.

HOUSE OF ROSE Co.,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8237	72 Outperform	¥75.61B	39.81		0.84%	9.88%	-37.53%
8260	64 Neutral	¥4.93B	5.27		1.40%	-2.12%	8.28%
Sector *	61 Neutral	$18.09B	12.97	-1.60%	2.98%	1.42%	-15.92%
7506	61 Neutral	¥6.49B	80.96		1.81%	-3.92%	-129.57%
8254	61 Neutral	¥2.53B	20.42		―	-10.22%	-23.30%
8244	60 Neutral	¥80.11B	37.18		0.98%	2.35%	-36.99%
9946	53 Neutral	¥58.83B	―		1.00%	13.17%	-348.48%