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HOUSE OF ROSE Co.,Ltd. (JP:7506)
:7506
Japanese Market
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HOUSE OF ROSE Co.,Ltd. (7506) AI Stock Analysis

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JP:7506

HOUSE OF ROSE Co.,Ltd.

(7506)

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Neutral 46 (OpenAI - 5.2)
Rating:46Neutral
Price Target:
¥1,351.00
▼(-2.31% Downside)
Action:Reiterated
Date:08/17/26
The score is held back primarily by weak recent fundamentals—near-breakeven profitability and negative operating/free cash flow in 2026—despite a very conservatively financed balance sheet. Technicals are broadly neutral with only mild positive bias, while valuation is a major headwind due to the extremely high P/E, only partially offset by a modest dividend yield.
Positive Factors
Conservative Balance Sheet
Near-zero leverage reduces solvency risk and interest-related pressure, giving HOUSE OF ROSE financial flexibility to maintain operations, fund product development, and withstand periods of weaker profitability without relying heavily on external financing.
Negative Factors
Severe Operating Margin Compression
The sharp decline in operating profitability shows that strong gross margins are not translating into adequate earnings after operating costs. Unless cost control or sales productivity improves, the business has limited resilience to inflation or weaker demand.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Near-zero leverage reduces solvency risk and interest-related pressure, giving HOUSE OF ROSE financial flexibility to maintain operations, fund product development, and withstand periods of weaker profitability without relying heavily on external financing.
Read all positive factors

HOUSE OF ROSE Co.,Ltd. (7506) vs. iShares MSCI Japan ETF (EWJ)

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

Company Description
Headquartered in Tokyo, Japan, HOUSE OF ROSE Co.,Ltd. operates a chain of cosmetic retail stores throughout the country. These outlets offer an extensive selection of products, encompassing skincare, makeup, body and hair care essentials, bath ite...
How the Company Makes Money
HOUSE OF ROSE generates revenue mainly from selling cosmetics and related beauty/personal-care items. Its core revenue stream is product sales to end consumers, typically through brand-operated retail stores and other in-market sales channels (e.g...

HOUSE OF ROSE Co.,Ltd. Financial Statement Overview

Summary
Balance sheet strength is a clear positive (deleveraged to near-zero debt), but operating performance has deteriorated sharply: operating margin has fallen to ~1% in 2025 and ~0.6% in 2026, net margin is near breakeven, and cash generation turned negative in 2026 with both operating cash flow and free cash flow below zero. The recent profitability and cash-flow weakness meaningfully drags the score despite strong gross margins and low leverage.
Income Statement
42
Neutral
Balance Sheet
78
Positive
Cash Flow
30
Negative
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue11.96B11.54B11.59B11.99B11.91B11.28B
Gross Profit8.50B8.15B8.10B8.38B8.34B7.96B
EBITDA379.76M164.20M280.17M507.92M325.33M403.04M
Net Income555.94M1.67M79.62M122.01M511.95M103.92M
Balance Sheet
Total Assets8.96B7.98B8.36B8.72B8.89B8.98B
Cash, Cash Equivalents and Short-Term Investments2.82B2.67B3.03B3.15B3.30B3.02B
Total Debt37.56M32.17M73.01M80.16M386.85M811.74M
Total Liabilities3.26B2.50B2.71B2.99B3.14B3.66B
Stockholders Equity5.70B5.48B5.65B5.73B5.74B5.33B
Cash Flow
Free Cash Flow0.00-201.94M31.51M471.66M291.36M305.95M
Operating Cash Flow0.00-144.00M63.39M490.06M322.86M310.16M
Investing Cash Flow0.00-56.67M2.14M-194.39M583.64M392.20M
Financing Cash Flow0.00-158.40M-182.44M-449.58M-628.98M-760.27M

HOUSE OF ROSE Co.,Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1383.00
Price Trends
50DMA
1373.34
Positive
100DMA
1368.23
Positive
200DMA
1376.71
Positive
Market Momentum
MACD
0.62
Positive
RSI
49.80
Neutral
STOCH
50.43
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7506, the sentiment is Neutral. The current price of 1383 is below the 20-day moving average (MA) of 1383.70, above the 50-day MA of 1373.34, and above the 200-day MA of 1376.71, indicating a neutral trend. The MACD of 0.62 indicates Positive momentum. The RSI at 49.80 is Neutral, neither overbought nor oversold. The STOCH value of 50.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7506.

HOUSE OF ROSE Co.,Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
¥349.42B9.319.80%2.01%-0.35%209.70%
71
Outperform
¥1.21T15.6012.81%1.90%0.06%43.97%
67
Neutral
¥2.31T34.5517.86%0.70%16.81%28.07%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
60
Neutral
¥716.67B26.896.72%1.76%-2.32%-30.08%
59
Neutral
¥667.79B-187.30-0.88%1.52%1.79%-114.35%
46
Neutral
¥6.49B422.701.82%0.24%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7506
HOUSE OF ROSE Co.,Ltd.
1,378.00
31.21
2.32%
JP:3099
Isetan Mitsukoshi Holdings
3,531.00
1,105.18
45.56%
JP:3086
J FRONT RETAILING Co
2,979.50
729.28
32.41%
JP:7453
Ryohin Keikaku Co
4,379.00
899.62
25.86%
JP:8233
Takashimaya Company
2,355.00
1,099.91
87.64%
JP:8242
H2O Retailing Corporation
2,928.00
866.40
42.03%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 17, 2026