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

• Market Cap: ¥6.69B
• Dividend Yield: 1.82%
• Average Volume (3M): 1.62K
• Price to Earnings (P/E): 32.0
• Beta (1Y): 0.17
• Revenue Growth: -2.58%
• EPS Growth: -8.24%
• Country: JP
• Employees: 1,068
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Department Stores
• EPS (TTM): 10.81
• Shares Outstanding: 4,703,063
• 10 Day Avg. Volume: 1,330
• 30 Day Avg. Volume: 1,620
• PEG Ratio: -2.42
• Price to Book (P/B): 1.19
• Price to Sales (P/S): 0.58
• P/FCF Ratio: 257.59
• 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: 61 Neutral
• Price Target: ¥1,477.00 ▲(6.80% Upside)
• Action: Reiterated Date: 01/20/26
• Date: Action: Reiterated 01/20/26

The score is primarily held back by weakening profitability and cash flow despite strong balance-sheet stability, with only moderate technical support and a notably expensive valuation (high P/E) offsetting the modest dividend yield.

Positive Factors

Very low leverage / strong equity base

Extremely low debt and a high equity ratio give the company durable financial flexibility: it can fund working capital, invest in product development or marketing without refinancing risk, and better withstand economic cycles or retail downturns over months.

High gross profit margin

A roughly 70% gross margin indicates structural pricing power or low direct costs in the beauty portfolio. This margin base supports long-term profitability recovery if SG&A normalizes and enables reinvestment in R&D, marketing, or channel expansion.

Omnichannel sales and product focus

A diversified sales mix (e-commerce plus retail) and emphasis on innovation and loyalty create a durable revenue platform. Omnichannel reach reduces single-channel risk, while product differentiation supports repeat purchases and international expansion over the medium term.

Negative Factors

Severely weakened net profitability

Net margin near zero and very low ROE signal the business struggles to convert sales into shareholder returns. Over months this limits capacity to self-fund growth, weakens investor appeal, and makes the firm more vulnerable to cost inflation or margin pressure.

Persistent revenue decline

Multi-year revenue decline erodes scale advantages and weakens competitive position. If the top line contracts structurally, fixed-cost absorption worsens, reducing operational leverage and making margin recovery and profitable expansion materially harder over the medium term.

Weak cash conversion and falling operating cash flow

Declining operating cash flow and a low FCF-to-net-income ratio indicate difficulty turning earnings into spendable cash. This constrains capex, marketing or dividend flexibility and raises refinancing or liquidity risk if revenue or margins falter over the coming months.

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

Company Description

HOUSE OF ROSE Co.,Ltd. operates cosmetic stores in Japan. The company's stores offer skin care, makeup, body and hair care, bath, fragrant body care cosmetics, delicately fragranced sundry goods, and other cosmetic products. It also operates relaxation salons and fitness salons for women under the Curves brand name. As of March 31, 2022, the company operated 248 stores, including 204 stores under the HOUSE OF ROSE name; 21 stores under the Curves name; 17 relaxation salons; and 6 other stores. HOUSE OF ROSE Co.,Ltd. was founded in 1978 and is headquartered in Tokyo, Japan.

How the Company Makes Money

HOUSE OF ROSE generates revenue through multiple streams, primarily by selling its beauty and personal care products both online and through retail channels. The company has a strong presence in the domestic market and has expanded its footprint in international markets through strategic partnerships and distribution agreements. Its revenue model also includes direct sales to consumers via e-commerce platforms, which have become increasingly important in recent years. Additionally, collaborations with other brands and participation in trade shows enhance its visibility and sales opportunities. The company's focus on product innovation and customer loyalty programs further contribute to its earnings by driving repeat purchases and attracting new customers.

HOUSE OF ROSE Co.,Ltd. Financial Statement Overview

Summary

Stable balance sheet with very low leverage (debt-to-equity 0.013; equity ratio 67.8%), but profitability has weakened materially (net margin down to 0.69% and ROE 1.41% in 2025) alongside declining revenue and lower operating/free cash flow (FCF to net income 0.33).

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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	63.39M	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: 1383.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 1383 is below the 20-day moving average (MA) of 1418.30, below the 50-day MA of 1413.18, and above the 200-day MA of 1379.58, indicating a bullish trend. The MACD of 4.94 indicates Negative momentum. The RSI at 56.50 is Neutral, neither overbought nor oversold. The STOCH value of 35.93 is Neutral, 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
3099	73 Outperform	$979.56B	9.13	9.37%	2.59%	-1.22%	-10.82%
8233	71 Outperform	¥530.85B	14.44	9.06%	1.84%	0.42%	20.25%
3086	66 Neutral	¥615.65B	22.09	7.58%	2.58%	6.52%	-31.67%
8242	66 Neutral	¥276.84B	2.68	4.97%	2.01%	2.00%	-68.35%
7453	64 Neutral	$1.99T	18.88	17.34%	0.72%	18.58%	7.54%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7506	61 Neutral	¥6.69B	32.00	―	1.82%	-2.58%	-8.24%