Himaraya Co., Ltd. (7514) AI Stock Analysis

• Market Cap: ¥10.31B
• Dividend Yield: 3.08%
• Average Volume (3M): 6.12K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.08
• Revenue Growth: 3.31%
• EPS Growth: -94.69%
• Country: JP
• Employees: 730
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): -25.37
• Shares Outstanding: 12,320,787
• 10 Day Avg. Volume: 7,060
• 30 Day Avg. Volume: 6,120
• PEG Ratio: -10.17
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 0.18
• P/FCF Ratio: -28.44
• 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: 43 Neutral
• Price Target: ¥817.00 ▼(-3.54% Downside)
• Action: Reiterated Date: 01/04/26
• Date: Action: Reiterated 01/04/26

The score is held down primarily by weak financial quality—near-breakeven profitability, very low returns, and volatile free cash flow—despite improving leverage. Technicals are broadly neutral with no strong momentum signal, while valuation is a major headwind due to an extremely high P/E, only partly cushioned by a ~3% dividend yield.

Positive Factors

Leverage Management

Improved leverage management reduces financial risk and enhances the company's ability to invest in growth opportunities, supporting long-term stability.

Supplier Relationships

Strong supplier relationships ensure a steady supply of quality products, enabling competitive pricing and customer satisfaction, which are crucial for sustained profitability.

Retail and E-commerce Channels

A diversified sales strategy through physical and online channels enhances market reach and revenue potential, providing resilience against market fluctuations.

Negative Factors

Revenue Decline

A consistent decline in revenue indicates challenges in market demand or competitive positioning, potentially impacting long-term growth prospects.

Profitability Challenges

Decreasing profitability margins suggest operational inefficiencies or increased costs, which can hinder the company's ability to invest in future growth.

Volatile Cash Flows

Volatile cash flows limit the company's ability to reinvest in growth and manage financial obligations, posing risks to financial stability.

Himaraya Co., Ltd. Business Overview & Revenue Model

Company Description

HIMARAYA Co.,Ltd. engages in the retail of sporting goods in Japan. It offers apparels, shoes, and outdoor apparels; fitness/yoga and hiking/trekking products, as well as ski snowboards; and sporting goods of various genres, such as tennis, baseball, soccer, golf marine sports, and outdoor equipment. The company was formerly known as Himaraya, Ltd. and changed its name to HIMARAYA Co.,Ltd. in 1991. HIMARAYA Co.,Ltd. was founded in 1976 and is headquartered in Gifu, Japan.

How the Company Makes Money

Himaraya Co., Ltd. generates revenue primarily through the sale of sporting goods and outdoor equipment. The company operates numerous retail outlets throughout Japan, which serve as the main sales channels for its products. In addition to physical stores, Himaraya also leverages e-commerce platforms to reach a broader customer base. The company collaborates with various well-known brands to offer a diverse product range, ensuring a wide selection for customers. Himaraya's revenue model is heavily dependent on consumer spending in the sports and outdoor sectors, with seasonal promotions and marketing efforts playing a significant role in driving sales. The company's ability to maintain strong supplier relationships and manage inventory efficiently also contributes to its profitability.

Himaraya Co., Ltd. Financial Statement Overview

Summary

Despite strong 2025 revenue growth (+62.3% YoY), profitability deteriorated to near breakeven (net margin ~0.0%) with material EBIT margin compression (~0.5%). Returns are weak (ROE ~0.1%), and cash generation is unreliable with free cash flow swinging to -¥372M in 2025, partially offset by improved leverage (debt-to-equity ~0.30).

Income Statement

Revenue rebounded strongly in 2025 (+62.3% YoY), but profitability has deteriorated sharply versus prior years. Net margin fell to near breakeven in 2025 (~0.0%) from ~0.4% in 2024 and ~1.0% in 2023, while operating profitability also compressed materially (EBIT margin ~0.5% in 2025 vs ~1.7% in 2023 and ~3.5% in 2022). Gross margin has been relatively steady around ~35%, suggesting the main pressure is below gross profit (operating costs/other items), creating meaningful earnings volatility despite healthy top-line growth.

Balance Sheet

Leverage appears moderate and improving: debt-to-equity declined to ~0.30 in 2025 from ~0.76 in 2021 and ~1.03 in 2020, while equity has remained fairly stable. The key weakness is returns: return on equity dropped to ~0.1% in 2025 (from ~1.3% in 2024 and ~3.6% in 2023), reflecting the sharp earnings compression. Overall, the balance sheet looks reasonably positioned, but the company is currently not generating attractive returns on its capital base.

Cash Flow

Cash generation is inconsistent. Operating cash flow remained positive in 2024–2025, but free cash flow swung from +¥457M (2024) to -¥372M (2025), indicating renewed cash burn after spending/investment needs. Earlier years show elevated volatility as well (notably deeply negative free cash flow in 2023). While 2025 net income was near zero (making cash-to-earnings comparisons less informative), the overall pattern points to uneven cash conversion and limited free cash flow reliability.

Breakdown	Aug 2025	Aug 2024	Aug 2023	Aug 2022	Aug 2021
Income Statement
Total Revenue	60.45B	58.51B	60.19B	58.91B	62.13B
Gross Profit	21.20B	20.46B	20.98B	21.63B	22.25B
EBITDA	1.10B	1.14B	1.73B	2.63B	2.64B
Net Income	11.00M	206.00M	589.00M	1.43B	1.41B
Balance Sheet
Total Assets	35.00B	35.00B	35.78B	38.41B	40.05B
Cash, Cash Equivalents and Short-Term Investments	3.69B	4.12B	4.40B	9.68B	13.75B
Total Debt	4.84B	5.15B	5.54B	8.23B	11.55B
Total Liabilities	18.67B	18.51B	19.19B	22.23B	24.93B
Stockholders Equity	16.33B	16.48B	16.59B	16.18B	15.12B
Cash Flow
Free Cash Flow	-372.00M	457.00M	-2.26B	-154.00M	6.77B
Operating Cash Flow	416.00M	982.00M	-42.00M	838.00M	6.89B
Investing Cash Flow	-216.00M	-546.00M	-2.20B	-1.19B	-148.00M
Financing Cash Flow	-630.00M	-709.00M	-3.04B	-3.73B	-2.91B

Himaraya Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 847.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7514, the sentiment is Negative. The current price of 847 is below the 20-day moving average (MA) of 853.32, below the 50-day MA of 862.12, and above the 200-day MA of 844.81, indicating a bearish trend. The MACD of -5.64 indicates Positive momentum. The RSI at 37.03 is Neutral, neither overbought nor oversold. The STOCH value of 24.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7514.

Himaraya Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8022	74 Outperform	¥260.93B	11.87	10.61%	1.81%	5.29%	16.34%
3092	65 Neutral	$960.48B	17.87	49.14%	2.82%	6.80%	0.62%
3028	63 Neutral	¥76.68B	10.29	―	2.11%	6.04%	93.19%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8281	60 Neutral	¥44.92B	15.79	―	3.31%	0.88%	-138.66%
7514	43 Neutral	¥10.31B	-8.39	―	3.08%	3.31%	-94.69%
4755	41 Neutral	¥1.62T	-12.21	-21.14%	―	11.45%	42.34%