Maruyoshi Center Inc. (7515) AI Stock Analysis

• Market Cap: ¥4.17B
• Dividend Yield: 0.67%
• Average Volume (3M): 356.00
• Price to Earnings (P/E): 23.9
• Beta (1Y): 0.09
• Revenue Growth: 5.74%
• EPS Growth: 14.35%
• Country: JP
• Employees: 463
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Grocery Stores
• EPS (TTM): 46.23
• Shares Outstanding: 934,999
• 10 Day Avg. Volume: 590
• 30 Day Avg. Volume: 356
• PEG Ratio: -2.94
• Price to Book (P/B): 1.22
• Price to Sales (P/S): 0.09
• P/FCF Ratio: -21.12
• 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: 48 Neutral
• Price Target: ¥4,500.00 ▼(-5.06% Downside)
• Action: Reiterated Date: 07/31/25
• Date: Action: Reiterated 07/31/25

Maruyoshi Center Inc.'s overall stock score reflects significant financial challenges and weak technical indicators. The high P/E ratio suggests overvaluation, while financial performance shows potential liquidity risks and declining profitability. The technical analysis also indicates bearish momentum.

Positive Factors

Stable Gross Margins

Stable gross margins indicate the company retains pricing power or effective procurement/merchandising execution in core grocery categories. That persistence supports durable gross profitability even if operating costs fluctuate, giving time to address downstream margin pressure.

Modest Revenue Growth

Consistent mid-single-digit revenue growth reflects steady in-store demand and modest expansion of sales volume or mix. Over a 2-6 month horizon, this trend supports predictable top-line cash generation and underpins planning for inventory, staffing and incremental store-level investments.

Defensive, Essential Retail Model

A grocery-focused business selling essential goods benefits from resilient, recurring demand and lower cyclicality than discretionary retail. This structural positioning supports baseline sales stability, frequent customer visits, and relatively predictable working capital dynamics over medium term.

Negative Factors

High Leverage

Elevated debt relative to equity reduces financial flexibility and raises refinancing and interest-rate vulnerability. Sustained leverage pressure can force tighter capital allocation, limit store investment or prompt asset disposals if cash flow weakens, impairing long-term growth options.

Declining Net Profit Margins

A meaningful drop in net margins signals rising operating costs, competitive price pressure, or inefficiencies. Persisting margin compression erodes retained earnings and ROE, constraining the company's ability to self-fund expansion, pay down debt, or absorb unexpected cost shocks over the medium term.

Cash Conversion Weakness

Volatile and recently negative free cash flow implies earnings are not reliably converting to cash, limiting capacity to service debt, invest in stores, or build liquidity buffers. Ongoing weak cash conversion increases refinancing and operational risk across a 2-6 month horizon.

Maruyoshi Center Inc. Business Overview & Revenue Model

Company Description

Maruyoshi Center Inc. operates supermarkets and restaurants in Japan. The company was formerly known as Y.K. Tokiwa Food Center and changed its name to Maruyoshi Center Inc. in 1970. Maruyoshi Center Inc. was founded in 1961 and is headquartered in Takamatsu, Japan.

How the Company Makes Money

Maruyoshi Center Inc. generates revenue through multiple streams, primarily by selling food products to wholesale clients and retailers. The company profits from the markup on its products, which are sourced from various suppliers and manufacturers. Additionally, Maruyoshi Center may engage in partnerships with local and international food producers to expand its product offerings and ensure a steady supply chain. The company also benefits from repeat business from established clients in the food service industry, which contributes to its stable revenue base. Seasonal promotions and bulk sales to large clients further enhance its earnings potential.

Maruyoshi Center Inc. Financial Statement Overview

Summary

Maruyoshi Center Inc. shows mixed financial performance with stable gross margins but declining net profit margins and significant fluctuations in free cash flow. The high debt-to-equity ratio poses a risk, while revenue growth remains modest. These factors indicate challenges in maintaining profitability and liquidity.

Income Statement

Maruyoshi Center Inc. demonstrated a mixed performance in its income statement. The gross profit margin has been relatively stable, but the net profit margin has significantly declined recently, indicating potential challenges in controlling costs or increased competitive pressure. Revenue growth has been modest, with a slight increase in the latest year compared to previous years. The EBIT and EBITDA margins have shown volatility, with a notable decrease in EBIT margin, which may suggest operational inefficiencies or increased expenses.

Balance Sheet

The balance sheet of Maruyoshi Center Inc. indicates some concerns regarding leverage. The debt-to-equity ratio is relatively high, which could pose a risk if interest rates rise or cash flows decrease. However, the equity ratio shows a reasonable level of equity financing, suggesting some stability. Return on equity has decreased, reflecting reduced profitability relative to shareholders' equity.

Cash Flow

The cash flow statement reveals significant fluctuations in free cash flow, with recent negative free cash flow indicating potential cash constraints. The operating cash flow to net income ratio suggests that the company is struggling to convert earnings into cash effectively. This could impact its ability to reinvest in operations or pay down debt. The decline in free cash flow growth rate further underscores potential liquidity challenges.

Breakdown	TTM	Feb 2025	Feb 2024	Feb 2023	Feb 2022	Feb 2021
Income Statement
Total Revenue	42.38B	41.74B	39.82B	38.54B	39.17B	40.99B
Gross Profit	11.20B	10.66B	10.57B	10.06B	10.72B	11.35B
EBITDA	928.77M	954.26M	1.08B	965.24M	1.36B	1.45B
Net Income	7.00M	13.80M	135.49M	142.38M	417.72M	480.36M
Balance Sheet
Total Assets	16.71B	16.20B	16.20B	16.15B	16.48B	18.13B
Cash, Cash Equivalents and Short-Term Investments	1.06B	653.65M	1.11B	1.13B	1.24B	2.96B
Total Debt	6.41B	7.67B	7.68B	8.33B	8.67B	9.29B
Total Liabilities	13.43B	12.97B	12.94B	13.08B	13.52B	15.56B
Stockholders Equity	3.03B	3.00B	3.05B	2.89B	2.79B	2.42B
Cash Flow
Free Cash Flow	0.00	-172.86M	685.41M	270.95M	-1.03B	1.37B
Operating Cash Flow	0.00	357.33M	1.53B	665.31M	-367.12M	1.67B
Investing Cash Flow	0.00	-685.36M	-681.58M	-379.98M	-536.44M	-144.07M
Financing Cash Flow	0.00	-66.86M	-745.65M	-400.51M	-670.99M	-351.38M

Maruyoshi Center Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4740.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7515, the sentiment is Negative. The current price of 4740 is above the 20-day moving average (MA) of 4657.02, above the 50-day MA of 4617.60, and above the 200-day MA of 4248.76, indicating a neutral trend. The MACD of -2.25 indicates Positive momentum. The RSI at 39.76 is Neutral, neither overbought nor oversold. The STOCH value of 30.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7515.

Maruyoshi Center Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2687	79 Outperform	¥2.48B	14.21	―	4.73%	2.93%	-81.08%
9259	75 Outperform	¥5.31B	11.10	―	3.81%	1.83%	-25.02%
7544	69 Neutral	¥4.32B	10.71	―	2.18%	―	―
2747	62 Neutral	¥3.81B	32.77	―	1.55%	0.42%	13.11%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
7515	48 Neutral	¥4.17B	23.92	―	0.67%	5.74%	14.35%
5616	44 Neutral	¥2.02B	-489.50	―	―	-2.07%	76.07%