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Kohnan Shoji Co., Ltd. (JP:7516)
:7516
Japanese Market
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Kohnan Shoji Co., Ltd. (7516) AI Stock Analysis

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JP:7516

Kohnan Shoji Co., Ltd.

(7516)

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Neutral 63 (OpenAI - 5.2)
Rating:63Neutral
Price Target:
¥4,436.00
▲(1.39% Upside)
Action:Reiterated
Date:08/04/26
The score is primarily supported by attractive valuation (low P/E and a solid dividend yield). Financial performance is acceptable but held back by margin compression, elevated leverage, and uneven free cash flow quality. Technical signals are neutral-to-mildly positive, suggesting limited near-term momentum risk but not a strong breakout setup.
Positive Factors
Steady Revenue and EPS Growth
Continued sales expansion indicates durable demand across KONAN's home-improvement, household and lifestyle categories. Although growth decelerated in 2026, the multi-year increase supports the resilience of the store network and broad merchandise model.
Negative Factors
Operating and Net Margin Compression
Falling operating and net margins indicate weakening profit conversion despite steady sales and gross margin. If this persists, the company may have less capacity to absorb cost inflation, invest in stores and technology, or deliver improving shareholder returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Steady Revenue and EPS Growth
Continued sales expansion indicates durable demand across KONAN's home-improvement, household and lifestyle categories. Although growth decelerated in 2026, the multi-year increase supports the resilience of the store network and broad merchandise model.
Read all positive factors

Kohnan Shoji Co., Ltd. (7516) vs. iShares MSCI Japan ETF (EWJ)

Kohnan Shoji Co., Ltd. Business Overview & Revenue Model

Company Description
Kohnan Shoji Co., Ltd. is a Japanese retail company that manages a network of home improvement and household product stores, serving both individual consumers and professional clients. Their main home center outlets provide an extensive array of g...
How the Company Makes Money
The company primarily makes money through retail sales at its KONAN-format stores. Revenue is generated by selling a wide range of products spanning DIY and repair-related items (e.g., tools, hardware, building materials), home and living goods (e...

Kohnan Shoji Co., Ltd. Financial Statement Overview

Summary
Steady revenue growth and stable gross margin (~39–40%) are positives, but operating and net margins have compressed meaningfully, pressuring returns. Leverage is elevated (debt-to-equity above 1.0, highest in 2026) and ROE has trended down to ~7%. Cash flow is improving but free cash flow has been volatile, keeping overall fundamentals below top-tier.
Income Statement
60
Neutral
Balance Sheet
55
Neutral
Cash Flow
48
Neutral
BreakdownTTMFeb 2026Feb 2025Feb 2024Feb 2023Feb 2022
Income Statement
Total Revenue535.21B519.78B501.40B472.65B439.02B441.22B
Gross Profit209.26B203.25B196.57B187.12B175.72B176.01B
EBITDA42.71B39.41B40.69B39.07B36.19B39.52B
Net Income14.54B12.26B14.21B14.05B13.23B15.59B
Balance Sheet
Total Assets537.06B504.79B479.01B458.56B419.25B398.08B
Cash, Cash Equivalents and Short-Term Investments16.27B15.52B10.84B11.72B9.22B12.24B
Total Debt218.31B206.05B193.19B196.18B170.91B159.52B
Total Liabilities358.39B330.94B313.21B301.30B269.69B255.63B
Stockholders Equity178.23B173.40B165.79B157.26B149.56B142.44B
Cash Flow
Free Cash Flow0.009.12B2.23B4.50B-5.12B8.09B
Operating Cash Flow0.0022.99B22.44B22.49B9.40B17.44B
Investing Cash Flow0.00-20.65B-21.72B-24.01B-17.93B-12.68B
Financing Cash Flow0.001.46B-1.43B2.50B5.43B-7.29B

Kohnan Shoji Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4375.00
Price Trends
50DMA
4166.30
Positive
100DMA
4154.05
Positive
200DMA
4044.90
Positive
Market Momentum
MACD
78.57
Negative
RSI
65.46
Neutral
STOCH
94.62
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7516, the sentiment is Positive. The current price of 4375 is above the 20-day moving average (MA) of 4284.00, above the 50-day MA of 4166.30, and above the 200-day MA of 4044.90, indicating a bullish trend. The MACD of 78.57 indicates Negative momentum. The RSI at 65.46 is Neutral, neither overbought nor oversold. The STOCH value of 94.62 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7516.

Kohnan Shoji Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
¥190.66B12.291.58%2.57%7.49%
67
Neutral
¥137.80B15.393.50%3.06%10.37%
63
Neutral
¥141.09B8.702.97%5.63%6.92%
62
Neutral
¥221.45B12.272.83%2.68%1.62%
60
Neutral
¥6.29B18.013.36%-1.64%-16.55%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
45
Neutral
¥61.38B147.620.14%2.78%-2.53%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7516
Kohnan Shoji Co., Ltd.
4,470.00
589.07
15.18%
JP:2790
NAFCO Co., Ltd.
2,163.00
294.41
15.76%
JP:3050
DCM Holdings Co., Ltd.
1,615.00
166.30
11.48%
JP:3191
Joyful Honda Co. Ltd.
2,280.00
190.35
9.11%
JP:8218
KOMERI CO., LTD.
3,870.00
652.89
20.29%
JP:9903
Kanseki Co., Ltd.
903.00
37.05
4.28%

Kohnan Shoji Co., Ltd. Corporate Events

Kohnan Shoji Completes ¥3 Billion Treasury Stock Allotment to Valor Holdings
Jul 16, 2026
Kohnan Shoji has completed the payment process for a disposal of treasury stock via third-party allotment to Valor Holdings, following a June 30 board resolution to strengthen their capital and business alliance. The transaction involved issuing 7...
Kohnan Shoji Publishes FY2/27 Q1 Results and Outlook
Jul 10, 2026
Kohnan Shoji Co., Ltd. released its financial results presentation materials for the first quarter of fiscal year ending February 2027, covering the period from March 1 to May 31, 2026. The materials outline a summary of Q1 performance, an earning...
Kohnan Shoji Delivers Profit Surge in Q1 and Confirms Higher Dividend
Jul 10, 2026
Kohnan Shoji Co., Ltd. reported a strong start to its fiscal year, with consolidated operating revenues for the three months ended May 31, 2026 rising 11.8% year on year to ¥146.2 billion and profit attributable to owners of parent surging 52...
Kohnan Shoji and Valor Overhaul Governance at Alleanza Holdings
Jul 1, 2026
Kohnan Shoji and Valor Holdings have announced a new executive structure for Alleanza Holdings, an equity-method affiliate of Kohnan and a consolidated subsidiary of Valor, following resolutions at an extraordinary shareholders’ meeting and ...
Kohnan Shoji Seals Capital and Business Alliance with Valor to Bolster Retail Competitiveness
Jun 30, 2026
Kohnan Shoji has entered into a capital and business alliance with Valor Holdings to strengthen competitiveness amid rising costs, shifting consumer behavior and intensifying cross-format retail competition. The partners will jointly manage Allean...
Kohnan Shoji to Grant Treasury Shares as Restricted Stock to Directors
Jun 15, 2026
Kohnan Shoji has approved the disposal of 4,500 treasury shares of common stock through a private placement to eight internal directors, at a price of 4,185 yen per share, totaling about 18.8 million yen. The shares will be allocated as restricted...
Kohnan Shoji Restructures Executive Responsibilities to Strengthen Governance
May 28, 2026
Kohnan Shoji has reshuffled responsibilities among its directors and senior executive officers, effective May 28, 2026, to refine oversight of core functions such as general affairs, internal audit, human resources, IT planning, sales planning, me...
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 04, 2026