Kohnan Shoji Co., Ltd. (JP:7516)
:7516
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Kohnan Shoji Co., Ltd.
(7516)
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Select Model
Rating:67Neutral
Price Target:
¥4,611.00
▲(18.69% Upside)
Action:ReiteratedDate:06/19/25
The stock is supported by a strong valuation due to its low P/E ratio and attractive dividend yield. Financial performance is solid, though attention is needed for cash flow management and leverage. Technical analysis suggests a cautious outlook, with no clear momentum.
Positive Factors
Consistent Revenue Growth
Sustained top-line growth indicates resilient consumer demand across home improvement categories and effective merchandising. Over 2-6 months this supports stable store traffic, inventory turnover and incremental operating leverage, helping earnings scalability despite retail cyclicality.
Negative Factors
Sharp Free Cash Flow Decline
A 40% fall in free cash flow, with FCF-to-net-income only 0.16, signals heavy capital deployment or working-capital strain. Over months this constrains funding for growth, dividends or debt reduction and elevates reliance on operating cash or external financing for strategic needs.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent Revenue Growth
Sustained top-line growth indicates resilient consumer demand across home improvement categories and effective merchandising. Over 2-6 months this supports stable store traffic, inventory turnover and incremental operating leverage, helping earnings scalability despite retail cyclicality.
Read all positive factors
Kohnan Shoji Co., Ltd. (7516) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥138.26B
Dividend Yield2.85%
Average Volume (3M)50.49K
Price to Earnings (P/E)12.6
Beta (1Y)0.47
Revenue Growth3.83%
EPS Growth7.24%
CountryJP
Employees4,806
SectorConsumer Cyclical
Sector Strength84
IndustryHome Improvement
Share Statistics
EPS (TTM)77.81
Shares Outstanding34,682,114
10 Day Avg. Volume48,950
30 Day Avg. Volume50,490
Financial Highlights & Ratios
PEG Ratio1.86
Price to Book (P/B)0.63
Price to Sales (P/S)0.21
P/FCF Ratio46.64
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)547.5
Revenue Forecast (FY)¥545.00B
Kohnan Shoji Co., Ltd. Business Overview & Revenue Model
Company Description
Kohnan Shoji Co., Ltd. operates and manages a chain of home center stores that offer DIY products and household goods to general consumers and professionals in Japan. Its home center stores offer home improvement products, which include lumber, bu...
How the Company Makes Money
The company primarily makes money by selling merchandise through its retail stores. Revenue is generated at the point of sale across multiple product categories such as DIY and renovation-related materials (e.g., building supplies, tools, hardware...
Kohnan Shoji Co., Ltd. Financial Statement Overview
Summary
Income Statement
75
Positive
Balance Sheet
70
Positive
Cash Flow
65
Positive
| Breakdown | TTM | Feb 2025 | Feb 2024 | Feb 2023 | Feb 2022 | Feb 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 509.84B | 501.40B | 472.65B | 439.02B | 441.22B | 442.07B |
| Gross Profit | 199.63B | 196.57B | 187.12B | 175.72B | 176.01B | 175.78B |
| EBITDA | 40.70B | 40.69B | 39.07B | 36.19B | 39.52B | 42.72B |
| Net Income | 13.71B | 14.21B | 14.05B | 13.23B | 15.59B | 18.65B |
Balance Sheet | ||||||
| Total Assets | 496.22B | 479.01B | 458.56B | 419.25B | 398.08B | 395.10B |
| Cash, Cash Equivalents and Short-Term Investments | 14.49B | 10.84B | 11.72B | 9.22B | 12.24B | 14.68B |
| Total Debt | 193.17B | 193.19B | 196.18B | 170.91B | 159.52B | 159.32B |
| Total Liabilities | 324.41B | 313.21B | 301.30B | 269.69B | 255.63B | 261.80B |
| Stockholders Equity | 171.81B | 165.79B | 157.26B | 149.56B | 142.44B | 133.29B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 2.23B | 4.50B | -5.12B | 8.09B | 20.70B |
| Operating Cash Flow | 0.00 | 22.44B | 22.49B | 9.40B | 17.44B | 35.12B |
| Investing Cash Flow | 0.00 | -21.72B | -24.01B | -17.93B | -12.68B | -15.22B |
| Financing Cash Flow | 0.00 | -1.43B | 2.50B | 5.43B | -7.29B | -17.20B |
Kohnan Shoji Co., Ltd. Technical Analysis
Positive
3885.00
Price Trends
4087.01
Positive
3974.88
Positive
3906.66
Positive
Market Momentum
67.33
Negative
71.80
Negative
97.04
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 3885 is below the 20-day moving average (MA) of 4177.00, below the 50-day MA of 4087.01, and below the 200-day MA of 3906.66, indicating a bullish trend. The MACD of 67.33 indicates Negative momentum. The RSI at 71.80 is Negative, neither overbought nor oversold. The STOCH value of 97.04 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | ¥225.71B | 16.88 | ― | 2.83% | 1.49% | -21.76% | |
67 Neutral | ¥177.88B | 11.31 | ― | 1.58% | 1.69% | 3.90% | |
67 Neutral | ¥138.26B | 12.62 | ― | 2.85% | 3.83% | 7.24% | |
66 Neutral | ¥131.23B | 8.26 | ― | 3.43% | 0.73% | -9.78% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
55 Neutral | ¥62.84B | 19.77 | 0.36% | 2.78% | -6.21% | -29.75% | |
55 Neutral | ¥6.07B | 2,084.89 | ― | 2.33% | -1.54% | ― |
* Consumer Cyclical Sector Average
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Kohnan Shoji Co., Ltd. Corporate Events
Kohnan Shoji Overhauls Board and Executive Team Ahead of May 2026
Mar 18, 2026
Kohnan Shoji Co., Ltd. has announced a series of management changes, effective May 28, 2026, including the appointment of current outside corporate auditor Nao Matsukawa as a new outside director. The reshuffle reflects ongoing efforts to refresh ...
Kohnan Shoji Cuts Full-Year Earnings Forecast on Weak Consumer Sentiment
Jan 9, 2026
Kohnan Shoji has revised downward its consolidated earnings forecast for the fiscal year ending February 2026, cutting projected operating revenue from ¥523.6 billion to ¥516.6 billion and lowering expected operating profit by 17.0% to &...
Kohnan Shoji Posts Revenue Growth but Profit Decline, Raises Dividend Forecast
Jan 9, 2026
For the nine months ended November 30, 2025, Kohnan Shoji reported operating revenues of ¥391.1 billion, up 3.3% year on year, but saw profitability weaken, with operating profit down 11.0% to ¥18.5 billion and profit attributable to own...
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.