Three F Co., Ltd. (7544) AI Stock Analysis

• Market Cap: ¥4.23B
• Dividend Yield: 2.18%
• Average Volume (3M): 6.30K
• Price to Earnings (P/E): 14.4
• Beta (1Y): 0.41
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 114
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Grocery Stores
• EPS (TTM): 9.52
• Shares Outstanding: 7,707,095
• 10 Day Avg. Volume: 4,580
• 30 Day Avg. Volume: 6,303
• PEG Ratio: 0.34
• Price to Book (P/B): 0.84
• Price to Sales (P/S): 0.23
• P/FCF Ratio: 6.81
• 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: 69 Neutral
• Price Target: ¥644.00 ▲(13.58% Upside)
• Action: N/A Date: 01/04/26
• Date: Action: N/A 01/04/26

The score is primarily driven by improving financial performance (strong 2025 revenue jump, return to profitability, and no debt), balanced by structurally thin margins and a history of earnings/cash-flow volatility. Technically, the stock is in an uptrend but appears overbought, while valuation is supportive with a moderate P/E and a ~2% dividend yield.

Positive Factors

Debt-free balance sheet

A zero-debt balance sheet materially lowers financial risk and preserves strategic optionality. Over a multi-month horizon this durability supports capital allocation for store investment, weathering demand shocks, and prioritizing cash returns or M&A without refinancing pressure.

Sharp 2025 revenue rebound

A ~47% revenue jump in 2025 and return to net profitability indicate improved top-line traction and recovery of core demand. Sustained revenue growth improves fixed-cost absorption and creates a platform for incremental operating leverage if the trend persists over coming quarters.

Supportive free cash flow profile

Consistent positive free cash flow in recent years strengthens internal funding for working capital, capex, and shareholder returns without adding debt. That recurring cash generation enhances long-term financial flexibility and reduces reliance on external financing.

Negative Factors

Structurally thin net margins

Persistently low net margins (~2.1%) constrain the firm's ability to reinvest, absorb cost inflation, or rapidly scale profitably. Over a 2–6 month horizon thin margins mean limited cushion against revenue hiccups and slower improvement in return metrics.

Earnings and cash-flow volatility

Historic swings between loss years and profit years reduce predictability of earnings and free cash flow. This structural volatility complicates planning, capital allocation, and sustaining dividends or consistent reinvestment over the medium term.

Working-capital sensitivity & inconsistent returns

Material sensitivity of cash flow to working-capital movements increases operational risk and can create funding gaps despite no debt. Combined with inconsistent shareholder returns, this signals weaker capital allocation consistency that may persist absent structural improvements.

Three F Co., Ltd. Business Overview & Revenue Model

Company Description

Three F Co.,Ltd. engages in the management of convenience and franchise stores in Tokyo, Kanagawa, Chiba, and Saitama; Japan. The company was founded in 1979 and is headquartered in Yokohama, Japan.

Three F Co., Ltd. Financial Statement Overview

Summary

Revenue accelerated sharply in 2025 and profitability rebounded to positive net income, supported by generally positive free cash flow and a zero-debt balance sheet. Offsetting this, net margins remain thin (~2.1% in 2025) and results have been volatile with multiple recent loss years and uneven cash conversion.

Income Statement

Revenue has improved over time, with a strong jump in 2025 (annual revenue growth of ~47% after modest growth in 2024). Profitability has also recovered meaningfully versus 2021–2023 losses, with 2025 returning to positive net income and stronger operating profit than prior years. However, net margins remain thin (about ~2.1% in 2025), and the business has shown earnings volatility with multiple loss years in the recent history.

Balance Sheet

The balance sheet is conservatively positioned with no debt reported across all periods, which materially lowers financial risk. Equity has remained relatively stable and supports the asset base, and returns on equity turned positive again in 2024–2025. The main weakness is that shareholder returns have been inconsistent over the cycle, including negative returns during the loss years.

Cash Flow

Cash generation is generally supportive: free cash flow is positive in most years and was strong in 2024 and 2025. Cash flow tracked earnings reasonably well in 2024–2025 (free cash flow close to net income), but the profile is volatile—2021 posted negative free cash flow, and 2023 operating cash flow was very weak, highlighting sensitivity to working-capital swings and/or uneven underlying cash conversion.

Breakdown	TTM	Feb 2024	Feb 2023	Feb 2022	Feb 2021	Feb 2021
Income Statement
Total Revenue	14.52B	13.91B	13.86B	13.21B	12.26B	12.53B
Gross Profit	11.47B	11.09B	10.80B	10.13B	9.63B	9.73B
EBITDA	1.28B	1.01B	941.00M	213.00M	263.00M	223.00M
Net Income	381.00M	289.00M	218.00M	-163.00M	-85.00M	-24.00M
Balance Sheet
Total Assets	5.49B	5.11B	4.99B	4.35B	4.88B	5.07B
Cash, Cash Equivalents and Short-Term Investments	4.34B	4.16B	4.08B	3.41B	3.84B	3.76B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	917.00M	672.00M	821.00M	538.00M	534.00M	526.00M
Stockholders Equity	4.06B	3.85B	3.64B	3.49B	3.73B	3.90B
Cash Flow
Free Cash Flow	0.00	473.00M	818.00M	38.00M	323.00M	-18.00M
Operating Cash Flow	0.00	519.00M	818.00M	38.00M	331.00M	41.00M
Investing Cash Flow	0.00	-40.00M	35.00M	11.00M	22.00M	-49.00M
Financing Cash Flow	0.00	-397.00M	-185.00M	-483.00M	-269.00M	-247.00M

Three F Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2687	79 Outperform	¥2.42B	16.77	―	4.73%	2.93%	-81.08%
4380	78 Outperform	¥5.94B	14.34	―	1.65%	―	―
7544	69 Neutral	¥4.23B	14.44	―	2.18%	―	―
2735	63 Neutral	¥8.09B	10.63	―	3.67%	0.52%	-3.78%
2747	62 Neutral	¥3.83B	-43.28	―	1.55%	0.42%	13.11%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
7515	48 Neutral	¥4.08B	25.11	―	0.67%	5.74%	14.35%