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Nishimatsuya Chain Co., Ltd. (JP:7545)
:7545
Japanese Market

Nishimatsuya Chain Co., Ltd. (7545) AI Stock Analysis

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JP

Nishimatsuya Chain Co., Ltd.

(7545)

Rating:78Outperform
Price Target:
¥2,435.00
▲(16.17%Upside)
Nishimatsuya Chain Co., Ltd. has a strong financial foundation with robust revenue growth and stable profit margins, contributing significantly to the overall score. Technical analysis suggests some underlying strength despite recent short-term weakness. The valuation is reasonable but not a major differentiator. The absence of earnings call and corporate events data did not affect the analysis.

Nishimatsuya Chain Co., Ltd. (7545) vs. iShares MSCI Japan ETF (EWJ)

Nishimatsuya Chain Co., Ltd. Business Overview & Revenue Model

Company DescriptionNishimatsuya Chain Co., Ltd. is a prominent Japanese retail company specializing in the sale of baby and children's products. Established in 1956, the company operates a wide network of retail stores across Japan, offering a comprehensive range of products including clothing, toys, baby care items, and maternity goods. Nishimatsuya is known for its commitment to providing high-quality, affordable products that cater to the needs of both parents and children.
How the Company Makes MoneyNishimatsuya Chain Co., Ltd. generates revenue primarily through the sale of its diverse range of baby and children's products. The company operates an extensive network of physical retail stores that serve as the primary sales channel. Additionally, Nishimatsuya leverages its e-commerce platform to reach a broader customer base, enhancing its revenue potential. Key revenue streams include clothing, which accounts for a significant portion of sales, followed by toys and baby care items. The company's ability to offer competitive pricing and maintain strong relationships with suppliers contributes to its profitability. Furthermore, Nishimatsuya may engage in strategic partnerships with manufacturers and distributors to streamline its supply chain and reduce costs, thus enhancing its earnings.

Nishimatsuya Chain Co., Ltd. Financial Statement Overview

Summary
Nishimatsuya Chain Co., Ltd. shows strong financial performance with robust revenue growth and stable profit margins. The balance sheet is solid with low leverage and a high equity ratio, indicative of financial stability. Cash flow management is strong, though there is room for improvement in consistency.
Income Statement
82
Very Positive
Nishimatsuya Chain Co., Ltd. has demonstrated a solid revenue growth trajectory, with consistent increases over the past five years. The gross profit margin is robust, maintaining stability at approximately 34.4%, and the net profit margin remains healthy at around 4.4%. EBIT and EBITDA margins show strong operational efficiency, indicating effective cost management and profitability.
Balance Sheet
85
Very Positive
The company has a very low debt-to-equity ratio, reflecting a strong equity position and minimal reliance on debt financing. The return on equity is solid, showcasing effective utilization of shareholder funds. An equity ratio of 61.2% further emphasizes the company's stable financial foundation and prudent financial management.
Cash Flow
79
Positive
Despite a decline in operating cash flow in the latest year, the company maintains a strong free cash flow position, indicating effective capital expenditure management. The operating cash flow to net income ratio suggests that cash generation aligns well with reported earnings, although there is room for improvement in cash flow consistency.
Breakdown
TTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
230.92B185.97B177.19B169.52B163.02B159.42B
Gross Profit
79.80B64.03B61.47B59.06B59.33B58.54B
EBIT
15.73B12.18B11.93B10.93B12.26B12.09B
EBITDA
17.39B13.92B13.83B12.92B14.27B13.83B
Net Income Common Stockholders
10.61B8.20B8.20B7.64B8.50B8.28B
Balance SheetCash, Cash Equivalents and Short-Term Investments
66.06B67.10B63.06B57.20B59.02B55.66B
Total Assets
150.04B148.95B140.46B129.59B122.41B117.44B
Total Debt
346.00M246.00M296.00M767.00M398.00M450.00M
Net Debt
-65.72B-66.50B-61.64B-55.50B-58.06B-55.20B
Total Liabilities
59.92B57.68B55.48B52.49B50.11B49.80B
Stockholders Equity
90.12B91.27B84.98B77.10B72.30B67.64B
Cash FlowFree Cash Flow
676.00M6.78B8.24B918.00M7.00B16.23B
Operating Cash Flow
676.00M9.13B11.54B3.47B8.75B18.07B
Investing Cash Flow
0.00-1.83B-4.50B-2.41B-1.35B-1.55B
Financing Cash Flow
0.00-2.44B-2.18B-2.97B-4.28B-2.06B

Nishimatsuya Chain Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price2096.00
Price Trends
50DMA
2126.98
Negative
100DMA
2140.07
Negative
200DMA
2245.68
Negative
Market Momentum
MACD
-9.72
Negative
RSI
50.27
Neutral
STOCH
71.82
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7545, the sentiment is Neutral. The current price of 2096 is below the 20-day moving average (MA) of 2108.35, below the 50-day MA of 2126.98, and below the 200-day MA of 2245.68, indicating a neutral trend. The MACD of -9.72 indicates Negative momentum. The RSI at 50.27 is Neutral, neither overbought nor oversold. The STOCH value of 71.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7545.

Nishimatsuya Chain Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥127.40B15.36
1.53%4.96%-0.13%
75
Outperform
€265.59B15.3011.19%2.79%11.59%305.12%
72
Outperform
¥45.10B16.28
0.21%22.50%20.53%
69
Neutral
¥230.38B25.04
3.08%2.74%38.73%
68
Neutral
¥207.87B14.84
2.41%6.52%47.54%
63
Neutral
$6.94B11.342.80%4.26%2.68%-24.70%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7545
Nishimatsuya Chain Co., Ltd.
2,112.00
-179.45
-7.83%
JP:2730
EDION Corp
1,983.00
440.19
28.53%
JP:3093
Treasure Factory Co., Ltd.
1,854.00
74.92
4.21%
JP:8282
K'S Holdings Corporation
1,448.50
83.52
6.12%
JP:3048
BIC Cameras
1,538.00
-23.08
-1.48%

Nishimatsuya Chain Co., Ltd. Corporate Events

Nishimatsuya Chain Announces Employee Stock Options Issuance
Jun 3, 2025

Nishimatsuya Chain Co., Ltd. announced the details of its 35th issuance of stock options for employees, a decision made by the Board of Directors on May 16, 2025. The issuance involves 1,146 units of subscription rights, allowing 89 employees to acquire 114,600 common shares, potentially impacting employee motivation and aligning their interests with company performance.

Nishimatsuya Chain Announces Details of Stock Options Issuance
Jun 3, 2025

Nishimatsuya Chain Co., Ltd. has announced the details of its 34th issuance of stock options, which are subscription rights to shares, for its directors, excluding those serving as Audit & Supervisory Committee Members. This move, resolved by the Board of Directors, involves the issuance of 20 units of subscription rights, with a total of 2,000 common shares to be issued upon exercise, and is part of the company’s strategic approach to align the interests of its directors with its long-term growth objectives.

Nishimatsuya Chain Co., Ltd. Reports Positive Sales Growth in May 2025
May 21, 2025

Nishimatsuya Chain Co., Ltd. reported a positive trend in its monthly sales for May 2025, with an increase in net sales and sales per customer across all stores, driven by strong sales of spring and summer clothing. The company opened four new stores in May, contributing to a total of 1,153 stores, and plans to announce its first-quarter financial results for FY2/2026 on June 20, 2025.

Nishimatsuya Chain Co., Ltd. Announces Employee Stock Options Issuance
May 16, 2025

Nishimatsuya Chain Co., Ltd. announced the issuance of stock options for its employees, as resolved in their recent Board of Directors meeting. This move, involving 114,600 common shares, is part of the company’s strategy to incentivize its workforce and potentially enhance employee retention and motivation, which could positively impact its operational efficiency and market positioning.

Nishimatsuya Chain Co., Ltd. Announces Stock Options for Directors
May 16, 2025

Nishimatsuya Chain Co., Ltd. announced the issuance of stock options for its directors, excluding those on the Audit & Supervisory Committee. This move, resolved at a recent Board of Directors meeting, aims to align the interests of the directors with the company’s performance, potentially impacting the company’s governance and stakeholder relations.

Nishimatsuya Chain Co., Ltd. Announces Key Personnel Change
May 16, 2025

Nishimatsuya Chain Co., Ltd. announced a personnel change effective May 16, 2025, with Kosuke Akiyama being appointed as the Executive Officer, Manager of Overseas Business Headquarters. This change reflects the company’s ongoing efforts to strengthen its international business operations, potentially impacting its market strategy and stakeholder interests.

Nishimatsuya Chain Co., Ltd. Reappoints Independent Panel Members to Strengthen Governance
May 13, 2025

Nishimatsuya Chain Co., Ltd. has announced the reappointment of three members to its Independent Panel as part of its strategy to manage large-scale acquisitions of its shares. This decision, made at the Board of Directors meeting, aligns with the company’s policy approved by shareholders to ensure continuity and stability in its governance structure, potentially impacting its market positioning and stakeholder confidence.

Nishimatsuya Chain Reports April Sales Growth Amid Cooler Weather
Apr 21, 2025

Nishimatsuya Chain Co., Ltd. reported a slight increase in net sales for April 2025, despite a decrease in sales of seasonal clothing due to cooler temperatures. The company saw strong performance in childcare products and fashion accessories, and it continues to expand its store network with five new openings this month.

Nishimatsuya Chain Co., Ltd. Proposes Employee Stock Options to Enhance Performance
Apr 11, 2025

Nishimatsuya Chain Co., Ltd. has announced its decision to propose the issuance of stock options to its employees at the upcoming Annual General Meeting. This initiative is designed to boost employee motivation and performance, thereby strengthening the company’s management and social trust. The stock options will be issued without consideration, with a maximum of 200,000 common shares available for exercise. This move is expected to align employee interests with company performance, potentially enhancing overall operational efficiency and market competitiveness.

Nishimatsuya Chain Proposes Stock Options for Directors
Apr 11, 2025

Nishimatsuya Chain Co., Ltd. has announced a proposal to issue stock options as compensation to its directors, excluding those serving on the Audit & Supervisory Committee. This move aims to enhance management performance and align directors’ interests with company growth, potentially impacting the company’s operational efficiency and stakeholder confidence.

Nishimatsuya Completes Share Repurchase Program
Apr 9, 2025

Nishimatsuya Chain Co., Ltd. announced the completion of its share repurchase program, acquiring 140,200 shares for approximately 299.8 million yen. This strategic move, completed through market purchases on the Tokyo Stock Exchange, reflects the company’s commitment to enhancing shareholder value and optimizing its capital structure.

Nishimatsuya Chain Announces Board of Directors Changes
Apr 2, 2025

Nishimatsuya Chain Co., Ltd. announced changes in its Board of Directors, effective May 13, 2025, following a resolution by the Board. These changes include the appointment of Fumiaki Amako as Director, Executive Officer, Manager of Accounting Headquarters, and Manager of Finance Office, pending approval at the upcoming Annual General Meeting of Shareholders. The restructuring aims to strengthen the company’s leadership and operational efficiency, potentially impacting its market strategy and stakeholder interests.

Nishimatsuya Chain Co., Ltd. Announces Key Personnel Change
Apr 2, 2025

Nishimatsuya Chain Co., Ltd. has announced a personnel change within its organization. Yasuaki Suzuki has been promoted to Executive Officer, Manager of Practical Apparel Product Headquarters, effective April 2, 2025. This change reflects the company’s ongoing efforts to strengthen its leadership team and enhance its operational efficiency in the apparel sector.

Nishimatsuya Chain Announces Share Repurchase Plan
Apr 2, 2025

Nishimatsuya Chain Co., Ltd. announced its decision to repurchase up to 182,000 of its own shares, equivalent to 0.30% of the total shares issued, excluding treasury shares. This move is part of a flexible capital policy aimed at adapting to changes in the business environment and enhancing shareholder value. The repurchase, with a budget of up to 300 million yen, will occur through market purchases on the Tokyo Stock Exchange between April 4 and April 17, 2025.

Nishimatsuya Chain Co., Ltd. Increases Year-End Dividend Amid Strong Performance
Apr 2, 2025

Nishimatsuya Chain Co., Ltd. has announced a resolution to increase its year-end dividend to 16 yen per share, up from the previously forecasted 15 yen, reflecting a commitment to returning profits to shareholders. This decision, based on solid business performance and future expansion plans, brings the total annual dividend to 31 yen per share, highlighting the company’s focus on stable dividend payments.

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.