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

• Market Cap: ¥126.67B
• Dividend Yield: 1.54%
• Average Volume (3M): 137.23K
• Price to Earnings (P/E): 15.5
• Beta (1Y): 0.25
• Revenue Growth: 4.78%
• EPS Growth: 3.50%
• Country: JP
• Employees: 680
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 34.57
• Shares Outstanding: 69,588,860
• 10 Day Avg. Volume: 143,410
• 30 Day Avg. Volume: 137,226
• PEG Ratio: -113.99
• Price to Book (P/B): 1.35
• Price to Sales (P/S): 0.66
• P/FCF Ratio: 18.16
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: ¥2,299.00 ▲(11.49% Upside)

Nishimatsuya Chain Co., Ltd. demonstrates strong financial performance with robust revenue growth and stable profit margins, contributing positively to the score. However, technical analysis indicates bearish momentum, which negatively impacts the overall score. The valuation is reasonable, providing a balanced view of the stock's potential.

Positive Factors

Revenue Growth

Consistent revenue growth over five years indicates strong market demand and effective business strategies, supporting long-term stability.

Financial Stability

Low debt levels enhance financial flexibility and reduce risk, supporting sustainable growth and resilience against economic fluctuations.

Profit Margins

Stable profit margins indicate effective cost management and pricing strategies, ensuring profitability and competitive advantage in the long term.

Negative Factors

Cash Flow Consistency

Inconsistent cash flow can hinder investment and operational flexibility, potentially impacting the company's ability to capitalize on growth opportunities.

Earnings Decline

A decline in earnings per share suggests potential challenges in maintaining profitability, which could affect investor confidence and future growth prospects.

Operating Cash Flow Decline

A decline in operating cash flow may signal operational inefficiencies or increased costs, potentially impacting the company's ability to fund operations and growth.

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

Company Description

Nishimatsuya Chain Co., Ltd. operates a chain of specialty stores for baby/children's living goods in Japan. The company offers newborn and baby clothes; children's wear; accessories, such as baby and children's hat, sock, shoe, and towel; room products; stroller buggies, child seats and car supplies, hugging straps, rain goods, bags/backpacks, lunch boxes, and water bottles; milk, food, baby bottle, and hygiene products; toys; and maternity products. It operates 1,036 stores. The company was incorporated in 1956 and is based in Himeji, Japan.

How the Company Makes Money

Nishimatsuya generates revenue primarily through its retail sales of children's clothing and related merchandise across its physical store locations and online platform. The company's revenue streams include the direct sale of apparel, accessories, and baby care products. Seasonal promotions and sales events also contribute to revenue. Additionally, Nishimatsuya may engage in partnerships with suppliers and manufacturers to enhance product offerings and potentially reduce costs. Their focus on customer loyalty programs and promotions helps to drive repeat purchases, further solidifying their revenue model.

Nishimatsuya Chain Co., Ltd. Financial Statement Overview

Summary

Nishimatsuya Chain Co., Ltd. is in a strong financial position, with robust revenue growth and stable profit margins indicating operational efficiency. The balance sheet is characterized by low leverage and a high equity ratio, which enhances financial stability. Cash flow management remains strong, though there is a need for improved consistency.

Income Statement

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

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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	233.20B	185.97B	177.19B	169.52B	163.02B	159.42B
Gross Profit	80.26B	64.03B	61.47B	59.06B	59.33B	58.54B
EBITDA	16.10B	13.92B	13.83B	12.92B	14.27B	13.83B
Net Income	9.71B	8.20B	8.20B	7.64B	8.50B	8.28B
Balance Sheet
Total Assets	159.12B	148.95B	140.46B	129.59B	122.41B	117.44B
Cash, Cash Equivalents and Short-Term Investments	72.23B	67.10B	63.06B	57.20B	59.02B	56.56B
Total Debt	1.63B	246.00M	296.00M	767.00M	398.00M	450.00M
Total Liabilities	62.96B	57.68B	55.48B	52.49B	50.11B	49.80B
Stockholders Equity	96.15B	91.27B	84.98B	77.10B	72.30B	67.64B
Cash Flow
Free Cash Flow	0.00	6.78B	8.24B	918.00M	7.00B	16.23B
Operating Cash Flow	0.00	9.13B	11.54B	3.47B	8.75B	18.07B
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: Negative
• Last Price: 2062.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7545, the sentiment is Negative. The current price of 2062 is below the 20-day moving average (MA) of 2177.65, below the 50-day MA of 2138.12, and below the 200-day MA of 2133.12, indicating a bearish trend. The MACD of -7.90 indicates Positive momentum. The RSI at 36.93 is Neutral, neither overbought nor oversold. The STOCH value of 7.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7545.

Nishimatsuya Chain Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2730	70 Outperform	¥219.96B	16.58	―	2.23%	3.24%	12.49%
3048	69 Neutral	¥285.36B	16.33	11.17%	2.61%	5.63%	25.64%
8282	67 Neutral	¥252.30B	23.14	―	2.72%	2.23%	57.10%
7545	65 Neutral	¥126.67B	15.50	―	1.54%	4.78%	3.50%
3093	65 Neutral	¥40.42B	14.11	―	2.19%	17.90%	14.14%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Nishimatsuya Chain Co., Ltd. Corporate Events

Nishimatsuya Chain Co., Ltd. Reports Strong November Sales Boosted by Seasonal Demand

Nishimatsuya Chain Co., Ltd. reported a notable increase in net sales for November 2025, driven by strong demand for autumn and winter clothing due to colder temperatures. The company also saw robust sales in childcare and fashion items, contributing to an overall positive performance. The company opened seven new stores and closed two, maintaining a strong market presence with a total of 1,172 stores. The upcoming financial results for the third quarter are scheduled for release on December 19, 2025, which may provide further insights into the company’s performance and strategic direction.

Nishimatsuya Reports Mixed Sales Performance Amid Weather Challenges

Nishimatsuya Chain Co., Ltd. reported its monthly sales for October 2025, showing a mixed performance with net sales at all stores increasing by 100.2% year-on-year, while existing stores saw a decline to 95.6%. The company opened five new stores but closed six, resulting in a total of 1,167 stores as of October 20, 2025. The sales of autumn and winter clothing were negatively impacted by unseasonably hot weather, affecting overall sales performance.

Nishimatsuya Chain Completes Share Repurchase

Nishimatsuya Chain Co., Ltd. has completed the repurchase of its own shares, acquiring 233,200 shares at a total cost of 500 million yen through market purchases on the Tokyo Stock Exchange. This repurchase, which was part of a resolution by the Board of Directors, is aimed at optimizing the company’s capital structure and potentially enhancing shareholder value.

Nishimatsuya Chain Announces Share Repurchase Plan

Nishimatsuya Chain Co., Ltd. has announced a decision to repurchase up to 286,000 of its own shares, representing 0.48% of its total issued shares, excluding treasury shares. This move is part of a flexible capital policy designed to adapt to business environment changes and enhance shareholder returns, with the repurchase period set from October 3 to October 24, 2025, through market purchases on the Tokyo Stock Exchange.

Nishimatsuya Chain Co., Ltd. Increases Interim Dividend Amid Strong Performance

Nishimatsuya Chain Co., Ltd. announced an increase in its interim dividend to 16 yen per share, up from the previously forecasted 15 yen, due to strong business performance. This decision reflects the company’s policy of returning profits to shareholders, with the annual dividend forecast now revised to 32 yen per share for the fiscal year ending February 20, 2026.

Nishimatsuya Chain Co., Ltd. Reports Six-Month Financial Results and Dividend Forecast

Nishimatsuya Chain Co., Ltd. reported its consolidated financial results for the six months ended August 20, 2025, showing net sales of ¥96,973 million and a profit attributable to owners of the parent of ¥4,969 million. The company also announced a revision to its cash dividend forecast, with an annual dividend per share expected to increase to ¥32.00, reflecting a positive outlook for the fiscal year ending February 20, 2026.

Nishimatsuya Chain Reports Strong September Sales Amid Strategic Expansion

Nishimatsuya Chain Co., Ltd. reported strong net sales growth in September 2025, driven by high demand for summer clothing and childcare items, despite a decline in autumn clothing sales. The company opened four new stores and closed three, maintaining a total of 1,168 stores, indicating a strategic expansion in its retail operations.