Workman Co., Ltd. (7564) AI Stock Analysis

• Market Cap: ¥634.93B
• Dividend Yield: 1.04%
• Average Volume (3M): 263.09K
• Price to Earnings (P/E): 31.9
• Beta (1Y): -0.11
• Revenue Growth: 10.84%
• EPS Growth: 16.83%
• Country: JP
• Employees: 381
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): 83.46
• Shares Outstanding: 81,846,820
• 10 Day Avg. Volume: 188,510
• 30 Day Avg. Volume: 263,090
• PEG Ratio: 3.58
• Price to Book (P/B): 2.53
• Price to Sales (P/S): 2.50
• P/FCF Ratio: 18.43
• 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: ¥7,271.43
• Price Target Upside: 10.51% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7
• EPS Forecast (FY): 247.29
• Revenue Forecast (FY): ¥156.89B

• Rating: 74 Outperform
• Price Target: ¥8,378.00 ▲(27.33% Upside)
• Action: Reiterated Date: 01/10/26
• Date: Action: Reiterated 01/10/26

The score is driven primarily by strong financial performance (profitability, low leverage, and strong cash flow). Technical indicators are mixed—price is trending above major averages, but MACD remains negative. Valuation is a headwind due to a relatively high P/E and modest dividend yield.

Positive Factors

Very low leverage / strong balance sheet

Extremely low debt and a high equity ratio provide durable financial flexibility, lowering interest risk and preserving borrowing capacity for multi-year initiatives like selective store expansion, inventory investment, or franchise support. This resilience aids stability through economic cycles.

Robust cash generation

Strong and growing free cash flow supports reinvestment in product development, supply chain efficiencies, and franchise support without relying on external financing. Persistent cash generation underpins durable capital allocation and resilience to operational shocks.

Healthy margins and profitability

Sustained gross and net margins reflect effective merchandising, private-brand mix, and cost control. Margin durability enables reinvestment and returns even if top-line growth is moderate, supporting long-term earnings quality and competitive pricing strategies.

Negative Factors

Geographic concentration

Heavy reliance on the domestic Japanese market concentrates revenue risk to local consumer spending, demographic headwinds, and region-specific economic cycles. Limited geographic diversification constrains long-term top-line expansion and exposes the business to single-market shocks.

Franchise model execution risk

A franchise-heavy footprint reduces capital needs but limits direct control over store execution, inventory management, and customer experience. Over time this can produce inconsistent same-store performance and pose reputational risk if franchisee incentives misalign with corporate strategy.

Modest organic revenue growth

Slower top-line growth constrains the company’s ability to scale fixed-cost leverage and expand absolute profit dollars despite strong margins. Without faster same-store sales or geographic/product expansion, long-term earnings growth may be limited.

Workman Co., Ltd. Business Overview & Revenue Model

Company Description

Workman Co.,Ltd. operates a chain of specialty retail stores by franchise system in Japan. Its stores offer working clothes and work-related products, such as waterproof winter clothing, rain suits, tethers, rainwear, aluminum jumpers and vests, go feathers, yakke products, cargo pants, safety shoes and boots, caps, sanitary boots, kitchen shoes, underground footwear, winter shoes, socks, leather and rubber gloves, white clothes, non-woven fabrics, aprons, safety bands, military hands, masks, helmets, tools, belts, cool clothes, high necks, T-shirts, polo shirts, compression, event uniforms, and office uniforms. The company serves customers from construction, civil engineering, manufacturing, electricity/gas/water supply, transportation/warehouse, food processing, agriculture, forestry and fisheries, eating out, nursing/medical care, and other industries. As of March 31, 2021, it operated 906 stores. The company was founded in 1979 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Workman Co., Ltd. generates revenue primarily through the sale of its workwear and casual clothing products in its retail stores and online platforms. The company's revenue model is built on a mix of direct sales to consumers through its owned stores and e-commerce channels. Key revenue streams include the sales of uniforms, safety equipment, and outdoor gear. Workman has established significant partnerships with various suppliers to ensure a consistent supply of high-quality materials at competitive prices, enabling them to maintain a strong market position. Additionally, the company's focus on cost-effective pricing strategies and robust inventory management contributes to its profitability.

Workman Co., Ltd. Financial Statement Overview

Summary

Strong overall fundamentals: consistent revenue growth (3.23% YoY), healthy profitability (35.13% gross margin; 12.34% net margin), very low leverage (debt-to-equity 0.013) with a high equity ratio (83.39%), and robust cash generation (operating cash flow to net income 1.47; free cash flow growth 63.34%).

Income Statement

Workman Co., Ltd. demonstrates strong financial performance with consistent revenue growth of 3.23% from 2024 to 2025. The company maintains healthy profitability margins with a gross profit margin of 35.13% and a net profit margin of 12.34% in 2025. EBIT and EBITDA margins are also robust, indicating efficient operational management. These metrics highlight the company's solid growth trajectory and profitability stability.

Balance Sheet

The balance sheet reflects a strong financial position with a debt-to-equity ratio of 0.013, indicating low leverage. The equity ratio is high at 83.39%, which suggests a solid capital structure and low financial risk. Return on equity (ROE) is a healthy 12.48%, showing effective use of shareholders' equity to generate profits. This stability and low-risk profile are significant strengths.

Cash Flow

Workman Co., Ltd. shows robust cash flow management with a free cash flow growth rate of 63.34% from 2024 to 2025. The operating cash flow to net income ratio is 1.47, demonstrating effective cash generation from operations. The free cash flow to net income ratio is 1.10, indicating strong cash flow relative to profits. These metrics reflect the company's healthy liquidity and efficient cash flow operations.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	141.44B	136.93B	132.65B	128.29B	116.26B	105.81B
Gross Profit	52.63B	48.11B	47.23B	44.76B	46.06B	41.76B
EBITDA	30.15B	27.98B	26.44B	27.04B	29.41B	27.09B
Net Income	18.20B	16.89B	15.99B	16.66B	18.30B	17.04B
Balance Sheet
Total Assets	161.31B	162.23B	148.36B	135.75B	125.14B	112.88B
Cash, Cash Equivalents and Short-Term Investments	81.97B	80.38B	68.19B	62.64B	64.28B	57.81B
Total Debt	1.67B	1.81B	1.93B	2.06B	2.20B	2.33B
Total Liabilities	26.82B	26.93B	22.93B	21.51B	21.59B	22.28B
Stockholders Equity	134.49B	135.30B	125.43B	114.23B	103.56B	90.59B
Cash Flow
Free Cash Flow	0.00	18.57B	11.37B	4.16B	11.79B	16.71B
Operating Cash Flow	0.00	24.79B	15.23B	8.81B	18.45B	21.32B
Investing Cash Flow	0.00	-29.93B	-9.00B	230.00M	-9.63B	-4.54B
Financing Cash Flow	0.00	-5.67B	-5.68B	-5.68B	-5.35B	-4.21B

Workman Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6580.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7564, the sentiment is Positive. The current price of 6580 is below the 20-day moving average (MA) of 6949.50, below the 50-day MA of 6691.80, and above the 200-day MA of 6182.50, indicating a bullish trend. The MACD of 280.76 indicates Negative momentum. The RSI at 80.00 is Negative, neither overbought nor oversold. The STOCH value of 90.20 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7564.

Workman Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7564	74 Outperform	¥634.93B	31.89	―	1.04%	10.84%	16.83%
7606	72 Outperform	¥76.28B	12.50	―	2.73%	10.48%	-34.38%
8214	72 Outperform	¥152.37B	17.50	―	4.49%	2.21%	4.36%
8219	71 Outperform	¥131.42B	15.73	5.53%	6.09%	-1.03%	4.12%
8227	68 Neutral	¥795.86B	18.28	8.78%	2.02%	―	―
2670	66 Neutral	¥649.63B	14.47	12.11%	2.68%	2.99%	5.66%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Workman Co., Ltd. Corporate Events

Workman Lifts Nine-Month Profit 23% as Chain Store Sales Surge

Workman Co., Ltd. reported strong non-consolidated results for the nine months ended December 31, 2025, with total operating revenue up 15.5% year on year to ¥124.3 billion and net income up 23.2% to ¥16.0 billion, driven by a 12.0% increase in all-chain store sales. Profitability improved across the board, with operating and ordinary profit both rising more than 22%, while the equity ratio remained high at 82.7%, underscoring a solid financial position.

The company kept its full-year forecast unchanged, projecting a 13.2% rise in operating revenue to ¥155.0 billion and a 16.6% increase in net income to ¥19.7 billion, alongside a planned annual dividend of ¥73 per share, flat year on year. These figures indicate continued growth momentum in its store network and stable shareholder returns, reinforcing Workman’s positioning as a financially robust player in Japan’s workwear and functional apparel market.

The most recent analyst rating on (JP:7564) stock is a Buy with a Yen7548.00 price target. To see the full list of analyst forecasts on Workman Co., Ltd. stock, see the JP:7564 Stock Forecast page.