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

• Market Cap: ¥474.16B
• Dividend Yield: 1.09%
• Average Volume (3M): 263.09K
• Price to Earnings (P/E): 26.1
• Beta (1Y): -0.15
• Revenue Growth: 10.84%
• EPS Growth: 16.83%
• Country: JP
• Employees: 381
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): 41.78
• 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: ¥6,200.00
• Price Target Upside: -11.17% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ¥8,053.00 ▲(15.37% Upside)

Workman Co., Ltd. is well-positioned in the apparel retail industry due to its strong financial performance, characterized by solid growth and low financial risk. However, technical indicators suggest the stock is currently overbought, and valuation metrics indicate it may be overpriced. These factors combined result in a moderate overall stock score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Balance Sheet Health

Low leverage and high equity ratio suggest financial stability, providing resilience against economic fluctuations and enabling strategic investments.

Cash Flow Management

Strong cash flow growth supports operational flexibility and potential for reinvestment in growth opportunities, enhancing long-term sustainability.

Negative Factors

Valuation Concerns

High P/E ratio compared to peers may limit upside potential and attract scrutiny, potentially impacting investor sentiment and capital allocation.

Profit Margin Pressure

While healthy, maintaining profit margins in a competitive market may require cost management and innovation, posing a challenge to sustaining profitability.

Market Saturation Risk

As the company expands its online presence, it faces increased competition from established e-commerce players, potentially impacting market share and growth.

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

Workman Co., Ltd. exhibits strong financial health with consistent revenue and profit growth, robust profitability margins, a solid balance sheet with low leverage, and efficient cash flow management. These factors contribute to the company's stability and low financial risk.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: 6980.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 6980 is above the 20-day moving average (MA) of 6553.50, above the 50-day MA of 6120.40, and above the 200-day MA of 5411.33, indicating a bullish trend. The MACD of 312.07 indicates Negative momentum. The RSI at 68.37 is Neutral, neither overbought nor oversold. The STOCH value of 86.02 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	76 Outperform	¥474.16B	26.05	―	1.09%	10.84%	16.83%
8214	72 Outperform	¥140.37B	15.20	―	4.79%	2.21%	4.36%
8219	71 Outperform	€115.63B	12.21	5.53%	6.44%	-1.03%	4.12%
7606	69 Neutral	¥54.97B	13.37	―	3.10%	10.48%	-34.38%
2670	66 Neutral	$649.13B	14.25	12.11%	2.62%	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 Co., Ltd. Reports Strong Financial Growth for H1 2025

Workman Co., Ltd. reported a strong financial performance for the six months ending September 30, 2025, with a notable increase in operating revenue and profits compared to the previous year. The company achieved a 15.7% rise in total operating revenue and a 22.5% increase in net income, reflecting robust sales growth across its chain stores. This performance underscores Workman’s solid market positioning and potential for continued growth, benefiting stakeholders and enhancing its competitive edge in the retail sector.

The most recent analyst rating on (JP:7564) stock is a Hold with a Yen6246.00 price target. To see the full list of analyst forecasts on Workman Co., Ltd. stock, see the JP:7564 Stock Forecast page.