Yamano Holdings Corporation (7571) AI Stock Analysis

• Market Cap: ¥3.84B
• Dividend Yield: 0.93%
• Average Volume (3M): 283.57K
• Price to Earnings (P/E): 32.1
• Beta (1Y): 0.47
• Revenue Growth: 2.95%
• EPS Growth: N/A
• Country: JP
• Employees: 575
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 2.63
• Shares Outstanding: 35,830,060
• 10 Day Avg. Volume: 245,460
• 30 Day Avg. Volume: 283,573
• PEG Ratio: -0.22
• Price to Book (P/B): 1.68
• Price to Sales (P/S): 0.16
• P/FCF Ratio: 6.66
• 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: 68 Neutral
• Price Target: ¥118.00 ▼(-3.28% Downside)

The score is driven primarily by improving financial performance (return to positive profitability and very strong free cash flow growth) and supportive technicals (price above key moving averages with moderately strong RSI). These positives are tempered by less compelling valuation (P/E 31.263 and ~0.93% dividend yield) and some balance-sheet/margin volatility risk.

Positive Factors

Free Cash Flow Strength

A nearly 150% surge in free cash flow signals durable improvement in cash generation and capital allocation. This strengthens the company's ability to fund operations, capex, or debt service internally, reducing reliance on external financing and enhancing long-term financial flexibility.

Stable Revenue Base

Positive year‑over‑year revenue, even modest, indicates resilience in core retail and service segments tied to traditional lifestyle and beauty categories. A stable top line in a domestic market supports predictable cash flows and underpins medium‑term strategic investments and margin recovery.

Margin Recovery

Recovery from losses to a positive net margin and sustained gross margins point to improved cost control and pricing power in key product lines. Better profitability enhances reinvestment capacity and builds a buffer against cyclical retail pressures over the coming months.

Negative Factors

High Leverage

A debt-to-equity ratio above 2 and low equity ratio indicate material leverage, constraining financial flexibility. Elevated debt increases interest burden and magnifies risk if cash flows wobble, limiting capacity for opportunistic investments or cushioning against prolonged downturns.

Earnings/Cash Flow Volatility

Documented volatility in margins and past negative cash flow periods suggests earnings are not yet consistently stable. This increases forecasting uncertainty, weakens credit metrics under stress, and raises the probability that short-term slumps could force reactive cost cuts or refinancing.

Modest Return on Equity

An ROE around 3% signals limited efficiency in converting equity into profits. Persistently low returns constrain shareholder value creation and suggest the business may struggle to generate attractive long‑term returns absent structural margin expansion or capital reallocation improvements.

Yamano Holdings Corporation Business Overview & Revenue Model

Company Description

Yamano Holdings Corporation (7571) is a diversified Japanese company primarily engaged in the retail and distribution of beauty and wellness products. The company operates through various segments, including health and beauty, real estate, and information technology services. Yamano Holdings offers a wide range of core products, including cosmetics, skincare, health supplements, and personal care items, catering to both individual consumers and business clients across Japan and internationally.

How the Company Makes Money

Yamano Holdings generates revenue through multiple streams, primarily from the retail sales of its beauty and wellness products. The company operates a network of retail outlets and e-commerce platforms, allowing it to reach a broad customer base. Additionally, revenue is supplemented by partnerships with other beauty brands and manufacturers, providing exclusive distribution agreements and co-branding opportunities. The real estate segment contributes to earnings through leasing properties and managing commercial spaces. Moreover, the information technology services segment enhances revenue by offering digital solutions and consulting services to businesses, leveraging its expertise in the beauty and wellness industry.

Yamano Holdings Corporation Financial Statement Overview

Summary

Solid recovery signs: revenue growth remained positive (+0.92% YoY), profitability improved from losses to a small positive net margin (0.30%), and free cash flow surged (+148.95%) with strong cash conversion (operating cash flow to net income of 9.20). Offsetting factors include modest ROE (3.15%), a relatively high debt-to-equity ratio (2.14), and historical margin/cash flow volatility.

Income Statement

Yamano Holdings Corporation has shown commendable resilience with a consistent revenue stream, demonstrating a revenue growth rate of 0.92% from 2024 to 2025. While gross profit margins remain strong, the net profit margin improved significantly from a negative position to 0.30% in the latest year, highlighting a recovery from previous losses. EBITDA margin stands at 1.95%, indicating growing operational efficiency. However, the volatility in EBIT margin over the years suggests the need for maintaining operational stability.

Balance Sheet

The company's balance sheet reflects a cautious approach to leverage, with a debt-to-equity ratio of 2.14, which suggests a moderate level of debt compared to equity. The equity ratio at 16.68% indicates a lower reliance on equity financing. Return on equity has improved to 3.15%, but remains modest. The company faces challenges in asset management, as demonstrated by fluctuating equity levels, indicating potential volatility in financial stability.

Cash Flow

Cash flow analysis reveals an encouraging free cash flow growth of 148.95% from 2024 to 2025, showcasing effective capital management. The operating cash flow to net income ratio of 9.20 suggests strong cash-generating ability relative to net earnings. Despite high financing cash outflows, the positive trend in free cash flow highlights improved cash management practices. However, past periods of negative cash flows indicate potential cash flow volatility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.27B	13.96B	13.84B	13.90B	13.18B	12.70B
Gross Profit	7.26B	7.06B	7.04B	7.09B	6.69B	6.40B
EBITDA	428.18M	272.82M	175.40M	279.61M	216.10M	-74.16M
Net Income	134.82M	41.82M	-28.83M	173.76M	101.55M	-324.51M
Balance Sheet
Total Assets	8.43B	7.96B	8.65B	9.36B	9.30B	10.99B
Cash, Cash Equivalents and Short-Term Investments	2.71B	2.44B	2.73B	3.32B	3.78B	5.47B
Total Debt	3.48B	2.84B	3.24B	3.84B	3.83B	4.32B
Total Liabilities	7.23B	6.63B	7.42B	8.03B	8.13B	9.98B
Stockholders Equity	1.21B	1.33B	1.22B	1.33B	1.17B	1.01B
Cash Flow
Free Cash Flow	0.00	334.89M	134.52M	-145.47M	-1.31B	856.64M
Operating Cash Flow	0.00	384.96M	209.60M	-108.51M	-1.26B	940.24M
Investing Cash Flow	0.00	-126.46M	9.91M	-219.84M	-19.70M	-78.00M
Financing Cash Flow	0.00	-551.53M	-806.97M	-129.63M	-412.81M	2.55B

Yamano Holdings Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 122.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7571, the sentiment is Positive. The current price of 122 is above the 20-day moving average (MA) of 110.70, above the 50-day MA of 109.78, and above the 200-day MA of 107.64, indicating a bullish trend. The MACD of 0.23 indicates Positive momentum. The RSI at 50.91 is Neutral, neither overbought nor oversold. The STOCH value of 17.28 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7571.

Yamano Holdings Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7509	73 Outperform	¥6.28B	4.77	―	3.35%	7.25%	-11.62%
7571	68 Neutral	¥3.84B	32.14	―	0.93%	2.95%	―
7827	66 Neutral	¥2.89B	6.83	―	3.82%	10.44%	-3.40%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7490	62 Neutral	¥8.66B	27.46	―	2.23%	3.47%	1062.58%
9213	56 Neutral	¥1.01B	-8.24	―	4.76%	-8.34%	-332.75%
6838	52 Neutral	¥5.02B	17.85	―	0.72%	―	―