Yamano Holdings Corporation (7571) AI Stock Analysis

• Market Cap: ¥3.52B
• Dividend Yield: 0.93%
• Average Volume (3M): 283.57K
• Price to Earnings (P/E): 17.2
• Beta (1Y): 0.54
• Revenue Growth: 2.95%
• EPS Growth: N/A
• Country: JP
• Employees: 575
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 1.59
• 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: ¥116.00 ▼(-4.92% Downside)
• Action: Upgraded Date: 01/27/26
• Date: Action: Upgraded 01/27/26

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

Strong free cash flow growth

A nearly 149% surge in free cash flow and an operating-cash-to-net-income ratio of 9.20 indicate durable cash generation improvements. Sustained cash conversion strengthens the firm's ability to invest, pay down liabilities, and fund operations without relying on external financing.

Return to profitability with revenue resilience

The company moved from losses to a positive net margin while preserving modest revenue growth, showing operational recovery across its retail and service segments. This resilience supports long-term viability and provides a platform for further margin and top-line expansion.

Diversified consumer-facing business mix

A multi-segment consumer portfolio spanning traditional apparel, jewelry, and beauty reduces single-category dependence. Diverse revenue streams and service offerings enable cross-selling, seasonal smoothing, and better resilience to demand shocks in any single product line.

Negative Factors

Relatively high leverage

A debt-to-equity ratio above 2.0 and low equity ratio signal material leverage that can constrain financial flexibility. With modest margins, elevated debt increases interest and refinancing risk, making the business more sensitive to downturns or rising funding costs.

Modest profitability metrics

Low ROE and a very thin net margin limit the company’s ability to generate attractive returns on capital. Even with recovery momentum, these modest profitability levels reduce retained earnings for reinvestment and make the business more vulnerable to input cost pressure.

Historical margin and cash-flow volatility

Documented volatility in margins and intermittent negative cash flows point to operational instability. Persistent variability hampers forecasting, increases the premium needed for debt financing, and requires structural fixes to ensure predictable long-term performance.

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

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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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	14.27B	13.96B	13.84B	13.90B	13.18B	12.70B
Gross Profit	7.26B	7.02B	6.99B	7.04B	6.63B	6.33B
EBITDA	522.55M	362.38M	220.74M	407.14M	349.49M	478.59M
Net Income	134.59M	41.82M	-28.83M	173.76M	101.55M	-324.51M
Balance Sheet
Total Assets	8.43B	7.98B	8.67B	9.38B	9.30B	11.00B
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	3.86B	3.87B	4.35B
Total Liabilities	7.23B	6.65B	7.45B	8.05B	8.13B	9.99B
Stockholders Equity	1.21B	1.33B	1.22B	1.33B	1.17B	1.01B
Cash Flow
Free Cash Flow	0.00	334.89M	176.66M	-140.83M	-1.31B	875.31M
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: Negative
• Last Price: 122.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7571, the sentiment is Negative. The current price of 122 is above the 20-day moving average (MA) of 109.70, above the 50-day MA of 111.44, and above the 200-day MA of 113.89, indicating a bearish trend. The MACD of -1.94 indicates Positive momentum. The RSI at 42.46 is Neutral, neither overbought nor oversold. The STOCH value of 41.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7571.

Yamano Holdings Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7670	72 Outperform	¥10.82B	5.99	―	4.15%	-5.07%	13.98%
7571	68 Neutral	¥3.52B	17.21	―	0.93%	2.95%	―
9248	67 Neutral	¥13.09B	5.37	―	3.88%	15.50%	―
9564	65 Neutral	¥10.46B	16.67	―	1.11%	21.85%	13.02%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7066	60 Neutral	¥4.85B	11.71	―	3.64%	-1.69%	-18.95%
9760	45 Neutral	¥2.94B	-2.88	―	1.51%	24.56%	25.32%