POPLAR Co., Ltd. (7601) AI Stock Analysis

• Market Cap: ¥2.13B
• Dividend Yield: N/A
• Average Volume (3M): 25.73K
• Price to Earnings (P/E): 6.3
• Beta (1Y): 0.47
• Revenue Growth: -1.56%
• EPS Growth: -4.68%
• Country: JP
• Employees: 176
• Sector: Consumer Cyclical
• Sector Strength: 75
• Industry: Department Stores
• EPS (TTM): 3.73
• Shares Outstanding: 11,787,822
• 10 Day Avg. Volume: 34,840
• 30 Day Avg. Volume: 25,733
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥182.00
• Price Target Upside: 0.55% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 51 Neutral
• Price Target: ¥182.00 ▲(0.55% Upside)

POPLAR Co., Ltd. shows signs of financial recovery, particularly in cash flow and equity, but faces challenges with revenue and profitability stability. The technical analysis indicates a bearish trend, though the stock is nearing oversold conditions. Valuation suggests the stock is undervalued, but the absence of a dividend yield may limit its appeal. Overall, the stock presents a moderate risk with potential for recovery.

Positive Factors

Cash Flow Recovery

The improvement in cash flow indicates better financial management and operational efficiency, enhancing the company's ability to invest in growth and manage debt.

Equity Improvement

The recovery to positive equity reflects a stronger balance sheet, which can improve financial stability and investor confidence.

Gross Profit Margin Stability

Stable gross profit margins suggest effective cost management and pricing strategies, supporting long-term profitability.

Negative Factors

Revenue Decline

The significant decline in revenue over recent years indicates challenges in maintaining market share and sales growth, impacting long-term sustainability.

Profitability Challenges

Fluctuating net profit margins and periods of losses highlight ongoing challenges in achieving consistent profitability, which can affect future investment and growth.

Revenue Growth Trend

Negative revenue growth trend suggests difficulty in expanding the business, which can limit competitive positioning and market opportunities.

POPLAR Co., Ltd. Business Overview & Revenue Model

Company Description

POPLAR Co., Ltd. (7601) is a Japanese company primarily engaged in the operation of convenience stores. The company operates a chain of stores offering a wide range of products including food items, beverages, daily necessities, and various other consumer goods. POPLAR Co., Ltd. is known for its focus on providing convenience to customers through its accessible store locations and diverse product offerings.

How the Company Makes Money

POPLAR Co., Ltd. generates revenue through retail sales at its convenience stores. The company's primary revenue stream comes from the sale of food and beverage products, including ready-to-eat meals, snacks, and drinks. Additionally, the company earns from selling daily necessities and other consumer goods that cater to the day-to-day needs of its customers. POPLAR Co., Ltd. also benefits from strategic partnerships and collaborations with suppliers and distributors to enhance its product offerings and improve supply chain efficiency. Key factors contributing to its earnings include store location strategy, product assortment, and customer service excellence.

POPLAR Co., Ltd. Financial Statement Overview

Summary

POPLAR Co., Ltd. has faced challenges in maintaining steady revenue and profitability, with significant fluctuations in both income and balance sheet metrics. While there are signs of recovery in recent years, particularly in cash flow and equity, the company still faces risks due to its historical volatility and the need to stabilize its financial performance across all verticals.

Income Statement

POPLAR Co., Ltd. has shown a declining revenue trend from 2020 to 2025, with a significant drop in total revenue from ¥25.37 billion in 2020 to ¥12.03 billion in 2025. The gross profit margin has remained relatively stable, but the net profit margin has fluctuated, with periods of negative net income in 2023 and 2022. The company has struggled with profitability, as indicated by negative EBIT in several years, though it improved to a positive EBIT of ¥410.8 million in 2025.

Balance Sheet

The company's total assets have decreased over the years, with a significant reduction in stockholders' equity, entering a negative range from 2022 to 2023. However, it recovered to a positive equity of ¥780.8 million in 2025. The debt-to-equity ratio has been volatile due to fluctuating equity levels. The equity ratio improved in 2025, showing a more balanced financial position.

Cash Flow

POPLAR's cash flow has shown signs of recovery in 2025, with positive operating cash flow and free cash flow. The company improved its free cash flow from a negative position in previous years to a positive ¥352.3 million in 2025. However, cash flow from operations has been inconsistent, with substantial negative values in earlier years.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.03B	12.03B	12.37B	13.06B	13.63B	19.24B
Gross Profit	5.44B	5.41B	5.40B	5.30B	4.86B	5.93B
EBITDA	558.79M	539.06M	580.98M	-90.89M	-363.32M	-1.10B
Net Income	376.14M	376.33M	462.00M	-237.80M	-518.49M	-1.32B
Balance Sheet
Total Assets	3.78B	3.78B	3.81B	3.87B	4.18B	7.72B
Cash, Cash Equivalents and Short-Term Investments	806.12M	806.12M	752.37M	828.05M	802.31M	2.54B
Total Debt	533.60M	533.60M	909.78M	1.87B	1.78B	1.96B
Total Liabilities	3.00B	3.00B	3.33B	4.57B	4.61B	7.44B
Stockholders Equity	780.83M	780.83M	477.07M	-694.24M	-429.43M	285.41M
Cash Flow
Free Cash Flow	0.00	352.31M	42.59M	-119.52M	-2.51B	-2.04B
Operating Cash Flow	0.00	433.06M	79.83M	101.54M	-2.43B	-1.70B
Investing Cash Flow	0.00	26.35M	322.66M	-100.73M	872.55M	-457.04M
Financing Cash Flow	0.00	-405.66M	-478.17M	24.93M	-182.11M	677.55M

POPLAR Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 181.00
• 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:7601, the sentiment is Negative. The current price of 181 is below the 20-day moving average (MA) of 183.75, below the 50-day MA of 184.74, and below the 200-day MA of 194.99, indicating a bearish trend. The MACD of -1.00 indicates Positive momentum. The RSI at 41.15 is Neutral, neither overbought nor oversold. The STOCH value of 48.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7601.

POPLAR Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8255	78 Outperform	¥108.96B	11.63		2.15%	4.99%	23.63%
8260	64 Neutral	¥4.93B	5.27		1.40%	-2.12%	8.28%
Sector *	61 Neutral	$18.09B	12.97	-1.60%	2.98%	1.42%	-15.92%
8254	61 Neutral	¥2.53B	20.46		―	-10.22%	-23.30%
8247	54 Neutral	¥2.21B	8.85		―	-2.19%	-58.67%
9946	53 Neutral	¥58.08B	―		1.00%	13.17%	-348.48%
7601	51 Neutral	¥2.13B	6.33		―	-1.56%	-4.68%