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

• Market Cap: ¥1.99B
• Dividend Yield: N/A
• Average Volume (3M): 58.40K
• Price to Earnings (P/E): 6.9
• Beta (1Y): 0.48
• Revenue Growth: -3.64%
• EPS Growth: -23.60%
• Country: JP
• Employees: 176
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Department Stores
• EPS (TTM): 9.16
• Shares Outstanding: 13,938,133
• 10 Day Avg. Volume: 62,750
• 30 Day Avg. Volume: 58,403
• PEG Ratio: -0.28
• Price to Book (P/B): 3.14
• Price to Sales (P/S): 0.20
• P/FCF Ratio: 6.96
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: ¥167.00 ▼(-1.18% Downside)

POPLAR Co., Ltd. faces significant challenges with its financial performance, particularly in maintaining consistent revenue and profitability. Despite recent improvements in cash flow and equity, the stock's technical indicators are bearish, suggesting weak momentum. The valuation is relatively attractive due to a low P/E ratio, but the absence of a dividend yield may deter some investors. Overall, the stock's outlook is cautious, with potential for recovery if financial stability is achieved.

Positive Factors

Cash Flow Recovery

The improvement in free cash flow indicates better cash management and operational efficiency, which can support future investments and debt reduction.

Equity Position Improvement

The return to a positive equity position suggests improved financial stability, enhancing the company's ability to leverage opportunities and manage liabilities.

Stable Gross Profit Margin

A stable gross profit margin indicates effective cost management and pricing strategy, which can sustain profitability even amid revenue challenges.

Negative Factors

Declining Revenue Trend

The consistent decline in revenue over several years reflects challenges in market demand or competitive positioning, potentially impacting long-term growth.

Inconsistent Operating Cash Flow

Inconsistent cash flow from operations can hinder the company's ability to fund daily operations and invest in growth, posing a risk to financial health.

Fluctuating Net Profit Margin

Volatility in net profit margin indicates challenges in maintaining profitability, which could affect the company's ability to generate sustainable earnings.

POPLAR Co., Ltd. Business Overview & Revenue Model

Company Description

Poplar Co., Ltd. operates convenience stores in Japan. Its convenience stores offer pop valve, bento, rice balls, salads, noodles, bakery products, cooking breads, counter foods, and sweets. The company operates a chain of approximately 461 stores. The company was founded in 1976 and is headquartered in Hiroshima, Japan.

How the Company Makes Money

POPLAR Co., Ltd. generates revenue through multiple streams, primarily from the sale of its published materials, which include books, magazines, and educational resources. The company capitalizes on its established brand reputation to attract both individual consumers and institutional buyers, such as schools and libraries. Additionally, POPLAR engages in partnerships with educational institutions to develop customized learning materials, which further enhances its revenue. The company may also benefit from licensing agreements for its content and characters, enabling it to earn royalties from merchandise and adaptations. Overall, POPLAR's diverse portfolio and strategic partnerships play a crucial role in sustaining its financial performance.

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	11.76B	12.03B	12.37B	13.06B	13.63B	19.24B
Gross Profit	5.38B	5.44B	5.40B	5.30B	4.86B	5.93B
EBITDA	471.70M	539.06M	580.98M	-90.89M	-363.32M	-1.10B
Net Income	287.92M	376.33M	462.00M	-237.80M	-518.49M	-1.32B
Balance Sheet
Total Assets	4.34B	3.78B	3.81B	3.87B	4.18B	7.72B
Cash, Cash Equivalents and Short-Term Investments	1.17B	806.12M	752.37M	828.05M	802.31M	2.54B
Total Debt	386.00M	533.60M	909.78M	1.87B	1.78B	1.96B
Total Liabilities	3.43B	3.00B	3.33B	4.57B	4.61B	7.44B
Stockholders Equity	917.00M	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: 169.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 169 is below the 20-day moving average (MA) of 171.40, below the 50-day MA of 175.00, and below the 200-day MA of 183.72, indicating a bearish trend. The MACD of -1.38 indicates Positive momentum. The RSI at 40.99 is Neutral, neither overbought nor oversold. The STOCH value of 11.11 is Positive, 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	73 Outperform	¥104.86B	11.35	―	2.53%	5.57%	27.41%
8260	64 Neutral	¥5.09B	5.30	―	1.33%	-3.57%	33.78%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8247	60 Neutral	¥2.12B	9.60	―	―	-3.35%	-63.96%
9946	53 Neutral	¥60.98B	-11.05	―	0.95%	10.66%	-218.40%
7601	51 Neutral	¥1.99B	6.95	―	―	-3.64%	-23.60%
8254	46 Neutral	¥1.82B	16.67	―	―	-6.41%	51.66%