Mac House Co., Ltd. (7603) AI Stock Analysis

• Market Cap: ¥4.66B
• Dividend Yield: N/A
• Average Volume (3M): 213.21K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.20
• Revenue Growth: -7.88%
• EPS Growth: -11.22%
• Country: JP
• Employees: 290
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): -27.79
• Shares Outstanding: 25,747,639
• 10 Day Avg. Volume: 256,160
• 30 Day Avg. Volume: 213,213
• PEG Ratio: -0.08
• Price to Book (P/B): 2.64
• Price to Sales (P/S): 0.25
• P/FCF Ratio: -5.56
• 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: 48 Neutral
• Price Target: ¥198.00 ▲(0.00% Upside)

The score is held back primarily by weak financial performance (declining revenue, losses, and negative operating/free cash flow). Technicals provide partial support with a positive MACD and price above key short-term moving averages, but the longer-term trend remains challenged (below the 200DMA). Valuation is also a headwind due to a negative P/E indicating ongoing losses and no dividend yield data.

Positive Factors

Conservative leverage profile

A low reliance on debt gives Mac House financial flexibility to withstand cyclical retail downturns and fund operational needs without immediate refinancing. Over 2–6 months this reduces default risk and preserves optionality for strategic investments or inventory management.

Omnichannel revenue base and supplier ties

Having brick-and-mortar stores plus an e-commerce channel and formal supplier partnerships diversifies revenue and supply risk. This structural mix supports customer reach and inventory efficiency, helping the company adapt to shifting shopping patterns over the medium term.

Value-oriented brand and broad assortment

A clear value positioning and wide product range across demographics can sustain steady demand and customer loyalty in varied economic climates. This competitive position supports repeat purchase behavior and can stabilize revenues versus niche or premium competitors over time.

Negative Factors

Multi-year revenue decline

Sustained top-line contraction erodes scale economics and reduces bargaining power with suppliers, making cost absorption harder. Over several months this trend constrains investments in stores, digital channels, and marketing, worsening the risk of further share loss in apparel retail.

Negative profitability and contracting margins

Persistent losses and shrinking gross margins indicate structural pressure on pricing or rising input costs. This undermines internal funding for growth initiatives, forces cost cutting, and reduces the company's ability to compete on service, assortment, or digital enhancements over the medium term.

Consistent negative operating and free cash flow

Ongoing cash burn weakens liquidity and limits capacity to reinvest in omnichannel capabilities or inventory. Combined with a weakening equity base, this raises the likelihood of needing external financing, which would constrain strategic flexibility and increase financial risk over coming quarters.

Mac House Co., Ltd. Business Overview & Revenue Model

Company Description

Mac House Co., Ltd. (7603) is a prominent player in the retail sector of Japan, specializing in the sale of men's, women's, and children's apparel. The company operates a chain of stores that offers a diverse range of clothing items, accessories, and footwear, catering to various consumer preferences and seasonal trends. Mac House is known for its commitment to quality and affordability, positioning itself as a go-to destination for fashion-conscious shoppers seeking value.

How the Company Makes Money

Mac House Co., Ltd. generates revenue primarily through direct retail sales from its numerous physical store locations across Japan. The company's revenue model hinges on offering a wide selection of apparel and accessories at competitive prices, which attracts a broad customer base. Key revenue streams include sales from in-store purchases, online sales through its e-commerce platform, and seasonal promotions that drive higher foot traffic and sales volume. Furthermore, Mac House engages in strategic partnerships with various suppliers and manufacturers to maintain a steady supply of products, which helps optimize inventory management and cost efficiency. The company also benefits from branding and marketing initiatives that enhance customer loyalty and increase repeat purchases.

Mac House Co., Ltd. Financial Statement Overview

Summary

Financials are weak: revenues have been declining (including -14.85% year-over-year), profitability remains negative (negative margins), and operating/free cash flow are consistently negative. The balance sheet has low leverage but a weakening equity position, which adds risk despite limited debt.

Income Statement

Mac House Co., Ltd. has experienced a consistent decline in revenue over the past years, with a negative revenue growth rate of -14.85% from 2023 to 2024 and -14.85% again from 2024 to 2025. The company is facing significant profitability challenges, as evidenced by negative net profit margins and EBIT margins. The gross profit margin has been contracting, indicating pressure on the cost structure or pricing power.

Balance Sheet

The company's balance sheet shows a weakening equity position, with a decline in stockholders' equity over recent years. The debt-to-equity ratio remains low, suggesting limited reliance on debt financing. However, the declining equity ratio indicates that liabilities are taking up a larger share of total assets, which may pose financial risks.

Cash Flow

Mac House Co., Ltd. has consistently reported negative operating and free cash flows, reflecting challenges in generating cash from its operations. The free cash flow growth rate has been negative, and the ratio of operating cash flow to net income is unfavorable, indicating inefficiencies in cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.74B	13.12B	15.41B	18.44B	18.16B	19.72B
Gross Profit	5.85B	6.10B	7.45B	8.85B	8.70B	9.63B
EBITDA	-1.21B	-1.24B	-850.00M	-784.00M	-960.00M	-1.38B
Net Income	-1.48B	-1.47B	-1.15B	-1.06B	-1.31B	-1.76B
Balance Sheet
Total Assets	9.62B	7.30B	8.38B	10.76B	11.95B	13.48B
Cash, Cash Equivalents and Short-Term Investments	4.07B	1.96B	1.54B	2.71B	4.08B	5.04B
Total Debt	909.00M	928.00M	19.00M	31.00M	42.00M	78.00M
Total Liabilities	5.49B	6.06B	5.67B	6.90B	7.04B	7.26B
Stockholders Equity	4.12B	1.23B	2.71B	3.86B	4.92B	6.23B
Cash Flow
Free Cash Flow	-804.00M	-587.00M	-1.28B	-1.40B	-943.00M	-957.00M
Operating Cash Flow	-801.50M	-548.00M	-1.21B	-1.25B	-750.00M	-703.00M
Investing Cash Flow	-21.00M	80.00M	54.00M	-108.00M	-128.00M	-191.00M
Financing Cash Flow	1.74B	888.00M	-11.00M	-11.00M	-76.00M	-226.00M

Mac House Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 198.00
• 50DMA: Positive
• 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:7603, the sentiment is Negative. The current price of 198 is above the 20-day moving average (MA) of 185.20, above the 50-day MA of 166.92, and below the 200-day MA of 251.75, indicating a neutral trend. The MACD of 9.91 indicates Positive momentum. The RSI at 49.59 is Neutral, neither overbought nor oversold. The STOCH value of 14.93 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7603.

Mac House Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8013	57 Neutral	¥2.44B	151.11	―	―	2.54%	―
2778	52 Neutral	¥1.80B	-26.30	―	―	-6.40%	-590.11%
8025	49 Neutral	¥5.48B	-22.48	―	2.26%	12.99%	-364.77%
7603	48 Neutral	¥4.66B	-1.96	―	―	-7.88%	-11.22%
7615	45 Neutral	¥2.93B	-5.91	―	―	-8.52%	80.07%
9878	41 Neutral	¥1.64B	-1.52	―	2.14%	-25.92%	-1005.20%

Mac House Co., Ltd. Corporate Events

Gyet to Acquire COEN from United Arrows to Drive Brand Regrowth and Digital Transformation

Gyet Co., Ltd. has resolved to acquire all shares of COEN CO., LTD. from UNITED ARROWS LTD., turning the apparel manufacturer and retailer into a subsidiary as part of its strategy of “regeneration and creation.” By taking over COEN, a well-established brand known for affordable, quality “real clothes” that support everyday life and enjoy broad demographic appeal, Gyet aims to preserve COEN’s brand culture, human networks, and customer trust while revitalizing the brand through Gyet’s strengths in AI, digital technology, logistics, and store operations and leveraging the GF Group’s domestic and international logistics and e-commerce platforms. The company expects this transaction to create a forward-looking partnership that carries forward UNITED ARROWS’ brand trust and culture, rebuilds COEN’s people-centric clothing model in a more modern form, and enhances Gyet’s overall corporate value and competitive positioning in the Japanese apparel market.

The most recent analyst rating on (JP:7603) stock is a Hold with a Yen232.00 price target. To see the full list of analyst forecasts on Mac House Co., Ltd. stock, see the JP:7603 Stock Forecast page.

Gyet Sets Record Date and Schedule for March 2026 Extraordinary Shareholders Meeting

Gyet Co., Ltd. has set February 10, 2026, as the record date for determining shareholders entitled to vote at an Extraordinary General Meeting of Shareholders to be held on March 30, 2026, in Tokyo, with notice to be provided electronically through the company’s investor relations website. The company has confirmed the time, venue, and procedural framework for this meeting but has not yet finalized or disclosed the agenda items, which will be determined at a future Board of Directors meeting and announced later, signaling that potentially significant matters may be put to shareholder vote in the coming months.

The most recent analyst rating on (JP:7603) stock is a Hold with a Yen164.00 price target. To see the full list of analyst forecasts on Mac House Co., Ltd. stock, see the JP:7603 Stock Forecast page.

Gyet Launches AI Training Joint Venture with DXHR to Drive Corporate Reskilling

Gyet Co., Ltd. has resolved to establish a new joint venture subsidiary, AI OPERATIONS INC., with DXHR Co., Ltd. to deliver generative AI–based human resource development and reskilling services for companies. Gyet will hold an 80% stake and lead management, business promotion, and sales infrastructure, while DXHR, with a 20% stake, will contribute training content and AI technology know-how. The joint venture, launching on January 23, 2026 with capital of ¥10 million, will offer AI reskilling training, DX human resource development programs, and consulting services, including support for subsidy programs, positioning Gyet to tap growing demand for AI and DX talent and reinforcing its strategic move into higher-value-added, AI-driven corporate services.

The most recent analyst rating on (JP:7603) stock is a Hold with a Yen164.00 price target. To see the full list of analyst forecasts on Mac House Co., Ltd. stock, see the JP:7603 Stock Forecast page.

Gyet Delays Share Transfer Schedule for Planned Acquisition of COEN

Gyet Co., Ltd. announced that it will postpone both the execution date of its planned share transfer agreement and the share transfer implementation date for the acquisition of all COEN CO., LTD. shares from UNITED ARROWS LTD. due to ongoing negotiations taking longer than expected. The company had originally planned to sign the agreement on December 25, 2025, and complete the transfer on January 31, 2026, but will now set new dates and disclose them once determined, while also reviewing the impact of the transaction on its fiscal year ending February 2026 and committing to further disclosure if material effects arise.

The most recent analyst rating on (JP:7603) stock is a Sell with a Yen165.00 price target. To see the full list of analyst forecasts on Mac House Co., Ltd. stock, see the JP:7603 Stock Forecast page.

Gyet Co., Ltd. Cancels Stock Acquisition Rights to Enhance Capital Clarity

Gyet Co., Ltd. has announced its decision to acquire and subsequently cancel its 10th and 11th Stock Acquisition Rights due to the limited possibility of future exercises and the ineffectiveness of these rights as a fundraising tool. This move is aimed at maintaining clarity in the company’s capital policy and ensuring transparency in stock price formation.

The most recent analyst rating on (JP:7603) stock is a Sell with a Yen165.00 price target. To see the full list of analyst forecasts on Mac House Co., Ltd. stock, see the JP:7603 Stock Forecast page.

Gyet Co., Ltd. to Acquire Java Corporation as a Subsidiary

Gyet Co., Ltd. has announced its decision to make Java Corporation a subsidiary, aiming to enhance its brand strategy and expand its customer base. This acquisition will allow Gyet to leverage Java’s urban distribution channels and e-commerce capabilities, optimizing resource allocation and enhancing brand value through a combination of philosophies.

The most recent analyst rating on (JP:7603) stock is a Sell with a Yen325.00 price target. To see the full list of analyst forecasts on Mac House Co., Ltd. stock, see the JP:7603 Stock Forecast page.

Gyet Co., Ltd. to Acquire gf.S Co., Ltd. as a Subsidiary to Enhance Market Reach

Gyet Co., Ltd. has announced its decision to make gf.S Co., Ltd. a subsidiary, a strategic move aimed at enhancing its brand strategy and customer base. This acquisition will enable Gyet to tap into gf.S’s established suburban shopping center distribution channels and senior customer base, while also creating synergies in e-commerce, manufacturing, logistics, and human resources, thereby optimizing operations and expanding its market reach across different customer demographics.

The most recent analyst rating on (JP:7603) stock is a Sell with a Yen325.00 price target. To see the full list of analyst forecasts on Mac House Co., Ltd. stock, see the JP:7603 Stock Forecast page.

Gyet Co., Ltd. Enters Agreement to Acquire COEN CO., LTD.

Gyet Co., Ltd. has announced a basic agreement with UNITED ARROWS LTD. to explore the acquisition of COEN CO., LTD., a subsidiary known for its unique fashion philosophy and strong brand appeal. This strategic move aims to leverage both companies’ strengths, enhance the COEN brand’s growth, and ultimately increase the corporate value of Gyet Co., Ltd. by integrating advanced technology and logistics capabilities.

The most recent analyst rating on (JP:7603) stock is a Sell with a Yen325.00 price target. To see the full list of analyst forecasts on Mac House Co., Ltd. stock, see the JP:7603 Stock Forecast page.