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

• Market Cap: ¥4.23B
• Dividend Yield: N/A
• Average Volume (3M): 213.21K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.24
• Revenue Growth: -7.88%
• EPS Growth: -11.22%
• Country: JP
• Employees: 290
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): -25.75
• 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: 42 Neutral
• Price Target: ¥160.00 ▼(-19.19% Downside)

The score is driven primarily by weak financial performance—declining revenue, negative profitability, and negative operating/free cash flow. Technicals are mixed with some short-term support but a still-negative longer-term trend, while valuation is constrained by losses (negative P/E) and no provided dividend yield.

Positive Factors

Low financial leverage

Low reported debt-to-equity gives the company durable financial flexibility and a lower interest burden. Over months this reduces refinancing risk, helps absorb sales volatility in retail, and allows allocation of cash to stores, inventory or omnichannel initiatives without heavy debt strain.

Omnichannel retail footprint

An established base of physical stores plus an e-commerce channel diversifies revenue and customer access. This omnichannel model supports inventory optimization, local market presence and resilience to shifting shopper behavior, improving durability of sales over several months.

Supplier partnerships and value positioning

Long-term supplier relationships and a value/quality positioning help stabilize product supply, control costs, and sustain appeal to price-conscious customers. Structurally, this supports inventory turns, margin management and repeat purchase behavior over the medium term.

Negative Factors

Sustained revenue decline

A persistent ~15% YoY revenue decline signals structural demand loss or market share erosion. Over months this shrinks scale advantages, reduces bargaining power with suppliers, and constrains reinvestment capacity, making profitable recovery and growth harder to achieve.

Negative and contracting margins

Sustained negative EBIT/net margins and shrinking gross margin indicate pricing pressure or rising input costs. This undermines internal funding for store upkeep and omnichannel investment, forcing cost cuts that can damage customer proposition and competitiveness over the medium term.

Consistently negative operating and free cash flow

Persistent negative operating and free cash flows show inability to convert sales into cash, threatening liquidity and the ability to fund inventory or capex. Over several months this increases reliance on external financing and limits strategic options if losses continue.

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

Mac House Co., Ltd. is facing significant financial challenges, with declining revenues, negative profitability, and poor cash flow generation. The balance sheet shows a weakening equity position, indicating potential financial risks.

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: Positive
• Last Price: 198.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7603, the sentiment is Positive. The current price of 198 is above the 20-day moving average (MA) of 154.40, above the 50-day MA of 159.26, and below the 200-day MA of 250.94, indicating a neutral trend. The MACD of 0.25 indicates Negative momentum. The RSI at 59.60 is Neutral, neither overbought nor oversold. The STOCH value of 62.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	¥2.56B	158.23	―	―	2.54%	―
2778	52 Neutral	¥1.54B	-22.47	―	―	-6.40%	-590.11%
8025	49 Neutral	¥5.57B	-22.85	―	2.26%	12.99%	-364.77%
7615	45 Neutral	¥2.91B	-5.95	―	―	-8.52%	80.07%
7603	42 Neutral	¥4.23B	-1.78	―	―	-7.88%	-11.22%
9878	41 Neutral	¥1.60B	-1.42	―	2.14%	-25.92%	-1005.20%

Mac House Co., Ltd. Corporate Events

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.

Mac House Records Inventory Valuation Loss Amid Strategic Shift

Mac House Co., Ltd. has announced a strategic change in its inventory classification method to better align with seasonal demands, aiming for quicker monetization of merchandise. This shift has led to a write-down of slow-moving inventory, resulting in a recorded loss of 130 million yen in the second quarter financial results for the fiscal year ending February 2026, impacting the cost of sales.

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. Reports Extraordinary Losses in Q2

Gyet Co., Ltd. has reported extraordinary losses in its financial results for the second quarter of the fiscal year ending February 2026, due to impairment losses and provisions for store closure losses. These losses, totaling 229 million yen, reflect the company’s response to deteriorating store profitability and anticipated future business conditions, impacting its financial performance as disclosed in the latest financial results.

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. Revises Financial Forecasts Amid Mixed Performance

Gyet Co., Ltd. has revised its financial forecasts for the fiscal year ending February 2026, reflecting a mixed performance. Despite benefiting from an extended summer sales period, the company faced challenges such as decreased unit prices due to inventory disposal and price revisions, leading to a 6.3% drop in net sales below initial forecasts for the second quarter. However, the company anticipates improved performance in the latter half of the year, driven by strengthened sales of priority products, expansion of new ladies’ brands, and new revenue opportunities through cryptocurrency investments, prompting an upward revision of its full-year earnings forecast.

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.