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

• Market Cap: ¥3.71B
• Dividend Yield: N/A
• Average Volume (3M): 213.21K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.07
• 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: 47 Neutral
• Price Target: ¥143.00 ▼(-27.78% Downside)
• Action: Reiterated Date: 01/31/26
• Date: Action: Reiterated 01/31/26

The score is held down primarily by weak financial performance (declining revenue, ongoing losses, and negative operating/free cash flow). Technicals provide partial support with a modest positive momentum setup, but valuation remains challenged due to loss-making earnings (negative P/E).

Positive Factors

Low leverage / conservative balance sheet

The company's low debt reliance reduces interest burden and preserves financial flexibility. Over a multi-month horizon this conservatism supports survival during sales declines, provides optionality to restructure or invest selectively, and lowers liquidity strain compared with highly levered peers.

Focused retail business model

A clear, store-centric apparel model concentrates capabilities in merchandising, store operations and inventory control. That focus aids durable operational improvements (assortment optimization, store productivity) and makes strategic pivots in product mix or footprint more actionable over several months.

Relatively lean workforce

A modest headcount implies a lean operating base that can enable faster cost adjustments and lower fixed payroll exposure. Over 2–6 months this structural lightness helps preserve cash runway while management works on margin recovery or inventory reductions.

Negative Factors

Multi-year revenue decline

Sustained double-digit top-line declines shrink scale and reduce leverage to cover fixed costs. Over months this erosion undermines purchasing scale, weakens supplier leverage, increases per-unit cost exposure and makes restoring profitability materially harder without structural changes.

Persistent negative operating and free cash flow

Ongoing negative OCF and free cash flow limit reinvestment and force reliance on financing or asset adjustments. This structural cash shortfall reduces strategic flexibility, raises liquidity risk if losses continue, and constrains the company’s ability to fund a durable turnaround.

Negative profitability and contracting gross margin

Falling gross margins signal weakened pricing power or rising product costs, compressing operating leverage. Even if sales stabilize, declining margins make margin recovery and sustainable profitability difficult without cost restructure, supplier changes, or product-price realignment.

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

Income statement and cash flow are the main weaknesses: multi-year revenue declines, negative profitability (net/EBIT margins), contracting gross margin, and consistently negative operating/free cash flow. The balance sheet is comparatively better with low leverage, but equity has been weakening, adding risk.

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	Feb 2025	Feb 2024	Feb 2023	Feb 2022	Feb 2021
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: 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:7603, the sentiment is Negative. The current price of 198 is above the 20-day moving average (MA) of 168.90, above the 50-day MA of 171.06, and below the 200-day MA of 251.64, indicating a bearish trend. The MACD of -8.25 indicates Positive momentum. The RSI at 37.46 is Neutral, neither overbought nor oversold. The STOCH value of 3.00 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	¥2.43B	150.60	―	―	2.54%	―
7615	55 Neutral	¥3.01B	-8.88	―	―	-8.52%	80.07%
2778	52 Neutral	¥1.83B	-26.65	―	―	-6.40%	-590.11%
8025	49 Neutral	¥5.50B	-25.11	―	2.26%	12.99%	-364.77%
7603	47 Neutral	¥3.71B	-1.56	―	―	-7.88%	-11.22%
9878	41 Neutral	¥1.82B	-1.69	―	2.14%	-25.92%	-1005.20%

Mac House Co., Ltd. Corporate Events

Gyet Co., Ltd. Completes Acquisition of COEN to Make It a Wholly Owned Subsidiary

Gyet Co., Ltd. has completed the acquisition of all shares of COEN CO., LTD. from UNITED ARROWS LTD., making COEN a wholly owned subsidiary as of March 2, 2026. COEN, established in 2008 and based in Tokyo’s Minato Ward, is engaged in the planning, manufacturing, and sales of apparel products, with capital stock of 100 million yen.

Under the deal, Gyet acquired 2,000 shares with 2,000 voting rights for a total consideration of 200 million yen, securing 100% ownership of COEN. The company is currently reviewing the impact of this transaction on its consolidated financial results for the fiscal year ending February 2027 and plans to disclose any material effects as they are determined.

The most recent analyst rating on (JP:7603) stock is a Sell with a Yen132.00 price target. To see the full list of analyst forecasts on Mac House Co., Ltd. stock, see the JP:7603 Stock Forecast page.

Gyet Slashes Full-Year Forecast Amid Bitcoin Slump and Weak Apparel Margins

Gyet Co., Ltd. has sharply revised downward its full-year forecast for the fiscal year ending February 2026, cutting projected net sales from ¥13.5 billion to ¥11.76 billion and widening its expected net loss from ¥310 million to ¥2.099 billion, implying a substantially larger loss per share. The company attributed the deterioration primarily to the inability to book anticipated valuation gains from cryptocurrency investments following a recent decline and instability in Bitcoin prices, as well as weaker-than-planned performance in its Apparel and Lifestyle Business, where higher customer traffic from promotions and clearance sales failed to translate into sufficient spending because of aggressive inventory liquidation and price cuts that pressured gross margins; as a result, both sales and profitability are now forecast to undershoot earlier expectations, signaling heightened earnings risk for shareholders and other stakeholders.

The most recent analyst rating on (JP:7603) stock is a Hold with a Yen198.00 price target. To see the full list of analyst forecasts on Mac House Co., Ltd. stock, see the JP:7603 Stock Forecast page.

Gyet 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.