YU-WA Creation Holdings Co., Ltd. (7615) AI Stock Analysis

• Market Cap: ¥3.04B
• Dividend Yield: N/A
• Average Volume (3M): 1.87M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.82
• Revenue Growth: -8.52%
• EPS Growth: 80.07%
• Country: JP
• Employees: 437
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): 3.55
• Shares Outstanding: 18,352,300
• 10 Day Avg. Volume: 1,175,140
• 30 Day Avg. Volume: 1,872,550
• PEG Ratio: 0.03
• Price to Book (P/B): 0.57
• Price to Sales (P/S): 0.22
• P/FCF Ratio: -2.84
• 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: 45 Neutral
• Price Target: ¥161.00 ▲(8.78% Upside)

YU-WA Creation Holdings Co., Ltd. is facing significant financial and technical challenges. The company's declining revenues, consistent losses, and negative technical indicators are the most significant factors impacting the stock score. The poor valuation further contributes to the low score, indicating substantial risks for potential investors.

Positive Factors

Strong Gross Profit Margin

A strong gross profit margin indicates efficient production and pricing strategies, providing a buffer against operational inefficiencies and aiding long-term financial health.

Broad Distribution Network

A broad distribution network enhances market reach and sales volume, supporting revenue stability and growth potential over the long term.

Strategic Partnerships

Strategic partnerships can lead to exclusive distribution rights and better pricing, strengthening competitive positioning and revenue potential.

Negative Factors

Declining Revenue

Declining revenue indicates challenges in maintaining market share and competitiveness, which can impact long-term growth prospects and financial stability.

Consistent Losses

Ongoing losses reflect operational inefficiencies and financial strain, necessitating strategic changes to achieve sustainable profitability.

Decreasing Stockholders' Equity

Decreasing equity suggests weakening financial health and increased leverage, posing risks to financial stability and future investment capacity.

YU-WA Creation Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

YU-WA Creation Holdings Co., Ltd. (7615) is a diversified company based in Japan that operates in various sectors, including manufacturing, retail, and technology. The company is primarily known for its innovative design and production of consumer goods, with a focus on lifestyle products that blend functionality and aesthetic appeal. YU-WA Creation Holdings also engages in strategic partnerships to enhance its product offerings and expand its market reach.

How the Company Makes Money

The company's revenue model is primarily based on the sale of its consumer products through both retail and online channels. Key revenue streams include direct sales from its manufactured goods, licensing agreements for its designs, and collaborations with other brands to create co-branded products. Additionally, YU-WA Creation Holdings benefits from strategic partnerships that allow it to tap into new markets and leverage shared resources, enhancing its overall profitability. The company's commitment to innovation and quality has positioned it well in competitive markets, contributing significantly to its earnings.

YU-WA Creation Holdings Co., Ltd. Financial Statement Overview

Summary

YU-WA Creation Holdings Co., Ltd. is facing significant financial challenges, with declining revenues, consistent losses, and a weakening balance sheet. Despite strong gross margins, operational inefficiencies and cash flow issues are major concerns.

Income Statement

YU-WA Creation Holdings Co., Ltd. has faced significant challenges in maintaining stable revenue and profitability. The revenue has been on a declining trend from 2020 to 2025, with a decrease from 10.5 billion in 2020 to 5.16 billion in 2025. The company consistently reports a negative net income, indicating ongoing profitability issues. Notably, the gross profit margin remains relatively strong at around 58.7% in 2025, but the EBIT and net profit margins are negative, reflecting operational inefficiencies.

Balance Sheet

The balance sheet shows a concerning trend of decreasing stockholders' equity from 5.34 billion in 2020 to 1.98 billion in 2025, pointing to weakening financial health. The company has managed to maintain a low debt-to-equity ratio due to high equity levels earlier in the period, but this is deteriorating as equity decreases. The equity ratio has also declined, indicating increased financial leverage and potential risks.

Cash Flow

Cash flow analysis reveals persistent negative operating cash flow, indicating cash generation issues from core operations. Free cash flow has been consistently negative, although there is a slight improvement in 2025 compared to 2024. The operating cash flow to net income ratio and free cash flow to net income ratio are unfavorable, suggesting difficulties in converting earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.53B	5.16B	7.02B	8.33B	8.48B	7.67B
Gross Profit	3.28B	3.03B	3.72B	5.17B	5.22B	4.81B
EBITDA	-443.48M	-891.27M	-1.20B	-348.68M	-108.39M	243.06M
Net Income	-503.14M	-923.11M	-1.34B	-468.98M	-185.18M	77.48M
Balance Sheet
Total Assets	7.03B	7.28B	8.91B	10.90B	11.86B	12.21B
Cash, Cash Equivalents and Short-Term Investments	1.68B	1.67B	2.48B	3.23B	3.97B	4.28B
Total Debt	423.19M	606.76M	1.34B	1.47B	1.43B	1.31B
Total Liabilities	4.95B	5.30B	6.20B	6.79B	7.07B	6.88B
Stockholders Equity	2.08B	1.98B	2.71B	4.11B	4.79B	5.33B
Cash Flow
Free Cash Flow	0.00	-398.42M	-702.45M	-502.39M	-451.49M	-738.92M
Operating Cash Flow	0.00	-268.01M	-641.49M	-444.00M	-334.98M	-651.05M
Investing Cash Flow	0.00	13.53M	77.99M	-59.17M	-742.00K	433.77M
Financing Cash Flow	0.00	-554.21M	-193.17M	-233.27M	17.40M	923.45M

YU-WA Creation Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 148.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7615, the sentiment is Negative. The current price of 148 is below the 20-day moving average (MA) of 169.15, below the 50-day MA of 174.06, and above the 200-day MA of 125.63, indicating a neutral trend. The MACD of -7.61 indicates Positive momentum. The RSI at 34.68 is Neutral, neither overbought nor oversold. The STOCH value of 1.85 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7615.

YU-WA Creation Holdings 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%
9271	60 Neutral	¥6.71B	14.10	―	―	30.82%	77.42%
8013	53 Neutral	¥2.29B	-112.18	―	―	0.58%	-2526.19%
2778	52 Neutral	¥1.67B	-42.24	―	―	-6.40%	-590.11%
7615	45 Neutral	¥3.04B	-4.77	―	―	-8.52%	80.07%
9878	40 Underperform	¥1.77B	-1.68	―	1.71%	-25.92%	-1005.20%
7603	38 Underperform	¥4.10B	―	―	―	-7.88%	-11.22%