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

• Market Cap: ¥2.98B
• Dividend Yield: N/A
• Average Volume (3M): 1.87M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.95
• Revenue Growth: -8.52%
• EPS Growth: 80.07%
• Country: JP
• Employees: 437
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): -0.04
• Shares Outstanding: 20,253,600
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: ¥153.00 ▲(3.38% Upside)
• Action: Reiterated Date: 02/14/26
• Date: Action: Reiterated 02/14/26

The score is held back primarily by weak financial performance—declining revenue, continued losses, negative operating/free cash flow, and shrinking equity. Technical indicators are comparatively supportive with price above key moving averages and positive MACD, but valuation is pressured by the negative P/E tied to unprofitable operations.

Positive Factors

High gross margin

A near-59% gross margin is a durable structural strength in apparel retail, indicating favorable product mix or pricing power. This margin buffer supports profitability recovery efforts and helps absorb fixed costs while the company addresses top-line decline.

Historically low leverage

Historically low debt levels provided financial flexibility and lower fixed financing costs, which is a durable advantage during restructuring or investment cycles. This gives the company capacity to pursue restructuring or strategic initiatives without immediate refinancing stress.

Signs of cash-flow improvement

An improving free cash flow trend, even from negative levels, indicates operational adjustments may be beginning to convert into cash. Continued improvement over months would reduce financing needs and support sustainable operations or targeted reinvestment.

Negative Factors

Sustained revenue decline

A multi-year halving of revenue is a fundamental concern: it erodes scale, weakens negotiating power with suppliers, and raises fixed-cost absorption issues. Without reversing revenue decline, margin strength and cash-flow gains will be hard to sustain long term.

Persistent unprofitability

Ongoing negative operating and net margins reflect structural profitability issues in the core business. Persistent losses impede retained-earnings accumulation, limit reinvestment capacity, and require either operational turnaround or external capital to restore financial health.

Eroding shareholder equity

A marked drop in equity shrinks the capital buffer against losses and effectively increases leverage even if nominal debt is low. This reduces financial flexibility, raises creditor and investor concerns, and heightens risk during prolonged recovery periods.

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

Company Description

YU-WA Creation Holdings Co.,Ltd. engages in the sale of kimono and jewelry products in Japan. The company operates 46 stores and online stores. The company was formerly known as Kyoto Kimono Yuzen Co.,Ltd. and changed its name to YU-WA Creation Holdings Co.,Ltd. in October 2021. The company was incorporated in 1971 and is headquartered in Tokyo, Japan.

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

Income statement weakness (declining revenue from 2020–2025 and ongoing net losses) and persistent negative operating/free cash flow outweigh a still-strong gross margin (~58.7% in 2025). The balance sheet is also weakening with stockholders’ equity falling materially over the period, increasing risk despite historically low leverage.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Positive
• Last Price: 148.00
• 50DMA: Positive
• 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 Positive. The current price of 148 is below the 20-day moving average (MA) of 158.65, below the 50-day MA of 154.72, and above the 200-day MA of 147.93, indicating a neutral trend. The MACD of -0.59 indicates Positive momentum. The RSI at 50.28 is Neutral, neither overbought nor oversold. The STOCH value of 16.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
9271	76 Outperform	¥8.27B	11.58	―	―	30.82%	77.42%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8013	57 Neutral	¥2.46B	152.63	―	―	2.54%	―
7615	55 Neutral	¥2.98B	-9.17	―	―	-8.52%	80.07%
2778	52 Neutral	¥1.87B	-27.35	―	―	-6.40%	-590.11%
7603	47 Neutral	¥3.79B	-1.60	―	―	-7.88%	-11.22%
9878	41 Neutral	¥1.96B	-1.82	―	2.14%	-25.92%	-1005.20%

YU-WA Creation Holdings Co., Ltd. Corporate Events

Kyoto Kimono Yuzen Swings Back to Profit as Balance Sheet Strengthens

Kyoto Kimono Yuzen Holdings reported a solid recovery for the third quarter ended December 2025, with consolidated net sales rising 8.7% year on year to ¥4.38 billion after a sharp decline in the prior-year period. The company swung back to profitability, posting operating profit of ¥182 million and profit attributable to owners of parent of ¥162 million, compared with losses a year earlier, lifting basic earnings per share to ¥10.43.

Financial strength also improved, as total assets increased to ¥7.59 billion and net assets to ¥2.83 billion, pushing the capital adequacy ratio up to 37.2% from 27.2% at the end of March 2025. The higher net assets per share, which rose to ¥147.77, underscore a strengthened balance sheet and may support investor confidence in the company’s ongoing turnaround in the kimono and textile market.

The most recent analyst rating on (JP:7615) stock is a Sell with a Yen143.00 price target. To see the full list of analyst forecasts on YU-WA Creation Holdings Co., Ltd. stock, see the JP:7615 Stock Forecast page.