Revenue & Margin ExpansionSustained 31% top-line growth alongside ~61% gross margin and improving net margin signals durable demand and pricing power in core retail operations. Consistent revenue expansion with stable margins supports reinvestment, store network economics and long-term profit resilience.

High Return On EquityROE near 20% indicates management converts equity into profit effectively, reflecting operational strength and selective capital allocation. A sustained high ROE supports shareholder returns and suggests competitive advantages in merchandising, brand positioning, and cost control within its niche.

Strong Free Cash Flow GrowthA 247% increase in free cash flow driven by lower capex materially improves financial flexibility. Combined with an operating cash flow to net income ratio of 0.89, this enhances capacity to fund dividends, strategic store investments or debt reduction without relying heavily on external financing.

Bears Say

Elevated LeverageA debt-to-equity near 0.92 and falling equity ratio point to greater reliance on debt financing. Higher leverage reduces financial flexibility, raises refinancing and interest-rate risks, and can constrain capital expenditure or dividend policies if retail demand softens in the medium term.

Cash-Generation VolatilityAlthough FCF grew overall, the slight drop in operating cash flow and a free-cash-flow-to-net-income ratio of 0.60 show inconsistent cash conversion. Such variability can complicate capital allocation, weaken buffer for downturns, and force reliance on debt or equity issuance to fund growth.

Concentration In Bridal/Jewelry NicheHeavy exposure to bridal and diamond jewelry ties revenue to discretionary spending, marriage rates and consumer sentiment. This concentration raises cyclical and demographic risk versus diversified luxury peers, potentially amplifying revenue swings across economic cycles.

7638 FAQ

What was NEW ART HOLDINGS Co., Ltd.’s price range in the past 12 months?

NEW ART HOLDINGS Co., Ltd. lowest stock price was ¥1210.00 and its highest was ¥1663.00 in the past 12 months.

What is NEW ART HOLDINGS Co., Ltd.’s market cap?

NEW ART HOLDINGS Co., Ltd.’s market cap is ¥28.57B.

When is NEW ART HOLDINGS Co., Ltd.’s upcoming earnings report date?

NEW ART HOLDINGS Co., Ltd.’s upcoming earnings report date is May 18, 2026 which is in 71 days.

How were NEW ART HOLDINGS Co., Ltd.’s earnings last quarter?

NEW ART HOLDINGS Co., Ltd. released its earnings results on Feb 13, 2026. The company reported ¥63.81 earnings per share for the quarter, beating the consensus estimate of N/A by ¥63.81.

Is NEW ART HOLDINGS Co., Ltd. overvalued?

According to Wall Street analysts NEW ART HOLDINGS Co., Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does NEW ART HOLDINGS Co., Ltd. pay dividends?

NEW ART HOLDINGS Co., Ltd. pays a Semiannually dividend of ¥45 which represents an annual dividend yield of 3.03%. See more information on NEW ART HOLDINGS Co., Ltd. dividends here

What is NEW ART HOLDINGS Co., Ltd.’s EPS estimate?

NEW ART HOLDINGS Co., Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does NEW ART HOLDINGS Co., Ltd. have?

NEW ART HOLDINGS Co., Ltd. has 19,124,825 shares outstanding.

What happened to NEW ART HOLDINGS Co., Ltd.’s price movement after its last earnings report?

NEW ART HOLDINGS Co., Ltd. reported an EPS of ¥63.81 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went up 0.531%.

Which hedge fund is a major shareholder of NEW ART HOLDINGS Co., Ltd.?

Currently, no hedge funds are holding shares in JP:7638

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

NEW ART HOLDINGS Co., Ltd.

NEW ART HOLDINGS Co., Ltd. (7638) is a diversified company operating in the art and entertainment sectors, focusing on the creation, promotion, and distribution of various artistic products and services. The company engages in art exhibitions, auctions, and the management of art-related events, as well as collaborating with artists to develop unique artworks. NEW ART HOLDINGS also invests in technology-driven solutions to enhance the experience of art consumption, including digital platforms for art sales and virtual exhibitions.