NEW ART HOLDINGS Co., Ltd. (7638) AI Stock Analysis

• Market Cap: ¥27.26B
• Dividend Yield: 0.58%
• Average Volume (3M): 27.49K
• Price to Earnings (P/E): 13.1
• Beta (1Y): 0.37
• Revenue Growth: 38.13%
• EPS Growth: 94.39%
• Country: JP
• Employees: 710
• Sector: Consumer Cyclical
• Sector Strength: 75
• Industry: Luxury Goods
• EPS (TTM): 16.07
• Shares Outstanding: 19,124,825
• 10 Day Avg. Volume: 25,740
• 30 Day Avg. Volume: 27,493
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,545.00
• Price Target Upside: 0.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: ¥1,545.00 ▲(0.06% Upside)

The overall stock score of 71 reflects the company's strong financial performance, characterized by robust revenue growth and healthy profit margins. Technical analysis suggests mixed signals with bearish momentum, while valuation indicates an attractive entry point. The lack of recent significant earnings call insights or corporate events means these factors do not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market presence and effective sales strategies, supporting long-term business sustainability.

Profit Margin Improvement

Improved profit margins reflect efficient cost management and enhanced profitability, strengthening the company's financial position.

Cash Flow Growth

Strong free cash flow growth enhances financial flexibility, allowing for reinvestment in growth initiatives and debt reduction.

Negative Factors

Debt Management Concerns

A decreasing equity ratio indicates increased reliance on debt, which could pose risks if not managed prudently, affecting long-term stability.

Cash Flow Volatility

Volatility in free cash flow could impact the company's ability to consistently fund operations and growth, posing a risk to financial health.

Debt-to-Equity Ratio

While currently manageable, the debt-to-equity ratio suggests potential risk if leverage increases, necessitating careful debt management.

NEW ART HOLDINGS Co., Ltd. Business Overview & Revenue Model

Company Description

NEW ART HOLDINGS Co., Ltd. offers bridal jewelry products. The company offers engagement rings and wedding rings under the Ginza Diamond Shiraishi and Excelco Diamond brands. It also rents tiaras; and offers fashion jewelry products and life support services. In addition, the company operates an esthetic salon; sells paintings; and provides sports-related services. It operates stores in Japan, Taiwan, and internationally. The company was formerly known as New Art Co., Ltd. and changed its name to NEW ART HOLDINGS Co., Ltd. in October 2018. NEW ART HOLDINGS Co., Ltd. was incorporated in 1966 and is headquartered in Tokyo, Japan.

How the Company Makes Money

NEW ART HOLDINGS Co., Ltd. generates revenue through the sale of its jewelry and art products. The company employs a multi-channel approach, utilizing both physical retail locations and online platforms to reach its customers. Key revenue streams include direct sales to consumers, wholesale distribution to other retailers, and custom design services. The company also benefits from strategic partnerships and collaborations with artists and designers, which enhance its product offerings and market reach. Additionally, NEW ART HOLDINGS may engage in licensing agreements and exhibitions that contribute to its overall earnings.

NEW ART HOLDINGS Co., Ltd. Financial Statement Overview

Summary

NEW ART HOLDINGS Co., Ltd. demonstrates strong financial performance with solid revenue and profit growth. The company maintains healthy profit margins and efficient cost management. However, the balance sheet highlights the importance of prudent debt management, and cash flow performance, while positive, shows some volatility in free cash flow generation.

Income Statement

The company shows strong revenue growth, with a 31% increase in total revenue from 2024 to 2025. Gross profit margin remains healthy at around 61%, and net profit margin improved significantly from 5.14% in 2024 to 7.18% in 2025. EBIT and EBITDA margins are stable, indicating efficient cost management. The consistent revenue growth and improved profitability reflect a robust financial performance.

Balance Sheet

The debt-to-equity ratio stands at 0.92, indicating a manageable level of leverage. The return on equity (ROE) improved to 19.98% in 2025, demonstrating effective utilization of equity to generate profit. However, the equity ratio decreased slightly to 36.35%, suggesting a reliance on debt financing. Overall, the balance sheet shows solid financial health but highlights the need for cautious debt management.

Cash Flow

Operating cash flow has decreased slightly from 2024 to 2025, but free cash flow growth is substantial at 247% due to reduced capital expenditures. The operating cash flow to net income ratio is strong at 0.89, indicating efficient cash conversion. However, the free cash flow to net income ratio is lower at 0.60, suggesting some volatility in free cash flow generation. The cash flow statement reflects a positive cash position but highlights the need for maintaining consistent cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	27.64B	27.64B	21.10B	21.46B	18.72B	18.94B
Gross Profit	16.78B	16.78B	13.68B	13.54B	12.15B	11.16B
EBITDA	3.99B	4.42B	3.07B	3.37B	2.62B	2.55B
Net Income	1.98B	1.98B	1.09B	1.73B	1.48B	1.13B
Balance Sheet
Total Assets	27.33B	27.33B	21.99B	22.39B	20.91B	18.69B
Cash, Cash Equivalents and Short-Term Investments	1.35B	1.35B	1.71B	2.66B	3.32B	3.13B
Total Debt	9.17B	9.17B	7.12B	6.75B	5.53B	5.34B
Total Liabilities	16.66B	16.66B	13.12B	13.00B	11.26B	9.90B
Stockholders Equity	9.94B	9.94B	8.66B	9.23B	9.50B	8.79B
Cash Flow
Free Cash Flow	0.00	1.19B	343.47M	1.08B	1.29B	540.29M
Operating Cash Flow	0.00	1.76B	1.91B	1.97B	1.90B	3.12B
Investing Cash Flow	0.00	-455.74M	-1.44B	-1.05B	-926.35M	-2.48B
Financing Cash Flow	0.00	-1.58B	-1.48B	-1.70B	-843.95M	-455.07M

NEW ART HOLDINGS Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1544.00
• 50DMA: Positive
• 100DMA: Positive
• 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:7638, the sentiment is Positive. The current price of 1544 is below the 20-day moving average (MA) of 1554.80, above the 50-day MA of 1456.14, and above the 200-day MA of 1423.95, indicating a neutral trend. The MACD of 26.08 indicates Positive momentum. The RSI at 55.62 is Neutral, neither overbought nor oversold. The STOCH value of 19.10 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7638.

NEW ART HOLDINGS Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9904	72 Outperform	¥9.99B	20.67		5.36%	3.88%	0.84%
7638	71 Outperform	¥27.26B	13.11		0.58%	38.13%	94.39%
Sector *	61 Neutral	$17.83B	12.89	-1.60%	3.03%	1.39%	-14.45%
TSSJF	―	$239.63M	22.96	2.37%	4.39%	―	―
8139	59 Neutral	¥26.07B	80.25		0.59%	2.98%	-42.40%
7872	56 Neutral	¥6.36B	―		4.52%	-1.15%	47.80%
7810	54 Neutral	¥2.74B	37.41		0.22%	7.20%	34.29%