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

• Market Cap: ¥23.87B
• Dividend Yield: 0.67%
• Average Volume (3M): 13.55K
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.43
• Revenue Growth: 31.02%
• EPS Growth: 76.65%
• Country: JP
• Employees: 710
• Sector: Consumer Cyclical
• Sector Strength: 60
• Industry: Luxury Goods
• EPS (TTM): 55.24
• Shares Outstanding: 19,124,825
• 10 Day Avg. Volume: 12,870
• 30 Day Avg. Volume: 13,546
• PEG Ratio: 0.09
• Price to Book (P/B): 1.12
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.00
• 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

• Rating: 68 Neutral
• Price Target: ¥1,525.00 ▲(12.80%Upside)

The stock demonstrates strong financial health with solid revenue growth and profitability in the luxury goods sector. However, technical indicators suggest a neutral to bearish trend, and the valuation indicates potential undervaluation. The absence of earnings call data or significant corporate events does not impact the score.

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

Company Description

NEW ART HOLDINGS Co., Ltd. (7638) is a company engaged in the jewelry industry, primarily focusing on the planning, manufacturing, and retail of jewelry products. The company operates through its subsidiaries and offers a wide range of jewelry, including diamonds, precious metals, and related accessories. Their operations are primarily based in Japan, with a commitment to providing high-quality and innovative jewelry products to their customers.

How the Company Makes Money

NEW ART HOLDINGS Co., Ltd. generates revenue through several key avenues within the jewelry sector. The company earns income from the sale of its jewelry products, which include diamonds and various precious metal accessories. Retail operations, both through physical stores and online platforms, constitute a significant portion of its revenue stream. Additionally, the company might engage in partnerships or collaborations with other entities in the fashion or luxury goods sector to enhance its market reach and product offerings. The company's financial performance is closely tied to consumer demand for luxury goods, economic conditions, and trends in the jewelry market.

NEW ART HOLDINGS Co., Ltd. Financial Statement Overview

Summary

NEW ART HOLDINGS Co., Ltd. demonstrates strong financial performance with solid revenue and profit growth in the luxury goods sector. The company maintains healthy profit margins and efficient cost management. The balance sheet reflects a sound financial structure but highlights the importance of prudent debt management. Cash flow performance is positive, though maintaining consistent free cash flow remains a focus. Overall, the company shows robust financial health with growth potential.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	25.08B	27.64B	21.10B	21.46B	18.72B	18.94B
Gross Profit	15.54B	16.78B	13.68B	13.54B	12.15B	11.16B
EBITDA	3.39B	4.42B	3.07B	3.37B	2.62B	2.55B
Net Income	1.65B	1.98B	1.09B	1.73B	1.48B	1.13B
Balance Sheet
Total Assets	22.12B	27.33B	21.99B	22.39B	20.91B	18.69B
Cash, Cash Equivalents and Short-Term Investments	1.02B	1.35B	1.71B	2.66B	3.32B	3.13B
Total Debt	7.89B	9.17B	7.12B	6.75B	5.53B	5.34B
Total Liabilities	13.34B	16.66B	13.12B	13.00B	11.26B	9.90B
Stockholders Equity	8.56B	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: Negative
• Last Price: 1352.00
• 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:7638, the sentiment is Negative. The current price of 1352 is below the 20-day moving average (MA) of 1395.15, below the 50-day MA of 1405.54, and below the 200-day MA of 1403.85, indicating a bearish trend. The MACD of -17.64 indicates Positive momentum. The RSI at 36.26 is Neutral, neither overbought nor oversold. The STOCH value of 12.82 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	76 Outperform	¥10.07B	17.69		5.65%	4.03%	13.35%
7638	68 Neutral	¥23.87B	11.86		0.67%	31.02%	76.65%
Sector *	67 Neutral	¥253.34B	13.18	6.44%	2.78%	5.06%	-11.83%
7937	64 Neutral	$34.79B	17.52	2.90%	3.14%	23.18%	89.08%
8139	59 Neutral	¥24.69B	60.75		0.62%	4.91%	-21.85%
7810	54 Neutral	¥2.92B	37.41		0.20%	7.20%	34.29%
7872	49 Neutral	¥6.09B	―		4.71%	-1.35%	64.68%