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

• Market Cap: ¥29.34B
• Dividend Yield: 3.03%
• Average Volume (3M): 11.78K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.39
• Revenue Growth: 34.99%
• EPS Growth: 211.99%
• Country: JP
• Employees: 710
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Luxury Goods
• EPS (TTM): 63.81
• Shares Outstanding: 19,124,825
• 10 Day Avg. Volume: 14,970
• 30 Day Avg. Volume: 11,780
• PEG Ratio: 0.14
• Price to Book (P/B): 2.22
• Price to Sales (P/S): 0.80
• P/FCF Ratio: 18.53
• 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: 72 Outperform
• Price Target: ¥1,845.00 ▲(26.20% Upside)
• Action: Reiterated Date: 10/30/25
• Date: Action: Reiterated 10/30/25

The overall stock score of 72 reflects strong financial performance and attractive valuation metrics, which are the most significant factors. The company's robust revenue and profit growth, coupled with a low P/E ratio and solid dividend yield, highlight its potential for value investors. However, technical analysis indicates a short-term bearish trend, which slightly offsets the positive financial and valuation aspects.

Positive Factors

Strong Revenue Growth

A 31% year-over-year revenue increase indicates sustained demand for the company’s products and effective sales execution. For a retail-focused luxury operator, double-digit top-line growth supports scaling operating leverage, funding reinvestment, and strengthening competitive positioning over the next several quarters.

High and Stable Gross Margins

A roughly 61% gross margin and improving net margin reflect durable pricing power and disciplined cost control in jewelry retail. High gross margins provide a buffer against input cost swings and permit reinvestment in customer experience and brand promotion, supporting margin sustainability across business cycles.

Efficient Capital Use / Strong ROE

Nearly 20% ROE demonstrates the company’s ability to convert equity into profitable returns, suggesting efficient asset deployment and profitable retail operations. Coupled with a moderate debt-to-equity ratio, the firm appears to balance growth funding and shareholder returns without extreme leverage, supporting steady long-term capital efficiency.

Negative Factors

Declining Equity Ratio / Higher Leverage Reliance

A lower equity ratio signals that a greater share of the capital structure is financed by debt, which can constrain financial flexibility. In an industry sensitive to discretionary spending, elevated reliance on debt increases refinancing and interest-rate vulnerability, which could pressure investment capacity during downturns.

Volatile Cash Flow Generation

While free cash flow spiked due to lower capex, the decline in operating cash flow and a low FCF-to-net-income ratio point to inconsistent cash conversion. This volatility can hamper predictable funding for dividends, store expansion, or inventory refreshes and makes capital planning riskier over the medium term.

Concentration in Bridal/Jewelry Retail

Heavy dependence on bridal and jewelry retail concentrates revenue on a narrow, cyclical product category tied to consumer discretionary spending and demographics. Limited diversification increases exposure to shifts in marriage rates, consumer preferences, or prolonged spending slowdowns, raising structural demand risk over several quarters.

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

Company Description

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.

How the Company Makes Money

NEW ART HOLDINGS generates revenue through multiple streams, primarily from the sale of artworks and art-related products, including physical and digital pieces. The company earns commissions from auction sales and exhibition ticket sales, as well as fees for event management services. Additionally, partnerships with artists and galleries enable the company to expand its portfolio and attract a wider audience. The use of e-commerce platforms for art sales adds a significant digital revenue stream, allowing the company to reach global markets. Moreover, collaborations with corporate sponsors and art institutions provide further financial support, enhancing the company's earnings potential.

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	29.58B	27.64B	21.10B	21.46B	18.72B	18.94B
Gross Profit	17.72B	16.78B	13.68B	13.54B	12.15B	11.16B
EBITDA	4.26B	4.42B	3.07B	3.37B	2.62B	2.55B
Net Income	2.06B	1.98B	1.09B	1.73B	1.48B	1.13B
Balance Sheet
Total Assets	26.84B	27.33B	21.99B	22.39B	20.91B	18.69B
Cash, Cash Equivalents and Short-Term Investments	821.97M	1.35B	1.71B	2.66B	3.32B	3.13B
Total Debt	8.42B	9.17B	7.12B	6.75B	5.53B	5.34B
Total Liabilities	16.42B	16.66B	13.12B	13.00B	11.26B	9.90B
Stockholders Equity	9.72B	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: 1462.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 1462 is below the 20-day moving average (MA) of 1547.15, below the 50-day MA of 1502.86, and above the 200-day MA of 1448.84, indicating a bullish trend. The MACD of 45.76 indicates Negative momentum. The RSI at 80.11 is Negative, neither overbought nor oversold. The STOCH value of 94.94 is Negative, 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	75 Outperform	¥11.34B	24.66	―	5.21%	6.89%	-1.46%
7638	72 Outperform	¥29.34B	10.07	―	3.03%	34.99%	211.99%
7937	68 Neutral	¥53.05B	20.18	2.46%	3.50%	22.68%	-9.41%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8139	57 Neutral	¥30.67B	32.55	―	0.46%	8.02%	2.66%
7810	50 Neutral	¥3.85B	155.02	―	0.25%	18.69%	5.17%
7872	50 Neutral	¥6.66B	-11.45	―	4.64%	-0.68%	46.43%