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

• Market Cap: ¥27.90B
• Dividend Yield: 3.03%
• Average Volume (3M): 11.78K
• Price to Earnings (P/E): 5.8
• Beta (1Y): 0.40
• 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: 0.16
• Price to Book (P/B): 2.44
• Price to Sales (P/S): 0.88
• P/FCF Ratio: 20.38
• 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: ¥1,775.00 ▲(21.41% 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

Robust revenue growth

A 31% revenue uplift indicates expanding customer demand and successful sales execution in core bridal and jewelry markets. This scale growth improves operating leverage, supports investment in retail/brand expansion, and provides a durable top-line base for multi-quarter margin and cash-flow improvement.

High and improving margins

Sustained gross margins near 61% and rising net margins reflect pricing power and disciplined cost control across retail operations. Margin resilience in luxury bridal items supports long-term profitability even through modest volume fluctuations, aiding predictable earnings generation and internal reinvestment.

Strong ROE with manageable leverage

Nearly 20% ROE demonstrates efficient use of shareholder capital and attractive returns from core operations. A sub-1.0 debt-to-equity ratio suggests leverage is supporting growth without excessive financial strain, enabling the company to fund expansion while preserving capital efficiency over multiple quarters.

Negative Factors

Cash-flow volatility

While free cash flow jumped due to reduced capex, operating cash flow softened and FCF relative to net income is uneven. Reliance on discretionary capex timing can mask underlying cash conversion risks, limiting consistent cash available for dividends, debt reduction, or steady reinvestment across quarters.

Concentrated business exposure

Heavy concentration in bridal and diamond retail ties revenues to discretionary spending and specific life-event timing. This structural exposure increases sensitivity to macroeconomic weakness or shifts in consumer preferences, making multi-quarter revenue predictability and diversification more challenging.

Declining equity ratio

A falling equity ratio indicates greater balance-sheet reliance on debt versus equity. Over time this can raise interest and refinancing sensitivity, constrain strategic flexibility, and elevate financial risk if margins or cash flows weaken, requiring careful debt management to sustain long-term stability.

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 primarily earns revenue by selling jewelry products to end customers through its retail channels. The core revenue stream is the sale of bridal jewelry (e.g., engagement and wedding rings) and other diamond/jewelry items, with revenue recognized at the point of sale. Additional earnings can come from associated services tied to those purchases (e.g., after-sales services such as sizing or maintenance) when such services are sold separately or embedded in product pricing. The company’s holding structure means it typically generates consolidated revenue via operating subsidiaries/brands that run stores and sales operations, while the parent may also receive income through intra-group management fees or dividends; specific amounts and arrangements are null.

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	4.89B	4.55B	3.34B	3.68B	2.99B	2.53B
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	20.09B
Cash, Cash Equivalents and Short-Term Investments	821.97M	1.35B	1.71B	2.66B	3.32B	3.13B
Total Debt	8.32B	9.17B	7.12B	6.75B	5.53B	5.34B
Total Liabilities	16.42B	16.66B	13.12B	13.00B	11.26B	11.30B
Stockholders Equity	9.72B	9.94B	8.66B	9.23B	9.50B	8.79B
Cash Flow
Free Cash Flow	0.00	1.19B	356.15M	1.14B	1.30B	542.25M
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: Neutral
• Last Price: 1462.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7638, the sentiment is Neutral. The current price of 1462 is below the 20-day moving average (MA) of 1609.90, below the 50-day MA of 1540.20, and below the 200-day MA of 1462.90, indicating a neutral trend. The MACD of 12.84 indicates Positive momentum. The RSI at 49.18 is Neutral, neither overbought nor oversold. The STOCH value of 35.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
7769	76 Outperform	¥32.00B	18.74	―	1.93%	-2.29%	151.87%
9990	74 Outperform	¥24.03B	11.37	―	3.99%	-2.12%	-15.35%
7638	72 Outperform	¥27.90B	5.77	―	3.03%	34.99%	211.99%
7937	68 Neutral	¥49.62B	6.98	2.46%	3.50%	22.68%	-9.41%
2736	65 Neutral	¥2.33B	-6.03	―	1.21%	1.04%	-66.56%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7810	49 Neutral	¥3.24B	42.09	―	0.25%	18.69%	5.17%