NATTY SWANKY holdings Co.Ltd (7674) AI Stock Analysis

• Market Cap: ¥6.12B
• Dividend Yield: 0.33%
• Average Volume (3M): 2.38K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.21
• Revenue Growth: 6.62%
• EPS Growth: -2430.28%
• Country: JP
• Employees: 279
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): -144.99
• Shares Outstanding: 2,447,320
• 10 Day Avg. Volume: 3,360
• 30 Day Avg. Volume: 2,376
• PEG Ratio: -0.03
• Price to Book (P/B): 5.37
• Price to Sales (P/S): 0.92
• P/FCF Ratio: -42.91
• 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): 200.5
• Revenue Forecast (FY): ¥9.20B

• Rating: 41 Neutral
• Price Target: ¥2,407.00 ▼(-20.95% Downside)
• Action: Reiterated Date: 03/18/26
• Date: Action: Reiterated 03/18/26

The score is driven primarily by weak financial performance—large losses, negative free cash flow, and shrinking equity—raising risk despite only moderate leverage. Technicals add further pressure, with the stock below key moving averages and very bearish momentum readings. Valuation is not supportive given a negative P/E and a low dividend yield.

Positive Factors

Franchise-based revenue mix

A franchise-centered model creates recurring revenue from royalties and initial fees and lowers capex per unit as the company expands. Over 2-6 months this supports scalable growth, margin resilience at corporate level, and faster store rollout versus solely company-operated stores.

Top-line recovery

Stabilizing sales after prior weakness indicates demand durability for the core izakaya concept. If sustained, modest revenue growth helps dilute fixed costs and supports return to profitability by improving operating leverage across company and franchised locations.

Moderate leverage

Lower leverage versus prior years increases financial flexibility, reducing near-term refinancing risk and interest burden. With moderate debt levels, the company can prioritize operational fixes or selective investment without immediate pressure from creditors, aiding recovery planning.

Negative Factors

Sharp profitability deterioration

A swing to sizable losses suggests structural cost or pricing issues that undermine earnings quality. Persistent negative margins weaken return on invested capital, threaten franchise economics, and require sustained margin recovery to restore shareholder equity and long-term viability.

Negative free cash flow

Consistent negative free cash flow means operations are not funding growth or debt servicing and increases reliance on external financing. Over months this constrains ability to invest in store openings, remodels, or marketing needed to drive durable traffic recovery.

Eroding equity base

Rapid equity erosion reduces the company’s buffer against shocks and limits borrowing capacity. Continued losses that shrink shareholders' equity impair long-term capital options, increase risk of covenant stress, and constrain strategic responses to competitive threats.

NATTY SWANKY holdings Co.Ltd Business Overview & Revenue Model

Company Description

NATTY SWANKY Holdings Co., Ltd (7674) is a diversified holding company primarily engaged in the fashion and lifestyle sectors. The company focuses on the design, manufacturing, and retailing of high-quality apparel and accessories. It operates through various subsidiaries that specialize in trendy clothing lines, footwear, and lifestyle products, catering to a wide demographic of consumers. With a commitment to innovative design and sustainability, NATTY SWANKY aims to enhance the customer experience through its diverse product offerings and strategic market positioning.

How the Company Makes Money

Revenue is primarily generated through (1) sales at company-operated restaurants, where the company earns income from in-store food and beverage transactions (e.g., gyoza and other menu items, alcoholic and non-alcoholic drinks), and (2) franchise-related income from franchised stores. Franchise income typically consists of initial franchise fees (when a franchisee joins), ongoing royalty fees (often linked to franchisee sales), and other recurring charges tied to brand use and operational support. Additional earnings can come from supplying ingredients or proprietary products to franchised locations and providing operational services (such as training, store-opening support, and standardized operating systems), to the extent these are offered by the company. Significant drivers of earnings include same-store sales trends at directly operated locations, the pace of new store openings (both directly operated and franchised), customer traffic, pricing and mix of food vs. beverage sales, and cost control (food ingredient costs, labor, and rent). Specific named partnerships and the exact fee structure are null.

NATTY SWANKY holdings Co.Ltd Financial Statement Overview

Summary

Despite modest revenue recovery (+4.4% in 2026), profitability deteriorated sharply with a much larger net loss in 2026 (net margin ~-12.1%). Cash generation is a major weakness: operating cash flow was near breakeven in 2026 after weakness in 2025, and free cash flow remained negative (about -165M in 2026). Leverage is moderate (debt-to-equity ~0.46), but equity has eroded meaningfully, reducing financial flexibility.

Income Statement

Revenue growth has recovered in the latest annual period (+4.4% in 2026 vs. +1.9% in 2025), but profitability has deteriorated sharply. The company moved from a modest profit in 2024 (net margin ~3.5%) to losses in 2025 and a much larger loss in 2026 (net margin ~-12.1%), indicating significant cost pressure and weak operating leverage despite still-strong gross margin levels (~65%+). Overall, the top line is stabilizing, but earnings quality and consistency are currently weak.

Balance Sheet

Leverage appears moderate in 2026 with debt-to-equity around 0.46, improved from the higher leverage levels seen earlier (above ~0.8 in 2022–2023). However, equity has declined meaningfully over the last two years (from ~2.57B in 2024 to ~1.32B in 2026), and returns on equity are deeply negative in 2026 due to the net loss. The balance sheet is not overly levered today, but shrinking equity and losses reduce financial flexibility.

Cash Flow

Cash generation weakened substantially. Operating cash flow collapsed to near breakeven in 2026 (~2.5M) after being negative in 2025 and strong in 2024, and free cash flow remains negative in both 2025 and 2026 (including about -165M in 2026). This pattern suggests earnings are not translating into cash and the business may be relying on funding or working-capital swings to bridge shortfalls. Cash flow volatility is a key risk until operating cash flow becomes consistently positive again.

Breakdown	TTM	Jan 2025	Jan 2024	Jan 2023	Jan 2023	Jun 2021
Income Statement
Total Revenue	7.36B	7.68B	7.20B	7.06B	5.85B	6.19B
Gross Profit	5.09B	5.01B	5.17B	5.20B	4.16B	4.32B
EBITDA	-122.92M	-279.67M	220.00M	574.99M	-181.24M	768.13M
Net Income	-707.32M	-930.00M	-268.00M	247.86M	-379.50M	382.99M
Balance Sheet
Total Assets	3.81B	3.16B	4.14B	4.60B	3.78B	4.25B
Cash, Cash Equivalents and Short-Term Investments	1.00B	650.72M	1.16B	2.14B	1.04B	1.99B
Total Debt	977.35M	600.50M	914.24M	955.79M	1.27B	1.56B
Total Liabilities	1.98B	1.85B	1.86B	2.03B	2.23B	2.31B
Stockholders Equity	1.83B	1.32B	2.27B	2.57B	1.56B	1.93B
Cash Flow
Free Cash Flow	0.00	-164.85M	-860.00M	700.53M	-575.95M	92.65M
Operating Cash Flow	0.00	2.51M	-209.00M	857.21M	-155.39M	330.23M
Investing Cash Flow	0.00	-169.46M	-710.00M	-194.61M	-490.96M	-297.15M
Financing Cash Flow	0.00	-338.15M	-65.79M	443.87M	-300.31M	284.91M

NATTY SWANKY holdings Co.Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3045.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7674, the sentiment is Negative. The current price of 3045 is above the 20-day moving average (MA) of 2576.10, above the 50-day MA of 2753.46, and above the 200-day MA of 3034.82, indicating a bearish trend. The MACD of -62.09 indicates Negative momentum. The RSI at 19.24 is Positive, neither overbought nor oversold. The STOCH value of 3.51 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7674.

NATTY SWANKY holdings Co.Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3317	76 Outperform	¥4.66B	11.94	―	0.95%	10.67%	36.51%
2798	62 Neutral	¥9.61B	78.74	―	―	7.88%	164.80%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
5891	52 Neutral	¥8.63B	30.48	―	1.08%	16.95%	-14.59%
9853	45 Neutral	¥5.78B	18.17	―	0.32%	6.22%	―
9973	43 Neutral	¥7.37B	-11.41	―	―	8.93%	-10.94%
7674	41 Neutral	¥6.12B	-7.61	―	0.33%	6.62%	-2430.28%