Crossfor Co. Ltd. (7810) AI Stock Analysis

• Market Cap: ¥3.68B
• Dividend Yield: 0.25%
• Average Volume (3M): 15.35K
• Price to Earnings (P/E): 155.0
• Beta (1Y): 0.42
• Revenue Growth: 18.69%
• EPS Growth: 5.17%
• Country: JP
• Employees: 74
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Luxury Goods
• EPS (TTM): 0.47
• Shares Outstanding: 17,845,000
• 10 Day Avg. Volume: 20,360
• 30 Day Avg. Volume: 15,346
• PEG Ratio: -5.14
• Price to Book (P/B): 1.45
• Price to Sales (P/S): 0.70
• P/FCF Ratio: -19.59
• 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: 50 Neutral
• Price Target: ¥235.00 ▲(60.96% Upside)
• Action: Reiterated Date: 02/20/26
• Date: Action: Reiterated 02/20/26

The score is held back primarily by weak fundamentals (low margins, negative cash flows, and high leverage). Technicals are comparatively supportive with the stock trading above key moving averages and positive momentum, while valuation risk remains elevated due to the very high P/E despite a high dividend yield.

Positive Factors

Proprietary IP (Dancing Stone)

Crossfor’s core "Dancing Stone" IP provides a durable product differentiation and multiple monetization routes (branded sales, licensing, OEM). This proprietary concept supports barrier-to-entry advantages, recurring royalty potential, and product premiuming that can sustain revenue quality over years.

Gross Profitability

A roughly 31.6% gross margin indicates solid product-level economics for jewelry, giving the company structural ability to cover fixed costs and absorb marketing or distribution expenses. Sustained gross margins enable reinvestment in design and IP protection, supporting long-term competitiveness.

Top-line Growth Trajectory

Reported revenue growth near ~19% suggests the company has recently expanded sales momentum or distribution reach. Durable revenue expansion, if sustained, supports scale benefits, better absorption of fixed costs and stronger bargaining power with channels, aiding mid-term profitability improvements.

Negative Factors

High Leverage

A debt-to-equity ratio of 1.65 indicates significant leverage that reduces financial flexibility. Over a multi-month horizon this elevates refinancing and interest-rate risk, constrains capital allocation for product development or distribution expansion, and heightens vulnerability to demand shocks in luxury goods.

Weak Cash Generation

Consistent negative operating and free cash flow signals structural cash-generation weaknesses. This forces reliance on external financing or asset sales to fund operations and dividends, limiting the firm's ability to invest in IP protection, new product development, or larger-scale marketing over the medium term.

Low Net Profitability and Returns

Very low net margin and ROE show limited ability to convert revenue into shareholder returns. Structurally weak profitability reduces retained earnings for reinvestment, makes dividends or capex harder to sustain, and leaves the business exposed to margin compression from cost inflation or competitive pricing.

Crossfor Co. Ltd. Business Overview & Revenue Model

Company Description

Crossfor Co.,Ltd. engages in the design, manufacture, import, and sale of jewelry and diamonds, and accessories in Japan and internationally. The company offers its products under the Crossfor brand name, as well as Dancing Stone trademark name. It also holds secondhand dealer license for watches, jewelry goods, etc. The company operates online stores. The company was formerly known as Shibado K.K. and changed its name to Crossfor Co.,Ltd. in November 2002. Crossfor Co.,Ltd. was founded in 1980 and is headquartered in Kofu, Japan.

How the Company Makes Money

Crossfor Co. Ltd. generates revenue through multiple streams, primarily from the sale of its jewelry products. The company earns money by selling directly to consumers through retail outlets and online platforms, as well as through wholesale agreements with various retailers and distributors worldwide. Key revenue streams include the sale of diamond and gemstone jewelry collections, custom-designed pieces, and seasonal collections. Additionally, Crossfor may benefit from partnerships with other luxury brands or collaborations that enhance its market presence and attract new customers, further contributing to its earnings.

Crossfor Co. Ltd. Financial Statement Overview

Summary

Modest revenue growth (4.29%) but very weak profitability (net margin 0.59%) and low returns (ROE 1.22%). Leverage is high (debt-to-equity 1.65) and cash generation is a key concern given negative operating and free cash flows.

Income Statement

Crossfor Co. Ltd. has shown modest revenue growth of 4.29% in the latest year, with a gross profit margin of 31.59%. However, the net profit margin is low at 0.59%, indicating limited profitability. The EBIT and EBITDA margins are also relatively low, suggesting challenges in operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is high at 1.65, indicating significant leverage which could pose financial risks. Return on equity is low at 1.22%, reflecting limited returns for shareholders. The equity ratio stands at 35.73%, showing a moderate level of equity financing.

Cash Flow

Crossfor Co. Ltd. has negative operating and free cash flows, with a concerning free cash flow growth rate of -Infinity. The operating cash flow to net income ratio is negative, highlighting cash flow challenges. The free cash flow to net income ratio is slightly positive at 1.07, but overall cash flow performance is weak.

Breakdown	Jul 2025	Jul 2024	Jul 2023	Jul 2022	Jul 2021
Income Statement
Total Revenue	3.76B	3.41B	3.01B	3.10B	2.81B
Gross Profit	1.19B	1.14B	874.55M	1.05B	952.52M
EBITDA	171.00M	172.59M	-104.68M	257.23M	1.46M
Net Income	22.00M	28.39M	-272.40M	221.51M	-113.65M
Balance Sheet
Total Assets	5.06B	5.22B	5.26B	5.19B	4.65B
Cash, Cash Equivalents and Short-Term Investments	629.00M	958.54M	596.84M	735.60M	823.67M
Total Debt	2.98B	3.19B	3.28B	2.81B	2.58B
Total Liabilities	3.25B	3.43B	3.45B	3.06B	2.77B
Stockholders Equity	1.81B	1.79B	1.81B	2.13B	1.89B
Cash Flow
Free Cash Flow	-134.00M	471.00M	-567.26M	-374.58M	27.95M
Operating Cash Flow	-125.00M	483.12M	-406.38M	-248.33M	176.38M
Investing Cash Flow	-16.34M	-72.57M	-165.01M	-121.97M	-163.95M
Financing Cash Flow	-213.17M	-104.64M	415.55M	230.09M	-546.13M

Crossfor Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 146.00
• 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:7810, the sentiment is Positive. The current price of 146 is below the 20-day moving average (MA) of 222.55, below the 50-day MA of 179.06, and below the 200-day MA of 165.69, indicating a neutral trend. The MACD of 15.13 indicates Positive momentum. The RSI at 50.93 is Neutral, neither overbought nor oversold. The STOCH value of 5.86 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7810.

Crossfor Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9904	75 Outperform	¥11.48B	24.66	―	5.21%	6.89%	-1.46%
7878	72 Outperform	¥2.20B	28.83	―	5.13%	0.99%	-42.44%
7771	66 Neutral	¥9.25B	92.11	―	―	-0.41%	512.76%
2736	65 Neutral	¥2.32B	13.39	―	1.21%	1.04%	-66.56%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7810	50 Neutral	¥3.68B	155.02	―	0.25%	18.69%	5.17%
7872	50 Neutral	¥6.74B	-11.57	―	4.64%	-0.68%	46.43%