Crossfor Co. Ltd. (7810) AI Stock Analysis

• Market Cap: ¥3.31B
• Dividend Yield: 0.25%
• Average Volume (3M): 15.35K
• Price to Earnings (P/E): 79.6
• Beta (1Y): 0.51
• 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: ¥194.00 ▲(32.88% 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 patented "Dancing Stone" setting is a durable competitive asset: it differentiates products, supports brand pricing, and enables recurring IP monetization via licensing and OEM supply. Sustained IP strength can underpin stable product demand and higher long-term margins.

Healthy gross margin (31.59%)

A 31.59% gross margin provides structural room to cover operating costs and absorb input inflation. For a luxury/assembly business, this margin supports pricing power and the potential to fund marketing or R&D, enabling long-term margin recovery if SG&A is managed.

Positive revenue growth

Reported revenue growth (~18.7%) indicates sustained customer demand and successful product distribution or licensing. Durable top-line expansion helps dilute fixed costs, improve operational leverage, and create a runway for reinvestment and scale advantages over the next several quarters.

Negative Factors

High leverage (D/E 1.65)

A debt-to-equity ratio of 1.65 signals meaningful financial leverage that raises interest and refinancing risk. Over a 2-6 month horizon, high leverage constrains strategic flexibility, limits ability to fund growth internally, and increases vulnerability to any cash-flow stress.

Negative operating & free cash flow

Negative operating and free cash flows show the business is not generating sufficient cash from core operations. This undermines capacity to service debt, sustain dividends, or invest in IP/marketing without external funding, making financial resilience and growth investment dependent on financing.

Very low net margin & low ROE

A net margin of 0.59% and ROE of 1.22% indicate limited profitability and weak shareholder returns. Persistently low conversion of revenue into profit constrains retained earnings, hampers capital accumulation for expansion, and questions the long-term sustainability of dividends or buybacks.

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 makes money primarily by monetizing its “Dancing Stone” intellectual property and related jewelry products. Key revenue streams include: (1) Sales of jewelry and accessories: revenue from selling finished jewelry products (e.g., pendants and other items) that use its proprietary setting and designs through its sales channels (exact channel mix not available). (2) Intellectual property monetization: revenue derived from licensing or otherwise allowing third parties to use the “Dancing Stone” concept/patents/designs in their products (specific license terms, royalties, and counterparties not available). (3) OEM/wholesale-type supply: to the extent the company supplies products or components to other brands/retailers, it can generate revenue through business-to-business transactions (extent and breakdown not available). Material factors that can influence earnings include demand trends in the jewelry market, the strength and protection of its IP portfolio, product mix (branded finished goods versus IP-related income), and the company’s ability to maintain distribution relationships (specific partnerships not available).

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: Neutral
• Last Price: 146.00
• 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:7810, the sentiment is Neutral. The current price of 146 is below the 20-day moving average (MA) of 225.65, below the 50-day MA of 188.82, and below the 200-day MA of 166.67, indicating a neutral trend. The MACD of -0.98 indicates Positive momentum. The RSI at 46.33 is Neutral, neither overbought nor oversold. The STOCH value of 28.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7810.

Crossfor Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7769	76 Outperform	¥32.74B	18.74	―	1.93%	-2.29%	151.87%
9904	75 Outperform	¥11.04B	13.22	―	5.21%	6.89%	-1.46%
7878	72 Outperform	¥2.18B	28.57	―	5.13%	0.99%	-42.44%
7937	68 Neutral	¥49.85B	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	50 Neutral	¥3.31B	79.60	―	0.25%	18.69%	5.17%