Crossfor Co. Ltd. (7810) AI Stock Analysis

• Market Cap: ¥3.24B
• Dividend Yield: 0.25%
• Average Volume (3M): 15.35K
• Price to Earnings (P/E): 42.1
• Beta (1Y): 0.52
• Revenue Growth: 18.69%
• EPS Growth: 5.17%
• Country: JP
• Employees: 74
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Luxury Goods
• EPS (TTM): 0.95
• Shares Outstanding: 17,845,000
• 10 Day Avg. Volume: 20,360
• 30 Day Avg. Volume: 15,346
• PEG Ratio: -5.25
• Price to Book (P/B): 1.45
• Price to Sales (P/S): 0.70
• P/FCF Ratio: -19.28
• 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: 49 Neutral
• Price Target: ¥231.00 ▲(58.22% Upside)
• Action: Reiterated Date: 03/18/26
• Date: Action: Reiterated 03/18/26

The score is primarily constrained by weak fundamentals—low margins, negative operating/free cash flow, and high leverage—despite modest revenue growth. Technicals are supportive with the stock trading above major moving averages and neutral-to-positive momentum, but the high P/E and very low dividend yield make valuation unattractive relative to current profitability.

Positive Factors

Proprietary Dancing Stone IP

Crossfor's core asset is a proprietary gemstone-setting concept (Dancing Stone) and associated designs. This IP creates durable product differentiation, supports brand premiuming and licensing opportunities, and can sustain competitive advantage if protections and brand recognition persist.

Diverse revenue streams (sales, licensing, OEM)

Crossfor monetizes its IP through finished-goods sales, licensing and OEM supply. This structural mix reduces dependence on a single channel, allows recurring licensing income, and enables scale via partner distribution—helping revenue resilience over several months to years.

Relatively healthy gross margin

A gross margin around 31.6% indicates the business retains meaningful value per sale typical for branded jewelry. If management controls operating costs and grows higher-margin licensing, this margin level provides a structural cushion to support sustainable profitability improvements over the medium term.

Negative Factors

Negative operating and free cash flow

Persistent negative operating and free cash flows signal the company cannot self-fund growth or capital needs. Over time this forces reliance on external financing or asset sales, increasing execution risk and constraining investment in product development, distribution, or marketing.

High financial leverage

A debt-to-equity ratio of 1.65 indicates significant leverage relative to equity. Elevated leverage raises interest and refinancing risk, reduces financial flexibility, and amplifies earnings volatility if revenues soften—constraints that can persist for multiple quarters without deleveraging.

Very weak net profitability and returns

Net margin near zero and ROE around 1.2% show limited conversion of sales to shareholder returns. Structurally low profitability reduces internal capital for growth, limits ability to fund brand-building, and makes performance sensitive to cost or demand shocks unless operational efficiency materially improves.

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%) and a decent gross margin (31.59%) are outweighed by very weak profitability (net margin 0.59%, low EBIT/EBITDA margins), high leverage (debt-to-equity 1.65), low shareholder returns (ROE 1.22%), and weak cash generation with 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	170.78M	97.87M	-114.98M	172.63M	-34.62M
Net Income	22.09M	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	629.59M	958.54M	596.84M	735.60M	823.67M
Total Debt	2.99B	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	-136.12M	470.96M	-441.79M	-294.33M	56.28M
Operating Cash Flow	-125.81M	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: Negative
• Last Price: 146.00
• 50DMA: Negative
• 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 Negative. The current price of 146 is below the 20-day moving average (MA) of 209.15, below the 50-day MA of 193.70, and below the 200-day MA of 167.25, indicating a neutral trend. The MACD of -0.65 indicates Positive momentum. The RSI at 45.69 is Neutral, neither overbought nor oversold. The STOCH value of 33.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥32.00B	18.74	―	1.93%	-2.29%	151.87%
9904	75 Outperform	¥11.13B	13.22	―	5.21%	6.89%	-1.46%
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%
7878	60 Neutral	¥1.89B	13.17	―	5.13%	0.99%	-42.44%
7810	49 Neutral	¥3.24B	42.09	―	0.25%	18.69%	5.17%