Artnature Inc. (7823) AI Stock Analysis

• Market Cap: ¥26.04B
• Dividend Yield: 3.42%
• Average Volume (3M): 65.03K
• Price to Earnings (P/E): 21.7
• Beta (1Y): 0.50
• Revenue Growth: 2.30%
• EPS Growth: 19.67%
• Country: JP
• Employees: 3,909
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): 13.77
• Shares Outstanding: 34,393,200
• 10 Day Avg. Volume: 33,240
• 30 Day Avg. Volume: 65,030
• PEG Ratio: -0.68
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 0.57
• P/FCF Ratio: 30.38
• 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: 64 Neutral
• Price Target: ¥869.00 ▲(6.11% Upside)
• Action: Reiterated Date: 12/30/25
• Date: Action: Reiterated 12/30/25

The score is primarily supported by a very strong, debt-free balance sheet, but is held back by meaningful profitability deterioration and uneven free-cash-flow quality. Technical indicators are neutral-to-soft and the P/E appears relatively high versus the weakened earnings profile, partially offset by a solid dividend yield.

Positive Factors

Debt-Free Balance Sheet

A debt-free balance sheet reduces financial risk and provides flexibility, allowing the company to navigate economic cycles effectively.

Revenue Growth

Consistent revenue growth indicates strong market positioning and product demand, supporting long-term business stability.

Strong Market Position

Improved market position enhances competitive advantage, enabling the company to capture more market share and drive future growth.

Negative Factors

Profitability Deterioration

Weakening profitability can strain financial resources and limit reinvestment capacity, impacting long-term growth potential.

Volatile Free Cash Flow

Volatile free cash flow limits the ability to fund operations and strategic initiatives consistently, affecting financial stability.

Decline in Net Income

A decline in net income despite stable revenue suggests inefficiencies or rising costs, potentially hindering future profitability.

Artnature Inc. Business Overview & Revenue Model

Company Description

Artnature Inc. manufactures and sells hair products for men and women in Japan. It offers hairpieces and wigs, as well as hair care and related products. The company operates 277 stores. Artnature Inc. was founded in 1965 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Artnature Inc. generates revenue primarily through the sale of its custom-made wigs and hairpieces. The company operates an extensive retail network where customers can receive personalized consultations and fittings, which enhances the customer experience and encourages sales. Additionally, Artnature offers a range of hair care products, adding to its revenue streams. The company's earnings are further supported by its presence in various international markets and partnerships with healthcare providers, which help reach customers with medical hair loss needs. Overall, Artnature's revenue model is centered around product sales, personalized services, and strategic partnerships that support market expansion.

Artnature Inc. Financial Statement Overview

Summary

Financials are mixed: the debt-free, steadily strengthening balance sheet is a major positive, but profitability has weakened materially (latest net margin ~1.9%, EBIT margin ~3.5%) and net income fell sharply despite relatively stable revenue. Operating cash flow is consistently positive, but free cash flow has been volatile and conversion is modest in the latest year (~31% of net income).

Income Statement

Revenue has been relatively stable over the last several years, with modest growth followed by a small decline and then a near-flat year most recently. Profitability is mixed: gross margins remain strong and consistent, but operating and net margins have compressed meaningfully from the stronger 2022–2023 period, with the latest annual net margin dropping to ~1.9% and EBIT margin to ~3.5%. Net income also declined sharply versus the prior year, signaling weaker earnings power despite steady sales.

Balance Sheet

The balance sheet is a key strength, highlighted by zero reported debt across the period and steadily growing equity and assets over time. This low leverage profile reduces financial risk and provides flexibility through cycles. Return on equity has moderated recently (down to ~3.0% in the latest year from higher levels in 2022–2023), which suggests profitability—not balance sheet capacity—is the main constraint.

Cash Flow

Cash generation is positive, with operating cash flow consistently positive across the period; however, conversion and consistency have been uneven. Free cash flow has been volatile (including a sharp drop in 2024 and a partial recovery in 2025), and free cash flow relative to net income is modest in the latest year (~31%). Overall, cash flow supports operations but lacks the steady, high-quality profile seen in stronger cash compounders.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	43.15B	43.34B	42.85B	43.21B	40.44B	35.87B
Gross Profit	28.56B	28.69B	28.72B	29.16B	27.74B	23.91B
EBITDA	2.56B	2.67B	2.92B	4.17B	3.40B	2.76B
Net Income	742.00M	822.00M	1.46B	1.87B	1.20B	840.00M
Balance Sheet
Total Assets	49.53B	49.68B	49.85B	47.96B	46.51B	44.92B
Cash, Cash Equivalents and Short-Term Investments	17.37B	18.20B	19.34B	20.20B	19.57B	19.09B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	22.95B	22.62B	22.98B	22.03B	21.92B	19.66B
Stockholders Equity	26.57B	27.04B	26.86B	25.91B	24.58B	25.25B
Cash Flow
Free Cash Flow	0.00	812.00M	148.00M	1.71B	1.62B	3.38B
Operating Cash Flow	0.00	2.58B	2.14B	2.93B	2.50B	4.23B
Investing Cash Flow	0.00	-2.91B	-2.17B	-1.42B	-1.18B	-885.00M
Financing Cash Flow	0.00	-911.00M	-919.00M	-924.00M	-924.00M	-1.11B

Artnature Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 819.00
• 50DMA: Negative
• 100DMA: Negative
• 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:7823, the sentiment is Negative. The current price of 819 is below the 20-day moving average (MA) of 825.00, above the 50-day MA of 817.18, and above the 200-day MA of 791.80, indicating a neutral trend. The MACD of -1.80 indicates Positive momentum. The RSI at 43.79 is Neutral, neither overbought nor oversold. The STOCH value of 15.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7823.

Artnature Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4951	71 Outperform	¥32.83B	16.21	―	2.84%	5.30%	4.62%
4933	71 Outperform	¥19.34B	7.98	―	0.91%	13.12%	27.53%
3180	70 Outperform	¥16.77B	18.18	―	1.11%	13.45%	-5.58%
4923	66 Neutral	¥39.11B	26.30	―	1.81%	0.22%	4.15%
7823	64 Neutral	¥26.04B	21.74	―	3.42%	2.30%	19.67%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
4926	58 Neutral	¥5.84B	24.38	―	1.68%	8.46%	―

Artnature Inc. Corporate Events

Artnature Inc. Reports Strong Financial Growth in First Half of Fiscal Year 2026

Artnature Inc. reported a positive financial performance for the first six months of the fiscal year ending March 31, 2026, with notable increases in net sales and income compared to the previous year. The company achieved a 1.7% increase in net sales and significant growth in operating and ordinary income, reflecting a strong recovery and improved market positioning. This financial improvement is expected to enhance shareholder value and strengthen the company’s competitive stance in the hair and beauty industry.