France Bed Holdings Co., Ltd. (7840) AI Stock Analysis

• Market Cap: ¥44.96B
• Dividend Yield: 2.97%
• Average Volume (3M): 23.58K
• Price to Earnings (P/E): 16.7
• Beta (1Y): 0.52
• Revenue Growth: 0.89%
• EPS Growth: -14.25%
• Country: JP
• Employees: 1,783
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 21.89
• Shares Outstanding: 34,747,500
• 10 Day Avg. Volume: 26,760
• 30 Day Avg. Volume: 23,583
• PEG Ratio: -6.61
• Price to Book (P/B): 1.11
• Price to Sales (P/S): 0.74
• P/FCF Ratio: 16.61
• 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: 75 Outperform
• Price Target: ¥1,451.00 ▲(8.61% Upside)

France Bed Holdings Co., Ltd. scores well due to its strong financial performance and reasonable valuation. The technical analysis shows a positive trend, though some caution is warranted due to bearish momentum signals. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market presence and effective sales strategies, supporting long-term business sustainability.

Balance Sheet Health

A strong balance sheet with prudent leverage enhances financial stability and provides flexibility for future investments or downturns.

Cash Generation Ability

Robust cash flow from operations ensures the company can fund operations, invest in growth, and return value to shareholders.

Negative Factors

Decline in Free Cash Flow Growth

A decline in free cash flow growth may limit the company's ability to invest in new opportunities or return capital to shareholders.

Net Profit Margin Decline

Declining net profit margins can indicate rising costs or pricing pressures, potentially impacting long-term profitability.

Earnings Growth Challenges

Negative EPS growth suggests difficulties in enhancing earnings, which could affect investor confidence and future capital raising.

France Bed Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

France Bed Holdings Co., Ltd. (7840) is a leading company in Japan specializing in the manufacture and sale of bedding products, including mattresses, bed frames, and related accessories. The company operates primarily in the home furnishings sector, offering a diverse range of products that cater to both residential and commercial markets. France Bed is known for its commitment to quality and innovation, providing ergonomic and comfortable sleeping solutions designed to enhance sleep quality.

How the Company Makes Money

France Bed Holdings generates revenue through the sale of its various bedding products, which include high-quality mattresses, bed frames, and sleep-related accessories. The company operates through multiple sales channels, including direct-to-consumer sales via retail stores and online platforms, as well as partnerships with hotels and other commercial entities requiring bedding solutions. Key revenue streams include wholesale distribution to furniture retailers and collaborations with interior designers and architects for large-scale projects. Additionally, France Bed may engage in strategic partnerships with hospitality businesses to supply custom bedding solutions, further enhancing its market presence and revenue potential.

France Bed Holdings Co., Ltd. Financial Statement Overview

Summary

France Bed Holdings Co., Ltd. demonstrates a solid financial position with strong revenue growth and stable margins. The balance sheet is robust with effective debt management and solid equity levels. While cash flow remains strong, careful attention is needed to manage free cash flow growth and capital expenditures.

Income Statement

The company has shown strong revenue growth, with a consistent increase in total revenue over the past years. The gross profit margin remains solid, reflecting efficient cost management. However, a slight decline in net profit margin due to rising expenses and a drop in net income in the latest period suggests caution. EBIT and EBITDA margins are healthy, indicating good operational performance.

Balance Sheet

The balance sheet exhibits a favorable debt-to-equity ratio, demonstrating a prudent approach to leveraging. The company maintains a strong equity base and a high equity ratio, signaling financial stability. Positive return on equity indicates effective utilization of shareholder funds, although there is room for improvement.

Cash Flow

Cash flow from operations remains robust, supporting free cash flow generation. There is a noticeable decline in free cash flow growth, highlighting potential challenges in managing capital expenditures. The operating cash flow to net income ratio indicates good cash generation relative to earnings, although further improvements are needed.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	60.11B	60.56B	59.15B	58.58B	54.40B	52.43B
Gross Profit	33.07B	33.06B	31.89B	31.19B	29.00B	27.04B
EBITDA	9.77B	10.00B	10.39B	10.28B	9.49B	8.53B
Net Income	2.77B	2.95B	3.13B	2.70B	2.56B	2.29B
Balance Sheet
Total Assets	67.98B	70.89B	68.58B	64.68B	64.30B	62.22B
Cash, Cash Equivalents and Short-Term Investments	15.20B	17.22B	16.70B	12.86B	11.28B	12.80B
Total Debt	12.84B	17.21B	18.32B	14.34B	15.39B	12.47B
Total Liabilities	29.32B	30.28B	30.36B	26.55B	26.76B	24.80B
Stockholders Equity	38.67B	40.61B	38.21B	38.12B	37.54B	37.41B
Cash Flow
Free Cash Flow	0.00	2.71B	3.06B	4.13B	-568.00M	3.67B
Operating Cash Flow	0.00	7.45B	7.83B	8.93B	6.01B	10.41B
Investing Cash Flow	0.00	-4.93B	-5.62B	-6.69B	-7.78B	-7.00B
Financing Cash Flow	0.00	-2.50B	633.00M	-2.66B	316.00M	-1.92B

France Bed Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1336.00
• 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:7840, the sentiment is Negative. The current price of 1336 is above the 20-day moving average (MA) of 1331.15, above the 50-day MA of 1328.36, and above the 200-day MA of 1278.92, indicating a neutral trend. The MACD of -3.83 indicates Positive momentum. The RSI at 34.95 is Neutral, neither overbought nor oversold. The STOCH value of 3.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7840.

France Bed Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7887	80 Outperform	¥9.07B	6.15	―	1.66%	8.56%	2690.35%
7955	78 Outperform	¥32.28B	12.79	―	3.56%	3.03%	160.39%
7840	75 Outperform	¥44.96B	16.66	―	2.97%	0.89%	-14.25%
7791	69 Neutral	¥3.46B	7.63	―	4.00%	11.73%	37.16%
7898	66 Neutral	¥8.47B	3.54	―	2.65%	1.11%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7822	46 Neutral	¥9.99B	31.61	―	4.41%	2.78%	-88.37%

France Bed Holdings Co., Ltd. Corporate Events

France Bed Holdings Adjusts Convertible Bond Conversion Price

France Bed Holdings Co., Ltd. announced an adjustment to the conversion price of its Zero Coupon Convertible Bonds due 2029, reducing it from 1,334.8 yen to 1,317.1 yen. This adjustment follows the approval of an interim dividend of 17 yen per share, reflecting the company’s adherence to the terms of the bonds and potentially impacting investor returns.

France Bed Holdings Reports Stable Sales Amid Profit Decline

France Bed Holdings Co., Ltd. reported its consolidated financial results for the six months ended September 30, 2025, showing stable net sales but a decline in profits compared to the previous year. The company maintained its dividend forecast, reflecting confidence in its future performance despite the current challenges.

France Bed Holdings Restructures to Focus on Senior-Care Market

France Bed Holdings Co., Ltd. has announced a strategic restructuring of its production facilities to strengthen its focus on the senior-care business amid declining domestic furniture demand. This involves consolidating manufacturing operations at the Saga Plant and closing the Tohoku Plant by June 2026, with plans to relocate affected employees within the company.

France Bed Holdings Reports Decline in Q1 2025 Financial Results

France Bed Holdings Co., Ltd. reported a decline in its financial performance for the three months ended June 30, 2025, with net sales decreasing by 3% and operating profit dropping by 24.1% compared to the previous year. Despite the downturn, the company maintains a stable equity-to-asset ratio and has forecasted a slight increase in net sales and profits for the fiscal year ending March 31, 2026, indicating a cautiously optimistic outlook.