Estelle Holdings Co., Ltd. (7872) AI Stock Analysis

• Market Cap: ¥6.09B
• Dividend Yield: 4.71%
• Average Volume (3M): 4.15K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.20
• Revenue Growth: -1.35%
• EPS Growth: 64.68%
• Country: JP
• Employees: 2,642
• Sector: Consumer Cyclical
• Sector Strength: 60
• Industry: Luxury Goods
• EPS (TTM): 7.84
• Shares Outstanding: 11,459,223
• 10 Day Avg. Volume: 3,540
• 30 Day Avg. Volume: 4,153
• PEG Ratio: 1.87
• Price to Book (P/B): 0.50
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.28
• 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

• Rating: 49 Neutral
• Price Target: ¥571.00 ▼(-0.52%Downside)

Estelle Holdings faces significant financial challenges, with declining revenue and profitability being the most impactful factors. Technical analysis shows a neutral trend, while valuation metrics suggest overvaluation concerns due to negative earnings. The absence of earnings call and corporate events data leaves these aspects unaddressed in this evaluation.

Estelle Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

Estelle Holdings Co., Ltd. (7872) is a Japan-based company primarily engaged in the production and sale of jewelry products. The company operates through its Jewelry-related segment, offering a wide range of jewelry pieces, including rings, necklaces, and bracelets. Estelle Holdings is known for its craftsmanship and high-quality materials, catering to both individual customers and retail businesses. The company aims to deliver innovative and stylish products that meet the evolving demands of fashion-conscious consumers.

How the Company Makes Money

Estelle Holdings Co., Ltd. generates revenue chiefly through the sale of its jewelry products. The company operates various retail outlets and utilizes online platforms to reach a diverse customer base. Key revenue streams include direct sales to consumers through its branded stores and e-commerce platforms, as well as wholesale distribution to other retailers. Estelle Holdings may also engage in strategic partnerships or collaborations with fashion designers and other brands to enhance its product offerings and market reach. Additionally, the company continually invests in marketing and brand development to attract and retain customers, which is crucial for sustaining its revenue growth.

Estelle Holdings Co., Ltd. Financial Statement Overview

Summary

Estelle Holdings is experiencing significant financial challenges with declining revenues, negative profitability, and cash flow concerns. Despite a stable balance sheet, the company's operational inefficiencies and cash flow issues require strategic intervention to improve financial health.

Income Statement

Estelle Holdings has experienced declining revenue over the past year, with a significant drop in net income resulting in negative net profit margins. The gross profit margin is stable but low compared to industry standards. EBIT and EBITDA margins indicate operational challenges. Revenue growth rate has been negative, reflecting a concerning downward trend in sales.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, indicating potential leverage risks, though not excessively high. The equity ratio suggests a balanced capital structure. However, negative return on equity highlights profitability challenges, raising concerns about shareholder returns.

Cash Flow

Cash flow analysis reveals a troubling picture, with negative free cash flow and declining operating cash flow. The free cash flow to net income ratio is negative, underscoring cash generation issues. The operating cash flow to net income ratio reflects inefficient cash conversion, posing liquidity risks.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	31.46B	31.27B	31.70B	29.63B	29.98B	27.96B
Gross Profit	17.53B	17.53B	17.59B	17.13B	17.41B	16.73B
EBITDA	408.00M	248.00M	538.00M	546.00M	882.00M	617.00M
Net Income	-714.00M	-345.00M	-979.00M	100.00M	73.00M	306.00M
Balance Sheet
Total Assets	31.31B	29.87B	32.03B	33.84B	34.58B	33.77B
Cash, Cash Equivalents and Short-Term Investments	5.86B	5.11B	6.41B	6.65B	8.62B	8.38B
Total Debt	10.69B	9.60B	10.38B	10.71B	10.90B	10.11B
Total Liabilities	19.30B	17.63B	19.40B	19.86B	20.59B	19.67B
Stockholders Equity	11.72B	11.91B	12.40B	13.76B	13.81B	13.96B
Cash Flow
Free Cash Flow	0.00	-344.00M	402.00M	-1.62B	-399.00M	-435.00M
Operating Cash Flow	0.00	118.00M	984.00M	-1.15B	34.00M	131.00M
Investing Cash Flow	0.00	-244.00M	-546.00M	-383.00M	-349.00M	-500.00M
Financing Cash Flow	0.00	-1.06B	-711.00M	-472.00M	499.00M	-190.00M

Estelle Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 574.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7872, the sentiment is Negative. The current price of 574 is above the 20-day moving average (MA) of 571.40, above the 50-day MA of 572.68, and below the 200-day MA of 580.09, indicating a neutral trend. The MACD of 0.31 indicates Negative momentum. The RSI at 52.02 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7872.

Estelle Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9904	76 Outperform	¥10.07B	17.69		5.65%	4.03%	13.35%
7638	68 Neutral	¥23.87B	11.86		0.67%	31.02%	76.65%
Sector *	67 Neutral	¥253.34B	13.18	6.44%	2.78%	5.06%	-11.83%
2736	66 Neutral	¥2.36B	12.47		1.02%	9.40%	-56.59%
8139	59 Neutral	¥24.69B	60.75		0.62%	4.91%	-21.85%
7810	54 Neutral	¥2.92B	37.41		0.20%	7.20%	34.29%
7872	49 Neutral	¥6.09B	―		4.71%	-1.35%	64.68%