Tsutsumi Jewelry Co (7937) AI Stock Analysis

• Market Cap: $35.40B
• Dividend Yield: 3.43%
• Average Volume (3M): 5.45K
• Price to Earnings (P/E): 22.5
• Beta (1Y): 0.33
• Revenue Growth: 22.68%
• EPS Growth: -9.41%
• Country: JP
• Employees: 879
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Luxury Goods
• EPS (TTM): 29.50
• Shares Outstanding: 15,630,000
• 10 Day Avg. Volume: 5,160
• 30 Day Avg. Volume: 5,453
• PEG Ratio: 0.25
• Price to Book (P/B): 0.52
• Price to Sales (P/S): 1.42
• P/FCF Ratio: -18.68
• Enterprise Value/Market Cap: 0.09
• Enterprise Value/Revenue: 0.13
• Enterprise Value/Gross Profit: 0.28
• Enterprise Value/Ebitda: 1.18
• 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: ―

Tsutsumi Jewelry Co shows strong financial performance with a robust balance sheet and profitability. However, negative cash flows and short-term technical weakness pose risks. The valuation is fair, supported by a decent dividend yield, but liquidity concerns and lack of short-term momentum indicators limit the upside potential.

Tsutsumi Jewelry Co Business Overview & Revenue Model

Company Description

Tsutsumi Jewelry Co.,Ltd. engages in manufacturing, wholesaling, and retailing jewelry primarily in Japan. It offers jewelry design, as well as reconditioning and repair of pre-owned jewelry. The company also operates precious stone trading centers in the United States, Belgium, Israel, India, and Thailand. It operates 173 specialty jewelry retail stores in Japan. The company was formerly known as Tsutsumi Precious Metals and Crafts Co., Ltd. and changed its name to Tsutsumi Jewelry Co., Ltd. in April 1988. Tsutsumi Jewelry Co.,Ltd. was founded in 1962 and is headquartered in Warabi, Japan.

How the Company Makes Money

Tsutsumi Jewelry Co generates revenue primarily through the sale of its jewelry products across a network of retail stores and online platforms. The company capitalizes on its brand reputation and craftsmanship to attract customers who value quality and design. Key revenue streams include direct sales in domestic and international markets, leveraging both physical retail presence and e-commerce channels. Strategic partnerships with suppliers and marketing collaborations also play a role in enhancing its market reach and profitability. Additionally, Tsutsumi Jewelry may host promotional events and seasonal sales to boost customer engagement and drive sales.

Tsutsumi Jewelry Co Financial Statement Overview

Summary

Tsutsumi Jewelry Co exhibits strong growth and profitability in its income statement and maintains an exceptionally strong balance sheet with no debt. However, the negative cash flow positions suggest potential liquidity concerns, which need addressing to ensure sustainable financial health.

Income Statement

The company's revenue has shown a consistent growth trend, with a notable increase from 18.119 billion to 23.57 billion JPY TTM. Gross profit margin stands strong at approximately 46.9% TTM, which indicates effective cost management. The net profit margin improved significantly to 8.0% TTM, reflecting enhanced profitability. EBIT margin also increased to 9.7% TTM, demonstrating operational efficiency. These positive trends underscore a robust income statement performance.

Balance Sheet

The balance sheet is extremely strong with no debt, resulting in a debt-to-equity ratio of zero. The equity ratio is very high at approximately 97.7% TTM, indicating a solid capital structure and financial stability. Return on equity (ROE) improved to 2.8% TTM, reflecting better utilization of shareholder's equity. Overall, the company maintains a highly secure financial position with ample liquidity.

Cash Flow

Cash flow analysis reveals challenges, with operating and free cash flows turning negative in the latest periods. The free cash flow to net income ratio is not calculable due to zero free cash flow, indicating potential issues in cash flow management. This reflects a need for improved cash conversion cycles despite profitability improvements.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	25.40B	24.84B	19.91B	18.12B	16.48B	18.32B
Gross Profit	11.42B	11.38B	9.97B	9.55B	9.01B	8.34B
EBITDA	2.71B	2.75B	1.87B	1.64B	1.35B	895.00M
Net Income	1.57B	1.99B	1.16B	909.00M	684.00M	423.00M
Balance Sheet
Total Assets	69.08B	69.64B	69.08B	68.34B	67.91B	68.33B
Cash, Cash Equivalents and Short-Term Investments	31.53B	33.64B	36.54B	38.50B	38.86B	38.44B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	1.67B	1.83B	2.16B	1.81B	1.82B	1.58B
Stockholders Equity	67.41B	67.80B	66.91B	66.53B	66.09B	66.75B
Cash Flow
Free Cash Flow	0.00	-1.88B	-1.27B	71.00M	901.00M	116.00M
Operating Cash Flow	0.00	-1.33B	-968.00M	643.00M	1.51B	278.00M
Investing Cash Flow	0.00	-471.00M	-214.00M	-536.00M	-644.00M	183.00M
Financing Cash Flow	0.00	-1.09B	-781.00M	-469.00M	-453.00M	-1.52B

Tsutsumi Jewelry Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2467.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7937, the sentiment is Positive. The current price of 2467 is above the 20-day moving average (MA) of 2369.55, above the 50-day MA of 2295.96, and above the 200-day MA of 2226.99, indicating a bullish trend. The MACD of 49.40 indicates Negative momentum. The RSI at 70.51 is Negative, neither overbought nor oversold. The STOCH value of 80.48 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7937.

Tsutsumi Jewelry Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9904	75 Outperform	¥10.23B	21.63	―	5.26%	6.89%	-1.46%
7638	72 Outperform	¥26.01B	10.11	―	2.97%	34.99%	211.99%
7937	64 Neutral	$35.40B	22.54	2.46%	3.43%	22.68%	-9.41%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7872	50 Neutral	¥6.19B	―	―	4.64%	-0.68%	46.43%
8139	48 Neutral	¥27.54B	57.48	―	0.59%	8.02%	2.66%
7810	41 Neutral	¥2.56B	115.72	―	0.23%	10.06%	-22.67%