Regal Corporation (7938) AI Stock Analysis

• Market Cap: ¥7.73B
• Dividend Yield: 2.89%
• Average Volume (3M): 2.87K
• Price to Earnings (P/E): 11.1
• Beta (1Y): 0.52
• Revenue Growth: -0.73%
• EPS Growth: 63.91%
• Country: JP
• Employees: 952
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): 188.28
• Shares Outstanding: 3,250,000
• 10 Day Avg. Volume: 2,250
• 30 Day Avg. Volume: 2,873
• PEG Ratio: 0.05
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -7.32
• 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: 68 Neutral
• Price Target: ¥2,632.00 ▲(8.99%Upside)

Regal Corporation's stock score is primarily driven by its solid financial performance and attractive valuation. The company's resilient financial recovery, characterized by improved margins and cash flows, supports its long-term stability. Although technical indicators show weak momentum, the stock's attractive P/E ratio and dividend yield provide a compelling investment case.

Regal Corporation Business Overview & Revenue Model

Company Description

Regal Corporation (7938) is a Japan-based company primarily engaged in the manufacturing and sale of footwear. The company operates through multiple segments, including the Footwear segment, which focuses on the production and distribution of various types of shoes, and the Retail segment, which manages retail stores and directly sells footwear to consumers. Regal Corporation is known for its quality craftsmanship and designs that cater to both domestic and international markets.

How the Company Makes Money

Regal Corporation generates revenue through the sale of footwear products, which are produced in-house and distributed through both wholesale channels and its own retail network. The company earns money by selling shoes to retailers and directly to consumers via its branded stores and e-commerce platforms. Additionally, strategic partnerships with distributors and collaborations with other fashion brands enhance their market presence and contribute to revenue growth. Seasonal trends and consumer preferences significantly influence sales, making product innovation and marketing crucial for sustaining profitability.

Regal Corporation Financial Statement Overview

Summary

Regal Corporation demonstrates a resilient financial recovery with improved margins and cash flows, despite facing revenue headwinds. The balance sheet remains solid with manageable debt levels, supporting long-term stability. Continued focus on enhancing operational efficiency and cash flow conversion will be crucial for sustained growth.

Income Statement

Regal Corporation shows a recovering trend in profitability, with a gross profit margin of 46.9% and a net profit margin of 3.0% for the latest year. However, there was a slight revenue decline of 0.7% from the previous year. The EBIT margin is at 1.8%, indicating profitability challenges, yet the EBITDA margin of 5.5% reflects improved operating efficiencies.

Balance Sheet

The company maintains a stable financial position with a debt-to-equity ratio of 0.73, indicating manageable leverage. The return on equity (ROE) is 5.5%, showing moderate returns to shareholders. An equity ratio of 48.6% reflects a balanced capital structure with sufficient equity financing.

Cash Flow

The cash flow statement reveals a significant improvement in free cash flow from negative to positive $51 million, indicating better cash management. The operating cash flow to net income ratio is 0.32, highlighting some challenges in converting profits into cash. The free cash flow to net income ratio is 0.07, suggesting a need for further efficiency in cash generation.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	23.76B	23.56B	23.73B	22.56B	20.81B	19.20B
Gross Profit	11.53B	11.05B	11.25B	10.81B	9.72B	7.91B
EBITDA	848.50M	1.30B	1.00B	546.00M	376.00M	-3.59B
Net Income	425.00M	700.00M	427.00M	491.00M	138.00M	-4.42B
Balance Sheet
Total Assets	25.81B	26.27B	27.80B	27.50B	27.38B	27.87B
Cash, Cash Equivalents and Short-Term Investments	3.62B	3.77B	5.20B	6.73B	7.97B	6.89B
Total Debt	9.32B	9.30B	10.59B	10.55B	11.40B	11.93B
Total Liabilities	13.46B	13.51B	15.35B	16.54B	17.10B	17.59B
Stockholders Equity	12.35B	12.76B	12.42B	10.93B	10.25B	10.26B
Cash Flow
Free Cash Flow	0.00	51.00M	-1.52B	-821.00M	1.36B	-2.69B
Operating Cash Flow	0.00	226.00M	-1.05B	102.00M	1.54B	-2.50B
Investing Cash Flow	0.00	183.00M	-296.00M	-485.00M	45.00M	445.00M
Financing Cash Flow	0.00	-1.75B	-186.00M	-884.00M	-593.00M	5.67B

Regal Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2415.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7938, the sentiment is Positive. The current price of 2415 is below the 20-day moving average (MA) of 2427.40, above the 50-day MA of 2401.36, and below the 200-day MA of 2489.29, indicating a neutral trend. The MACD of -2.56 indicates Positive momentum. The RSI at 54.19 is Neutral, neither overbought nor oversold. The STOCH value of 68.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7938.

Regal Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8050	79 Outperform	¥178.79B	13.29		2.31%	10.09%	33.99%
8127	76 Outperform	¥8.18B	34.24		3.02%	-3.35%	-41.42%
2668	74 Outperform	¥8.19B	15.71		2.49%	3.89%	10.91%
7938	68 Neutral	¥7.73B	11.05		2.89%	-0.73%	63.91%
Sector *	62 Neutral	$16.65B	11.30	-7.38%	3.01%	1.59%	-23.30%
7442	62 Neutral	¥7.92B	14.79		2.48%	6.11%	3541.65%
7494	50 Neutral	¥8.12B	―		2.05%	-9.83%	-371.31%