Regal Corporation (7938) AI Stock Analysis

• Market Cap: ¥7.68B
• Dividend Yield: 2.92%
• Average Volume (3M): 1.30K
• Price to Earnings (P/E): 17.4
• Beta (1Y): 0.54
• Revenue Growth: -2.87%
• EPS Growth: -19.37%
• Country: JP
• Employees: 952
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): -110.84
• Shares Outstanding: 3,250,000
• 10 Day Avg. Volume: 1,410
• 30 Day Avg. Volume: 1,300
• PEG Ratio: 0.17
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 0.33
• P/FCF Ratio: 152.15
• 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: 67 Neutral
• Price Target: ¥2,619.00 ▲(8.63% Upside)

Regal Corporation's overall stock score is driven by its solid financial performance and reasonable valuation. The company's stable balance sheet and improving cash flows are significant strengths. Technical indicators suggest a neutral market sentiment, neither strongly bullish nor bearish.

Regal Corporation Business Overview & Revenue Model

Company Description

Regal Corporation (7938) is a diversified company engaged in a variety of sectors including manufacturing, retail, and services. The company is known for its innovative products and solutions that cater to both consumer and industrial markets. Its core offerings include a range of consumer goods, machinery, and specialized equipment, which are designed to enhance productivity and improve quality of life for its customers.

How the Company Makes Money

Regal Corporation generates revenue through multiple channels. Primary revenue streams include the sale of consumer products, which are distributed through both retail and online platforms. Additionally, the company earns income from its manufacturing operations, where it produces machinery and equipment for various industries. Strategic partnerships with key retailers and wholesale distributors further enhance its market reach. The company may also engage in service contracts and maintenance agreements, providing ongoing support and generating recurring revenue. Overall, Regal Corporation's diversified portfolio and strategic alliances play a crucial role in driving its earnings.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	23.48B	23.56B	23.73B	22.56B	20.81B	19.20B
Gross Profit	11.28B	11.44B	11.25B	10.81B	9.72B	7.91B
EBITDA	1.14B	1.30B	1.00B	763.00M	526.00M	-3.59B
Net Income	516.00M	700.00M	427.00M	491.00M	138.00M	-4.42B
Balance Sheet
Total Assets	27.17B	26.27B	27.80B	27.50B	27.38B	27.87B
Cash, Cash Equivalents and Short-Term Investments	4.36B	3.77B	5.20B	6.73B	7.97B	6.89B
Total Debt	9.05B	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	13.71B	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: Negative
• Last Price: 2411.00
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 2411 is above the 20-day moving average (MA) of 2407.15, above the 50-day MA of 2403.96, and below the 200-day MA of 2424.44, indicating a bearish trend. The MACD of -0.21 indicates Positive momentum. The RSI at 48.04 is Neutral, neither overbought nor oversold. The STOCH value of 36.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7938.

Regal Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8050	78 Outperform	¥300.26B	18.38	―	1.52%	5.99%	38.18%
2668	76 Outperform	¥8.51B	13.98	―	2.40%	1.12%	33.94%
8127	76 Outperform	¥12.31B	85.93	―	2.66%	-8.02%	-59.41%
7938	67 Neutral	¥7.68B	17.42	―	2.92%	-2.87%	-19.37%
7442	64 Neutral	¥7.94B	10.56	―	2.43%	3.93%	3458.02%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7494	43 Neutral	¥8.46B	―	―	4.08%	-10.02%	-37.15%