Regal Corporation (7938) AI Stock Analysis

• Market Cap: ¥7.71B
• Dividend Yield: 2.91%
• Average Volume (3M): 1.21K
• Price to Earnings (P/E): 6.9
• Beta (1Y): 0.49
• Revenue Growth: -2.87%
• EPS Growth: -19.37%
• Country: JP
• Employees: 952
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): 85.33
• Shares Outstanding: 3,250,000
• 10 Day Avg. Volume: 1,480
• 30 Day Avg. Volume: 1,213
• 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: 59 Neutral
• Price Target: ¥2,519.00 ▲(4.48% Upside)
• Action: Reiterated Date: 10/31/25
• Date: Action: Reiterated 10/31/25

Regal Corporation's overall stock score of 59 is primarily driven by its mixed financial performance, with strong net income growth offset by revenue decline and weak cash flow conversion. Valuation metrics provide a slight positive boost with a reasonable P/E ratio of 14.88 and a solid dividend yield of 2.9%. Technical indicators suggest stability but lack strong momentum. The score reflects a cautious outlook with operational challenges as the key concern.

Positive Factors

Improved Cash Flow

The shift to positive free cash flow indicates enhanced cash management, providing more resources for reinvestment and debt reduction.

Operational Efficiency

Improved operating efficiencies suggest better cost management, which can enhance profitability and competitive positioning over time.

Solid Balance Sheet

A stable balance sheet with manageable debt levels supports long-term financial stability and flexibility for growth opportunities.

Negative Factors

Revenue Decline

A decline in revenue can signal challenges in market demand or competitive pressures, potentially impacting future growth prospects.

Profitability Challenges

Low EBIT margin suggests difficulties in maintaining profitability, which could hinder reinvestment and shareholder returns if not addressed.

Cash Conversion Challenges

Challenges in converting profits into cash may limit the company's ability to fund operations and growth initiatives efficiently.

Regal Corporation Business Overview & Revenue Model

Company Description

Regal Corporation manufactures, sells, and repairs various shoes for men and women. It sells its products through stores and online stores. The company was formerly known as Nippon Shoe Co., Ltd. and changed its name to Regal Corporation in October 1990. Regal Corporation was incorporated in 1902 and is headquartered in Urayasu, Japan.

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's financial performance is mixed with a strong net income growth of 64% and stable profitability margins (gross margin at 46.9%, net margin at 3.0%). However, revenue declined by 0.7%, cash flow conversion remains weak (operating cash flow to net income at 0.32), and moderate leverage (debt-to-equity at 0.73) poses risks. This results in a cautious score reflecting resilience in profitability but clear operational challenges.

Income Statement

Regal Corporation shows a stable gross profit margin of around 46.9% and a net profit margin of 3.0% for the latest annual data (2025-03-31), indicating decent profitability. Revenue saw a slight decline of 0.7% from the previous year, but net income grew by 64.0%, reflecting improved bottom-line performance. EBIT and EBITDA margins are modest at 1.8% and 5.5%, respectively, suggesting room for operational efficiency gains. While profit growth is a strength, the lack of revenue growth poses a potential concern.

Balance Sheet

The balance sheet reflects a debt-to-equity ratio of 0.73 for the latest period (2025-03-31), indicating moderate leverage that could pose risks if profitability weakens. Return on equity stands at 5.5%, showing reasonable returns for shareholders. The equity ratio of 48.6% suggests a balanced capital structure. While the company maintains a fair level of equity, the reliance on debt remains a point of caution.

Cash Flow

Cash flow performance is mixed for Regal Corporation. The latest free cash flow (2025-03-31) is positive at 51 million, a significant improvement from the prior year's negative 1.52 billion, though the growth rate cannot be calculated due to the previous negative value. Operating cash flow to net income ratio is low at 0.32, indicating challenges in converting profits to cash. Free cash flow to net income ratio is also weak at 0.07. While the recovery in free cash flow is positive, overall cash generation remains a concern.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	23.48B	23.56B	23.73B	22.56B	20.81B	19.20B
Gross Profit	11.28B	11.05B	10.92B	10.59B	9.51B	7.57B
EBITDA	529.00M	840.00M	889.00M	580.00M	380.00M	-1.81B
Net Income	516.00M	700.00M	428.00M	491.00M	138.00M	-4.42B
Balance Sheet
Total Assets	27.17B	26.77B	28.26B	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	14.02B	15.80B	16.53B	17.10B	17.58B
Stockholders Equity	13.71B	12.75B	12.42B	10.93B	10.25B	10.26B
Cash Flow
Free Cash Flow	0.00	51.00M	-1.42B	45.00M	1.46B	-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: Negative
• 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 below the 20-day moving average (MA) of 2422.60, below the 50-day MA of 2440.94, and below the 200-day MA of 2417.22, indicating a bearish trend. The MACD of -7.48 indicates Negative momentum. The RSI at 40.72 is Neutral, neither overbought nor oversold. The STOCH value of 40.69 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
8135	81 Outperform	¥8.79B	16.36	―	3.96%	7.77%	247.26%
7936	73 Outperform	¥2.97T	27.18	34.14%	0.56%	20.12%	43.82%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7938	59 Neutral	¥7.71B	6.85	―	2.91%	-2.87%	-19.37%
7494	50 Neutral	¥8.12B	1.17	―	4.13%	-10.82%	―
8166	47 Neutral	¥3.93B	1.99	―	―	-5.25%	-77.53%
8107	46 Neutral	¥9.09B	-162.43	―	―	90.06%	-98.03%