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Regal Corporation (JP:7938)
:7938
Japanese Market

Regal Corporation (7938) AI Stock Analysis

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JP

Regal Corporation

(7938)

Rating:70Outperform
Price Target:
¥2,684.00
▲(8.66%Upside)
Regal Corporation's stock score is primarily driven by its strong financial recovery and attractive valuation. The stable financial position and improved cash flows provide a solid foundation, while the favorable P/E ratio and dividend yield enhance its appeal. Technical indicators suggest potential for short-term gains, although caution is advised for the longer term. The absence of earnings call and corporate event data does not affect the score significantly.

Regal Corporation (7938) vs. iShares MSCI Japan ETF (EWJ)

Regal Corporation Business Overview & Revenue Model

Company DescriptionRegal 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 MoneyRegal 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 shows promising revenue growth and improved profitability margins. However, operational efficiency remains a challenge, and high debt levels pose risks. Cash flow management is a critical area for improvement to ensure sustainable growth. The company should focus on reducing leverage and enhancing cash generation to strengthen its financial position.
Income Statement
72
Positive
Regal Corporation has shown consistent revenue growth from 2021 to 2024, with a notable increase in gross profit margins from 37.9% in 2021 to 48.5% in TTM 2024. However, EBIT margin has remained low at 1.7% in TTM 2024, indicating operational efficiency challenges. Net profit margin improved to 1.8% in TTM 2024 from negative figures in prior years, reflecting better profitability. Overall, the company exhibits positive revenue trends but needs to enhance operational efficiency.
Balance Sheet
66
Positive
The company's debt-to-equity ratio has decreased from 1.16 in 2021 to 0.75 in TTM 2024, indicating improved leverage management. However, equity ratio remains stable around 47.8% in TTM 2024, showing limited increase in financial stability. Return on equity improved from negative in previous years to 3.4% in TTM 2024, suggesting enhanced shareholder returns. Nonetheless, the company still carries significant debt levels, which could pose risks in adverse conditions.
Cash Flow
45
Neutral
Regal Corporation's cash flow performance faces challenges, with no positive free cash flow in recent periods. Operating cash flow was negative in the latest annual report, and free cash flow to net income ratio is unavailable due to missing data. These factors indicate potential liquidity concerns and the need for better cash management strategies. The company must focus on improving cash flow generation to support growth and debt obligations.
Breakdown
TTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
23.76B23.73B22.56B20.81B19.20B29.15B
Gross Profit
11.53B11.25B10.81B9.72B7.91B12.50B
EBIT
406.00M518.00M293.00M159.00M-2.18B-727.00M
EBITDA
848.50M1.00B546.00M376.00M-3.59B-431.00M
Net Income Common Stockholders
425.00M427.00M491.00M138.00M-4.42B-1.30B
Balance SheetCash, Cash Equivalents and Short-Term Investments
3.62B5.20B6.73B7.97B6.89B3.29B
Total Assets
25.81B27.80B27.50B27.38B27.87B28.70B
Total Debt
9.32B10.59B10.55B11.40B11.93B6.10B
Net Debt
5.70B5.39B3.82B3.43B5.04B2.81B
Total Liabilities
13.46B15.35B16.54B17.10B17.59B14.34B
Stockholders Equity
12.35B12.42B10.93B10.25B10.26B14.33B
Cash FlowFree Cash Flow
0.00-1.52B-821.00M1.36B-2.69B-799.00M
Operating Cash Flow
0.00-1.05B102.00M1.54B-2.50B-435.00M
Investing Cash Flow
0.00-296.00M-485.00M45.00M445.00M-393.00M
Financing Cash Flow
0.00-186.00M-884.00M-593.00M5.67B411.00M

Regal Corporation Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2470.00
Price Trends
50DMA
2370.42
Positive
100DMA
2460.81
Negative
200DMA
2498.61
Negative
Market Momentum
MACD
23.42
Negative
RSI
56.20
Neutral
STOCH
77.94
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 2470 is above the 20-day moving average (MA) of 2435.95, above the 50-day MA of 2370.42, and below the 200-day MA of 2498.61, indicating a neutral trend. The MACD of 23.42 indicates Negative momentum. The RSI at 56.20 is Neutral, neither overbought nor oversold. The STOCH value of 77.94 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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
¥160.44B11.93
2.57%10.09%33.98%
76
Outperform
¥7.68B32.17
4.28%-3.35%-41.42%
71
Outperform
¥8.15B15.64
2.50%3.89%10.91%
70
Outperform
¥7.88B11.27
3.04%-0.73%63.91%
62
Neutral
$6.84B11.412.80%3.87%2.70%-24.58%
62
Neutral
¥7.76B14.50
3.04%6.11%3541.59%
50
Neutral
¥7.89B
2.11%-9.83%-371.31%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7938
Regal Corporation
2,457.00
72.84
3.06%
JP:2668
Tabio Corporation
1,199.00
18.65
1.58%
JP:7442
Nakayamafuku Co., Ltd.
406.00
40.35
11.04%
JP:7494
Konaka Co., Ltd.
239.00
-37.27
-13.49%
JP:8050
SEIKO GROUP CORPORATION
4,095.00
-441.14
-9.73%
JP:8127
Yamato International Inc.
381.00
44.49
13.22%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.