Regal Corporation (7938) AI Stock Analysis

• Market Cap: ¥7.88B
• Dividend Yield: 3.04%
• Average Volume (3M): 8.85K
• Price to Earnings (P/E): 11.3
• Beta (1Y): 0.52
• Revenue Growth: -0.73%
• EPS Growth: 63.91%
• Country: JP
• Employees: 952
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): 188.28
• Shares Outstanding: 3,250,000
• 10 Day Avg. Volume: 3,550
• 30 Day Avg. Volume: 8,853
• PEG Ratio: -0.79
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 70 Outperform
• 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 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 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

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

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

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
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
23.76B	23.73B	22.56B	20.81B	19.20B	29.15B
	Gross Profit
11.53B	11.25B	10.81B	9.72B	7.91B	12.50B
	EBIT
406.00M	518.00M	293.00M	159.00M	-2.18B	-727.00M
	EBITDA
848.50M	1.00B	546.00M	376.00M	-3.59B	-431.00M
	Net Income Common Stockholders
425.00M	427.00M	491.00M	138.00M	-4.42B	-1.30B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.62B	5.20B	6.73B	7.97B	6.89B	3.29B
	Total Assets
25.81B	27.80B	27.50B	27.38B	27.87B	28.70B
	Total Debt
9.32B	10.59B	10.55B	11.40B	11.93B	6.10B
	Net Debt
5.70B	5.39B	3.82B	3.43B	5.04B	2.81B
	Total Liabilities
13.46B	15.35B	16.54B	17.10B	17.59B	14.34B
	Stockholders Equity
12.35B	12.42B	10.93B	10.25B	10.26B	14.33B
Cash Flow		Free Cash Flow
0.00	-1.52B	-821.00M	1.36B	-2.69B	-799.00M
	Operating Cash Flow
0.00	-1.05B	102.00M	1.54B	-2.50B	-435.00M
	Investing Cash Flow
0.00	-296.00M	-485.00M	45.00M	445.00M	-393.00M
	Financing Cash Flow
0.00	-186.00M	-884.00M	-593.00M	5.67B	411.00M

Regal Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2470.00
• 50DMA: Positive
• 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 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8050	79 Outperform	¥160.44B	11.93		2.57%	10.09%	33.98%
8127	76 Outperform	¥7.68B	32.17		4.28%	-3.35%	-41.42%
2668	71 Outperform	¥8.15B	15.64		2.50%	3.89%	10.91%
7938	70 Outperform	¥7.88B	11.27		3.04%	-0.73%	63.91%
Sector *	62 Neutral	$6.84B	11.41	2.80%	3.87%	2.70%	-24.58%
7442	62 Neutral	¥7.76B	14.50		3.04%	6.11%	3541.59%
7494	50 Neutral	¥7.89B	―		2.11%	-9.83%	-371.31%