Regal Corporation (7938) AI Stock Analysis

• Market Cap: ¥7.67B
• Dividend Yield: 2.91%
• Average Volume (3M): 2.80K
• Price to Earnings (P/E): 14.9
• Beta (1Y): 0.52
• Revenue Growth: -1.58%
• EPS Growth: -16.57%
• Country: JP
• Employees: 952
• Sector: Consumer Cyclical
• Sector Strength: 83
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): 8.02
• Shares Outstanding: 3,250,000
• 10 Day Avg. Volume: 2,000
• 30 Day Avg. Volume: 2,796
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥2,604.00
• Price Target Upside: 8.41% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 67 Neutral
• Price Target: ¥2,604.00 ▲(8.41% Upside)

Regal Corporation's overall stock score is driven by its solid financial performance and reasonable valuation. The company shows a resilient financial recovery with improved margins and cash flows, despite facing revenue headwinds. The valuation is attractive with a reasonable P/E ratio and a good dividend yield. Technical analysis indicates stability, though lacking bullish momentum.

Regal Corporation Business Overview & Revenue Model

Company Description

Regal Corporation (7938) is a Japanese company primarily engaged in the manufacturing and retailing of footwear. The company specializes in the production of high-quality shoes, focusing on both casual and formal styles for men, women, and children. It operates through a network of retail stores across Japan, alongside an online platform to reach a broader customer base.

How the Company Makes Money

Regal Corporation generates revenue through the sale of its footwear products. The company's key revenue streams include direct sales from its branded retail outlets, online sales through its e-commerce platform, and wholesale distribution to other retailers. Additionally, the company may engage in strategic partnerships with fashion brands and participate in joint marketing efforts to enhance its market reach and brand recognition. Factors contributing to its earnings include brand loyalty, product quality, and its ability to adapt to fashion trends.

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	23.56B	23.56B	23.73B	22.56B	20.81B	19.20B
Gross Profit	11.44B	11.05B	11.25B	10.81B	9.72B	7.91B
EBITDA	1.36B	1.30B	1.00B	763.00M	526.00M	-3.59B
Net Income	700.00M	700.00M	427.00M	491.00M	138.00M	-4.42B
Balance Sheet
Total Assets	26.27B	26.27B	27.80B	27.50B	27.38B	27.87B
Cash, Cash Equivalents and Short-Term Investments	3.77B	3.77B	5.20B	6.73B	7.97B	6.89B
Total Debt	9.30B	9.30B	10.59B	10.55B	11.40B	11.93B
Total Liabilities	13.51B	13.51B	15.35B	16.54B	17.10B	17.59B
Stockholders Equity	12.76B	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: Neutral
• Last Price: 2402.00
• 50DMA: Negative
• 100DMA: Positive
• 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 Neutral. The current price of 2402 is above the 20-day moving average (MA) of 2398.40, below the 50-day MA of 2407.64, and below the 200-day MA of 2460.24, indicating a neutral trend. The MACD of -1.91 indicates Negative momentum. The RSI at 49.38 is Neutral, neither overbought nor oversold. The STOCH value of 35.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7938.

Regal Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8050	76 Outperform	¥271.80B	16.64		1.40%	6.92%	46.32%
8127	76 Outperform	¥8.44B	55.80		3.92%	-4.37%	-54.08%
2668	75 Outperform	¥8.17B	14.25		2.50%	2.32%	43.85%
7938	67 Neutral	¥7.67B	14.86		2.91%	-1.58%	-16.57%
7442	62 Neutral	¥8.10B	10.13		2.43%	6.03%	―
Sector *	61 Neutral	$17.97B	12.87	-5.30%	2.97%	1.26%	-14.45%
7494	50 Neutral	¥8.79B	―		1.88%	-10.02%	-37.15%