KUWAZAWA Holdings Corp. (8104) AI Stock Analysis

• Market Cap: ¥8.76B
• Dividend Yield: 3.09%
• Average Volume (3M): 11.71K
• Price to Earnings (P/E): 11.4
• Beta (1Y): 0.83
• Revenue Growth: 1.56%
• EPS Growth: -29.40%
• Country: JP
• Employees: 1,009
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): 25.25
• Shares Outstanding: 16,694,496
• 10 Day Avg. Volume: 12,120
• 30 Day Avg. Volume: 11,710
• PEG Ratio: 14.87
• Price to Book (P/B): 0.54
• Price to Sales (P/S): 0.13
• P/FCF Ratio: 3.88
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥657.00 ▲(9.87% Upside)

KUWAZAWA Holdings Corp. demonstrates a solid financial foundation with stable revenue growth and improved profitability. The technical indicators show a positive trend, supported by the stock trading above key moving averages. The valuation is attractive with a fair P/E ratio and a good dividend yield. However, the lack of earnings call data and corporate events limits additional insights.

Positive Factors

Revenue Growth

Steady revenue growth indicates a resilient market position and effective business strategies, supporting long-term financial stability.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial flexibility and reduces risk, supporting sustainable growth.

Cash Generation

Improved cash generation strengthens the company's ability to reinvest in growth opportunities and manage financial obligations.

Negative Factors

Operational Efficiency

Low operational efficiency can hinder profitability improvements and limit competitive advantage in the long term.

Cash Flow Volatility

Volatile cash flow can challenge financial planning and stability, impacting the company's ability to fund operations consistently.

Profit Margins

While improving, low net profit margins may limit reinvestment capacity and shareholder returns, affecting long-term growth potential.

KUWAZAWA Holdings Corp. Business Overview & Revenue Model

Company Description

KUWAZAWA Holdings Corp. (8104) is a diversified Japanese company primarily engaged in the retail and wholesale of clothing and accessories. The company operates in various sectors, including fashion retail, lifestyle goods, and e-commerce, providing a wide range of products that cater to different market segments. With a focus on quality and innovation, KUWAZAWA offers both proprietary brands and a selection of renowned international labels, aiming to enhance customer experience through a seamless omnichannel approach.

How the Company Makes Money

KUWAZAWA Holdings Corp. generates revenue through multiple streams, primarily from the sales of clothing and accessories in its physical retail stores and online platforms. The company benefits from a strong brand portfolio, which includes both in-house labels and partnerships with established international brands. Revenue is further bolstered by its e-commerce operations, which have seen significant growth, especially in the context of increasing online shopping trends. The company also engages in wholesale distribution, supplying products to other retailers, which adds to its overall earnings. Strategic collaborations and marketing initiatives enhance brand visibility and drive consumer engagement, contributing positively to its financial performance.

KUWAZAWA Holdings Corp. Financial Statement Overview

Summary

KUWAZAWA Holdings Corp. exhibits stable financial health with steady revenue growth and improved profitability. The company's balance sheet is strong, with low leverage and effective use of equity, although operational efficiencies could be enhanced. Cash flow generation has improved significantly, but sustainability remains a concern due to previous volatility.

Income Statement

The income statement shows stable revenue with moderate growth, evidenced by a 0.88% revenue growth in the latest year. The gross profit margin improved to 14.00%, and the net profit margin increased slightly to 1.14%, indicating enhanced profitability. However, both EBIT and EBITDA margins remain relatively low, reflecting limited operational efficiency enhancements.

Balance Sheet

The balance sheet demonstrates a solid equity base with an equity ratio of 38.73% and a manageable debt-to-equity ratio of 0.13. The company has improved its ROE to 4.68%, highlighting better utilization of shareholders' equity. The financial position is stable, with good liquidity and low leverage risk.

Cash Flow

The cash flow statement shows a significant improvement in free cash flow, turning positive from the previous year. The operating cash flow to net income ratio is 3.43, indicating robust cash generation relative to net income. However, free cash flow growth rate is high at 224.46%, suggesting volatility in cash flow generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	65.33B	65.41B	64.83B	64.31B	62.95B	93.94B
Gross Profit	9.34B	9.16B	8.81B	8.22B	8.08B	8.36B
EBITDA	1.51B	1.48B	1.70B	1.56B	1.53B	1.38B
Net Income	775.00M	748.00M	741.00M	601.00M	559.00M	108.00M
Balance Sheet
Total Assets	43.03B	41.24B	41.75B	40.14B	39.02B	42.98B
Cash, Cash Equivalents and Short-Term Investments	7.30B	7.51B	5.87B	8.61B	8.10B	9.15B
Total Debt	2.02B	2.06B	2.51B	3.20B	3.77B	5.51B
Total Liabilities	27.16B	25.15B	26.26B	25.43B	24.74B	29.09B
Stockholders Equity	15.75B	15.98B	15.38B	14.60B	14.15B	13.75B
Cash Flow
Free Cash Flow	0.00	2.21B	-1.77B	1.14B	674.00M	2.08B
Operating Cash Flow	0.00	2.57B	-1.31B	1.32B	760.00M	2.17B
Investing Cash Flow	0.00	-193.00M	-563.00M	-92.00M	24.00M	161.00M
Financing Cash Flow	0.00	-727.00M	-876.00M	-720.00M	-1.83B	-832.00M

KUWAZAWA Holdings Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 598.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8104, the sentiment is Positive. The current price of 598 is above the 20-day moving average (MA) of 576.85, above the 50-day MA of 584.28, and above the 200-day MA of 558.36, indicating a bullish trend. The MACD of 0.99 indicates Negative momentum. The RSI at 54.03 is Neutral, neither overbought nor oversold. The STOCH value of 83.91 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8104.

KUWAZAWA Holdings Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5283	79 Outperform	¥5.70B	10.70	―	1.44%	3.10%	-31.38%
5284	77 Outperform	¥15.32B	6.40	―	3.74%	11.85%	27.06%
5282	74 Outperform	¥10.82B	14.31	―	3.22%	5.83%	-16.54%
8104	72 Outperform	¥8.76B	11.36	―	3.09%	1.56%	-29.40%
5268	69 Neutral	¥10.94B	30.06	―	1.30%	-2.82%	-44.93%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5269	49 Neutral	¥18.40B	-65.80	―	3.24%	-3.73%	-143.19%