Nagahori Corporation (8139) AI Stock Analysis

• Market Cap: ¥30.70B
• Dividend Yield: 0.46%
• Average Volume (3M): 16.53K
• Price to Earnings (P/E): 16.4
• Beta (1Y): 0.11
• Revenue Growth: 8.02%
• EPS Growth: 2.66%
• Country: JP
• Employees: 484
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Luxury Goods
• EPS (TTM): 31.53
• Shares Outstanding: 16,773,376
• 10 Day Avg. Volume: 25,000
• 30 Day Avg. Volume: 16,530
• PEG Ratio: -2.40
• Price to Book (P/B): 1.64
• Price to Sales (P/S): 0.93
• P/FCF Ratio: -19.97
• 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: 57 Neutral
• Price Target: ¥2,147.00 ▲(33.19% Upside)
• Action: Reiterated Date: 12/31/25
• Date: Action: Reiterated 12/31/25

The score is held back primarily by weak cash generation (negative operating cash flow for three years) and very high valuation (P/E ~66). These are partially offset by a supportive technical trend (price above key moving averages with positive MACD) and a balance sheet that appears reasonably stable (manageable leverage and solid equity ratio).

Positive Factors

Sustained Revenue Growth

Sustained top-line growth, even at a slower rate, indicates ongoing product demand across wholesale and retail channels. This base supports capacity utilization, multi-channel distribution scale and the ability to invest in merchandising and product planning over the next 2–6 months.

Stable Gross Margin

A steady ~25% gross margin signals consistent cost control or pricing power in core jewelry products. Stable gross margins provide a durable buffer to absorb modest material cost swings and help sustain gross profit available to cover operating costs and reinvestment.

Manageable Leverage and Capital Base

A debt/equity of ~0.8 and near-50% equity ratio reflect a moderate capital structure, giving the company financial flexibility. This balance allows room to fund working capital or absorb shocks without being overlevered, supporting operational continuity in the medium term.

Negative Factors

Persistent Negative Operating Cash Flow

Three consecutive years of negative operating cash flow indicate structural cash-generation weaknesses; this constrains funding for inventory, capex and marketing without relying on external financing, increasing refinancing and liquidity risk over the next several quarters.

Thin and Declining Profitability

Very low and slipping operating and net margins leave little room to absorb cost inflation or invest in growth initiatives. Declining profitability also erodes returns on equity and reduces internal funds for working capital, raising structural profitability risk.

Material- and Demand-Driven Volatility

Business economics are structurally exposed to volatile input prices and cyclical consumer spending on discretionary jewelry. This dual exposure increases the likelihood of margin swings and revenue sensitivity to macro softness over a multi-month horizon.

Nagahori Corporation Business Overview & Revenue Model

Company Description

Nagahori Corporation (8139) is a Japan-based company primarily engaged in the wholesale distribution of various consumer goods, including textiles, clothing, and household products. The company operates in multiple sectors, focusing on the retail and manufacturing industries, and is known for its diverse range of offerings that cater to both domestic and international markets. Nagahori also emphasizes innovation and sustainability in its product lines, aiming to meet the evolving needs of consumers.

How the Company Makes Money

Nagahori Corporation generates revenue through its wholesale distribution model, selling a wide variety of consumer goods to retailers and businesses. Key revenue streams include sales of textiles, clothing, and household products, which are sourced from both domestic and international suppliers. The company benefits from established partnerships with manufacturers, allowing it to offer competitive pricing and a broad selection of inventory. Additionally, Nagahori may engage in value-added services such as logistics and supply chain management, further enhancing its revenue potential. Market trends that favor sustainable products and consumer preferences for diverse and high-quality goods also contribute to the company's earnings.

Nagahori Corporation Financial Statement Overview

Summary

Mixed fundamentals: revenue is still growing and gross margin is stable (~25%), and leverage looks manageable (D/E ~0.8, equity ratio ~49.5%). Offsetting this, profitability has weakened (EBIT margin ~3.2%, net margin ~1.8%) and operating cash flow has been negative for three years, which is a meaningful financial risk.

Income Statement

Nagahori Corporation shows a mixed performance in its income statement. The company has experienced revenue growth over recent years, but the growth rate has slowed from 23.5% in 2023 to 4.9% in 2025. The gross profit margin is relatively stable around 25%, indicating consistent cost management. However, the declining EBIT and net profit margins, down to 3.2% and 1.8% respectively in 2025, suggest challenges in operational efficiency and profitability.

Balance Sheet

The balance sheet reflects moderate financial stability with a debt-to-equity ratio of 0.8, which is manageable but indicates some reliance on debt. The equity ratio stands at 49.5%, showing a robust capital structure. However, the declining ROE from 4.3% in 2024 to 3.1% in 2025 highlights some inefficiencies in generating returns on equity.

Cash Flow

Cash flow analysis reveals concerning trends for Nagahori Corporation. Operating cash flow has been negative for the last three years, indicating potential liquidity issues. The free cash flow to net income ratio is also negative, suggesting that the company is struggling to generate cash from its operations to cover net income. These factors underscore the need for improved cash management strategies.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	23.09B	22.89B	21.82B	17.67B	16.93B	16.30B
Gross Profit	5.69B	5.56B	5.65B	4.59B	4.35B	4.21B
EBITDA	834.21M	911.32M	1.21B	734.27M	480.16M	225.47M
Net Income	324.84M	406.38M	519.97M	60.78M	163.92M	-331.58M
Balance Sheet
Total Assets	27.21B	26.24B	25.47B	24.17B	23.86B	23.61B
Cash, Cash Equivalents and Short-Term Investments	1.70B	2.29B	2.87B	3.50B	3.53B	2.98B
Total Debt	11.37B	10.46B	9.94B	9.43B	9.45B	9.27B
Total Liabilities	14.40B	13.24B	12.75B	12.05B	11.80B	11.65B
Stockholders Equity	12.81B	13.00B	12.72B	12.13B	12.06B	11.96B
Cash Flow
Free Cash Flow	0.00	-1.07B	-703.24M	-64.23M	653.85M	818.69M
Operating Cash Flow	0.00	-972.81M	-515.30M	-20.73M	670.34M	903.30M
Investing Cash Flow	0.00	64.84M	-531.09M	47.76M	-259.09M	-51.88M
Financing Cash Flow	0.00	314.54M	413.10M	-52.96M	138.14M	-106.41M

Nagahori Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1612.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8139, the sentiment is Neutral. The current price of 1612 is below the 20-day moving average (MA) of 2010.35, below the 50-day MA of 2085.44, and below the 200-day MA of 1813.68, indicating a neutral trend. The MACD of -19.26 indicates Negative momentum. The RSI at 45.71 is Neutral, neither overbought nor oversold. The STOCH value of 69.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:8139.

Nagahori Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9990	74 Outperform	¥24.03B	11.37	―	3.99%	-2.12%	-15.35%
7638	72 Outperform	¥27.90B	5.77	―	3.03%	34.99%	211.99%
7937	68 Neutral	¥49.62B	6.98	2.46%	3.50%	22.68%	-9.41%
2736	65 Neutral	¥2.33B	-6.03	―	1.21%	1.04%	-66.56%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8139	57 Neutral	¥30.70B	16.44	―	0.46%	8.02%	2.66%
7810	49 Neutral	¥3.24B	42.09	―	0.25%	18.69%	5.17%