Senshukai Co., Ltd. (8165) AI Stock Analysis

• Market Cap: ¥10.41B
• Dividend Yield: N/A
• Average Volume (3M): 59.15K
• Price to Earnings (P/E): 3.4
• Beta (1Y): 0.54
• Revenue Growth: -4.10%
• EPS Growth: N/A
• Country: JP
• Employees: 871
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 123.79
• Shares Outstanding: 52,056,990
• 10 Day Avg. Volume: 67,550
• 30 Day Avg. Volume: 59,150
• PEG Ratio: 0.16
• Price to Book (P/B): 0.99
• Price to Sales (P/S): 0.29
• P/FCF Ratio: -3.55
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: ¥217.00 ▼(-2.25% Downside)

Senshukai Co., Ltd. faces significant financial and technical challenges, with persistent losses and bearish market indicators. While the stock appears undervalued based on its P/E ratio, the lack of profitability and negative cash flows weigh heavily on its overall attractiveness. The absence of earnings call data and corporate events further limits positive sentiment.

Positive Factors

Business Model Diversification

Diversification across mail-order, retail, and wedding services provides multiple revenue streams, reducing reliance on a single market segment and enhancing resilience against sector-specific downturns.

Cost Management

Stable gross profit margins indicate effective cost management, which is crucial for maintaining profitability and competitiveness in the retail sector, especially amidst declining revenues.

Debt Management

Maintaining a reasonable debt-to-equity ratio helps ensure financial stability and provides the company with the ability to leverage debt for growth opportunities without excessive risk.

Negative Factors

Declining Revenues

Persistent revenue decline reflects challenges in market demand or competitive positioning, which could hinder long-term growth and profitability unless addressed through strategic initiatives.

Negative Cash Flow

Negative cash flow limits the company's ability to invest in growth, pay down debt, or return capital to shareholders, potentially impacting long-term financial health and operational flexibility.

Profitability Challenges

Ongoing profitability issues indicate structural challenges in the business model or cost structure, requiring strategic adjustments to achieve sustainable financial performance and shareholder value.

Senshukai Co., Ltd. Business Overview & Revenue Model

Company Description

Senshukai Co., Ltd. engages in the mail order and corporate businesses in Japan. The company provides lifestyle products in various genres through catalogs, as well as Belle Maison Net. online shop; and products and services to corporations through catalogue sales. It also offers various physical stores under Belle Maison products, and online shopping for flower, gifts, natural skin care, and cosmetics. In addition, the company provides child care, life style design plan, home staging, gourmet studio, and cleaning services. Further, it operates bridal and restaurant guest houses. Senshukai Co., Ltd. was founded in 1955 and is headquartered in Osaka, Japan.

How the Company Makes Money

Senshukai generates revenue primarily through the sale of its products across multiple channels, including direct mail catalogs, e-commerce platforms, and retail stores. The company leverages a subscription-based model for some of its offerings, ensuring a steady stream of income from loyal customers. Key revenue streams include sales from beauty and personal care items, apparel, and home goods, which are marketed through targeted advertising and promotions. Additionally, strategic partnerships with various brands and suppliers enhance its product offerings and distribution capabilities, contributing to its overall profitability.

Senshukai Co., Ltd. Financial Statement Overview

Summary

Senshukai Co., Ltd. faces significant financial challenges, particularly in terms of profitability and cash flow generation. Persistent negative net income and EBIT margins, along with declining operating cash flows and negative free cash flow, highlight ongoing difficulties. The balance sheet shows increasing leverage and declining equity, raising concerns about financial stability.

Income Statement

Senshukai Co., Ltd. has experienced declining revenues over the past several years, with a notable decrease from 2019 to 2024. The gross profit margin decreased from 50.67% in 2019 to 50.95% in 2024, indicating some stability in cost management. However, persistent negative net income and EBIT margins highlight ongoing difficulties in achieving profitability, with the company posting negative net profit margins in recent years.

Balance Sheet

The company has maintained a reasonable debt-to-equity ratio over the years, with a slight increase in debt. The equity ratio has decreased from 57.7% in 2019 to 52.2% in 2024, suggesting increased leverage. However, the decline in stockholders' equity and total assets indicates a weakening financial position. The return on equity has been negative in recent years, reflecting ongoing profitability challenges.

Cash Flow

Senshukai Co., Ltd. has faced declining operating cash flows, with consistent negative free cash flow over the past few years. The operating cash flow to net income ratio has been unfavorable, indicating challenges in converting earnings into cash. The company's cash reserves have declined, limiting its financial flexibility and ability to invest in growth opportunities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	44.33B	45.60B	49.23B	58.91B	73.15B	83.29B
Gross Profit	22.48B	23.24B	24.67B	28.05B	36.69B	42.31B
EBITDA	-2.73B	-2.89B	-4.01B	-9.51B	1.50B	-1.84B
Net Income	-4.17B	-3.66B	-4.78B	-10.99B	308.00M	-3.95B
Balance Sheet
Total Assets	27.11B	25.78B	31.81B	38.92B	52.48B	63.93B
Cash, Cash Equivalents and Short-Term Investments	6.13B	2.65B	6.48B	9.29B	15.66B	19.59B
Total Debt	6.87B	2.71B	3.34B	3.96B	3.63B	12.91B
Total Liabilities	16.09B	12.34B	14.53B	16.90B	19.27B	31.84B
Stockholders Equity	11.03B	13.45B	17.27B	22.00B	33.20B	32.09B
Cash Flow
Free Cash Flow	0.00	-3.76B	-4.23B	-7.63B	-3.80B	571.00M
Operating Cash Flow	0.00	-3.46B	-3.90B	-5.87B	-317.00M	2.43B
Investing Cash Flow	0.00	297.00M	1.75B	-706.00M	-603.00M	-1.56B
Financing Cash Flow	0.00	-710.00M	-722.00M	148.00M	-3.07B	-4.00B

Senshukai Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 222.00
• 50DMA: Negative
• 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:8165, the sentiment is Negative. The current price of 222 is below the 20-day moving average (MA) of 224.00, below the 50-day MA of 226.48, and below the 200-day MA of 247.46, indicating a bearish trend. The MACD of -1.50 indicates Negative momentum. The RSI at 43.05 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8165.

Senshukai Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7110	78 Outperform	¥15.96B	18.61	―	2.16%	26.29%	28.62%
3542	75 Outperform	¥15.84B	22.26	―	0.73%	11.91%	24.06%
9272	64 Neutral	¥13.94B	102.30	―	―	13.72%	-82.05%
3558	64 Neutral	¥15.21B	12.41	―	―	14.44%	115.10%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
9270	58 Neutral	¥12.65B	17.96	―	1.07%	4.14%	―
8165	45 Neutral	¥10.41B	3.43	―	―	-4.10%	―