Joshin Denki Co., Ltd. (8173) AI Stock Analysis

• Market Cap: ¥70.94B
• Dividend Yield: 5.62%
• Average Volume (3M): 124.90K
• Price to Earnings (P/E): 20.0
• Beta (1Y): 0.35
• Revenue Growth: 2.30%
• EPS Growth: -26.42%
• Country: JP
• Employees: 4,245
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Department Stores
• EPS (TTM): 19.50
• Shares Outstanding: 28,000,000
• 10 Day Avg. Volume: 87,610
• 30 Day Avg. Volume: 124,896
• 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: ¥2,708.00
• Price Target Upside: 2.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 70 Outperform
• Price Target: ¥2,708.00 ▲(2.19% Upside)

The overall stock score of 70 reflects a combination of stable financial health and positive technical indicators. While financial performance is challenged by declining revenue and cash flow volatility, the technical analysis indicates bullish momentum, and the valuation metrics are reasonable for the industry, with an attractive dividend yield.

Joshin Denki Co., Ltd. Business Overview & Revenue Model

Company Description

Joshin Denki Co., Ltd. (8173) is a leading Japanese retail company specializing in the sale of consumer electronics, home appliances, and related products. Founded in 1953, the company operates a network of physical stores and an online shopping platform, offering a wide range of products including televisions, computers, smartphones, and household gadgets. Joshin Denki serves both individual consumers and businesses, positioning itself as a trusted provider of innovative technology solutions in the rapidly evolving electronics market.

How the Company Makes Money

Joshin Denki generates revenue primarily through the sale of electronics and home appliances in its retail stores and online platform. The company has a diversified revenue model that includes direct product sales, service offerings such as installation and repair services, and additional revenue from warranty and insurance plans for electronics. Key revenue streams are derived from in-store sales, which are bolstered by seasonal promotions and discounts, as well as online sales which have seen growth due to increasing e-commerce trends. Partnerships with major electronics manufacturers allow Joshin Denki to offer exclusive products and promotions, enhancing its competitive edge and driving sales. The company also benefits from a loyalty program that encourages repeat purchases and enhances customer retention.

Joshin Denki Co., Ltd. Financial Statement Overview

Summary

Joshin Denki Co., Ltd. faces challenges with declining revenue and profitability margins, though it maintains a stable balance sheet with manageable leverage. Cash flow volatility poses concerns, indicating the need to improve operational efficiency and cash generation.

Income Statement

The company's revenue has shown a declining trend over the past few years, with a slight decrease in the most recent year. Gross profit margins are moderately strong but have been stable, indicating decent cost management. However, net profit margins have declined, reflecting increasing expenses relative to revenue. EBIT and EBITDA margins have also decreased, suggesting pressure on operational efficiency.

Balance Sheet

The company maintains a healthy equity ratio, indicating stability and a solid asset base relative to liabilities. The debt-to-equity ratio is moderate, reflecting manageable leverage. Return on equity has been declining, pointing to challenges in generating returns on shareholder investments.

Cash Flow

There is significant volatility in free cash flow, with notable declines in recent years. Although operating cash flow has improved, the ratio of operating cash flow to net income suggests inconsistency in converting earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	412.80B	403.26B	403.69B	408.46B	409.51B	449.12B
Gross Profit	102.65B	102.21B	105.12B	103.80B	98.43B	112.15B
EBITDA	11.39B	11.79B	13.68B	13.36B	15.25B	21.88B
Net Income	3.44B	3.41B	4.89B	4.97B	6.39B	8.87B
Balance Sheet
Total Assets	235.30B	231.50B	232.78B	223.22B	217.42B	210.32B
Cash, Cash Equivalents and Short-Term Investments	5.59B	7.71B	3.89B	2.77B	2.36B	8.77B
Total Debt	43.85B	47.15B	53.62B	46.62B	41.17B	36.88B
Total Liabilities	132.59B	126.83B	128.16B	122.52B	118.78B	111.02B
Stockholders Equity	102.70B	104.67B	104.61B	100.70B	98.64B	99.30B
Cash Flow
Free Cash Flow	4.60B	10.06B	-4.27B	-2.17B	-7.34B	19.47B
Operating Cash Flow	8.54B	16.37B	2.28B	7.12B	1.44B	25.84B
Investing Cash Flow	-818.00M	-1.81B	-4.81B	-9.07B	-9.57B	-6.12B
Financing Cash Flow	-5.78B	-10.74B	3.65B	2.36B	1.87B	-14.43B

Joshin Denki Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2650.00
• 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:8173, the sentiment is Positive. The current price of 2650 is above the 20-day moving average (MA) of 2570.23, above the 50-day MA of 2515.39, and above the 200-day MA of 2274.39, indicating a bullish trend. The MACD of 33.02 indicates Negative momentum. The RSI at 68.12 is Neutral, neither overbought nor oversold. The STOCH value of 88.15 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8173.

Joshin Denki Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8237	72 Outperform	¥90.26B	222.29	―	0.88%	1.38%	-87.76%
8173	70 Outperform	¥70.94B	19.99	―	5.62%	2.30%	-26.42%
8255	70 Outperform	¥104.86B	11.20	―	2.40%	4.99%	23.63%
8244	65 Neutral	¥78.37B	13.57	―	1.03%	7.55%	89.45%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8278	61 Neutral	¥170.25B	43.21	―	1.53%	1.48%	-33.32%
8217	46 Neutral	¥36.05B	―	―	2.92%	1.46%	-436.55%

Joshin Denki Co., Ltd. Corporate Events

Joshin Denki Reports Increased Sales but Declining Profits in Q1 2025

Joshin Denki Co., Ltd. reported a 10.6% increase in net sales for the three months ended June 30, 2025, compared to the same period last year. Despite the increase in sales, the company experienced a decline in operating and ordinary profits by 37.9% and 46.8% respectively, reflecting challenges in maintaining profitability. The company’s cash flow from operating activities remained stable, but there was a significant increase in cash outflows from financing activities. The financial outlook for the fiscal year ending March 31, 2026, anticipates a modest growth in net sales and operating profit, though profit attributable to owners of the parent is expected to decrease by 17.8%.

Joshin Denki Enhances Board Effectiveness and Strategic Focus

Joshin Denki Co., Ltd. has conducted an evaluation of its Board of Directors’ effectiveness for fiscal 2024, as part of its efforts to strengthen corporate governance and enhance long-term corporate value. The evaluation, led by a committee of outside directors and auditors, identified areas for improvement, including structural reforms in the home appliance business and expanding growth in mobile communications and renovation services. The company aims to refine its management strategies and improve operational efficiency, focusing on capital costs and aligning its business portfolio with social values.

Joshin Denki Revises Shareholder Benefit Program

Joshin Denki Co., Ltd. has announced revisions to its shareholder benefit program, aiming to maintain and enhance shareholder engagement. The new criteria will grant benefits to shareholders holding 100 or more shares, with an increase in the number of benefit vouchers from 25 to 50 for eligible shareholders as of the end of September. These changes are expected to strengthen shareholder loyalty and potentially improve the company’s market position.