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

• Market Cap: ¥60.39B
• Dividend Yield: 4.43%
• Average Volume (3M): 91.75K
• Price to Earnings (P/E): 17.2
• Beta (1Y): 0.37
• Revenue Growth: -4.56%
• EPS Growth: -35.47%
• Country: JP
• Employees: 4,245
• Sector: Consumer Cyclical
• Sector Strength: 61
• Industry: Department Stores
• EPS (TTM): 39.06
• Shares Outstanding: 28,000,000
• 10 Day Avg. Volume: 51,200
• 30 Day Avg. Volume: 91,753
• PEG Ratio: -0.91
• Price to Book (P/B): 0.56
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.37
• 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

Joshin Denki's stock score reflects significant challenges in financial performance, particularly in profitability and cash flow management. The bearish technical indicators suggest a downward trend, while the valuation remains a relative strength with a reasonable P/E ratio and attractive dividend yield. Overall, the financial and technical pressures dominate the stock outlook, necessitating improvements in operational efficiency for better performance.

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

Company Description

Joshin Denki Co., Ltd. (8173) is a leading Japanese retailer in the consumer electronics sector. The company operates numerous stores across Japan, offering a wide range of products such as home appliances, audio-visual equipment, personal computers, and entertainment-related goods. Joshin Denki is known for its customer-centric service and extensive product lineup, catering to both individual consumers and businesses.

How the Company Makes Money

Joshin Denki Co., Ltd. generates revenue primarily through the sale of consumer electronics and home appliances. The company operates a network of retail stores, providing customers with direct access to a wide array of electronic products. Additionally, Joshin Denki has an online retail platform that further enhances its sales reach. The company also engages in after-sales services, such as maintenance and repairs, which contribute to its earnings. Strategic partnerships with leading electronics manufacturers allow Joshin Denki to offer competitive pricing and exclusive deals, attracting a broad customer base. Furthermore, the company may engage in promotional activities and loyalty programs to drive sales and retain customers.

Joshin Denki Co., Ltd. Financial Statement Overview

Summary

Joshin Denki faces pressure in maintaining profitability and cash flow generation, as evidenced by declining revenue, profitability margins, and cash flows. Increasing debt levels and declining equity returns highlight financial stress. The company should focus on improving operational efficiency and cash management to stabilize financial health.

Income Statement

Joshin Denki's TTM revenue of ¥391.4 billion shows a decline compared to previous periods, with total revenue decreasing from ¥403.7 billion in 2024 to ¥408.5 billion in 2023. The company's gross profit margin stands at approximately 25.92% in the TTM period, with a noticeable decline in net income from ¥4.89 billion in 2024 to ¥3.16 billion TTM, resulting in a net profit margin of 0.81%. This indicates a decreasing profitability trend. The EBIT and EBITDA margins are 0.89% and 2.38% respectively, reflecting operational challenges.

Balance Sheet

The balance sheet reveals a solid equity base with stockholders' equity at ¥103.85 billion, giving an equity ratio of 41.44% TTM. However, the debt-to-equity ratio has increased to 0.52, reflecting an increase in financial leverage. The ROE is relatively low at approximately 3.04% TTM, indicating limited returns for shareholders.

Cash Flow

The cash flow statement shows negative free cash flow of ¥-6.99 billion TTM, indicating cash outflows exceeding operational cash generation. Operating cash flow has turned negative in the TTM period at ¥-4.82 billion, suggesting cash flow issues. The free cash flow to net income ratio is negative, highlighting challenges in converting earnings to cash.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
391.42B	403.69B	408.46B	409.51B	449.12B	415.64B
	Gross Profit
101.47B	105.12B	103.80B	98.43B	112.15B	100.61B
	EBIT
3.47B	8.37B	8.31B	8.88B	16.55B	8.98B
	EBITDA
9.32B	13.68B	14.01B	14.41B	21.88B	14.07B
	Net Income Common Stockholders
3.16B	4.89B	4.97B	6.39B	8.87B	5.42B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.94B	3.89B	2.77B	2.36B	8.77B	3.48B
	Total Assets
250.54B	232.78B	223.22B	217.42B	210.32B	197.31B
	Total Debt
54.03B	53.62B	46.62B	41.17B	36.88B	44.32B
	Net Debt
49.09B	49.72B	43.85B	38.81B	28.11B	40.84B
	Total Liabilities
146.69B	128.16B	122.52B	118.78B	111.02B	108.16B
	Stockholders Equity
103.85B	104.61B	100.70B	98.64B	99.30B	89.15B
Cash Flow		Free Cash Flow
-6.99B	-4.27B	-2.17B	-7.34B	19.47B	5.58B
	Operating Cash Flow
-4.82B	2.28B	7.12B	1.44B	25.84B	13.02B
	Investing Cash Flow
-1.44B	-4.81B	-9.07B	-9.57B	-6.12B	-6.32B
	Financing Cash Flow
7.55B	3.65B	2.36B	1.87B	-14.43B	-7.76B

Joshin Denki Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2256.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• 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 2256 is above the 20-day moving average (MA) of 2189.05, above the 50-day MA of 2146.61, and below the 200-day MA of 2334.60, indicating a neutral trend. The MACD of 35.84 indicates Negative momentum. The RSI at 70.34 is Negative, neither overbought nor oversold. The STOCH value of 80.36 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
7513	74 Outperform	¥85.29B	17.54		1.45%	6.46%	67.90%
7532	74 Outperform	$2.70T	28.54	17.29%	0.74%	8.48%	21.66%
8273	71 Outperform	¥235.38B	19.77		2.73%	11.24%	-41.84%
8281	67 Neutral	¥55.66B	55.71		2.58%	3.10%	-3.05%
9831	64 Neutral	$373.78B	11.49	4.20%	2.84%	1.27%	-19.36%
Sector *	61 Neutral	$6.68B	11.75	3.01%	3.94%	2.61%	-21.96%
8173	58 Neutral	¥60.39B	17.21		4.43%	-4.56%	-35.47%

Joshin Denki Co., Ltd. Corporate Events

Joshin Denki Announces Strategic Amendments to Articles of Incorporation

Joshin Denki Co., Ltd. announced plans to amend its Articles of Incorporation, including a change of trade name to ‘Joshin’ and transitioning to a company with an audit and supervisory committee. These changes aim to enhance corporate governance, improve decision-making speed, and increase corporate value by focusing on medium- to long-term strategies. The transition is expected to make management more transparent and responsive to changing conditions, ultimately benefiting stakeholders and supporting sustainable growth.

Joshin Denki to Abolish Anti-Takeover Measures

Joshin Denki Co., Ltd. has announced the discontinuation of its Anti-Takeover Measures, effective after the 77th Annual General Meeting in June 2025. The decision reflects changes in the operating environment, shareholder opinions, and trends in anti-takeover strategies. The company will still ensure protective measures against large-scale purchases that could harm corporate value, adhering to legal frameworks.

Joshin Denki Announces Corporate Governance Restructuring

Joshin Denki Co., Ltd. has announced a significant restructuring of its corporate governance, transitioning to a company with an audit and supervisory committee, pending shareholder approval in June 2025. This change is accompanied by a series of officer personnel changes, reflecting the company’s strategic shift to enhance oversight and governance, which could impact its operational efficiency and stakeholder confidence.

Joshin Denki Co., Ltd. Announces Governance Transition

Joshin Denki Co., Ltd. announced its decision to transition to a company with an audit and supervisory committee, aiming to enhance corporate governance and streamline decision-making. This change is expected to increase the effectiveness of the Board of Directors by focusing on long-term strategies and improving transparency through oversight by independent outside directors.

Joshin Denki Co., Ltd. Announces Trade Name Change to Joshin Corporation

Joshin Denki Co., Ltd. has announced a planned change of its trade name to Joshin Corporation, effective April 1, 2026, pending shareholder approval. This change reflects the company’s strategy to adopt a more flexible organizational structure, expand its business, and increase corporate value by aligning with its management philosophy and vision.

Joshin Denki Co., Ltd. Announces Treasury Stock Acquisition

Joshin Denki Co., Ltd. announced a resolution by its Board of Directors to acquire up to 100,000 shares of its treasury stock to improve capital efficiency and adapt to changes in the business environment. This move, executed through the Tokyo Stock Exchange’s ToSTNeT-3 system, reflects the company’s strategic approach to capital management and could impact its market positioning and shareholder value.

Joshin Denki Achieves CDP A List Status for Climate Leadership

Joshin Denki Co., Ltd. has been recognized by CDP as an A List company for two consecutive years for its outstanding leadership in transparency and performance in climate change. This accolade highlights the company’s commitment to sustainable management and its strategies towards realizing carbon neutrality by 2050 while co-creating social values in harmony with the global environment. The company’s climate-change initiatives are part of its JT-2025 Management Plan and align with its long-term vision to support local communities and contribute to environmental sustainability.