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

• Market Cap: ¥71.56B
• Dividend Yield: 5.6%
• Average Volume (3M): 82.24K
• Price to Earnings (P/E): 22.3
• Beta (1Y): 0.37
• Revenue Growth: 5.91%
• EPS Growth: -21.23%
• Country: JP
• Employees: 4,245
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Department Stores
• EPS (TTM): 53.78
• Shares Outstanding: 28,000,000
• 10 Day Avg. Volume: 50,600
• 30 Day Avg. Volume: 82,240
• PEG Ratio: -0.55
• Price to Book (P/B): 0.53
• Price to Sales (P/S): 0.14
• P/FCF Ratio: 5.51
• 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): 18,106.67
• Revenue Forecast (FY): ¥63.24T

• Rating: 70 Outperform
• Price Target: ¥2,708.00 ▲(1.08% Upside)

The stock's overall score is driven by strong technical indicators and a solid dividend yield, despite financial performance challenges. The bullish momentum is a significant positive, but overbought signals warrant caution. The stable balance sheet and attractive dividend yield provide a buffer against operational inefficiencies.

Positive Factors

Stable Balance Sheet

A stable balance sheet with a healthy equity ratio suggests the company has a solid asset base relative to liabilities, providing financial stability and resilience against market fluctuations.

Diversified Revenue Model

A diversified revenue model with multiple streams, including services and warranties, enhances financial stability and reduces dependency on any single income source, supporting long-term growth.

Partnerships with Manufacturers

Strategic partnerships with major manufacturers enable Joshin Denki to offer exclusive products, enhancing competitive advantage and driving sales, which supports sustainable revenue growth.

Negative Factors

Declining Revenue

A declining revenue trend indicates potential challenges in maintaining market share and competitiveness, which could impact long-term growth and profitability if not addressed.

Cash Flow Volatility

Volatile cash flow can hinder the company's ability to invest in growth opportunities and manage operations efficiently, posing risks to financial stability and operational flexibility.

Declining Profit Margins

Decreasing profit margins suggest rising costs relative to revenue, which can pressure profitability and necessitate cost management improvements to sustain long-term financial health.

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

Company Description

Joshin Denki Co., Ltd. engages in the sale, delivery, installation, maintenance, and repair of home appliances, information and communication equipment, entertainment products, and housing equipment and related products. It operates through a network of 220 stores and 24 service centers in Japan. The company was formerly known as Joshin Denki Sangyo Co., Ltd. and changed its name to Joshin Denki Co., Ltd. in April 1958. Joshin Denki Co., Ltd. was founded in 1948 and is headquartered in Osaka, Japan.

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	421.73B	403.26B	403.69B	408.46B	409.51B	449.12B
Gross Profit	103.88B	102.21B	105.12B	103.80B	98.43B	112.15B
EBITDA	10.87B	11.79B	13.68B	13.36B	15.25B	21.88B
Net Income	3.10B	3.41B	4.89B	4.97B	6.39B	8.87B
Balance Sheet
Total Assets	229.66B	231.50B	232.78B	223.22B	217.42B	210.32B
Cash, Cash Equivalents and Short-Term Investments	4.48B	7.71B	3.89B	2.77B	2.36B	8.77B
Total Debt	38.09B	47.15B	53.62B	46.62B	41.17B	36.88B
Total Liabilities	125.50B	126.83B	128.16B	122.52B	118.78B	111.02B
Stockholders Equity	104.17B	104.67B	104.61B	100.70B	98.64B	99.30B
Cash Flow
Free Cash Flow	9.33B	10.06B	-4.27B	-2.17B	-7.34B	19.47B
Operating Cash Flow	14.74B	16.37B	2.28B	7.12B	1.44B	25.84B
Investing Cash Flow	-2.13B	-1.81B	-4.81B	-9.07B	-9.57B	-6.12B
Financing Cash Flow	-11.78B	-10.74B	3.65B	2.36B	1.87B	-14.43B

Joshin Denki Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2679.00
• 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 2679 is above the 20-day moving average (MA) of 2648.55, above the 50-day MA of 2643.66, and above the 200-day MA of 2391.45, indicating a bullish trend. The MACD of 11.13 indicates Negative momentum. The RSI at 56.04 is Neutral, neither overbought nor oversold. The STOCH value of 85.19 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
8255	73 Outperform	¥106.44B	11.30	―	2.53%	5.57%	27.41%
8173	70 Outperform	¥71.56B	22.28	―	5.60%	5.91%	-21.23%
8237	66 Neutral	¥95.56B	235.36	―	0.83%	1.38%	-87.76%
8244	65 Neutral	¥73.85B	12.79	―	1.09%	7.55%	89.45%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8278	61 Neutral	¥181.60B	46.10	―	1.44%	1.48%	-33.32%
8217	45 Neutral	¥33.82B	-15.83	―	3.11%	1.46%	-436.55%

Joshin Denki Co., Ltd. Corporate Events

Joshin Denki Reports Increased Sales but Decline in Profitability for H1 2025

Joshin Denki Co., Ltd. reported its consolidated financial results for the six months ended September 30, 2025, showing a 9.6% increase in net sales compared to the previous year. Despite the rise in sales, the profit attributable to owners decreased by 13.7%, reflecting challenges in maintaining profitability. The company also announced a dividend payment plan for the fiscal year ending March 31, 2026, with no revisions to the previously announced forecast.

Joshin Denki Announces Organizational Restructuring and Personnel Changes

Joshin Denki Co., Ltd. announced an organizational restructuring and personnel changes effective October 1, 2025, to enhance its product development capabilities and sales strategy. The establishment of a new Product Development Office within the Merchandising Division and executive personnel changes are expected to strengthen the company’s operations and market positioning.

Joshin Denki Co., Ltd. Announces Change in Dividend Policy

Joshin Denki Co., Ltd. has announced a change in its dividend policy to include interim dividends, aiming to enhance shareholder returns and strengthen its management foundation. The revised dividend forecast for the fiscal year ending March 31, 2026, includes two payments of 50 yen each, maintaining a total annual dividend of 100 yen, reflecting a strategic shift to distribute profits more frequently.