Maxvalu Tokai Co., Ltd. (8198) AI Stock Analysis

• Market Cap: ¥118.54B
• Dividend Yield: 1.92%
• Average Volume (3M): 10.08K
• Price to Earnings (P/E): 10.9
• Beta (1Y): 0.19
• Revenue Growth: 2.30%
• EPS Growth: 26.52%
• Country: JP
• Employees: 2,673
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Grocery Stores
• EPS (TTM): 53.73
• Shares Outstanding: 31,973,848
• 10 Day Avg. Volume: 14,170
• 30 Day Avg. Volume: 10,080
• PEG Ratio: 0.79
• Price to Book (P/B): 1.07
• Price to Sales (P/S): 0.25
• P/FCF Ratio: -137.27
• 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: 78 Outperform
• Price Target: ¥4,290.00 ▲(15.63% Upside)
• Action: Reiterated Date: 11/14/25
• Date: Action: Reiterated 11/14/25

Maxvalu Tokai Co., Ltd. demonstrates strong financial performance with robust revenue growth and profitability, supported by a solid balance sheet. The stock's valuation is attractive, with a low P/E ratio and a reasonable dividend yield. Technical indicators suggest mild bullish momentum, although the stock is not currently overbought. The absence of recent earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Strong Balance Sheet

Extremely low leverage and a high equity ratio provide durable financial flexibility: supports investment in store upgrades, inventory management, and M&A without raising debt. A mid-teens ROE (10.61%) shows the company can generate returns on equity while preserving balance sheet strength.

Solid Gross and Operating Margins

Healthy gross margin and positive EBIT/EBITDA margins reflect effective procurement and store-level cost control intrinsic to supermarket economics. These operating efficiencies create a durable buffer to commodity price swings and support reinvestment into private brands and prepared foods that sustain margins over time.

Stable Operating Cash Generation

Operating cash generation roughly matches reported earnings, indicating real cash conversion of profits. This steadiness underpins working capital needs, funds routine capex, and mitigates short-term liquidity shocks, enabling steady store operations and gradual strategic investments even as free cash flow fluctuates.

Negative Factors

Declining Free Cash Flow

A shift from positive to slightly negative free cash flow reduces internal funding for remodels, logistics, and technology that drive long-term competitiveness. Persistent FCF weakness can force trade-offs between capex, dividends, or debt-funded investments, constraining strategic flexibility over months to years.

Thin Net Profit Margin

A low net margin leaves limited room to absorb higher input costs, wage inflation, or rent increases without hurting earnings. In a low-margin grocery model, sustained margin pressure can materially compress returns and limit cash available for reinvestment or margin-expanding initiatives over the medium term.

Modest Revenue Growth

Single-digit top-line growth implies limited secular expansion and reliance on incremental same-store improvements. Slower revenue momentum makes it harder to scale SG&A leverage and improve margins; absent structural growth initiatives, modest growth can cap long-term earnings potential relative to faster-growing peers.

Maxvalu Tokai Co., Ltd. Business Overview & Revenue Model

Company Description

Maxvalu Tokai Co.,Ltd. manages a chain of supermarkets. Its supermarkets offer food items. The company also operates Ion drip, a self-service drip coffee store; and online supermarket. The company was formerly known as K.K. Wada Shoji and changed its name to Maxvalu Tokai Co.,Ltd. in 2002. Maxvalu Tokai Co.,Ltd. was founded in 1930 and is headquartered in Sunto, Japan.

How the Company Makes Money

Maxvalu Tokai generates revenue primarily through its supermarket operations, where it sells a variety of products including food, beverages, and household goods. The company benefits from economies of scale and a strong supply chain, allowing it to offer competitive pricing. Revenue streams include direct sales from in-store purchases, online grocery orders, and potentially private label products that yield higher margins. Additionally, partnerships with local suppliers and manufacturers help ensure a steady supply of fresh produce and specialty items, enhancing customer loyalty and repeat business. The company's affiliation with the Aeon Group also provides access to shared resources and marketing initiatives, further bolstering its financial performance.

Maxvalu Tokai Co., Ltd. Financial Statement Overview

Summary

Maxvalu Tokai Co., Ltd. presents a robust financial profile with strong revenue growth and profitability, supported by a stable balance sheet with low leverage. Despite some challenges in free cash flow sustainability, the company's operational efficiency and solid equity base provide a strong foundation for future growth. Continued focus on improving net margins and free cash flow will enhance financial performance further.

Income Statement

Maxvalu Tokai Co., Ltd. has demonstrated a solid performance in recent years. The company achieved a revenue growth rate of 2.91% from 2024 to 2025, indicating a stable upward trajectory. The gross profit margin for 2025 is 28.82%, and the net profit margin is 2.49%, reflecting decent profitability. EBIT and EBITDA margins for 2025 stand at 3.72% and 4.92%, respectively, showing efficient operational management. Overall, the income statement suggests robust growth and profitability, though there is room for improvement in net margins.

Balance Sheet

The balance sheet of Maxvalu Tokai Co., Ltd. is strong, with a debt-to-equity ratio of 0.02, indicating low leverage and financial stability. The return on equity (ROE) for 2025 is 10.61%, highlighting effective use of equity to generate profits. The equity ratio stands at 65.31%, showcasing a solid equity base against total assets. These metrics illustrate a solid financial position with low risk from debt and strong equity support.

Cash Flow

Cash flow analysis for Maxvalu Tokai Co., Ltd. exhibits a mixed picture. The free cash flow growth rate from 2024 to 2025 is negative, showing a decline from positive free cash flow to a slightly negative figure. The operating cash flow to net income ratio is 1.04, indicating good cash generation relative to net income. However, the free cash flow to net income ratio is negative, suggesting challenges in maintaining positive free cash flow. Overall, while operating cash generation is stable, the decline in free cash flow warrants attention.

Breakdown	TTM	Feb 2025	Feb 2024	Feb 2023	Feb 2022	Feb 2021
Income Statement
Total Revenue	380.97B	377.42B	366.74B	351.11B	354.91B	355.90B
Gross Profit	105.33B	108.79B	106.45B	100.30B	101.80B	101.98B
EBITDA	17.30B	18.59B	17.42B	14.60B	15.18B	14.18B
Net Income	9.55B	9.39B	8.31B	6.17B	7.59B	5.30B
Balance Sheet
Total Assets	146.49B	135.42B	133.25B	119.39B	117.18B	130.81B
Cash, Cash Equivalents and Short-Term Investments	42.30B	37.03B	40.36B	30.71B	29.43B	19.60B
Total Debt	4.67B	1.74B	1.64B	1.87B	2.03B	2.17B
Total Liabilities	58.36B	46.97B	52.65B	45.62B	47.76B	56.53B
Stockholders Equity	88.12B	88.45B	80.59B	73.77B	69.39B	74.24B
Cash Flow
Free Cash Flow	0.00	-689.00M	11.88B	3.42B	997.00M	13.18B
Operating Cash Flow	0.00	9.76B	18.23B	10.50B	6.36B	18.85B
Investing Cash Flow	0.00	-10.87B	-6.49B	-7.15B	-5.41B	-5.93B
Financing Cash Flow	0.00	-2.23B	-2.12B	-2.19B	-12.87B	-2.31B

Maxvalu Tokai Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3710.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8198, the sentiment is Neutral. The current price of 3710 is below the 20-day moving average (MA) of 3769.96, above the 50-day MA of 3688.78, and above the 200-day MA of 3375.07, indicating a neutral trend. The MACD of 7.63 indicates Positive momentum. The RSI at 49.09 is Neutral, neither overbought nor oversold. The STOCH value of 35.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:8198.

Maxvalu Tokai Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8198	78 Outperform	¥118.54B	10.89	―	1.92%	2.30%	26.52%
9974	76 Outperform	¥165.89B	13.58	―	1.64%	10.13%	23.77%
8167	74 Outperform	¥59.76B	11.45	―	3.31%	4.92%	19.73%
2742	72 Outperform	¥100.14B	11.22	―	1.47%	7.75%	-1.68%
8194	72 Outperform	¥229.53B	13.04	―	2.43%	4.48%	13.17%
9823	71 Outperform	¥95.97B	16.05	―	1.34%	20.50%	10.77%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%