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

• Market Cap: ¥103.42B
• Dividend Yield: 2.14%
• Average Volume (3M): 6.81K
• Price to Earnings (P/E): 10.9
• Beta (1Y): 0.23
• Revenue Growth: 3.09%
• EPS Growth: 10.80%
• Country: JP
• Employees: 2,673
• Sector: Consumer Defensive
• Sector Strength: 41
• Industry: Grocery Stores
• EPS (TTM): 63.03
• Shares Outstanding: 31,973,848
• 10 Day Avg. Volume: 5,590
• 30 Day Avg. Volume: 6,806
• 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: ¥3,535.00
• Price Target Upside: 8.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: ¥3,535.00 ▲(8.44% Upside)

Maxvalu Tokai Co., Ltd. demonstrates strong financial performance with a stable balance sheet and profitability. While technical analysis shows mixed signals, the company's valuation is appealing due to a low P/E ratio and reasonable dividend yield. The absence of earnings call and notable corporate events data does not impact the score.

Positive Factors

Strong Market Position

Maxvalu Tokai's strong market position in the Tokai region, supported by its affiliation with the AEON Group, provides a competitive edge and enhances its ability to attract and retain customers, ensuring stable revenue streams.

Stable Balance Sheet

A stable balance sheet with low leverage and a high equity ratio of 65.31% indicates financial stability and low risk, providing a solid foundation for future growth and resilience against economic fluctuations.

Revenue Growth

Consistent revenue growth reflects the company's ability to expand its market reach and maintain customer loyalty, supporting long-term business sustainability and profitability.

Negative Factors

Free Cash Flow Challenges

The decline in free cash flow suggests potential challenges in maintaining liquidity, which could impact the company's ability to invest in growth opportunities and manage unexpected expenses.

Net Margin Improvement Needed

While profitability is decent, there is room for improvement in net margins, which could enhance overall financial performance and shareholder value if addressed effectively.

Free Cash Flow to Net Income Ratio

A negative free cash flow to net income ratio indicates potential issues in converting income into cash, which may affect the company's ability to fund operations and growth initiatives sustainably.

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

Company Description

Maxvalu Tokai Co., Ltd. is a leading retail company based in Japan, specializing in the operation of supermarkets. The company primarily engages in the sale of food and daily necessities to consumers. As part of the AEON Group, Maxvalu Tokai enjoys a strong presence in the Tokai region, offering a wide range of products including fresh produce, meat, seafood, dairy products, and household goods. The company is committed to providing high-quality products at competitive prices, catering to the needs of local communities.

How the Company Makes Money

Maxvalu Tokai Co., Ltd. generates revenue through the retail sale of consumer goods, primarily focusing on the supermarket sector. The company earns money by purchasing products from suppliers and selling them at a markup to customers. Key revenue streams include sales from fresh produce, packaged foods, beverages, and household items. Additionally, Maxvalu Tokai benefits from its affiliation with the AEON Group, which provides economies of scale, enhanced purchasing power, and access to a broad supply chain network. The company's earnings are also influenced by its ability to attract and retain customers through loyalty programs, promotional activities, and a strong brand reputation in the regions it operates.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	377.42B	377.42B	366.74B	351.11B	354.91B	355.90B
Gross Profit	105.01B	108.79B	106.45B	100.30B	101.80B	101.98B
EBITDA	17.09B	18.59B	17.42B	14.60B	15.18B	14.18B
Net Income	9.39B	9.39B	8.31B	6.17B	7.59B	5.30B
Balance Sheet
Total Assets	135.42B	135.42B	133.25B	119.39B	117.18B	130.81B
Cash, Cash Equivalents and Short-Term Investments	37.03B	37.03B	40.36B	30.71B	29.43B	19.60B
Total Debt	1.74B	1.74B	1.64B	1.87B	2.03B	2.17B
Total Liabilities	46.97B	46.97B	52.65B	45.62B	47.76B	56.53B
Stockholders Equity	88.45B	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: Positive
• Last Price: 3260.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8198, the sentiment is Positive. The current price of 3260 is below the 20-day moving average (MA) of 3261.75, above the 50-day MA of 3212.70, and above the 200-day MA of 3133.29, indicating a bullish trend. The MACD of 16.54 indicates Positive momentum. The RSI at 52.50 is Neutral, neither overbought nor oversold. The STOCH value of 17.95 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
9823	82 Outperform	¥74.89B	14.13		1.35%	17.13%	-6.33%
8194	79 Outperform	¥220.54B	12.28		2.19%	4.90%	12.63%
9974	76 Outperform	¥157.96B	12.64		1.58%	9.83%	21.58%
8198	73 Outperform	¥103.42B	10.85		2.14%	3.09%	10.80%
2742	73 Outperform	¥108.09B	12.01		1.19%	7.94%	0.06%
8167	71 Outperform	¥63.22B	11.53		3.02%	5.39%	14.57%
Sector *	62 Neutral	$20.56B	14.79	-3.30%	3.19%	1.94%	-8.41%