Okuwa Co., Ltd. (8217) AI Stock Analysis

• Market Cap: ¥34.31B
• Dividend Yield: 3.11%
• Average Volume (3M): 83.25K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.12
• Revenue Growth: 1.46%
• EPS Growth: -436.55%
• Country: JP
• Employees: 2,112
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Department Stores
• EPS (TTM): -1.39
• Shares Outstanding: 41,937,298
• 10 Day Avg. Volume: 61,100
• 30 Day Avg. Volume: 83,250
• PEG Ratio: 0.04
• Price to Book (P/B): 0.43
• Price to Sales (P/S): 0.13
• P/FCF Ratio: -14.14
• 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: 45 Neutral
• Price Target: ¥855.00 ▲(1.18% Upside)

Okuwa Co., Ltd. is currently facing significant financial and operational challenges, reflected in its negative profitability and weak technical indicators. The company's stable balance sheet and moderate dividend yield provide some support, but the overall outlook remains cautious.

Positive Factors

Stable Cost Management

Stable cost management allows Okuwa to maintain its gross profit margin, which is crucial for sustaining operations despite profitability challenges.

Conservative Leverage

A low debt-to-equity ratio indicates conservative financial management, providing Okuwa with more flexibility to manage its financial obligations.

Diverse Revenue Streams

Okuwa's diverse product offerings and partnerships with suppliers support revenue stability, helping to mitigate risks associated with market fluctuations.

Negative Factors

Negative Profitability

Negative profitability impacts Okuwa's ability to reinvest in business growth and may hinder its competitive position in the long term.

Cash Flow Challenges

Significant cash flow challenges limit Okuwa's ability to fund operations and investments, potentially affecting its long-term sustainability.

Operational Inefficiencies

Operational inefficiencies reduce Okuwa's profitability and competitiveness, necessitating strategic improvements to enhance performance.

Okuwa Co., Ltd. Business Overview & Revenue Model

Company Description

Okuwa Co., Ltd. operates supermarkets in Japan. Its stores offer groceries, liquor, rice, household products, upholstery, DIY, leisure goods, sports products, household appliances, cosmetics, pharmaceuticals, and clothing products. As of March 24, 2022, it operated 147 stores in Wakayama, Osaka, Nara, Mie, Hyogo, Aichi, Gifu, and Shizuoka. The company also operates in online shopping business. Okuwa Co., Ltd. was founded in 1938 and is headquartered in Wakayama, Japan.

How the Company Makes Money

Okuwa Co., Ltd. generates revenue through its supermarket operations, which include sales of food and non-food items. The company's revenue model is primarily driven by direct sales to consumers at its retail locations. Key revenue streams include the sale of fresh produce, packaged goods, and household items. Additionally, Okuwa may benefit from partnerships with local suppliers and manufacturers, allowing them to offer a diverse product range while potentially securing favorable pricing. Seasonal promotions and loyalty programs also contribute to increased customer traffic and repeat business, further enhancing the company's earnings.

Okuwa Co., Ltd. Financial Statement Overview

Summary

Okuwa Co., Ltd. is facing financial difficulties with negative profitability and cash flow indicators. Despite stable cost management and low leverage, the company struggles with operational inefficiencies and liquidity issues.

Income Statement

Okuwa Co., Ltd. shows a modest revenue growth rate of 2.17% in the latest year, but the net profit margin has turned negative at -0.95%, indicating profitability challenges. The gross profit margin remains stable at around 31%, suggesting consistent cost management. However, declining EBIT and EBITDA margins reflect operational inefficiencies.

Balance Sheet

The company's debt-to-equity ratio is relatively low at 0.30, indicating a conservative leverage approach. However, the return on equity is negative at -3.21%, highlighting issues with generating returns for shareholders. The equity ratio stands at a healthy level, suggesting a stable financial structure.

Cash Flow

Okuwa Co., Ltd. faces significant cash flow challenges, with a negative free cash flow growth rate of -165.96% and a negative free cash flow to net income ratio. The operating cash flow to net income ratio is low, indicating potential liquidity issues and insufficient cash generation from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	315.90B	250.15B	247.38B	246.88B	266.53B	279.22B
Gross Profit	98.71B	78.01B	78.12B	78.56B	81.74B	85.51B
EBITDA	6.55B	8.16B	8.71B	7.95B	9.57B	11.55B
Net Income	-2.08B	-2.38B	1.00B	928.00M	1.52B	3.79B
Balance Sheet
Total Assets	130.43B	128.63B	132.50B	132.53B	133.51B	137.86B
Cash, Cash Equivalents and Short-Term Investments	10.06B	11.52B	16.55B	15.75B	17.03B	18.59B
Total Debt	19.60B	21.91B	21.38B	21.15B	20.52B	22.46B
Total Liabilities	56.65B	54.10B	53.82B	54.60B	55.34B	60.12B
Stockholders Equity	73.47B	74.22B	78.39B	77.66B	77.92B	77.53B
Cash Flow
Free Cash Flow	0.00	-2.28B	1.95B	-695.00M	438.00M	7.38B
Operating Cash Flow	0.00	6.60B	9.69B	5.93B	8.59B	13.77B
Investing Cash Flow	0.00	-8.74B	-7.94B	-6.68B	-7.02B	-5.03B
Financing Cash Flow	0.00	-2.88B	-954.00M	-535.00M	-3.14B	-6.51B

Okuwa Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 845.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8217, the sentiment is Neutral. The current price of 845 is above the 20-day moving average (MA) of 838.95, above the 50-day MA of 837.16, and below the 200-day MA of 894.01, indicating a neutral trend. The MACD of 2.66 indicates Negative momentum. The RSI at 53.44 is Neutral, neither overbought nor oversold. The STOCH value of 44.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:8217.

Okuwa Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8255	73 Outperform	¥108.40B	11.50	―	2.53%	5.57%	27.41%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8273	61 Neutral	¥215.86B	18.12	―	3.01%	18.89%	-34.43%
8278	61 Neutral	¥178.66B	46.86	―	1.44%	1.48%	-33.32%
2653	58 Neutral	¥102.07B	13.36	―	1.54%	4.07%	47.70%
3222	53 Neutral	¥174.08B	87.68	―	1.77%	30.67%	―
8217	45 Neutral	¥34.31B	-17.00	―	3.11%	1.46%	-436.55%

Okuwa Co., Ltd. Corporate Events

Okuwa Revamps Shareholder Benefits to Reward Long-Term, Higher-Volume Investors

Okuwa Co., Ltd. has resolved to overhaul its shareholder benefit program, introducing a structure that rewards longer-term and higher-volume shareholders in a bid to enhance the attractiveness of its stock and promote stable, long-term ownership. Effective for shareholders of record from February 20, 2027, the company will introduce a minimum one-year holding requirement to receive benefits, split the previous 100–999-share bracket into 100–499 and 500–999 tiers, and add enhanced benefit levels for shareholders who have held at least 100 shares for one to three years, and more significantly for those holding at least 500 shares for three years or longer, with gift certificates and QUO card values rising up to 20,000 yen for large, long-term holders. The move underlines management’s priority on shareholder returns, complements its dividend policy, and is designed to broaden and stabilize its individual shareholder base in its core regions and beyond.

The most recent analyst rating on (JP:8217) stock is a Hold with a Yen855.00 price target. To see the full list of analyst forecasts on Okuwa Co., Ltd. stock, see the JP:8217 Stock Forecast page.

Okuwa Posts Earnings Turnaround on Modest Sales Growth in Third Quarter

For the third quarter of the fiscal year ending February 2026, Okuwa Co., Ltd. reported a modest 1.5% year-on-year increase in operating revenues to ¥186.4 billion, but delivered a sharp recovery in profitability, with operating profit surging to ¥625 million and ordinary profit rising to ¥716 million. Profit attributable to owners of parent swung to a positive ¥189 million from a loss a year earlier, and basic earnings per share improved to ¥4.61, underscoring a notable earnings turnaround despite only slight top-line growth. Total assets edged up to ¥129.96 billion, while net assets declined to ¥72.97 billion and the capital adequacy ratio eased to 55.9%, indicating a stronger income statement but a mild deterioration in equity ratios that stakeholders will watch as the company continues its efforts to restore profitability.

The most recent analyst rating on (JP:8217) stock is a Hold with a Yen855.00 price target. To see the full list of analyst forecasts on Okuwa Co., Ltd. stock, see the JP:8217 Stock Forecast page.

Okuwa Co., Ltd. Announces Executive and Management Changes

Okuwa Co., Ltd. has announced changes in its executive and management personnel, effective January 1, 2026. Kazuhiko Suita will take on the role of Executive Officer, General Manager of Development Division, and General Manager of M&A Promotion Office, while Mitsuhito Kozaiwa will become the General Manager of Administration Headquarters.

The most recent analyst rating on (JP:8217) stock is a Hold with a Yen855.00 price target. To see the full list of analyst forecasts on Okuwa Co., Ltd. stock, see the JP:8217 Stock Forecast page.