KOMERI CO., LTD. (8218) AI Stock Analysis

• Market Cap: ¥180.09B
• Dividend Yield: 1.58%
• Average Volume (3M): 63.90K
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.49
• Revenue Growth: 1.69%
• EPS Growth: 3.90%
• Country: JP
• Employees: 4,110
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Home Improvement
• EPS (TTM): N/A
• Shares Outstanding: 53,809,170
• 10 Day Avg. Volume: 59,530
• 30 Day Avg. Volume: 63,896
• PEG Ratio: 9.57
• Price to Book (P/B): 0.57
• Price to Sales (P/S): 0.37
• P/FCF Ratio: 21.66
• 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: 67 Neutral
• Price Target: ¥3,982.00 ▲(28.87% Upside)
• Action: Reiterated Date: 10/30/25
• Date: Action: Reiterated 10/30/25

KOMERI CO., LTD. has a stable financial foundation with strong profitability and a solid balance sheet, contributing significantly to its score. The valuation is attractive, though technical analysis indicates mixed market sentiment. The absence of recent earnings call data and corporate events limits further insights.

Positive Factors

Balance Sheet Strength

A roughly 63% equity ratio and shrinking leverage provide durable financial flexibility: they reduce refinancing and insolvency risk, support capital expenditure or store investments without heavy debt, and preserve credit capacity to weather cyclical retail slowdowns.

Cash Generation Ability

Consistent operating cash conversion and a positive free cash flow to net income ratio indicate the business reliably generates internal funding. That supports dividends, reinvestment in stores and inventory, and reduces reliance on external financing over the medium term.

Margin Sustainability

Stable gross margins near 31% and a consistent net margin around 3.6% point to enduring category pricing power and cost control in retail operations. Sustainable margins underpin long-term cash flow generation and provide a buffer against input cost swings and seasonal variability.

Negative Factors

Revenue and Cash Flow Volatility

Observed swings and a recent slight dip in revenue reduce predictability for inventory, staffing and capex planning. Persistent volatility can erode bargaining power with suppliers, complicate multi-year investments and increase forecasting risk for management and investors.

Inconsistent Free Cash Flow Growth

Irregular free cash flow growth limits the company's ability to steadily fund expansions, raise dividends or pursue M&A without tapping capital markets. Over time this can constrain growth initiatives and make strategic moves more costly or dilutive.

Declining ROE and EBIT Pressure

A modest downward trend in ROE and a slip in EBIT margin suggest emerging pressure on profitability, potentially from competitive pricing or cost inflation. If sustained, lower returns can impair reinvestment capacity and reduce shareholder return over the medium term.

KOMERI CO., LTD. Business Overview & Revenue Model

Company Description

Komeri Co.,Ltd. operates a chain of home improvement stores in Japan. The company's stores offer hard merchandise, such as tools, hardware, and building materials; and green merchandise, including green plants and gardening/farming materials. As of March 31, 2022, it operated 1,214 stores comprising 84 Power, 9 PRO, 1,114 Hard and Green, and 7 Athena stores. The company was formerly known as Komeri Showten Co., Ltd. and changed its name to Komeri Co.,Ltd. in January 1973. Komeri Co.,Ltd. was founded in 1952 and is headquartered in Niigata, Japan.

How the Company Makes Money

KOMERI generates revenue primarily through the sale of home improvement and gardening products in its retail stores. The company's revenue model is anchored in retail sales, where it offers a variety of items such as tools, building materials, and home décor. Key revenue streams include direct sales from physical stores, which are complemented by online sales through its e-commerce platform. Additionally, KOMERI benefits from partnerships with various suppliers and manufacturers, allowing it to offer a competitive selection of products. Seasonal promotions and marketing strategies further enhance sales, particularly during peak home improvement seasons. The company may also engage in loyalty programs and customer incentives to drive repeat business, contributing to steady revenue growth.

KOMERI CO., LTD. Financial Statement Overview

Summary

KOMERI CO., LTD. shows stable financial performance with strong profitability margins and a solid balance sheet. However, volatility in revenue and cash flow growth presents potential challenges.

Income Statement

KOMERI CO., LTD. has demonstrated steady revenue growth with a slight dip in the most recent year, indicating some volatility. The gross profit and net profit margins are stable, with gross profit margin averaging around 31%, and net profit margin showing consistency at about 3.6%. The EBIT and EBITDA margins reflect decent profitability, though there was a slight decline in EBIT margin from the previous year.

Balance Sheet

The balance sheet of KOMERI CO., LTD. is solid with a favorable equity ratio of around 63%, indicating a strong equity base. The debt-to-equity ratio has improved over the years, showing reduced leverage, which mitigates financial risk. Return on equity is consistent, though slightly declining, which may be a concern for future profitability.

Cash Flow

Cash flow analysis shows a robust operating cash flow relative to net income, indicating good cash conversion. However, the free cash flow growth rate is inconsistent, with some volatility observed in recent years. The free cash flow to net income ratio is positive, suggesting healthy cash generation relative to profits.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	380.99B	379.19B	370.75B	379.40B	376.09B	385.70B
Gross Profit	118.39B	117.53B	127.21B	132.06B	131.86B	136.92B
EBITDA	34.21B	33.39B	32.84B	37.36B	38.21B	41.33B
Net Income	14.04B	13.72B	13.71B	17.10B	17.90B	20.40B
Balance Sheet
Total Assets	389.48B	386.66B	372.85B	361.39B	354.79B	348.16B
Cash, Cash Equivalents and Short-Term Investments	16.70B	16.34B	16.75B	14.11B	19.42B	17.30B
Total Debt	33.03B	35.32B	34.25B	31.94B	39.80B	45.47B
Total Liabilities	137.45B	140.34B	136.60B	134.04B	140.95B	147.60B
Stockholders Equity	252.03B	246.32B	236.25B	227.35B	213.84B	200.56B
Cash Flow
Free Cash Flow	0.00	6.49B	6.03B	8.60B	15.18B	22.67B
Operating Cash Flow	0.00	23.12B	21.36B	19.87B	25.86B	36.55B
Investing Cash Flow	0.00	-18.20B	-15.43B	-11.66B	-11.26B	-14.23B
Financing Cash Flow	0.00	-5.25B	-3.29B	-13.50B	-12.48B	-14.57B

KOMERI CO., LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3090.00
• 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:8218, the sentiment is Positive. The current price of 3090 is below the 20-day moving average (MA) of 3519.25, below the 50-day MA of 3484.70, and below the 200-day MA of 3218.29, indicating a bullish trend. The MACD of 60.33 indicates Negative momentum. The RSI at 65.78 is Neutral, neither overbought nor oversold. The STOCH value of 84.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8218.

KOMERI CO., LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3050	73 Outperform	¥233.94B	13.43	―	2.83%	1.49%	-21.76%
3191	68 Neutral	¥131.77B	13.49	―	3.43%	0.73%	-9.78%
8218	67 Neutral	¥180.09B	12.14	―	1.58%	1.69%	3.90%
7516	67 Neutral	¥135.90B	9.18	―	2.85%	3.83%	7.24%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3199	58 Neutral	¥30.04B	14.65	―	1.66%	1.84%	-14.00%
2790	55 Neutral	¥66.27B	102.02	0.41%	2.78%	-6.21%	-29.75%