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

• Market Cap: ¥171.25B
• Dividend Yield: 1.58%
• Average Volume (3M): 63.90K
• Price to Earnings (P/E): 11.3
• Beta (1Y): 0.54
• 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: ¥3,868.00 ▲(25.18% 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

Strong Balance Sheet

A roughly 63% equity ratio and reduced leverage provide durable financial flexibility. This lowers refinancing and solvency risk, lets management fund store maintenance and measured expansion internally, and helps the company weather retail cycles without urgent external financing.

Healthy Cash Generation

Strong operating cash flow relative to net income and a positive free cash flow to net income ratio indicate reliable internal cash conversion. That supports dividends, maintenance capex, and inventory funding, reducing reliance on external capital across cycles.

Stable Gross and Net Margins

A sustained gross margin near 31% with a consistent net margin provides a structural profitability cushion for a retail business. Stable margins enable reinvestment in merchandising, store operations and services, helping preserve competitiveness through seasonal demand shifts.

Negative Factors

Revenue and Cash Flow Volatility

Intermittent revenue and free cash flow swings reduce forecasting visibility and complicate inventory, staffing and capex planning. Over a multi‑quarter horizon this can force conservative spending, delay strategic investments, and constrain margin improvement initiatives.

Slightly Declining ROE

A modest downward trend in ROE suggests diminishing returns on deployed capital. If persistent, this can signal operational inefficiencies or slower profit conversion, pressuring management to improve asset turnover or margins to meet shareholder return expectations over time.

Relatively Low Net Margin

A net margin near 3.6% leaves limited buffer against input cost inflation or competitive price pressure. Structurally thin profitability constrains the company's ability to fund growth initiatives, absorb shocks, or engage in aggressive promotions without eroding returns.

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 primarily makes money by selling merchandise through its retail stores. Its main revenue stream is product sales across categories such as home improvement/DIY materials, tools and hardware, building and repair supplies, gardening and agricultural goods, and daily necessities; revenue is recognized at the point of sale in stores. The company’s earnings are driven by retail gross margin (the spread between purchase cost and selling price), sales volume, and category mix (e.g., seasonal gardening/agriculture demand). Additional monetization can come from related in-store services associated with home improvement and home/garden needs, but specific service lines, partnership arrangements, or segment-level revenue breakdowns are null.

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	39.58B	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	390.20B	374.63B	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	31.23B	35.32B	34.25B	31.94B	39.80B	45.47B
Total Liabilities	137.45B	143.88B	138.37B	134.04B	140.94B	147.59B
Stockholders Equity	252.03B	246.32B	236.25B	227.35B	213.84B	200.56B
Cash Flow
Free Cash Flow	0.00	6.49B	6.88B	10.01B	16.43B	24.11B
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: Neutral
• Last Price: 3090.00
• 50DMA: Negative
• 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 Neutral. The current price of 3090 is below the 20-day moving average (MA) of 3518.25, below the 50-day MA of 3489.90, and below the 200-day MA of 3259.62, indicating a neutral trend. The MACD of -5.56 indicates Negative momentum. The RSI at 49.34 is Neutral, neither overbought nor oversold. The STOCH value of 88.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥218.71B	16.88	―	2.83%	1.49%	-21.76%
3191	68 Neutral	¥123.83B	8.26	―	3.43%	0.73%	-9.78%
8218	67 Neutral	¥171.25B	11.31	―	1.58%	1.69%	3.90%
7516	67 Neutral	¥128.67B	12.62	―	2.85%	3.83%	7.24%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
2790	55 Neutral	¥63.15B	19.77	0.36%	2.78%	-6.21%	-29.75%
9903	55 Neutral	¥5.98B	2,084.89	―	2.33%	-1.54%	―