H2O Retailing Corporation (8242) AI Stock Analysis

• Market Cap: €234.57B
• Dividend Yield: 2.25%
• Average Volume (3M): 565.71K
• Price to Earnings (P/E): 6.5
• Beta (1Y): 0.91
• Revenue Growth: 3.71%
• EPS Growth: 62.31%
• Country: JP
• Employees: 8,196
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Department Stores
• EPS (TTM): -25.05
• Shares Outstanding: 125,201,390
• 10 Day Avg. Volume: 520,640
• 30 Day Avg. Volume: 565,710
• PEG Ratio: 0.16
• Price to Book (P/B): 0.72
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -429.56
• 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

• Rating: 70 Neutral
• Price Target: ¥2,150.00 ▲(11.05%Upside)

The stock's valuation is a strong point, with a low P/E ratio and decent dividend yield, suggesting it may be a good value investment. Financial performance is positive but impacted by high debt and cash flow volatility. Technical indicators point to a bearish trend, which tempers the overall score.

H2O Retailing Corporation Business Overview & Revenue Model

Company Description

H2O Retailing Corporation (8242) is a prominent Japanese company engaged in the retail industry. It operates a wide range of businesses including department stores, supermarkets, and specialty stores, primarily under the Hankyu and Hanshin brand names. The company is well-known for its diverse product offerings which include clothing, food, household goods, and cosmetics. H2O Retailing Corporation is committed to providing high-quality products and exceptional customer service, catering to a broad demographic across Japan.

How the Company Makes Money

H2O Retailing Corporation generates its revenue primarily through the sale of goods in its retail outlets, including department stores and supermarkets. The company earns income from a variety of sources: direct sales of products such as apparel, groceries, and consumer goods, and through specialty stores that offer niche products. Additionally, H2O Retailing Corporation benefits from strategic partnerships and collaborations that enhance its product offerings and customer reach. The company also engages in real estate operations, leasing commercial spaces within its retail properties to other businesses, which contributes to its revenue streams. By leveraging its established brand reputation and extensive network of retail locations, H2O Retailing Corporation continues to maintain a strong financial performance.

H2O Retailing Corporation Financial Statement Overview

Summary

H2O Retailing Corporation shows positive revenue growth and profitability. The balance sheet is stable, but high debt poses risks. Cash flow improvements are promising, though historical volatility needs attention.

Income Statement

The income statement shows a positive trend in revenue growth with a significant increase from 2024 to 2025. Gross profit margin and net profit margin have improved, indicating enhanced profitability. However, EBIT and EBITDA margins show some volatility over the years, suggesting room for operational efficiency improvements.

Balance Sheet

The balance sheet indicates a stable equity position with a healthy debt-to-equity ratio. However, the debt levels remain high, which could pose potential risks. The equity ratio is solid, reflecting a good balance between liabilities and equity. Return on equity has improved, which is a positive indicator of shareholder value creation.

Cash Flow

Cash flow analysis reveals a positive free cash flow growth, suggesting improved cash generation capabilities. The operating cash flow to net income ratio is strong, indicating good cash flow management. However, historical volatility in free cash flow highlights potential risks in sustaining cash flow stability.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
676.82B	681.76B	657.40B	628.09B	518.45B	739.20B
	Gross Profit
303.77B	307.36B	287.61B	265.45B	218.68B	211.90B
	EBIT
32.76B	34.17B	25.50B	11.39B	740.00M	-4.44B
	EBITDA
41.41B	76.69B	43.65B	31.05B	19.15B	-4.49B
	Net Income Common Stockholders
41.58B	34.84B	21.91B	16.38B	9.87B	-24.79B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
62.11B	55.59B	68.42B	58.67B	34.72B	49.99B
	Total Assets
739.99B	730.50B	709.21B	686.42B	654.56B	625.95B
	Total Debt
164.38B	164.18B	174.13B	190.39B	188.90B	202.34B
	Net Debt
102.27B	108.59B	105.71B	131.72B	154.17B	152.35B
	Total Liabilities
433.72B	417.07B	416.06B	413.61B	393.62B	396.67B
	Stockholders Equity
295.29B	300.72B	269.14B	250.02B	238.01B	229.27B
Cash Flow		Free Cash Flow
0.00	26.05B	18.75B	-418.00M	-23.71B	-5.28B
	Operating Cash Flow
0.00	46.27B	49.33B	30.30B	6.46B	12.76B
	Investing Cash Flow
0.00	-13.30B	-17.75B	5.78B	-5.20B	-20.76B
	Financing Cash Flow
0.00	-44.99B	-22.53B	-12.55B	-28.58B	31.86B

H2O Retailing Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1936.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8242, the sentiment is Negative. The current price of 1936 is below the 20-day moving average (MA) of 1973.85, below the 50-day MA of 1965.67, and below the 200-day MA of 2108.66, indicating a bearish trend. The MACD of -17.59 indicates Positive momentum. The RSI at 48.31 is Neutral, neither overbought nor oversold. The STOCH value of 30.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8242.

H2O Retailing Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3086	76 Outperform	$528.05B	12.58	10.29%	3.32%	8.57%	40.46%
8233	74 Outperform	¥336.67B	8.75	8.38%	0.01%	6.94%	26.27%
3099	73 Outperform	$814.10B	15.66	8.71%	0.01%	3.56%	-2.39%
8273	71 Outperform	¥232.37B	19.51		2.74%	11.24%	-41.84%
8242	70 Neutral	€234.57B	6.51	11.92%	2.25%	3.71%	62.31%
Sector *	63 Neutral	$6.98B	11.41	2.80%	4.24%	2.68%	-24.94%
8278	58 Neutral	¥173.89B	45.54		1.50%	0.99%	-48.66%

H2O Retailing Corporation Corporate Events

H2O Retailing Corporation Initiates Share Buyback Program

H2O Retailing Corporation has announced the purchase of its own shares, acquiring 1,803,300 common shares for approximately ¥3.6 billion between May 14 and May 31, 2025. This move is part of a broader strategy approved by the board to buy back up to 10 million shares, reflecting a potential 8.18% of the total issued shares, with a maximum budget of ¥15 billion, aimed at enhancing shareholder value and optimizing capital structure.

H2O Retailing Corporation Acquires Own Shares to Boost Shareholder Returns

H2O Retailing Corporation announced the acquisition of 679,000 of its own shares through off-auction repurchase trading as part of its Mid-term Management Plan for FY2025-2027. This move is intended to enhance shareholder returns, with a plan to acquire up to 10,000,000 shares by March 2026, reflecting a strategic focus on increasing total return ratios.

H2O Retailing Corporation Announces Share Repurchase Plan

H2O Retailing Corporation announced a resolution to repurchase up to 800,000 of its own shares through the Tokyo Stock Exchange’s off-auction trading system, ToSTNeT-3. This move is part of a broader strategy to acquire up to 10 million shares by March 2026, potentially impacting the company’s share value and market positioning.

H2O Retailing Corporation Strengthens Group Cohesion While Maintaining Independence

H2O Retailing Corporation has announced its strategic positioning within the Hankyu Hanshin Toho Group, emphasizing its independence while maintaining strong collaboration with the group. The company aims to enhance its market presence in the Kansai Area without facing business constraints or risks from its affiliations, as it primarily serves general consumers.

H2O Retailing Introduces New Restricted Stock Compensation Plan

H2O Retailing Corporation announced the introduction of a new restricted stock compensation plan for its directors, replacing the existing stock-compensation-type stock options. This plan aims to align the interests of directors with shareholders, enhance corporate value, and motivate directors to achieve medium-term goals. The plan includes service and performance condition types of restricted shares, with transfer restrictions based on tenure and performance criteria. The proposal will be submitted for approval at the upcoming General Meeting of Shareholders.

H2O Retailing Updates Strategic Financial Measures

H2O Retailing Corporation’s Board of Directors has reviewed and updated its strategic measures aimed at enhancing management’s awareness of capital costs and stock price performance. This initiative, initially announced in May 2024, reflects the company’s ongoing commitment to optimizing financial management and shareholder value, potentially impacting its market positioning and stakeholder interests.

H2O Retailing Reports Record FY2025 Results, Anticipates FY2026 Challenges

H2O Retailing Corporation reported record-high consolidated results for FY2025, with significant growth in gross sales and operating profit driven by strong performance in both its department store and supermarket businesses. Despite this success, the company forecasts a temporary decrease in consolidated operating profit for FY2026 due to expected challenges in the department store sector and extraordinary gains recorded in the previous year. The annual dividend is set to increase, reflecting confidence in long-term growth.

H2O Retailing Corporation Announces Share Buyback Plan

H2O Retailing Corporation has announced a strategic decision to repurchase up to 10 million of its own shares, valued at a maximum of 15 billion yen, as part of its Mid-term Management Plan for FY2025-2027. This move is aimed at enhancing shareholder returns and reflects the company’s commitment to managing capital costs and stock price effectively, potentially strengthening its market position and investor confidence.

H2O Retailing Corporation Announces Increased Year-End Dividend

H2O Retailing Corporation announced an increase in its year-end dividend to ¥22.00 per share, reflecting a record high profit for the fiscal year ended March 2025. This decision aligns with the company’s policy of stable profit distribution and supports its medium- to long-term growth plans, benefiting shareholders with an annual dividend of ¥42.00 per share.

H2O Retailing Corporation Reports Strong Financial Performance for FY2025

H2O Retailing Corporation reported a significant increase in its financial performance for the fiscal year ended March 31, 2025, with net sales rising by 3.7% and profit attributable to owners of the parent increasing by 59.1%. The company also announced a revision in its dividend forecast, reflecting a positive outlook despite anticipated challenges in the upcoming fiscal year, including a projected decline in profits.