H2O Retailing Corporation (8242) AI Stock Analysis

• Market Cap: €252.38B
• Dividend Yield: 2.02%
• Average Volume (3M): 465.03K
• Price to Earnings (P/E): 17.0
• Beta (1Y): 0.93
• Revenue Growth: 2.00%
• EPS Growth: -68.35%
• Country: JP
• Employees: 8,196
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Department Stores
• EPS (TTM): 24.81
• Shares Outstanding: 125,201,390
• 10 Day Avg. Volume: 400,090
• 30 Day Avg. Volume: 465,030
• PEG Ratio: 0.14
• Price to Book (P/B): 0.89
• Price to Sales (P/S): 0.39
• P/FCF Ratio: 10.23
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ¥2,256.00 ▲(7.56% Upside)

The stock's overall score is driven by solid financial performance, with positive revenue and profitability trends. Technical analysis indicates a neutral market position, while valuation metrics suggest fair pricing. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion and stability.

Cash Flow Management

Improved cash generation enhances financial flexibility, allowing the company to invest in growth opportunities and weather economic fluctuations.

Profitability Trends

Improved profitability margins suggest efficient cost management and pricing strategies, contributing to sustainable long-term financial health.

Negative Factors

High Debt Levels

High debt levels can constrain financial flexibility and increase risk, potentially affecting the company's ability to invest in growth initiatives.

Volatility in Free Cash Flow

Volatile cash flow may hinder the company's ability to consistently fund operations and strategic projects, impacting long-term growth prospects.

EBIT and EBITDA Margin Volatility

Volatile margins indicate potential inefficiencies in operations, which could affect profitability and competitiveness if not addressed.

H2O Retailing Corporation Business Overview & Revenue Model

Company Description

H2O Retailing Corporation (8242) is a leading retail company based in Japan, primarily involved in the sale of beverages and other consumer goods. The company operates various retail formats, including convenience stores and supermarkets, with a focus on providing high-quality products to meet consumer demands. H2O Retailing emphasizes sustainability and innovation in its offerings, catering to a diverse customer base across different regions.

How the Company Makes Money

H2O Retailing Corporation generates revenue primarily through the sale of beverages, including bottled water, soft drinks, and alcohol, alongside a wide range of food products. The company's revenue model is built on a combination of direct retail sales and partnerships with local and international suppliers to ensure a diverse product range. Key revenue streams include in-store sales, online sales, and promotional events that drive customer traffic. Additionally, partnerships with beverage manufacturers and other suppliers help secure favorable pricing and exclusive product offerings, enhancing profitability. Seasonal promotions and loyalty programs also contribute to increased sales volume and customer retention, further strengthening the company's financial performance.

H2O Retailing Corporation Financial Statement Overview

Summary

The company demonstrates a positive growth trajectory with increasing revenues and profitability. The balance sheet is stable, but high debt levels could pose potential risks. Cash flow improvements are promising, though historical volatility needs to be monitored.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	683.51B	681.76B	657.40B	628.09B	518.45B	739.20B
Gross Profit	307.39B	307.36B	287.61B	265.45B	218.68B	211.90B
EBITDA	49.59B	76.69B	43.65B	41.77B	34.94B	-4.49B
Net Income	12.36B	34.84B	21.91B	16.38B	9.87B	-24.79B
Balance Sheet
Total Assets	707.78B	730.50B	709.21B	686.42B	654.56B	625.95B
Cash, Cash Equivalents and Short-Term Investments	31.47B	55.59B	68.42B	58.67B	34.72B	49.99B
Total Debt	165.32B	164.18B	174.13B	190.39B	188.90B	202.34B
Total Liabilities	394.58B	417.07B	416.06B	413.61B	393.62B	396.67B
Stockholders Equity	300.68B	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: 2097.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• 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 2097.5 is below the 20-day moving average (MA) of 2102.17, above the 50-day MA of 2091.12, and above the 200-day MA of 2052.94, indicating a neutral trend. The MACD of -8.59 indicates Positive momentum. The RSI at 46.47 is Neutral, neither overbought nor oversold. The STOCH value of 48.70 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
8233	71 Outperform	¥501.12B	12.08	8.54%	1.82%	0.42%	20.25%
8242	66 Neutral	€252.38B	17.03	4.97%	2.02%	2.00%	-68.35%
3099	65 Neutral	¥832.99B	15.16	9.37%	2.54%	-1.22%	-10.82%
3086	64 Neutral	¥578.33B	18.26	7.58%	2.59%	6.52%	-31.67%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
8278	61 Neutral	¥179.00B	45.44	―	1.45%	1.48%	-33.32%
8273	59 Neutral	¥212.50B	17.84	―	3.01%	18.89%	-34.43%

H2O Retailing Corporation Corporate Events

H2O Retailing Corporation Advances Share Repurchase Strategy

H2O Retailing Corporation announced the purchase of 750,000 of its own shares, amounting to ¥1,553,775,450, as part of a broader share repurchase strategy. This move is part of a previously outlined plan to repurchase up to 10,000,000 shares by March 2026, aiming to enhance shareholder value and optimize capital structure.

H2O Retailing Announces Share Buyback Strategy

H2O Retailing Corporation announced the purchase of 864,900 of its own shares, amounting to approximately ¥1.8 billion, during October 2025. This move is part of a broader strategy authorized by the Board of Directors to acquire up to 10 million shares by March 2026, reflecting a commitment to enhancing shareholder value and optimizing capital structure.

H2O Retailing Revises Earnings Forecast Amid Strategic Adjustments

H2O Retailing Corporation has revised its earnings forecast for the fiscal year ending March 31, 2026. The company expects net income attributable to owners of the parent to exceed previous forecasts due to extraordinary income from gains on sales of investment securities, despite maintaining previous expectations for net sales, operating profit, and ordinary profit. This revision reflects the company’s strategic efforts to reduce policy-based shareholdings and manage extraordinary income and losses, potentially impacting its financial performance and stakeholder interests.

H2O Retailing Corporation Revises Financial Results for FY2025

H2O Retailing Corporation has revised its financial results for the fiscal year ending March 2025, particularly adjusting the goodwill values for its newly consolidated entities, Ningbo Development and Ningbo Hankyu. This adjustment impacts the company’s financial statements, reflecting more accurate financial health and potentially influencing stakeholder perceptions.

H2O Retailing Reports Mixed Financial Results for First Half of Fiscal Year 2026

H2O Retailing Corporation reported its consolidated financial results for the first half of the fiscal year ending March 31, 2026, showing a slight increase in net sales by 0.5% compared to the previous year. However, the company experienced significant declines in operating profit, ordinary profit, and profit attributable to owners of the parent, with the latter dropping by 74.5%. Despite these challenges, the company maintains a stable financial position with a slight increase in total assets and net assets. The company has also revised its earnings forecasts for the full fiscal year, indicating a cautious outlook amidst changing market conditions.

H2O Retailing to Gain from TOHO Share Tender Offer

H2O Retailing Corporation announced its decision to tender 1,700,000 shares of TOHO CO., LTD. in response to TOHO’s tender offer for its own shares. This move is expected to result in an extraordinary income of approximately 13,391 million JPY for H2O Retailing, impacting its financial results for the fiscal year ending March 2026. The company has not revised its earnings forecast yet, as it is under review.

H2O Retailing Corporation Announces Share Buyback

H2O Retailing Corporation has announced the purchase of its own shares, acquiring 781,800 common shares at a total cost of ¥1,748,394,250 between September 1 and September 30, 2025. This move is part of a larger strategy approved by the Board of Directors to repurchase up to 10 million shares by March 2026, aiming to enhance shareholder value and optimize capital structure.

H2O Retailing Corporation Announces Subsidiary Merger to Form KANSAI FOOD MARKET LTD

H2O Retailing Corporation announced a merger between its subsidiaries, Izumiya ・Hankyu Oasis Co., Ltd and KANSAI SUPER MARKET LTD, to form KANSAI FOOD MARKET LTD. This strategic move aims to streamline decision-making and enhance competitiveness by consolidating management resources, which is expected to expand the business scale and strengthen collaboration in manufacturing and sales within the group.