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H2O Retailing Corporation
(8242)
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Rating:68Neutral
Price Target:
¥3,074.00
▲(49.62% Upside)
Action:Downgraded
Date:05/14/26
The score is driven primarily by improved financial performance (post-FY2021 profitability recovery, better leverage, and mostly positive recent free cash flow) and attractive valuation (low P/E with a dividend). These positives are tempered by weaker technical momentum signals (negative MACD and oversold RSI/Stoch) despite the price holding above key moving averages.
Positive Factors
Improving leverage and capital base
Net-debt reduction and a lower debt-to-equity provide durable financial flexibility: with a stronger capital base the company can better fund store investments, weather retail downturns, and allocate cash to dividends or strategic initiatives without immediately raising external capital.
Negative Factors
Meaningful absolute debt load remains
Even with improved ratios, a sizable absolute debt stock raises interest and refinancing exposure for a department-store operator; in prolonged retail weakness high nominal leverage can limit strategic options and increase vulnerability to rate or sales shocks.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving leverage and capital base
Net-debt reduction and a lower debt-to-equity provide durable financial flexibility: with a stronger capital base the company can better fund store investments, weather retail downturns, and allocate cash to dividends or strategic initiatives without immediately raising external capital.
Read all positive factors
H2O Retailing Corporation (8242) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥347.71B
Dividend Yield1.6%
Average Volume (3M)465.03K
Price to Earnings (P/E)9.1
Beta (1Y)0.66
Revenue Growth-0.35%
EPS Growth209.70%
CountryJP
Employees7,775
SectorConsumer Defensive
Sector Strength42
IndustryDepartment Stores
Share Statistics
EPS (TTM)257.51
Shares Outstanding125,201,390
10 Day Avg. Volume400,090
30 Day Avg. Volume465,030
Financial Highlights & Ratios
PEG Ratio-0.67
Price to Book (P/B)0.90
Price to Sales (P/S)0.41
P/FCF Ratio8.78
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)213.33
Revenue Forecast (FY)¥723.00B
H2O Retailing Corporation Business Overview & Revenue Model
Company Description
H2O Retailing Corporation (8242) is a Japan-based retail group headquartered in Osaka that operates department stores and supermarkets, and also engages in related businesses such as food retailing and other consumer-facing retail services through...
How the Company Makes Money
H2O Retailing Corporation makes money mainly by selling merchandise and services through its retail operations, with department stores as the central revenue engine. Its primary revenue stream is retail sales to consumers (e.g., apparel, cosmetics...
H2O Retailing Corporation Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
70
Positive
Cash Flow
67
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 680.22B | 681.76B | 657.40B | 628.09B | 518.45B |
| Gross Profit | 308.17B | 307.36B | 287.61B | 265.45B | 218.68B |
| EBITDA | 62.37B | 76.69B | 43.65B | 41.77B | 34.94B |
| Net Income | 29.95B | 34.84B | 21.91B | 16.38B | 9.87B |
Balance Sheet | |||||
| Total Assets | 714.71B | 730.50B | 710.09B | 686.42B | 654.56B |
| Cash, Cash Equivalents and Short-Term Investments | 57.81B | 55.59B | 68.42B | 58.67B | 34.72B |
| Total Debt | 143.00B | 164.18B | 173.45B | 190.39B | 188.90B |
| Total Liabilities | 389.26B | 417.07B | 416.06B | 413.60B | 393.62B |
| Stockholders Equity | 311.39B | 300.72B | 270.02B | 250.02B | 238.01B |
Cash Flow | |||||
| Free Cash Flow | 31.99B | 26.33B | 31.82B | 6.37B | -19.84B |
| Operating Cash Flow | 48.33B | 46.55B | 49.33B | 30.30B | 6.46B |
| Investing Cash Flow | -4.72B | -13.58B | -17.75B | 5.78B | -5.20B |
| Financing Cash Flow | -41.44B | -44.99B | -22.53B | -12.55B | -28.58B |
H2O Retailing Corporation Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | ¥1.30T | 15.68 | 12.81% | 1.90% | 0.06% | 43.97% | |
68 Neutral | ¥347.71B | 9.12 | 9.80% | 2.01% | -0.35% | 209.70% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
60 Neutral | ¥738.91B | 26.30 | 6.72% | 1.76% | -2.32% | -30.08% | |
59 Neutral | ¥684.27B | -181.39 | -0.88% | 1.52% | 1.79% | -114.35% | |
59 Neutral | ¥985.55B | 9.53 | 9.98% | 1.67% | 5.27% | 33.74% | |
50 Neutral | ¥3.87T | 39.72 | 7.77% | 2.02% | 8.17% | 408.65% |
* Consumer Defensive Sector Average
JP:8242
H2O Retailing Corporation
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H2O Retailing Corporation Corporate Events
H2O Retailing Beats Q1 Profit Forecast but Holds FY2026 Outlook Steady
Aug 4, 2026
H2O Retailing Corporation reported that its department store business led consolidated performance in the first quarter of FY2026, bolstered by renovations at the Hankyu Main Store and stronger demand for luxury goods. Operating profit for the qua...
H2O Retailing revises segment structure in Q1 FY2026 disclosure
Aug 4, 2026
H2O Retailing released supplementary materials for its first quarter results for the fiscal year ending March 2027, detailing consolidated financial statements, cash flows and capital investment plans. The company also updated segment reporting by...
H2O Retailing Delivers Profit Surge Amid Restructuring and Modest Sales Growth
Aug 4, 2026
H2O Retailing reported first-quarter net sales of ¥164.5 billion, up 0.5% year on year, with operating profit surging 32.2% and profit attributable to owners of parent jumping 157.9%, supported by improved profitability despite modest top-lin...
H2O Retailing Advances Share Buyback, Spending ¥2.6 Billion in July
Aug 3, 2026
H2O Retailing Corporation has repurchased 918,200 of its own common shares on the Tokyo Stock Exchange between July 1 and July 31, 2026, at a total cost of approximately ¥2.61 billion, using discretionary trading by a securities company. This...
H2O Retailing Completes Restricted Stock Allocation to Directors and Executives
Jul 15, 2026
H2O Retailing Corporation has completed payment procedures for the disposal of 127,900 of its own common shares as restricted stock to directors, executive officers, and key personnel at subsidiaries. The transaction, executed on July 15, 2026 at ...
H2O Retailing Advances Share Buyback Under ¥10.7 Billion Program
Jul 1, 2026
H2O Retailing Corporation has executed a share repurchase under its Articles of Incorporation, buying 487,100 common shares for approximately ¥1.24 billion via market purchases on the Tokyo Stock Exchange between June 1 and June 30, 2026. Thi...
H2O Retailing to Grant Restricted Stock to Align Management and Shareholders
Jun 24, 2026
H2O Retailing Corporation will dispose of 127,900 of its own common shares as restricted stock on July 15, 2026, at ¥2,703.5 per share, for a total of about ¥345.8 million, allocating them to directors, executive officers and key manager...
H2O Retailing Advances Share Buyback Under ¥10.7 Billion Program
Jun 1, 2026
H2O Retailing Corporation has repurchased 1,111,200 of its own common shares on the Tokyo Stock Exchange between May 13 and May 31, 2026, at a total cost of approximately ¥2.77 billion, using discretionary trading by a securities company. Thi...
H2O Retailing Stresses Independence While Deepening Ties with Hankyu Hanshin Holdings
May 12, 2026
H2O Retailing Corporation detailed its relationship with controlling shareholder Hankyu Hanshin Holdings, which holds just over 20% of its voting rights through direct and aggregated stakes. The company emphasizes that, despite capital ties and sh...
H2O Retailing Cuts Cross-Shareholdings Below 20% to Sharpen Capital Efficiency
May 12, 2026
H2O Retailing Corporation said its ratio of cross-shareholdings to consolidated net assets fell to 19.5% as of April 30, 2026, dropping below the 20% threshold it views as a key milestone. The group has steadily cut strategic stockholdings over se...
H2O Retailing Updates Measures Focused on Capital Cost and Stock Price
May 12, 2026
H2O Retailing Corporation has reviewed the progress of its “Measures to Achieve Management Conscious of Cost of Capital and Stock Price,” originally announced in May 2024, and its Board of Directors has resolved to update and improve t...
H2O Retailing Posts Mixed FY2025 Results, Plans Dividend Hikes and Growth Investments
May 12, 2026
H2O Retailing Corporation reported slightly higher consolidated gross sales for the fiscal year ended March 31, 2026, but operating profit declined due to rising costs and a sharp drop in inbound sales at its department stores, even as domestic de...
H2O Retailing Releases Supplementary Financial Data for FY2025
May 12, 2026
H2O Retailing has released supplementary information for its financial results for the fiscal year ending March 2026, detailing consolidated performance metrics such as the statements of income, balance sheets, cash flows and capital investment. T...
H2O Retailing Launches ¥10.7 Billion Share Buyback Under Mid-Term Plan
May 12, 2026
H2O Retailing Corporation has approved a share repurchase program under its mid-term management plan for fiscal years 2025 to 2027, positioning the move as part of its shareholder return strategy. The company aims to enhance capital efficiency and...
H2O Retailing Raises Year-End Dividend as Earnings Beat Forecasts
May 12, 2026
H2O Retailing Corporation’s board has approved an increase in its year-end dividend for the fiscal year ended March 31, 2026, raising the payout to ¥24.00 per share from the previously forecast ¥22.00, with total dividends of ¥...
H2O Retailing Posts Profit Decline but Boosts Dividends and Strengthens Balance Sheet
May 12, 2026
H2O Retailing Corporation reported flat net sales of ¥680.2 billion for the fiscal year ended March 31, 2026, with operating profit down 7.0% and profit attributable to owners of the parent falling 14.0% to ¥29.9 billion. Despite weaker ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.