H2O Retailing Corporation (JP:8242)
:8242
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H2O Retailing Corporation
(8242)
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Rating:68Neutral
Price Target:
¥2,709.00
▲(31.86% 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
Diversified retail formats (department stores & supermarkets)
H2O Retailing’s mix of department stores, supermarkets and ancillary real-estate/logistics reduces reliance on a single format. Department stores supply higher-margin concession income while supermarkets provide stable daily sales, supporting steadier revenue and margin resilience over the medium term.
Negative Factors
Revenue volatility and recent pullback
Sales have been uneven: although there was a rebound after FY2022, a recent pullback and the negative reported revenue growth rate indicate demand sensitivity. Persistent top-line volatility complicates planning for inventory, staffing and fixed-cost absorption, pressuring margins if trends persist.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified retail formats (department stores & supermarkets)
H2O Retailing’s mix of department stores, supermarkets and ancillary real-estate/logistics reduces reliance on a single format. Department stores supply higher-margin concession income while supermarkets provide stable daily sales, supporting steadier revenue and margin resilience over the medium term.
Read all positive factors
H2O Retailing Corporation (8242) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥307.95B
Dividend Yield2.01%
Average Volume (3M)465.03K
Price to Earnings (P/E)9.4
Beta (1Y)0.97
Revenue Growth-0.23%
EPS Growth-16.92%
CountryJP
Employees8,196
SectorConsumer Defensive
Sector Strength42
IndustryDepartment Stores
Share Statistics
EPS (TTM)101.92
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)198.03
Revenue Forecast (FY)¥711.00B
H2O Retailing Corporation Business Overview & Revenue Model
Company Description
H2O Retailing Corporation operates department stores, supermarkets, and shopping centers in Japan. It operates through four segments: Department Store Business, Supermarket Business, Shopping Centre Business, and Other Businesses. The Department S...
How the Company Makes Money
H2O Retailing makes money primarily by selling consumer goods through its retail formats and recognizing revenue at the point of sale. Key revenue streams include: (1) Department store operations: revenue from in-store and online sales of apparel,...
H2O Retailing Corporation Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
70
Positive
Cash Flow
67
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 683.51B | 680.22B | 681.76B | 657.40B | 628.09B | 518.45B |
| Gross Profit | 307.39B | 308.17B | 307.36B | 287.61B | 265.45B | 218.68B |
| EBITDA | 45.98B | 57.72B | 76.69B | 43.65B | 41.77B | 34.94B |
| Net Income | 12.36B | 29.95B | 34.84B | 21.91B | 16.38B | 9.87B |
Balance Sheet | ||||||
| Total Assets | 707.78B | 714.71B | 730.50B | 710.09B | 686.42B | 654.56B |
| Cash, Cash Equivalents and Short-Term Investments | 31.47B | 57.81B | 55.59B | 68.42B | 58.67B | 34.72B |
| Total Debt | 165.32B | 143.00B | 164.18B | 173.45B | 190.39B | 188.90B |
| Total Liabilities | 394.58B | 389.26B | 417.07B | 416.06B | 413.60B | 393.62B |
| Stockholders Equity | 300.68B | 311.39B | 300.72B | 270.02B | 250.02B | 238.01B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 31.99B | 26.33B | 31.82B | 6.37B | -19.84B |
| Operating Cash Flow | 0.00 | 48.33B | 46.55B | 49.33B | 30.30B | 6.46B |
| Investing Cash Flow | 0.00 | -4.72B | -13.58B | -17.75B | 5.78B | -5.20B |
| Financing Cash Flow | 0.00 | -41.44B | -44.99B | -22.53B | -12.55B | -28.58B |
H2O Retailing Corporation Technical Analysis
Positive
2054.50
Price Trends
2403.49
Positive
2304.52
Positive
2194.71
Positive
Market Momentum
25.19
Negative
59.52
Neutral
87.32
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8242, the sentiment is Positive. The current price of 2054.5 is below the 20-day moving average (MA) of 2408.12, below the 50-day MA of 2403.49, and below the 200-day MA of 2194.71, indicating a bullish trend. The MACD of 25.19 indicates Negative momentum. The RSI at 59.52 is Neutral, neither overbought nor oversold. The STOCH value of 87.32 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8242.
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 | ¥1.11T | 13.34 | 9.37% | 2.59% | -1.78% | 50.76% | |
69 Neutral | ¥574.27B | 44.20 | 7.58% | 2.58% | 0.73% | -29.55% | |
68 Neutral | ¥307.95B | 9.38 | 4.97% | 2.01% | -0.23% | -16.92% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
59 Neutral | ¥983.15B | 12.23 | 9.25% | 1.48% | 2.96% | 13.25% | |
55 Neutral | ¥576.30B | -3.91 | 9.06% | 1.84% | -1.23% | -124.02% | |
49 Neutral | ¥4.21T | 17.99 | 2.27% | 0.52% | 5.73% | 141.60% |
* Consumer Defensive Sector Average
JP:8242
H2O Retailing Corporation
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H2O Retailing Corporation Corporate Events
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 ...
H2O Retailing Books ¥5.1 Billion Gain From Partial Sale of TOHO Stake
Apr 15, 2026
H2O Retailing Corporation has completed the sale of a portion of its holdings in TOHO Co., Ltd., disposing of 3,656,300 shares out of 35,489,260 and reducing its stake from 4.23 percent to 3.79 percent of TOHO’s issued shares, excluding trea...
H2O Retailing to Trim TOHO Stake, Book ¥7 Billion Extraordinary Gain
Apr 14, 2026
H2O Retailing Corporation will sell 5 million shares of TOHO Co., Ltd. through ToSTNeT-3, reducing its stake from 4.23% to 3.63% while maintaining its cooperative relationship within the Hankyu Hanshin Toho Group. The move aligns with its 2024R...
H2O Retailing Revamps Shareholder Benefits, Links Rewards to Supermarket Spending
Feb 27, 2026
H2O Retailing Corporation will partially revise its shareholder benefit plan to better align rewards with actual spending at its group supermarkets and to promote medium- to long-term share ownership. The company aims to enhance the attractiveness...
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.