Kintetsu Department Store Co.Ltd. (8244) AI Stock Analysis

• Market Cap: ¥71.14B
• Dividend Yield: 1.09%
• Average Volume (3M): 44.29K
• Price to Earnings (P/E): 11.2
• Beta (1Y): 0.41
• Revenue Growth: 7.55%
• EPS Growth: 89.45%
• Country: JP
• Employees: 2,103
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Department Stores
• EPS (TTM): 26.97
• Shares Outstanding: 40,437,940
• 10 Day Avg. Volume: 51,790
• 30 Day Avg. Volume: 44,293
• PEG Ratio: 0.94
• Price to Book (P/B): 2.25
• Price to Sales (P/S): 0.75
• P/FCF Ratio: 31.14
• 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: 65 Neutral
• Price Target: ¥1,890.00 ▲(3.11% Upside)
• Action: Reiterated Date: 10/07/25
• Date: Action: Reiterated 10/07/25

Kintetsu Department Store's overall score reflects strong financial performance with improved profitability and a solid balance sheet. Technical indicators show positive momentum, supporting the stock's current trend. However, the high P/E ratio suggests the stock may be overvalued, which could limit future gains. Continued focus on cash flow management and asset efficiency will be important for sustaining growth.

Positive Factors

Low leverage & strong equity base

Sustained low leverage and a solid equity ratio provide durable financial flexibility: the company can fund investments, absorb shocks and maintain leasing relationships without relying on costly debt. Improved ROE indicates better capital use, supporting long-term solvency and strategic options.

Improving operating profitability

Rising EBIT, EBITDA and net margins reflect lasting operational improvements and cost discipline rather than one-off gains. Stronger margins increase retained earnings and reinvestment capacity, making the core department store business more resilient to competitive pressure and enabling consistent funding for strategic initiatives.

Consistent revenue growth and diversified sales mix

Steady top-line growth, supported by merchandise sales, rental income from specialty shops and brand partnerships, signals durable demand and diversified revenue streams. This mix reduces reliance on any single product category and supports predictable cash flows across seasonal cycles and retail shifts.

Negative Factors

Declining free cash flow

A falling free cash flow trend weakens the firm’s ability to self-fund capex, pay dividends or reduce leverage over time. Even with solid operating cash conversion, shrinking free cash flow suggests capex or working capital demands are rising, constraining strategic investments and reducing financial flexibility.

Asset base contraction / efficiency concerns

A shrinking asset base or weaker asset utilization can reduce scale and future revenue capacity. Persistent asset declines or poorer turnover indicate potential underinvestment or inventory and real-estate inefficiencies, which over months can erode returns and limit the company’s ability to leverage physical store advantages.

Gross margin pressure

Eroding gross margins point to sustained cost or pricing pressures—such as greater discounting, supplier cost increases, or mix shifts toward lower-margin categories. Over the medium term this compresses operating leverage and makes it harder to sustain net margin improvements without structural changes to sourcing or merchandising.

Kintetsu Department Store Co.Ltd. Business Overview & Revenue Model

Company Description

Kintetsu Department Store Co., Ltd. operates department stores in Japan. The company was founded in 1920 and is based in Osaka, Japan. Kintetsu Department Store Co., Ltd. operates as a subsidiary of Kintetsu Group Holdings Co., Ltd.

How the Company Makes Money

Kintetsu Department Store Co., Ltd. generates revenue primarily through the retail sales of merchandise in its department stores. Key revenue streams include clothing, beauty products, home goods, and food items, sold at both full price and discounted rates. Additionally, the company benefits from rental income by leasing space to specialty shops and restaurants within its stores. Seasonal sales events and promotions also drive sales volume. Partnerships with various brands for exclusive merchandise and collaborative promotions contribute to increased foot traffic and revenue. Furthermore, Kintetsu may engage in online sales, enhancing its revenue through e-commerce platforms, although specific details on this aspect are not available.

Kintetsu Department Store Co.Ltd. Financial Statement Overview

Summary

Kintetsu Department Store shows a positive trend in revenue and profitability, with improved margins and efficient operations. The balance sheet remains strong with low leverage and a solid equity base, though asset management needs attention. Cash flow management requires improvement to sustain growth in free cash flow. While the company is on a solid trajectory, continued focus on gross margins and cash flow optimization will be crucial for future growth.

Income Statement

Kintetsu Department Store has shown consistent revenue growth over the years, with a 1.41% increase from 2024 to 2025. The company has improved its profitability, evidenced by a net profit margin increase to 3.03% in 2025 from 2.45% in 2024. The EBIT and EBITDA margins have also strengthened, reaching 3.87% and 8.84% in 2025, respectively, indicating better operational efficiency. However, gross profit margin has slightly decreased, and the company has faced challenges in maintaining high gross margins compared to previous years.

Balance Sheet

The balance sheet of Kintetsu Department Store reflects a stable financial position with a debt-to-equity ratio of 0.12, showing low leverage and reduced dependence on debt financing. Return on Equity (ROE) has improved to 9.03% in 2025, indicating better utilization of equity. The equity ratio stands at 33.72%, suggesting a strong equity base. However, the total assets have decreased slightly, and the company needs to monitor its asset management efficiency.

Cash Flow

The cash flow statement reveals a decrease in free cash flow from 2024 to 2025, with a significant drop in free cash flow growth rate. The operating cash flow to net income ratio is 1.93, indicating efficient cash conversion from earnings. However, the free cash flow to net income ratio has decreased, suggesting a need for better capital expenditure management to enhance free cash flow generation. The company’s cash flow stability needs to be carefully watched.

Breakdown	TTM	Feb 2025	Feb 2024	Feb 2023	Feb 2022	Feb 2021
Income Statement
Total Revenue	121.87B	115.11B	113.51B	107.85B	98.15B	218.35B
Gross Profit	61.71B	53.30B	55.63B	53.44B	48.29B	49.45B
EBITDA	10.40B	10.17B	9.63B	7.97B	5.26B	3.02B
Net Income	5.64B	3.48B	2.78B	1.89B	-775.00M	-4.95B
Balance Sheet
Total Assets	123.73B	114.39B	115.36B	118.34B	119.38B	123.42B
Cash, Cash Equivalents and Short-Term Investments	4.91B	2.59B	3.73B	3.24B	4.10B	5.62B
Total Debt	6.03B	4.62B	6.04B	12.58B	16.84B	17.22B
Total Liabilities	80.40B	75.81B	78.05B	83.76B	86.07B	89.78B
Stockholders Equity	43.33B	38.58B	37.32B	34.59B	33.31B	33.64B
Cash Flow
Free Cash Flow	0.00	2.79B	6.59B	4.67B	-1.12B	146.00M
Operating Cash Flow	0.00	6.73B	10.17B	7.56B	2.50B	4.30B
Investing Cash Flow	0.00	-3.90B	-2.19B	-3.02B	-3.30B	-3.61B
Financing Cash Flow	0.00	-3.97B	-7.49B	-5.40B	-715.00M	1.48B

Kintetsu Department Store Co.Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1833.00
• 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:8244, the sentiment is Negative. The current price of 1833 is above the 20-day moving average (MA) of 1804.04, above the 50-day MA of 1816.63, and below the 200-day MA of 1849.01, indicating a bearish trend. The MACD of -8.34 indicates Positive momentum. The RSI at 37.00 is Neutral, neither overbought nor oversold. The STOCH value of 24.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8244.

Kintetsu Department Store Co.Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3099	73 Outperform	¥1.08T	19.09	9.37%	2.59%	-1.22%	-10.82%
8233	71 Outperform	¥568.80B	13.86	8.54%	1.84%	0.42%	20.25%
3086	66 Neutral	¥655.19B	22.36	7.58%	2.58%	6.52%	-31.67%
8242	66 Neutral	¥294.16B	10.75	4.97%	2.01%	2.00%	-68.35%
8244	65 Neutral	¥71.14B	11.19	―	1.09%	7.55%	89.45%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8237	57 Neutral	¥130.58B	149.64	―	0.83%	1.38%	-87.76%