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

• Market Cap: ¥71.10B
• Dividend Yield: 1.09%
• Average Volume (3M): 44.29K
• Price to Earnings (P/E): 17.7
• Beta (1Y): 0.42
• 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: ¥1,889.00 ▲(3.06% 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

Consistent Revenue Growth

Sustained top-line growth demonstrates ongoing consumer demand and effective merchandising across categories. Over 2–6 months, steady revenue expansion supports scale benefits, improves bargaining power with suppliers, and underpins investments in store experience and omnichannel capabilities.

Improved Profitability and Operational Efficiency

Rising EBIT/EBITDA and net margins reflect tighter cost control and better store-level productivity. These margin improvements are durable drivers of cash generation potential and ROE, indicating management can sustain profitability even in a competitive retail environment.

Strong Balance Sheet with Low Leverage

Very low leverage and a solid equity base give the company long-term financial flexibility to fund capex, remodel stores, or withstand demand shocks. Improved ROE shows more efficient equity use, supporting strategic moves without raising material refinancing risk.

Negative Factors

Declining Free Cash Flow

A falling free cash flow trend weakens the company's ability to self-fund investments, dividends, or strategic initiatives. Persistently lower FCF can force trade-offs between maintenance capex and growth projects and increases sensitivity to macro shocks over the medium term.

Asset Management / Efficiency Risks

Declining total assets and flagged asset-efficiency concerns suggest potential underutilized store capacity or slower inventory turns. Poor asset productivity can reduce ROA and cash conversion, requiring sharper working-capital and inventory management to preserve returns.

Pressure on Gross Profit Margins

A slip in gross margin points to procurement or pricing pressure that can compress long-term profitability if persistent. For a department store reliant on category mix, sustained gross-margin erosion would require either cost reductions or higher-margin product shifts to maintain earnings durability.

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 primarily makes money by selling merchandise to consumers through its department store operations. Its main revenue stream is retail sales across multiple product categories (e.g., apparel and fashion goods, cosmetics, food, and household/general merchandise), where earnings are driven by sales volume and gross margin (the spread between product selling prices and procurement costs). In addition to direct merchandise sales, department stores commonly generate revenue through in-store tenant and concession arrangements (e.g., brand counters, specialty shops, and restaurants) where the company may receive rental income, sales-based commissions, or other fees for providing space and customer traffic; specific terms or the materiality of these arrangements for Kintetsu Department Store are null. The company’s earnings are also influenced by store traffic, product mix (higher-margin categories such as cosmetics and fashion versus lower-margin categories), promotional campaigns, and seasonal demand patterns (e.g., gift seasons and regional events). Any significant partnerships, external distribution channels, or non-retail revenue sources that materially contribute to Kintetsu Department Store’s earnings are null.

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	50.19B	47.69B	42.67B	44.08B
EBITDA	10.33B	9.59B	8.51B	6.47B	3.67B	2.46B
Net Income	5.64B	3.48B	2.78B	1.89B	-775.00M	-4.95B
Balance Sheet
Total Assets	123.73B	115.86B	116.59B	119.30B	120.08B	124.04B
Cash, Cash Equivalents and Short-Term Investments	4.91B	2.59B	3.73B	3.24B	4.10B	5.62B
Total Debt	6.03B	4.81B	6.27B	12.86B	17.43B	17.42B
Total Liabilities	80.40B	77.28B	79.27B	84.71B	86.77B	90.39B
Stockholders Equity	43.33B	38.58B	37.32B	34.59B	33.31B	33.64B
Cash Flow
Free Cash Flow	0.00	2.79B	7.06B	4.91B	-141.00M	1.22B
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: Negative
• RSI: Neutral
• STOCH: Negative

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 1763.52, above the 50-day MA of 1798.25, and below the 200-day MA of 1841.74, indicating a bearish trend. The MACD of -10.78 indicates Negative momentum. The RSI at 47.27 is Neutral, neither overbought nor oversold. The STOCH value of 87.40 is Negative, 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	¥997.74B	9.13	9.37%	2.59%	-1.22%	-10.82%
8233	71 Outperform	¥528.94B	14.44	9.06%	1.84%	0.42%	20.25%
3086	66 Neutral	¥636.20B	22.09	7.58%	2.58%	6.52%	-31.67%
8242	66 Neutral	¥282.15B	2.68	4.97%	2.01%	2.00%	-68.35%
9005	65 Neutral	¥1.11T	14.50	9.25%	1.48%	-2.86%	14.93%
8244	65 Neutral	¥71.10B	17.68	―	1.09%	7.55%	89.45%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%