Saikaya Co., Ltd. (8254) AI Stock Analysis

• Market Cap: ¥1.99B
• Dividend Yield: N/A
• Average Volume (3M): 369.93K
• Price to Earnings (P/E): 18.1
• Beta (1Y): 0.27
• Revenue Growth: -6.41%
• EPS Growth: 51.66%
• Country: JP
• Employees: 145
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Department Stores
• EPS (TTM): 7.78
• Shares Outstanding: 4,970,314
• 10 Day Avg. Volume: 247,280
• 30 Day Avg. Volume: 369,930
• PEG Ratio: 0.06
• Price to Book (P/B): 4.80
• Price to Sales (P/S): 0.60
• P/FCF Ratio: -60.61
• 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: ¥600.00
• Price Target Upside: 49.25% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 56 Neutral
• Price Target: ¥600.00 ▲(49.25% Upside)

The overall stock score of 56 reflects significant financial performance challenges, particularly with declining revenues and high leverage. Technical analysis shows positive momentum, which provides some support to the stock. However, the high P/E ratio suggests potential overvaluation, and the lack of a dividend yield reduces its appeal.

Saikaya Co., Ltd. Business Overview & Revenue Model

Company Description

Saikaya Co., Ltd. (8254) is a Japanese company operating in the retail sector. It primarily engages in the management and operation of department stores, offering a diverse range of products including clothing, household goods, and food items. The company is committed to providing high-quality products and services to meet the evolving needs of its customers.

How the Company Makes Money

Saikaya Co., Ltd. generates revenue through the sale of goods in its department stores. The company's income is primarily derived from retail sales of clothing, household goods, and food items. Additionally, Saikaya may engage in leasing space within its department stores to other retailers, thereby earning rental income. The company's partnerships with various suppliers and brands also contribute to its revenue by enabling a wide variety of products that attract a diverse customer base. Seasonal promotions and events are other strategies used by Saikaya to drive foot traffic and increase sales revenue.

Saikaya Co., Ltd. Financial Statement Overview

Summary

Saikaya Co., Ltd. faces challenges with declining revenues and profitability pressures. The company is heavily leveraged, posing financial stability risks. While operating cash flow is positive, the negative free cash flow trend is concerning. The company needs to improve revenue growth and manage leverage to enhance its financial health.

Income Statement

The income statement shows a decline in revenue with a negative revenue growth rate from the previous year. Gross profit margin stands at 46.3%, and the net profit margin is 1.5%, indicating profitability but at a low level. The EBIT and EBITDA margins are 2.2% and 2.3% respectively, reflecting limited operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 14.02, suggesting significant leverage. Return on Equity (ROE) is 11.8%, which is relatively modest, while the equity ratio is only 5.2%, indicating high reliance on liabilities for financing.

Cash Flow

The cash flow statement indicates a negative free cash flow growth rate, highlighting challenges in generating free cash flow. The operating cash flow to net income ratio is 3.57, showing adequate cash generation compared to earnings, but the overall cash flow position is weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.59B	4.95B	5.20B	13.81B	15.00B	18.43B
Gross Profit	2.29B	2.29B	3.12B	2.82B	3.01B	3.92B
EBITDA	538.50M	445.66M	378.40M	194.00M	-333.81M	371.56M
Net Income	123.22M	72.70M	9.74M	-509.68M	-846.53M	-130.96M
Balance Sheet
Total Assets	11.88B	11.81B	12.15B	12.25B	11.21B	11.46B
Cash, Cash Equivalents and Short-Term Investments	1.38B	1.65B	1.78B	1.56B	861.79M	681.77M
Total Debt	8.65B	8.66B	8.66B	8.66B	6.72B	5.96B
Total Liabilities	11.09B	11.19B	11.58B	11.57B	10.70B	10.22B
Stockholders Equity	793.08M	617.19M	576.34M	582.00M	514.59M	1.24B
Cash Flow
Free Cash Flow	0.00	-48.88M	295.89M	-1.08B	-481.11M	118.84M
Operating Cash Flow	0.00	259.71M	367.11M	-872.27M	-452.30M	161.70M
Investing Cash Flow	0.00	-390.97M	-135.26M	-952.85M	-99.98M	-229.62M
Financing Cash Flow	0.00	-3.88M	-3.87M	2.45B	732.30M	233.67M

Saikaya Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 402.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8254, the sentiment is Negative. The current price of 402 is below the 20-day moving average (MA) of 477.50, below the 50-day MA of 489.92, and below the 200-day MA of 432.40, indicating a bearish trend. The MACD of -29.55 indicates Positive momentum. The RSI at 33.08 is Neutral, neither overbought nor oversold. The STOCH value of 11.83 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8254.

Saikaya Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8237	72 Outperform	¥90.47B	222.82	―	0.88%	1.38%	-87.76%
8244	65 Neutral	¥78.37B	13.57	―	1.03%	7.55%	89.45%
8260	64 Neutral	¥4.83B	5.05	―	1.44%	-3.57%	33.78%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8247	60 Neutral	¥2.16B	9.67	―	―	-3.35%	-63.96%
8273	59 Neutral	¥209.82B	17.61	―	3.04%	18.89%	-34.43%
8254	56 Neutral	¥1.99B	18.06	―	―	-6.41%	51.66%