Axial Retailing, Inc. (8255) AI Stock Analysis

• Market Cap: ¥105.98B
• Dividend Yield: 2.55%
• Average Volume (3M): 106.62K
• Price to Earnings (P/E): 11.2
• Beta (1Y): 0.17
• Revenue Growth: 5.57%
• EPS Growth: 27.41%
• Country: JP
• Employees: 2,661
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Department Stores
• EPS (TTM): 24.10
• Shares Outstanding: 93,552,155
• 10 Day Avg. Volume: 94,400
• 30 Day Avg. Volume: 106,616
• PEG Ratio: 0.45
• Price to Book (P/B): 0.98
• Price to Sales (P/S): 0.31
• P/FCF Ratio: 18.84
• 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): 15,486.59
• Revenue Forecast (FY): ¥46.29T

• Rating: 73 Outperform
• Price Target: ¥1,233.00 ▲(8.25% Upside)

Axial Retailing, Inc. demonstrates strong financial stability with low leverage and improving cash flow, contributing significantly to its score. The stock's valuation is attractive, with a low P/E ratio and a solid dividend yield, enhancing its appeal. However, the technical analysis indicates a lack of strong momentum, which slightly tempers the overall score.

Positive Factors

Financial Stability

Low leverage enhances financial stability, providing the company with flexibility to invest in growth opportunities and withstand economic downturns.

Cash Flow Improvement

Improving free cash flow indicates better cash generation, which can be used for reinvestment, debt reduction, or shareholder returns, strengthening long-term prospects.

Revenue Growth

Stable revenue growth reflects the company's ability to maintain market position and adapt to consumer demands, supporting long-term business sustainability.

Negative Factors

Profit Margin Pressure

Declining profit margins may indicate rising costs or competitive pressures, which could impact profitability if not addressed, affecting long-term financial health.

Cash Flow Efficiency

Moderate cash flow efficiency suggests potential for improvement in converting income to cash, which is crucial for funding operations and growth initiatives.

Margin Improvement Needed

While the company is performing well, enhancing profit margins is essential to ensure competitive advantage and financial resilience in the long term.

Axial Retailing, Inc. Business Overview & Revenue Model

Company Description

Axial Retailing, Inc. (8255) is a dynamic retail company specializing in the sale of consumer goods across multiple sectors, including electronics, apparel, and home goods. The company operates both physical retail locations and an online platform, providing a seamless shopping experience for customers. Axial Retailing is committed to delivering quality products at competitive prices, while also focusing on sustainability and innovative shopping solutions to meet the evolving needs of consumers.

How the Company Makes Money

Axial Retailing generates revenue through a multi-faceted business model that includes direct sales from its retail stores and e-commerce platform. Key revenue streams include the sale of branded and private-label products, with a significant portion of earnings derived from high-demand categories such as electronics and fashion. The company also engages in promotional partnerships with manufacturers and brands, which can provide additional revenue through co-marketing initiatives and exclusive product launches. Seasonal promotions and loyalty programs further enhance customer retention and drive sales growth. Furthermore, Axial Retailing invests in data analytics to optimize inventory management and pricing strategies, which helps to maximize profit margins.

Axial Retailing, Inc. Financial Statement Overview

Summary

Axial Retailing, Inc. demonstrates strong financial performance with consistent revenue growth and profitability. The company benefits from a solid balance sheet with low leverage and robust cash flow generation. However, potential cost pressures and historical cash flow volatility warrant monitoring.

Income Statement

Axial Retailing, Inc. shows strong revenue growth with a TTM increase of 1.68% and consistent profitability. The gross profit margin of 28.15% and net profit margin of 3.20% indicate healthy operations. EBIT and EBITDA margins are stable at 4.25% and 6.30%, respectively, reflecting efficient cost management. However, the slight decline in gross profit margin over the years suggests potential cost pressures.

Balance Sheet

The company maintains a solid financial position with a low debt-to-equity ratio of 0.03, indicating minimal leverage. Return on equity is robust at 10.39%, showcasing effective use of equity. The equity ratio of 65.83% highlights strong asset backing. However, the slight increase in debt levels over time could pose future risks if not managed.

Cash Flow

Cash flow performance is strong, with a significant free cash flow growth of 48.30% in the TTM period. The operating cash flow to net income ratio of 1.51 suggests good cash generation relative to earnings. The free cash flow to net income ratio of 0.39 indicates efficient cash utilization. However, fluctuations in free cash flow growth in previous years highlight potential volatility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	290.78B	281.87B	270.22B	254.97B	246.45B	256.35B
Gross Profit	78.28B	76.72B	79.14B	74.83B	72.40B	73.95B
EBITDA	18.14B	18.43B	16.22B	14.80B	15.24B	16.96B
Net Income	9.06B	9.01B	7.44B	6.36B	7.07B	8.28B
Balance Sheet
Total Assets	137.29B	135.30B	131.39B	122.76B	116.86B	113.82B
Cash, Cash Equivalents and Short-Term Investments	24.89B	21.89B	21.02B	19.54B	18.45B	17.02B
Total Debt	2.20B	2.31B	2.55B	2.85B	3.21B	3.26B
Total Liabilities	46.26B	46.00B	48.09B	44.05B	42.80B	44.82B
Stockholders Equity	91.03B	89.29B	83.30B	78.70B	74.06B	69.00B
Cash Flow
Free Cash Flow	10.53B	4.63B	5.40B	2.91B	3.01B	6.80B
Operating Cash Flow	15.40B	11.82B	17.10B	12.59B	9.43B	14.45B
Investing Cash Flow	-5.24B	-7.67B	-11.86B	-9.29B	-5.80B	-7.63B
Financing Cash Flow	-4.75B	-3.28B	-3.75B	-2.21B	-2.21B	-2.17B

Axial Retailing, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1139.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8255, the sentiment is Positive. The current price of 1139 is above the 20-day moving average (MA) of 1116.85, above the 50-day MA of 1108.20, and above the 200-day MA of 1093.37, indicating a bullish trend. The MACD of 5.13 indicates Negative momentum. The RSI at 61.46 is Neutral, neither overbought nor oversold. The STOCH value of 81.12 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8255.

Axial Retailing, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8255	73 Outperform	¥105.98B	11.25	―	2.55%	5.57%	27.41%
8237	66 Neutral	¥93.18B	229.48	―	0.85%	1.38%	-87.76%
8244	65 Neutral	¥74.17B	12.84	―	1.09%	7.55%	89.45%
8260	64 Neutral	¥5.16B	5.38	―	1.33%	-3.57%	33.78%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8247	60 Neutral	¥2.14B	9.57	―	―	-3.35%	-63.96%
8254	46 Neutral	¥1.84B	16.72	―	―	-6.41%	51.66%

Axial Retailing, Inc. Corporate Events

Axial Retailing Inc. Announces Interim Dividend Increase

Axial Retailing Inc. announced a resolution by its Board of Directors to distribute an interim dividend of 13.00 yen per share from retained earnings, with a record date of September 30, 2025. This decision reflects a strategic move to enhance shareholder value, marking an increase from the previous year’s interim dividend, and aligns with the company’s ongoing commitment to stable financial performance and investor returns.

Axial Retailing Inc. Reports Interim Dividend from Subsidiaries

Axial Retailing Inc. has announced the receipt of an interim dividend totaling 4,238 million yen from eight of its consolidated subsidiaries. This dividend will be recorded as operating revenue in the company’s non-consolidated financial statements for the fiscal year ending March 2026, but it will not affect the consolidated financial results for the same period.

Axial Retailing Reports Modest Growth Amid Market Challenges

Axial Retailing Inc. reported a 6.5% increase in net sales to 146,718 million yen for the six months ending September 30, 2025, with a slight rise in operating profit by 1.2%. Despite a challenging market, the company maintained a stable financial position with a 66.3% equity-to-asset ratio. The company forecasts a modest growth in net sales for the fiscal year ending March 31, 2026, but anticipates a decline in profits, reflecting market pressures.