Izutsuya Co., Ltd. (8260) AI Stock Analysis

• Market Cap: ¥5.16B
• Dividend Yield: 1.33%
• Average Volume (3M): 14.12K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.36
• Revenue Growth: -3.57%
• EPS Growth: 33.78%
• Country: JP
• Employees: 696
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Department Stores
• EPS (TTM): -9.30
• Shares Outstanding: 11,480,495
• 10 Day Avg. Volume: 13,840
• 30 Day Avg. Volume: 14,120
• PEG Ratio: 1.21
• Price to Book (P/B): 0.41
• Price to Sales (P/S): 0.22
• P/FCF Ratio: 4.72
• 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: 64 Neutral
• Price Target: ¥495.00 ▲(12.50% Upside)
• Action: Reiterated Date: 10/04/25
• Date: Action: Reiterated 10/04/25

Izutsuya Co., Ltd. has a stable financial profile with strong cash flow management and profitability, but faces challenges with declining revenue. The stock's valuation is attractive due to a low P/E ratio and reasonable dividend yield. Technical indicators suggest neutral to slightly bearish momentum, which could limit short-term upside potential.

Positive Factors

Cash generation

Izutsuya's operating cash flow to net income ratio of 1.37 and FCF-to-net-income of 1.03 show durable cash conversion. Strong cash generation supports reinvestment, dividend resilience and debt service, providing a buffer during retail cycles and funding strategic actions over months.

Margin sustainability

Healthy gross margin (44.26%) and operating/EBITDA margins indicate enduring pricing power and cost control in core retail operations. These margins create a structural profitability cushion that helps sustain earnings and absorb top-line softness over 2-6 months.

Diversified department-store model

Izutsuya's department-store model spans apparel, household goods and services, spreading category risk and enabling cross-selling. Diversified merchandise and service income stabilise revenue streams and customer footfall, supporting steadier fundamentals across retail cycles.

Negative Factors

Declining revenue trend

A persistent revenue decline (recently about -3.9%) reduces scale and bargaining leverage with suppliers, strains fixed-cost coverage, and limits room for reinvestment. If the top-line contraction continues, it will pressure long-term growth and make margin maintenance harder.

Moderate leverage

A debt-to-equity of 1.21 and equity ratio ~26.6% indicate moderate leverage. In a mature, low-growth retail sector this level of liabilities reduces financial flexibility, raises refinancing and interest risks, and can constrain capital spending if revenues weaken further.

Modest return on equity

ROE of 8.38% is modest for a retailer, implying limited efficiency in converting equity into profits. This suggests constrained shareholder return potential and may signal the company is operating in a lower-growth, lower-return phase, limiting strategic expansion capacity.

Izutsuya Co., Ltd. Business Overview & Revenue Model

Company Description

Izutsuya Co., Ltd. operates department stores in Japan. The company was founded in 1935 and is headquartered in Kitakyushu, Japan.

How the Company Makes Money

Izutsuya makes money primarily by selling merchandise and services through its department-store operations. Core revenue is generated from in-store retail sales across multiple product categories (e.g., apparel, household goods, and other general merchandise) and from service-related income tied to department-store operations. Specific breakdowns of revenue streams (such as the share from concessions/tenant sales, commissions, credit/financial services, real estate/tenant leasing, or e-commerce) and details of any significant partnerships contributing to earnings are null.

Izutsuya Co., Ltd. Financial Statement Overview

Summary

Izutsuya Co., Ltd. maintains a stable financial profile with strengths in cash flow management and profitability margins. However, declining revenue and a moderate debt level present potential challenges. The company should focus on revenue growth strategies to enhance financial performance and shareholder value.

Income Statement

Izutsuya Co., Ltd. has shown a decline in total revenue over the years, with gross profit margin at 44.26% and net profit margin at 4.51% for 2025. The revenue growth rate has been negative recently, indicating a potential challenge in maintaining market share or pricing power. However, the company maintains decent profitability with an EBIT margin of 4.22% and an EBITDA margin of 10.70%. Overall, the income statement reflects stable profitability but declining revenue.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 1.21, suggesting a balanced approach to leverage. The return on equity (ROE) stands at 8.38%, indicating decent profitability relative to shareholder equity. The equity ratio is 26.59%, reflecting a moderate reliance on equity financing. The balance sheet indicates a stable financial position but highlights the need for cautious management of liabilities.

Cash Flow

Izutsuya Co., Ltd. exhibits a strong operating cash flow to net income ratio at 1.37, indicating efficient cash generation relative to net income. The free cash flow to net income ratio is also healthy at 1.03. Despite a slight decline in free cash flow over the years, the company demonstrates effective cash flow management, which supports its operational and investment activities.

Breakdown	TTM	Feb 2024	Feb 2023	Feb 2023	Feb 2021	Feb 2021
Income Statement
Total Revenue	21.74B	22.16B	22.52B	22.57B	53.14B	50.53B
Gross Profit	10.95B	11.17B	11.31B	11.32B	12.13B	11.58B
EBITDA	2.25B	2.37B	2.68B	2.81B	2.99B	1.78B
Net Income	945.00M	999.00M	966.00M	1.02B	1.17B	111.00M
Balance Sheet
Total Assets	43.86B	44.85B	46.03B	46.72B	47.68B	48.36B
Cash, Cash Equivalents and Short-Term Investments	2.58B	2.77B	3.40B	3.66B	3.60B	3.93B
Total Debt	13.17B	14.49B	15.83B	16.65B	18.73B	19.96B
Total Liabilities	32.02B	32.93B	35.06B	36.60B	38.65B	40.10B
Stockholders Equity	11.83B	11.92B	10.97B	10.11B	9.03B	8.26B
Cash Flow
Free Cash Flow	0.00	1.03B	1.35B	1.56B	1.09B	670.00M
Operating Cash Flow	0.00	1.37B	1.91B	2.01B	1.98B	887.00M
Investing Cash Flow	0.00	-421.00M	-608.00M	13.00M	-833.00M	-72.00M
Financing Cash Flow	0.00	-1.58B	-1.57B	-1.97B	-1.47B	-987.00M

Izutsuya Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 440.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8260, the sentiment is Negative. The current price of 440 is below the 20-day moving average (MA) of 478.38, below the 50-day MA of 476.05, and above the 200-day MA of 437.53, indicating a neutral trend. The MACD of -9.05 indicates Positive momentum. The RSI at 35.66 is Neutral, neither overbought nor oversold. The STOCH value of 43.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8260.

Izutsuya 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%
8242	66 Neutral	¥282.15B	2.68	4.97%	2.01%	2.00%	-68.35%
8244	65 Neutral	¥71.10B	17.68	―	1.09%	7.55%	89.45%
8260	64 Neutral	¥5.16B	-11.32	―	1.33%	-3.57%	33.78%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8237	54 Neutral	¥101.98B	32.32	―	0.83%	1.38%	-87.76%