Higashi Twenty One Co., Ltd. (9029) AI Stock Analysis

• Market Cap: ¥25.08B
• Dividend Yield: 2.33%
• Average Volume (3M): 18.48K
• Price to Earnings (P/E): 7.3
• Beta (1Y): 0.81
• Revenue Growth: 22.91%
• EPS Growth: 61.68%
• Country: JP
• Employees: 1,495
• Sector: Industrials
• Sector Strength: 72
• Industry: Integrated Freight & Logistics
• EPS (TTM): 63.85
• Shares Outstanding: 13,264,000
• 10 Day Avg. Volume: 9,810
• 30 Day Avg. Volume: 18,483
• PEG Ratio: 0.46
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 0.33
• P/FCF Ratio: -13.37
• 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: 75 Outperform
• Price Target: ¥2,432.00 ▲(45.19% Upside)
• Action: Reiterated Date: 10/28/25
• Date: Action: Reiterated 10/28/25

Higashi Twenty One Co., Ltd. is well-positioned with strong financial performance and attractive valuation metrics. The stock's technical indicators suggest strong momentum, though caution is advised due to overbought conditions. Monitoring cash flow management and debt levels will be important for future stability.

Positive Factors

Strong revenue and profit growth

Sustained top-line growth with simultaneous improvements in gross, net and EBIT margins indicates durable demand for logistics services and improving operational efficiency. Over 2–6 months this supports reinvestment, pricing power and resilience to cyclical pressure, underpinning long-term cash generation.

Stable balance sheet and solid equity ratio

Manageable leverage and a solid equity base provide financial flexibility for capital expenditures and contract fulfillment in logistics. A strong ROE signals effective capital deployment; this structural balance sheet health supports durability through industry cycles and funds strategic investments.

Significant EPS growth

High EPS growth reflects improving profitability per share driven by operating leverage and margin expansion rather than one-off items. Sustained EPS growth over quarters supports stronger retained earnings, enhances funding capacity for growth, and bolsters long-term shareholder returns.

Negative Factors

Declining free cash flow

Negative free cash flow growth constrains the company's ability to self-fund expansion, pay down debt or sustain dividends without drawing on reserves or external financing. Over several months this can pressure liquidity, increase refinancing needs, and limit strategic optionality in logistics investments.

Increase in total debt

Rising total debt raises interest and refinancing exposure, which can erode net margins and reduce financial flexibility. In a capital-intensive logistics business, persistent debt growth without commensurate cash flow improvement heightens risk during downturns and constrains the ability to pursue acquisitions or capex.

EBITDA margin needs improvement

A lagging EBITDA margin relative to possible peers signals lower operating cash conversion and less buffer against cost inflation. Over the medium term this limits free cash flow potential and makes profitability more sensitive to fuel, wage or freight-cost shocks in the logistics sector.

Higashi Twenty One Co., Ltd. Business Overview & Revenue Model

Company Description

Higashi Twenty One Co., Ltd. (9029) is a Japanese company primarily engaged in the retail and distribution of various consumer goods, including food products, household items, and personal care items. The company operates a network of retail stores and e-commerce platforms, catering to a diverse customer base across Japan. Higashi Twenty One focuses on delivering quality products at competitive prices, and it is committed to enhancing customer satisfaction through exceptional service and a wide product selection.

How the Company Makes Money

Higashi Twenty One Co., Ltd. generates revenue through multiple streams including in-store sales, online sales through its e-commerce platform, and partnerships with suppliers for exclusive product offerings. The primary revenue stream comes from retail sales, which account for a significant portion of its earnings as the company operates numerous physical stores. Additionally, the company leverages special promotions and seasonal sales to drive traffic and boost sales. Its partnerships with various suppliers enable it to offer unique products, enhancing its market appeal and customer loyalty, which further contributes to its revenue.

Higashi Twenty One Co., Ltd. Financial Statement Overview

Summary

Higashi Twenty One Co., Ltd. exhibits strong financial performance with robust revenue and profit growth. The balance sheet is stable, though increased debt levels should be monitored. Cash flow management presents some challenges, particularly in terms of free cash flow generation.

Income Statement

Higashi Twenty One Co., Ltd. has demonstrated strong revenue growth, with a notable increase from 2024 to 2025. The gross profit margin is healthy, reflecting efficient cost management. Net profit margin and EBIT margin have also improved, indicating enhanced profitability. However, the EBITDA margin shows room for further improvement.

Balance Sheet

The company's balance sheet is stable, with a reasonable debt-to-equity ratio that suggests manageable leverage. Return on equity is strong, indicating effective use of shareholder funds. The equity ratio is solid, reflecting a healthy proportion of equity financing. However, the increase in total debt warrants monitoring.

Cash Flow

The cash flow statement reveals a decline in free cash flow, primarily due to increased capital expenditures. The operating cash flow to net income ratio is satisfactory, indicating good cash generation relative to profits. However, the negative free cash flow growth rate is a concern, suggesting potential cash flow management issues.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	50.04B	48.13B	40.64B	34.81B	27.95B	24.44B
Gross Profit	9.43B	9.03B	7.78B	7.01B	5.81B	5.06B
EBITDA	4.28B	3.91B	3.07B	2.57B	2.02B	1.51B
Net Income	2.01B	1.81B	1.51B	1.27B	1.12B	666.53M
Balance Sheet
Total Assets	30.73B	31.60B	25.54B	21.23B	18.14B	15.92B
Cash, Cash Equivalents and Short-Term Investments	4.60B	4.68B	4.06B	3.49B	3.51B	3.11B
Total Debt	8.82B	9.47B	5.93B	3.98B	2.75B	2.11B
Total Liabilities	17.14B	18.09B	13.22B	10.36B	8.28B	7.00B
Stockholders Equity	13.58B	13.51B	12.31B	10.87B	9.86B	8.91B
Cash Flow
Free Cash Flow	0.00	-1.20B	163.47M	328.25M	874.93M	267.11M
Operating Cash Flow	0.00	2.37B	3.03B	665.05M	1.48B	508.96M
Investing Cash Flow	0.00	-4.53B	-3.27B	-1.34B	-1.00B	-534.41M
Financing Cash Flow	0.00	2.75B	818.57M	714.62M	-107.72M	-101.17M

Higashi Twenty One Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1675.00
• 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:9029, the sentiment is Negative. The current price of 1675 is below the 20-day moving average (MA) of 2008.80, below the 50-day MA of 1997.30, and below the 200-day MA of 1799.08, indicating a neutral trend. The MACD of -24.69 indicates Positive momentum. The RSI at 44.38 is Neutral, neither overbought nor oversold. The STOCH value of 45.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9029.

Higashi Twenty One Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9306	80 Outperform	¥14.18B	8.60	―	3.04%	4.45%	29.58%
9034	77 Outperform	¥15.84B	11.63	―	3.37%	3.18%	-23.51%
9029	75 Outperform	¥25.08B	7.29	―	2.33%	22.91%	61.68%
9025	74 Outperform	¥156.58B	9.98	―	3.65%	7.73%	-19.90%
9304	73 Outperform	¥79.78B	6.51	―	3.48%	4.17%	24.54%
9351	73 Outperform	¥15.43B	7.26	―	3.85%	4.96%	38.47%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%