Wagokoro Co., Ltd. (9271) AI Stock Analysis

• Market Cap: ¥6.50B
• Dividend Yield: N/A
• Average Volume (3M): 97.58K
• Price to Earnings (P/E): 7.8
• Beta (1Y): 0.79
• Revenue Growth: 30.82%
• EPS Growth: 77.42%
• Country: JP
• Employees: 39
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): 37.03
• Shares Outstanding: 6,561,724
• 10 Day Avg. Volume: 54,110
• 30 Day Avg. Volume: 97,583
• PEG Ratio: 0.10
• Price to Book (P/B): 4.38
• Price to Sales (P/S): 1.99
• P/FCF Ratio: 13.53
• 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: 76 Outperform
• Price Target: ¥1,119.00 ▲(29.97% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is driven primarily by improved financial performance (profitability, balance-sheet repair, and positive cash flow) and strong technical trend signals. Valuation appears supportive with a low P/E, while the main offset is the company’s recent history of volatility and past financial stress.

Positive Factors

Sustained revenue growth and margin recovery

A multi-year revenue climb with high gross and healthy net margins indicates structural product-market fit and improving unit economics. Sustained top-line growth with margin recovery supports reinvestment capacity and resilience of core retail operations over the next several quarters.

Material balance-sheet repair

Rapid deleveraging and equity rebuilding materially strengthen financial flexibility, lowering refinancing and solvency risk. A healthier capital structure gives management room to invest in growth, absorb cyclical dips, and negotiate better supplier/credit terms over the mid term.

Positive and growing cash generation

Consistent positive operating and free cash flow in consecutive years signals the business is beginning to convert profits into tangible liquidity. This enhances the company's ability to fund working capital, capex, or strategic initiatives without reliant on external financing.

Negative Factors

History of severe losses and volatility

A track record of deep prior losses and balance-sheet swings undermines confidence in durability of the recovery. Lenders, suppliers and partners may remain cautious, and a cyclical or demand shock could more easily reverse recent gains given prior instability.

Inconsistent cash-flow quality and working-capital risk

Irregular conversion of earnings to cash and past burn raises execution risk: inventory build, receivable swings or margin pressures could quickly strain liquidity. This elevates funding and operational risk versus peers with steady cash conversion.

Narrow product focus and small scale

A niche product focus and a very small workforce suggest limited geographic, channel and product diversification. Scale constraints can raise per-unit costs, limit bargaining power with suppliers, and increase exposure to demand shifts in a single theme or customer segment.

Wagokoro Co., Ltd. Business Overview & Revenue Model

Company Description

Wagokoro Co., Ltd. engages in retail, services, and OEM businesses in Japan. The company operates stores, which offers Japanese accessories, hairpins, Japanese umbrellas, and yukatas; and sells its products through physical stores, e-commerce sites, mail order sites, and exhibition halls. It also rents Kimono; manufacture and sells silver accessories, stone bracelets, lapel and pin badges, sunglasses/glasses, buckles, boxes, hats, jewelry, leather products, and chopsticks; and provides luggage storage services. In addition, the company renovates vacant houses; and operates real estate leasing and accommodation facilities. Wagokoro Co., Ltd. was founded in 1997 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Wagokoro generates revenue primarily from the sale of products it plans and produces (or sources) and then sells through its sales channels. Key revenue streams include (1) direct-to-consumer sales via e-commerce and operated stores where the company captures retail margins, and (2) wholesale/B2B sales where products are sold to other retailers or partners at agreed wholesale prices. The company’s earnings are influenced by its ability to create marketable Japanese-themed merchandise, manage inventory and procurement/production costs, and drive customer traffic through marketing and merchandising. Specific segment breakdowns, named major partners, and exact contribution by channel are null.

Wagokoro Co., Ltd. Financial Statement Overview

Summary

Strong turnaround with sharp revenue growth and a return to solid profitability, improving leverage, and positive operating/free cash flow in 2024–2025. Score is held back by the severity of prior losses, earlier negative equity, and historically volatile cash flow quality.

Income Statement

Profitability and growth have improved sharply after earlier losses. Revenue rose from 1.33B (2023) to 2.09B (2024) and 2.78B (2025), with 2024 showing strong margins (about 68% gross margin and ~19% net margin). The key weakness is historical volatility—results were deeply negative in 2020–2022 and only recently stabilized, which raises confidence risk if demand weakens.

Balance Sheet

Leverage has improved materially as equity rebuilt: debt-to-equity moved from very elevated levels in 2023 (over 4x) to under 1x in 2024 (~0.79x), alongside a large jump in equity by 2025 (to ~1.27B). Total debt also trended down from 2022–2025. The main concern is the company’s recent history of negative equity (2020–2022) and rapid balance-sheet swings, which signals past financial stress even though current positioning looks healthier.

Cash Flow

Cash generation has turned positive and strengthened: operating cash flow improved from negative levels in 2021–2023 to +198M (2024) and +610M (2025), with free cash flow also positive in 2024–2025 (142M and 410M). However, cash flow quality has been inconsistent—2024 operating cash flow was meaningfully below net income, and prior years showed large cash burn, indicating higher execution and working-capital risk than a consistently cash-generative retailer.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.37B	2.78B	2.09B	1.33B	996.84M	902.14M
Gross Profit	1.65B	1.96B	1.42B	908.00M	749.89M	706.66M
EBITDA	514.66M	593.62M	444.06M	35.16M	-38.83M	-527.18M
Net Income	468.09M	706.85M	398.33M	-13.00M	-82.88M	-554.76M
Balance Sheet
Total Assets	1.53B	1.87B	1.28B	1.02B	665.80M	566.85M
Cash, Cash Equivalents and Short-Term Investments	346.32M	599.86M	190.41M	284.14M	122.64M	126.83M
Total Debt	430.68M	353.50M	433.44M	528.27M	590.51M	591.57M
Total Liabilities	692.65M	598.34M	707.11M	881.73M	1.11B	1.00B
Stockholders Equity	814.84M	1.27B	547.42M	124.04M	-457.63M	-447.94M
Cash Flow
Free Cash Flow	0.00	409.88M	141.88M	-410.00M	-189.00M	-364.84M
Operating Cash Flow	0.00	610.15M	197.85M	-345.00M	-126.13M	-311.23M
Investing Cash Flow	0.00	-144.79M	-192.41M	-26.27M	49.19M	69.88M
Financing Cash Flow	0.00	-55.92M	-99.17M	533.00M	72.75M	114.97M

Wagokoro Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 861.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9271, the sentiment is Neutral. The current price of 861 is below the 20-day moving average (MA) of 1124.10, below the 50-day MA of 1033.92, and above the 200-day MA of 800.92, indicating a neutral trend. The MACD of -4.72 indicates Positive momentum. The RSI at 40.56 is Neutral, neither overbought nor oversold. The STOCH value of 13.65 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:9271.

Wagokoro Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9271	76 Outperform	¥6.50B	7.85	―	―	30.82%	77.42%
2792	72 Outperform	¥41.52B	10.95	―	3.62%	-0.98%	-29.86%
3566	68 Neutral	¥6.93B	13.03	―	0.51%	16.10%	36.89%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7494	47 Neutral	¥8.16B	1.17	―	4.13%	-10.82%	―
8013	45 Neutral	¥2.36B	46.31	―	―	2.54%	―
7603	41 Neutral	¥3.33B	-1.51	―	―	-7.88%	-11.22%