BOOKOFF GROUP HOLDINGS LIMITED (9278) AI Stock Analysis

• Market Cap: ¥30.62B
• Dividend Yield: 1.73%
• Average Volume (3M): 77.80K
• Price to Earnings (P/E): 11.2
• Beta (1Y): 0.42
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 1,689
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 31.21
• Shares Outstanding: 20,547,413
• 10 Day Avg. Volume: 55,970
• 30 Day Avg. Volume: 77,803
• PEG Ratio: 0.51
• Price to Book (P/B): 1.50
• Price to Sales (P/S): 0.23
• P/FCF Ratio: 30.76
• 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): 113.4
• Revenue Forecast (FY): ¥125.00B

• Rating: 64 Neutral
• Price Target: ¥1,899.00 ▲(8.08% Upside)
• Action: N/A Date: 03/18/26
• Date: Action: N/A 03/18/26

The score is driven primarily by solid topline growth and strong gross margins, tempered by thin profitability, increasing leverage, and volatile cash-flow conversion. Technicals are mixed with weaker near-term momentum, while valuation (low-teens P/E and modest yield) provides a supportive but secondary positive.

Positive Factors

Steady Revenue Growth

Multi-year top-line expansion demonstrates persistent consumer demand for the reuse model and successful scaling of store and online channels. Durable revenue growth supports investment capacity, supplier/sourcing leverage, and long-term planning despite short-term volatility.

High Gross Margins

The reuse buyback-to-resale model generates structurally strong gross margins, providing a persistent buffer versus cost swings. High gross profitability supports reinvestment in store/online operations and helps absorb low operating margins characteristic of retail.

Omnichannel & Brand Network

A broad physical store footprint combined with online sales creates durable competitive advantages in sourcing inventory (buybacks), customer reach, and local market presence. This network effects the resale supply chain and supports steady inventory flow and brand loyalty.

Negative Factors

Rising Leverage

Elevated and increasing leverage reduces financial flexibility for a low-margin retailer, raising interest and refinancing risk. With limited net margin buffers, higher debt constrains capital allocation, limits ability to fund stores or e-commerce investment, and heightens vulnerability to downturns.

Thin Profitability

Very narrow operating and net margins leave little room for cost inflation or revenue shocks. Persistent low profitability limits internal cash generation for growth, raises reliance on debt or external financing, and magnifies earnings volatility even with strong gross margins.

Volatile Cash Conversion

Inconsistent operating cash flow and weak free cash flow conversion undermine capacity to reduce leverage, fund capex, or sustain dividends. For a retailer with rising debt and low margins, recurring cash volatility increases refinancing and liquidity risk over the medium term.

BOOKOFF GROUP HOLDINGS LIMITED Business Overview & Revenue Model

Company Description

Bookoff Group Holdings Limited operates secondhand book and other goods stores in the Japan, Malaysia, the United States, and France. The company's BOOKOFF branded stores purchases and sells preowned goods, such as books, software, home appliances, apparel, sporting and baby goods, watches, luxury brand bags, precious metals, kitchenware, and other household items, as well as trading cards, used mobile phones, and other private brand products. It also operates BOOKOFF online e-commerce Website, which sells books, software, and other merchandise; and trades in books, CDs, DVDs, and games, as well as operates a book review community site. As of June 30, 2019, the company operated 807 stores. Bookoff Group Holdings Limited was founded in 1990 and is headquartered in Sagamihara, Japan.

How the Company Makes Money

The company primarily makes money by retailing pre-owned goods acquired through customer buybacks and other procurement routes, earning a gross margin on the spread between purchase (buyback) prices and resale prices. Key revenue streams typically include: (1) in-store sales of used merchandise under BOOKOFF and related store formats; (2) online/e-commerce sales of used items, where revenue is recognized on the sale price of goods sold; and (3) service-related income tied to the reuse model (e.g., buyback transactions and associated processing that enable inventory acquisition). As a holding company, it also generates earnings through its subsidiaries’ operating profits, which consolidate into group revenue and income. Specific details on material partnerships, franchising fees, or segment-level revenue mix are null.

BOOKOFF GROUP HOLDINGS LIMITED Financial Statement Overview

Summary

Steady multi-year revenue growth and strong gross margins support the business quality, but thin operating/net margins, rising leverage (debt-to-equity ~1.43), and volatile/uneven cash conversion (including weak/negative FCF periods) constrain the overall financial strength.

Income Statement

Revenue has grown steadily over the last several years (from ~¥84.4B in 2020 to ~¥119.2B in 2025), supporting a constructive topline trajectory. Profitability is stable at the gross profit level (gross margin ~57–61%), but operating and net profitability remain thin (2025 operating profit margin ~3.2% and net margin ~1.8%) and net income has been volatile (notably higher in 2023 vs. lower in 2024–2025). Overall: solid growth and strong gross margin, tempered by low net profitability and earnings variability.

Balance Sheet

Leverage has increased, with total debt rising to ~¥26.6B in 2025 and debt-to-equity moving up to ~1.43 (from ~1.11 in 2022–2023), which reduces balance sheet flexibility. Equity is positive (~¥18.6B in 2025) and returns on equity are healthy in recent years (~11% in 2025), but the elevated leverage level is a key risk factor for a low-margin retailer. Overall: acceptable capitalization and returns, but meaningfully levered and trending more levered.

Cash Flow

Cash generation is uneven. Operating cash flow has been positive most years but swung sharply (very weak in 2023, stronger in 2024, and down again in 2025 to ~¥3.1B). Free cash flow also fluctuates materially, including a negative year in 2023, and in 2025 free cash flow (~¥0.9B) covered less than one-third of net income, signaling weaker cash conversion. Overall: generally positive cash flow, but volatility and inconsistent conversion constrain the score.

Breakdown	Aug 2024	May 2023	May 2022	May 2022	Mar 2020
Income Statement
Total Revenue	119.20B	111.66B	101.84B	91.54B	80.23B
Gross Profit	67.75B	62.77B	58.42B	54.21B	48.76B
EBITDA	5.65B	4.95B	4.28B	3.34B	3.24B
Net Income	2.10B	1.71B	2.77B	1.45B	134.57M
Balance Sheet
Total Assets	57.59B	54.54B	50.21B	45.10B	40.32B
Cash, Cash Equivalents and Short-Term Investments	6.63B	7.18B	5.54B	8.20B	5.84B
Total Debt	26.59B	22.38B	20.92B	18.19B	18.13B
Total Liabilities	38.72B	34.03B	31.15B	28.61B	27.38B
Stockholders Equity	18.63B	20.24B	18.86B	16.36B	12.85B
Cash Flow
Free Cash Flow	908.00M	2.35B	-1.79B	1.90B	1.55B
Operating Cash Flow	3.06B	4.08B	243.00M	2.78B	2.23B
Investing Cash Flow	-2.51B	-2.39B	-3.45B	-1.86B	-1.33B
Financing Cash Flow	-1.12B	-124.00M	490.00M	1.41B	-1.16B

BOOKOFF GROUP HOLDINGS LIMITED Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2674	74 Outperform	¥27.59B	8.12	―	3.77%	7.88%	-5.92%
3093	65 Neutral	¥40.35B	9.40	―	2.19%	17.90%	14.14%
7685	65 Neutral	¥202.14B	27.65	―	0.64%	57.01%	91.03%
9278	64 Neutral	¥30.62B	11.19	―	1.73%	―	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
2681	60 Neutral	¥66.44B	4.34	―	1.81%	6.48%	-38.41%
9270	59 Neutral	¥24.47B	3.19	―	0.95%	4.14%	―

BOOKOFF GROUP HOLDINGS LIMITED Corporate Events

Bookoff boosts February sales and opens new Japan and U.S. stores

Bookoff Group Holdings, a major player in Japan’s reuse and secondhand retail market, continues to manage a sizable network of directly operated and franchised stores domestically and abroad, including a premium services segment. The group is gradually reshaping its portfolio, with minor changes in store counts and an emphasis on large, comprehensive reuse formats as well as expansion into overseas markets.

In February 2026, existing store sales in Japan rose 4.7% year on year, with total store sales up 5.3%, driven by strong demand for trading cards, hobby goods, apparel, home appliances, smartphones, and software media. The company further bolstered its network by opening a BOOKOFF SUPER BAZAAR in Chiba and a new BOOKOFF NOVI store in the United States, underscoring steady growth in core categories and a continued push into international markets despite a slight net decline in total group store numbers.

BOOKOFF Strikes Strategic Capital and Business Alliance with ITOCHU to Accelerate Reuse Expansion

BOOKOFF GROUP HOLDINGS LIMITED has entered into a capital and business alliance with trading conglomerate ITOCHU Corporation to capture medium- to long-term growth in the expanding reuse market, which is projected to reach ¥4 trillion in Japan by 2030. By combining BOOKOFF’s reuse operations and brand with ITOCHU’s extensive domestic and global platforms, customer data, and the nationwide FamilyMart network, the partners aim to enhance their industry presence and broaden customer reach.

Operationally, the alliance targets four areas: strengthening procurement of reuse items via FamilyMart stores, expanding premium service outlets and customer acquisition, accelerating overseas business, and launching new business models. As part of the capital tie-up, ITOCHU will acquire 879,000 BOOKOFF shares, equivalent to 5.01% of voting rights, from major publishing shareholders, underscoring a strategic commitment that could reshape competitive dynamics in Japan’s circular-economy retail segment and create new monetization channels for both groups.

BOOKOFF Posts 14% January Sales Surge on Broad-Based Growth in Secondhand Goods

BOOKOFF GROUP HOLDINGS reported strong January 2026 performance in its Japanese BOOKOFF operations, with existing store sales up 14.3% year on year and total store sales up 14.0%, extending the double-digit growth trend seen in recent months. The company said higher net sales in trading cards and hobby items, jewelry, watches, branded bags, books, and software media all contributed to this robust growth, while it continued to fine-tune its store network, opening a new hugall Tenjin Chikagai store and ending the month with 729 BOOKOFF outlets in Japan and 838 stores across the group worldwide, underscoring steady expansion and solid demand for secondhand goods.

BOOKOFF Group Outlines Q2 FY2026 Performance and Growth Strategy

BOOKOFF GROUP HOLDINGS LIMITED released supplementary financial data for the second quarter of the fiscal year ending May 2026, outlining consolidated results, segment performance, and the status of its core BOOKOFF operations in Japan, including existing store trends and new store openings across the group. The materials also detail progress on anti-fraud measures and update medium-term management policies, including targets for earnings growth and forecasts for sales, profit, and dividends for FY5/2026, signaling a structured push to enhance operational soundness, expand the store network, and deliver stable returns to shareholders.

BOOKOFF GROUP HOLDINGS Grows Sales but Sees Profit Decline in First Half, Keeps Full-Year Outlook Intact

BOOKOFF GROUP HOLDINGS reported consolidated net sales of ¥61.1 billion for the first half of the fiscal year ending May 31, 2026, a 7.6% year-on-year increase, while operating profit fell 15.6% to ¥1.26 billion and profit attributable to owners of parent declined 18.8% to ¥741 million, reflecting margin pressures despite continued top-line growth. Total assets edged up to ¥58.7 billion and the equity ratio remained stable at just over 32%, and the company maintained its interim dividend at zero but kept its full-year dividend forecast at ¥30 per share, up from ¥25 the previous year; it also incorporated the disposal of treasury shares tied to a restricted stock plan into its earnings per share forecast. For the full fiscal year, BOOKOFF left its guidance unchanged, projecting net sales of ¥127.0 billion, operating profit of ¥3.8 billion, and profit attributable to owners of parent of ¥2.2 billion, signaling management’s confidence in recovering profitability in the second half even as first-half earnings softened. The group also reported a change in consolidation scope, adding BOOKOFF HOKKAIDO, Inc. and removing J&K TRADING LLC, underscoring ongoing portfolio adjustments within its group structure.

BOOKOFF Posts 6% Same-Store Sales Gain in Japan, Adds New Stores at Home and in U.S.

In December 2025, BOOKOFF GROUP HOLDINGS LIMITED reported a 6.0% year-on-year increase in existing store sales and a 5.7% rise in total store sales for its Japan operations, driven by strong performance in trading cards and hobby goods, jewelry, watches, brand bags, apparel, and books. The group modestly expanded its footprint by opening a new BOOKOFF CiiNA store in Sapporo and a BOOKOFF store in Houston, bringing its global network to 842 outlets, including 733 BOOKOFF stores in Japan and 48 overseas, underscoring steady operational growth and incremental international expansion.