airCloset, Inc. (9557) AI Stock Analysis

• Market Cap: ¥1.86B
• Dividend Yield: N/A
• Average Volume (3M): 33.15K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.49
• Revenue Growth: 13.90%
• EPS Growth: -2872.89%
• Country: JP
• Employees: 70
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): N/A
• Shares Outstanding: 8,284,200
• 10 Day Avg. Volume: 18,330
• 30 Day Avg. Volume: 33,146
• PEG Ratio: -1.14
• Price to Book (P/B): 6.97
• Price to Sales (P/S): 0.78
• P/FCF Ratio: -14.13
• 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: 52 Neutral
• Price Target: ¥242.00 ▼(-2.02% Downside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

The score is driven primarily by mixed financial performance—good revenue growth and gross margin, but very low net profitability, high leverage, and negative free cash flow. Technical signals add pressure due to a clear downtrend, while valuation is hard to support with a negative P/E and no dividend yield data.

Positive Factors

High gross margin

A near-48% gross margin provides durable operational leverage: it reflects pricing power, efficient cost of goods and reuse economics in a rental model. Over months, this margin cushions EBITDA against demand swings and funds reinvestment in inventory and customer acquisition.

Recurring subscription model

Subscription revenue creates predictable, repeatable top-line flows and improves customer lifetime value visibility. Structurally, it enables better capacity planning, retention-focused investments and steady revenue growth as scale reduces per-customer servicing costs over the medium term.

Strong operating cash flow

Robust operating cash conversion indicates core operations generate cash even if accounting profits are muted. This durability supports working-capital needs, service of obligations and targeted reinvestment without immediate reliance on external funding, improving resilience over months.

Negative Factors

Very low net profitability

A sub-1% net margin limits retained earnings and reduces the buffer to absorb shocks or fund growth from internal cash. Persistently low profitability constrains long-term ROI for shareholders and makes it harder to convert top-line gains into sustainable bottom-line improvement.

High leverage

Significant debt relative to equity raises refinancing and interest-rate sensitivity risks. With limited net margins, higher leverage reduces financial flexibility for capex or strategic initiatives and increases the probability that future cash generation must prioritize debt service.

Negative free cash flow

Persistent negative FCF implies heavy capital expenditure or working-capital drain that externalizes funding needs. Over months this can force additional borrowing or equity raises, limiting autonomy and potentially diluting returns if underlying profitability doesn't improve.

airCloset, Inc. Business Overview & Revenue Model

Company Description

airCloset, Inc. provides online fashion rental services in Japan. It also operates airCloset, a fashion rental service for women; and airCloset Mall, a manufacturer's officially monthly rental mall. The company was incorporated in 2014 and is based in Tokyo, Japan.

How the Company Makes Money

airCloset generates revenue primarily through its subscription model, where customers pay a monthly fee to access a rotating selection of rental clothing. This model not only provides a steady stream of income but also encourages customer loyalty and repeat business. Key revenue streams include the subscription fees from individual users, as well as potential partnerships with clothing brands for exclusive rentals or promotions. Additionally, airCloset may benefit from upselling services such as premium memberships or additional rental options, further enhancing its earnings.

airCloset, Inc. Financial Statement Overview

Summary

Revenue growth and a healthy gross margin (47.96%) are positives, but profitability is weak (net margin 0.47%), leverage remains high (debt-to-equity 2.76), and free cash flow is negative despite strong operating cash flow.

Income Statement

The company has shown consistent revenue growth over the years, with a 7.06% increase in the latest period. Gross profit margin is healthy at 47.96%, indicating effective cost management. However, net profit margin remains low at 0.47%, reflecting challenges in translating revenue growth into net income. The EBIT and EBITDA margins have improved, but remain modest, suggesting room for operational efficiency improvements.

Balance Sheet

The debt-to-equity ratio has improved to 2.76, indicating better leverage management compared to previous years. However, the company still carries significant debt relative to equity. Return on equity is low at 4.25%, suggesting limited profitability on shareholders' investments. The equity ratio of 20.14% indicates a moderate reliance on equity financing.

Cash Flow

Operating cash flow is strong, but free cash flow is negative, indicating high capital expenditures or other cash outflows. The operating cash flow to net income ratio is robust at 45.06, suggesting good cash generation relative to net income. However, the negative free cash flow to net income ratio highlights potential liquidity challenges.

Breakdown	Jun 2024	Jun 2023	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	4.96B	4.22B	3.74B	3.39B	2.89B
Gross Profit	2.38B	2.00B	1.76B	1.67B	1.46B
EBITDA	603.91M	538.93M	80.39M	-12.44M	-144.72M
Net Income	23.54M	-53.20M	-354.19M	-378.15M	-344.65M
Balance Sheet
Total Assets	2.75B	2.71B	2.50B	2.19B	1.42B
Cash, Cash Equivalents and Short-Term Investments	1.09B	1.45B	1.45B	1.14B	789.05M
Total Debt	1.53B	1.58B	1.40B	1.45B	885.11M
Total Liabilities	2.20B	2.20B	1.95B	1.86B	1.38B
Stockholders Equity	554.44M	510.16M	557.91M	323.04M	41.07M
Cash Flow
Free Cash Flow	-273.38M	-108.64M	-398.50M	-661.29M	-444.11M
Operating Cash Flow	1.06B	802.95M	479.38M	156.04M	353.48M
Investing Cash Flow	-1.39B	-778.28M	-907.93M	-1.03B	-797.59M
Financing Cash Flow	-32.76M	178.06M	540.75M	1.22B	454.23M

airCloset, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 247.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9557, the sentiment is Negative. The current price of 247 is above the 20-day moving average (MA) of 238.70, below the 50-day MA of 252.48, and below the 200-day MA of 361.54, indicating a bearish trend. The MACD of -6.45 indicates Negative momentum. The RSI at 40.63 is Neutral, neither overbought nor oversold. The STOCH value of 20.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9557.

airCloset, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3179	66 Neutral	¥23.86B	16.47	―	3.53%	-2.73%	-51.48%
3093	65 Neutral	¥42.65B	13.92	―	2.19%	17.90%	14.14%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3396	60 Neutral	¥5.63B	10.49	―	1.76%	2.24%	―
3192	56 Neutral	¥1.96B	―	―	―	0.06%	―
9557	52 Neutral	¥1.86B	-5.54	―	―	13.90%	-2872.89%
3556	49 Neutral	¥14.19B	26.25	―	―	-10.83%	―