airCloset, Inc. (9557) AI Stock Analysis

• Market Cap: ¥2.87B
• Dividend Yield: N/A
• Average Volume (3M): 33.15K
• Price to Earnings (P/E): 116.6
• Beta (1Y): 0.44
• Revenue Growth: 13.90%
• EPS Growth: -2872.89%
• Country: JP
• Employees: 70
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): -9.47
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: ¥280.00 ▲(1.08% Upside)

The overall stock score is primarily influenced by weak financial performance and technical indicators. The company's revenue growth is overshadowed by profitability and cash flow challenges. Technical analysis indicates a bearish trend, and valuation metrics are poor due to a negative P/E ratio and lack of dividends.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategy, which can lead to long-term sustainability and expansion.

Gross Profit Margin

A healthy gross profit margin reflects efficient cost control, allowing the company to reinvest in growth initiatives and improve profitability over time.

Subscription Model

The subscription model ensures recurring revenue, fostering customer loyalty and providing financial stability, which supports long-term business growth.

Negative Factors

Profitability Challenges

Low profitability limits the company's ability to reinvest in growth and may hinder its capacity to withstand economic downturns, affecting long-term viability.

High Debt Levels

High debt levels can strain financial resources and limit strategic flexibility, posing risks to long-term financial health and operational stability.

Negative Free Cash Flow

Negative free cash flow suggests potential liquidity challenges, limiting the company's ability to invest in growth opportunities and manage unexpected expenses.

airCloset, Inc. Business Overview & Revenue Model

Company Description

airCloset, Inc. (9557) is a pioneering company in the fashion industry, primarily focused on providing subscription-based clothing rental services. Operating in the growing sectors of e-commerce and sustainable fashion, airCloset offers a curated selection of women's apparel that caters to various styles and occasions. Customers can enjoy a flexible and environmentally-friendly alternative to traditional shopping by renting high-quality garments and returning them after use.

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

The company shows solid revenue growth and healthy gross profit margins, but struggles with profitability and cash flow management. High debt levels persist despite improved leverage management.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.84B	4.96B	4.22B	3.74B	3.39B	2.89B
Gross Profit	2.35B	2.38B	2.00B	1.76B	1.67B	1.46B
EBITDA	693.08M	603.91M	538.93M	80.39M	-12.44M	-144.72M
Net Income	105.49M	23.54M	-53.20M	-354.19M	-378.15M	-344.65M
Balance Sheet
Total Assets	2.90B	2.75B	2.71B	2.50B	2.19B	1.42B
Cash, Cash Equivalents and Short-Term Investments	1.20B	1.09B	1.45B	1.45B	1.14B	789.05M
Total Debt	1.54B	1.53B	1.58B	1.40B	1.45B	885.11M
Total Liabilities	2.26B	2.20B	2.20B	1.95B	1.86B	1.38B
Stockholders Equity	638.67M	554.44M	510.16M	557.91M	323.04M	41.07M
Cash Flow
Free Cash Flow	0.00	-273.38M	-108.64M	-398.50M	-661.29M	-444.11M
Operating Cash Flow	0.00	1.06B	802.95M	479.38M	156.04M	353.48M
Investing Cash Flow	0.00	-1.39B	-778.28M	-907.93M	-1.03B	-797.59M
Financing Cash Flow	0.00	-32.76M	178.06M	540.75M	1.22B	454.23M

airCloset, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 277.00
• 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 277 is below the 20-day moving average (MA) of 299.05, below the 50-day MA of 333.94, and below the 200-day MA of 430.12, indicating a bearish trend. The MACD of -18.36 indicates Negative momentum. The RSI at 32.01 is Neutral, neither overbought nor oversold. The STOCH value of 42.56 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
3192	73 Outperform	¥1.63B	3.12	―	―	0.06%	―
3179	66 Neutral	¥24.18B	18.80	―	3.18%	-2.73%	-51.48%
3093	65 Neutral	¥40.71B	14.21	―	2.32%	17.90%	14.14%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3396	60 Neutral	¥5.64B	16.18	―	1.81%	2.24%	―
9557	45 Neutral	¥2.87B	116.64	―	―	13.90%	-2872.89%
3556	44 Neutral	¥14.81B	647.18	―	―	-10.83%	―