airCloset, Inc. (9557) AI Stock Analysis

• Market Cap: ¥2.16B
• Dividend Yield: N/A
• Average Volume (3M): 33.15K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.50
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: ¥289.00 ▲(17.00% Upside)

The score is held back primarily by weak profitability, negative free cash flow, and high leverage despite revenue growth and strong gross margins. Technical indicators are mixed with a weak longer-term trend and negative MACD, while valuation is pressured by a negative P/E and no dividend yield data.

Positive Factors

Recurring subscription business model

The subscription model creates recurring, predictable revenue and higher customer lifetime value relative to one‑off sales. Over months this steadier cash inflow supports retention-focused marketing, smoother demand planning, and the potential to scale unit economics as membership grows.

Healthy gross margins (~48%)

A near‑48% gross margin indicates strong unit economics for curated rental offerings, implying pricing power or efficient sourcing. Sustained margins provide structural capacity to fund logistics, customer acquisition, and investments that can drive operating leverage over the medium term.

Strong operating cash flow generation

Robust operating cash flow and a high operating cash flow-to-net income ratio show good cash conversion from operations. This durable cash generation can fund working capital and near-term growth, easing reliance on immediate external financing if capex and investment are disciplined.

Negative Factors

Very low net profitability

A net margin around 0.47% means the company converts little revenue to retained profit, leaving minimal internal cushions. Over months this constrains reinvestment from earnings, limits retained earnings growth, and increases reliance on external funding to support expansion or absorb shocks.

Negative free cash flow

Negative free cash flow, despite operating cash generation, suggests material capex or working capital drain that consumes cash. Persistent FCF deficits reduce flexibility to deleverage or invest from internally generated funds and heighten refinancing and liquidity risks over the medium term.

High leverage remains

Debt-to-equity of ~2.76 and low equity ratio indicate significant leverage on the balance sheet. High indebtedness raises interest burden and sensitivity to cash flow variance, restricts strategic options, and increases solvency risk if revenue growth or cash conversion weaken in coming months.

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

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	4.96B	4.96B	4.22B	3.74B	3.39B	2.89B
Gross Profit	2.38B	2.38B	2.00B	1.76B	1.67B	1.46B
EBITDA	626.79M	603.91M	538.93M	80.39M	-12.44M	-144.72M
Net Income	22.88M	23.54M	-53.20M	-354.19M	-378.15M	-344.65M
Balance Sheet
Total Assets	2.75B	2.75B	2.71B	2.50B	2.19B	1.42B
Cash, Cash Equivalents and Short-Term Investments	1.09B	1.09B	1.45B	1.45B	1.14B	789.05M
Total Debt	1.53B	1.53B	1.58B	1.40B	1.45B	885.11M
Total Liabilities	2.20B	2.20B	2.20B	1.95B	1.86B	1.38B
Stockholders Equity	554.44M	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: 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 below the 20-day moving average (MA) of 256.85, below the 50-day MA of 276.82, and below the 200-day MA of 395.92, indicating a neutral trend. The MACD of -0.73 indicates Negative momentum. The RSI at 46.56 is Neutral, neither overbought nor oversold. The STOCH value of 37.39 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	¥1.99B	4.74	―	―	0.06%	―
3179	66 Neutral	¥21.71B	20.26	―	3.53%	-2.73%	-51.48%
3093	65 Neutral	¥42.94B	14.01	―	2.19%	17.90%	14.14%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3396	60 Neutral	¥5.67B	10.57	―	1.76%	2.24%	―
9557	53 Neutral	¥2.16B	-18.72	―	―	13.90%	-2872.89%
3556	49 Neutral	¥17.19B	34.56	―	―	-10.83%	―