airCloset, Inc. (9557) AI Stock Analysis

• Market Cap: ¥3.47B
• Dividend Yield: N/A
• Average Volume (3M): 27.67K
• Price to Earnings (P/E): 143.3
• Beta (1Y): 0.44
• Revenue Growth: 17.59%
• EPS Growth: N/A
• Country: JP
• Employees: 70
• Sector: Consumer Cyclical
• Sector Strength: 80
• Industry: Specialty Retail
• EPS (TTM): -11.30
• Shares Outstanding: 8,284,200
• 10 Day Avg. Volume: 62,350
• 30 Day Avg. Volume: 27,670
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥397.00
• Price Target Upside: -2.46% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 45 Neutral
• Price Target: ¥397.00 ▼(-2.46% Downside)

The overall stock score is primarily influenced by the company's financial performance and technical analysis. While there is solid revenue growth, profitability and cash flow issues remain significant concerns. The technical indicators suggest a bearish trend, and the high P/E ratio points to overvaluation. These factors collectively contribute to a lower overall score.

airCloset, Inc. Business Overview & Revenue Model

Company Description

airCloset, Inc. is a Japanese company specializing in the fashion subscription service sector. It offers a clothing rental service primarily for women, allowing customers to rent a variety of apparel without the need to purchase them. The company aims to provide a convenient and cost-effective way for individuals to diversify their wardrobes while promoting a sustainable fashion ecosystem. Through its platform, airCloset delivers curated clothing items directly to customers' doors, catering to their personal style and preferences.

How the Company Makes Money

airCloset, Inc. generates revenue through its subscription-based business model. Customers pay a recurring fee to access the clothing rental service, which allows them to receive a set number of clothing items per month. In addition to subscription fees, the company may also earn revenue from late fees for unreturned items, optional insurance for rented clothes, and potential partnerships with fashion brands for exclusive clothing lines or promotional activities. The company's revenue is further supported by its ability to efficiently manage its inventory and logistics to maintain a high level of customer satisfaction and retention.

airCloset, Inc. Financial Statement Overview

Summary

airCloset, Inc. demonstrates solid revenue growth and gross profit margins, but struggles with profitability and cash flow management. The balance sheet shows improvement in leverage, yet high debt levels persist. Overall, the company is on a positive trajectory but needs to address profitability and cash flow issues to enhance financial stability.

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: 407.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 407 is below the 20-day moving average (MA) of 451.40, below the 50-day MA of 465.96, and below the 200-day MA of 459.24, indicating a bearish trend. The MACD of -17.46 indicates Positive momentum. The RSI at 30.32 is Neutral, neither overbought nor oversold. The STOCH value of 12.82 is Positive, 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
3093	73 Outperform	¥43.23B	15.19		2.01%	19.76%	11.62%
3192	71 Outperform	¥1.88B	3.23		―	0.31%	―
3179	67 Neutral	¥23.68B	18.41		3.26%	-0.24%	-45.59%
Sector *	61 Neutral	$17.78B	13.97	-5.40%	3.03%	1.50%	-15.71%
3396	60 Neutral	¥5.58B	38.86		1.72%	0.86%	―
3556	51 Neutral	¥13.42B	586.55		―	-12.88%	―
9557	45 Neutral	¥3.47B	143.26		―	17.59%	―