Lilycolor Co., Ltd. (9827) AI Stock Analysis

• Market Cap: ¥7.97B
• Dividend Yield: 4.95%
• Average Volume (3M): 49.65K
• Price to Earnings (P/E): 15.6
• Beta (1Y): 0.47
• Revenue Growth: -4.68%
• EPS Growth: N/A
• Country: JP
• Employees: 534
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 27.58
• Shares Outstanding: 12,662,100
• 10 Day Avg. Volume: 49,640
• 30 Day Avg. Volume: 49,650
• PEG Ratio: 0.02
• Price to Book (P/B): 1.00
• Price to Sales (P/S): 0.25
• P/FCF Ratio: 5.33
• 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: 64 Neutral
• Price Target: ¥709.00 ▲(7.10% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by mixed financial performance: a stable, reasonably leveraged balance sheet is offset by uneven profitability and cash-flow swings. Valuation is supportive due to the high dividend yield and a moderate P/E, while technical indicators are broadly neutral with only mild positive momentum.

Positive Factors

Conservative leverage and stable equity

Improved debt-to-equity (≈0.39 in 2024 vs ≈0.21 in 2023) and steady equity/assets provide lasting financial flexibility. This conservative capital structure supports investment, weathering cyclical weakness, and preserves optionality for capital allocation without forcing distress sales.

Demonstrated free cash flow recovery

The rebound to positive operating and free cash flow in 2025 (~¥1.56B and ~¥1.53B) shows the business can generate meaningful cash when conditions improve. Structurally, this supports dividends, working-capital needs, and selective reinvestment, helping sustain operations across cycles.

Diversified product and trade distribution

A broad product mix (wallcoverings, flooring, window coverings) sold through professional channels spreads demand exposure across residential and commercial renovation markets. This structural diversification reduces single-market dependency and supports steadier order flows over multi-year cycles.

Negative Factors

Volatile profitability

Large swings in margins and profits, including a sharp 2024 decline and only partial 2025 recovery, indicate structural sensitivity to input costs, pricing, or mix. Persistent earnings variability hampers reliable cash returns, makes forecasting difficult, and raises business execution risk.

Inconsistent cash generation

Repeated multi-year swings between strong and negative operating/free cash flow point to working-capital or business-cycle volatility. Structurally, this can force short-term financing in weak years, limit steady reinvestment and dividend reliability, and constrain strategic planning.

Returns failed to translate from balance sheet strength

Even with a stable asset base and conservative leverage, the company delivered much weaker shareholder returns in 2024. This suggests persistent operational or margin challenges that prevent assets from producing sustainable ROE, risking dividend and shareholder-value durability.

Lilycolor Co., Ltd. Business Overview & Revenue Model

Company Description

Lilycolor Co., Ltd. plans, develops, and sells interior products in Japan. It offers wallpapers, custom curtains, and floorings under the Lilycolor brand name to interior specialty stores, department stores, daily carpentry stores, mounting stores, housing manufacturers, design offices, construction companies, etc. The company is also involved in the design and construction of office spaces and facilities, and project management; proposals and sale of furniture, room partitions, office supplies, etc; and brokerage business for real estate sales and rentals to buildings, schools, educational facilities, etc. The company was formerly known as Kawakichi Co., Ltd. and changed its name to Lilycolor Co., Ltd. in 1989. Lilycolor Co., Ltd. was founded in 1907 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Lilycolor Co., Ltd. generates revenue through the sale of its core products, including wallpaper, curtains, and various interior design materials. The company primarily makes money by supplying these products to retailers, wholesalers, and directly to consumers. Key revenue streams include both domestic and international sales, with a significant portion of its earnings derived from partnerships with home improvement stores, interior design firms, and real estate developers. Additionally, Lilycolor may engage in promotional campaigns and collaborations with designers to boost sales, further contributing to its financial performance.

Lilycolor Co., Ltd. Financial Statement Overview

Summary

Balance sheet strength is solid with manageable leverage and stable assets/equity, but earnings and cash generation have been volatile. Profitability dropped sharply in 2024 with only a partial recovery in 2025, and operating/free cash flow has swung between strong and negative across multiple years.

Income Statement

Revenue has been broadly stable with low-to-mid single-digit growth in recent years (2025: +2.3%, 2024: +3.2%) after some earlier softness. However, profitability has been volatile: 2022–2023 showed solid earnings power, followed by a sharp margin and profit drop in 2024 and only a partial recovery in 2025. The key positive is the company’s ability to return to meaningful earnings in 2025, but the large swing from 2023 to 2024 highlights sensitivity to costs/pricing and weaker earnings consistency.

Balance Sheet

Leverage looks reasonable and has generally improved versus earlier periods, with debt-to-equity moving from higher levels (2020–2021) to more conservative levels in 2023–2024 (2024 debt-to-equity ~0.39; 2023 ~0.21). Equity has remained sizable and relatively stable (around ¥8–9B recently), and total assets have been steady near ¥20B, suggesting balance sheet stability. The main drawback is that returns to shareholders weakened significantly in 2024 (very low profitability on equity), indicating that balance sheet strength did not translate into strong returns during the downturn year.

Cash Flow

Cash generation is inconsistent. Operating and free cash flow were strong in 2021 and 2023 and improved again in 2025 (operating cash flow ~¥1.56B; free cash flow ~¥1.53B), but the company also posted materially negative operating/free cash flow in 2020, 2022, and 2024. This pattern suggests working-capital or cash conversion volatility that can pressure liquidity in weaker years, even when accounting profits are positive. The rebound in 2025 is a constructive sign, but the multi-year swings keep overall cash-flow quality in the middle of the pack.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	32.45B	33.21B	33.80B	32.77B	33.25B	32.44B
Gross Profit	10.28B	10.94B	9.99B	11.40B	11.74B	9.39B
EBITDA	277.44M	986.43M	975.79M	2.31B	2.49B	1.40B
Net Income	60.61M	523.02M	61.07M	929.82M	961.56M	329.02M
Balance Sheet
Total Assets	19.83B	20.32B	20.46B	20.25B	21.14B	19.11B
Cash, Cash Equivalents and Short-Term Investments	3.48B	3.98B	3.29B	2.80B	2.36B	4.01B
Total Debt	3.17B	2.75B	3.27B	1.80B	2.11B	2.42B
Total Liabilities	12.33B	12.19B	12.07B	11.71B	13.43B	12.33B
Stockholders Equity	7.50B	8.12B	8.39B	8.54B	7.71B	6.78B
Cash Flow
Free Cash Flow	0.00	1.53B	-906.67M	949.08M	-1.24B	1.52B
Operating Cash Flow	0.00	1.56B	-840.58M	1.20B	-1.15B	1.58B
Investing Cash Flow	0.00	81.99M	103.04M	-267.68M	-223.02M	-99.76M
Financing Cash Flow	0.00	-947.63M	1.22B	-484.20M	-285.20M	-370.60M

Lilycolor Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 662.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9827, the sentiment is Negative. The current price of 662 is above the 20-day moving average (MA) of 660.05, above the 50-day MA of 659.52, and above the 200-day MA of 632.97, indicating a neutral trend. The MACD of -2.23 indicates Positive momentum. The RSI at 43.33 is Neutral, neither overbought nor oversold. The STOCH value of 28.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9827.

Lilycolor Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5956	76 Outperform	¥5.61B	4.84	―	1.76%	7.17%	214.23%
7887	76 Outperform	¥10.63B	3.04	―	1.66%	8.56%	2690.35%
8130	76 Outperform	¥181.90B	11.81	―	4.91%	6.35%	14.05%
7898	66 Neutral	¥9.51B	3.19	―	2.65%	1.11%	―
9827	64 Neutral	¥7.97B	15.59	―	4.95%	-4.68%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7822	46 Neutral	¥10.92B	8.82	―	4.41%	2.78%	-88.37%