Charle Co., Ltd. (9885) AI Stock Analysis

• Market Cap: ¥6.14B
• Dividend Yield: 2.06%
• Average Volume (3M): 20.69K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.45
• Revenue Growth: -12.30%
• EPS Growth: -274.85%
• Country: JP
• Employees: 227
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Apparel - Manufacturers
• EPS (TTM): -46.87
• Shares Outstanding: 16,086,250
• 10 Day Avg. Volume: 18,690
• 30 Day Avg. Volume: 20,686
• PEG Ratio: 0.05
• Price to Book (P/B): 0.34
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.37
• 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

• Rating: 53 Neutral
• Price Target: ¥413.00 ▲(6.44%Upside)

The overall stock score for Charle Co., Ltd. reflects significant financial challenges, primarily due to declining revenues and negative cash flows. The stock's technical analysis shows moderate bullish momentum, which somewhat offsets the poor financial performance. However, valuation concerns due to a negative P/E ratio and low dividend yield also weigh on the score.

Charle Co., Ltd. Business Overview & Revenue Model

Company Description

Charle Co., Ltd. (9885) is a company engaged in the manufacturing and sale of textile products. The company operates primarily in the apparel sector, offering a wide range of clothing items and related textile goods. With a focus on quality and customer satisfaction, Charle Co., Ltd. caters to both domestic and international markets, serving various demographics through its diverse product lines.

How the Company Makes Money

Charle Co., Ltd. generates revenue primarily through the sale of its textile and apparel products. The company's revenue model is centered around manufacturing and distributing a variety of clothing items, leveraging its production capabilities and distribution networks. Key revenue streams include direct sales to consumers via retail outlets and e-commerce platforms, as well as wholesale transactions with other retailers and businesses. Strategic partnerships with suppliers and distributors play a crucial role in expanding market reach and optimizing supply chain efficiency, contributing significantly to the company's earnings.

Charle Co., Ltd. Financial Statement Overview

Summary

Charle Co., Ltd. is experiencing financial difficulties, particularly in its income and cash flow statements. Declining revenues, profitability, and negative cash flows highlight operational inefficiencies. However, the balance sheet remains robust with strong equity and liquidity positions.

Income Statement

The company has experienced declining revenues and profitability. The gross profit margin has been shrinking, and the company reported a net loss in the most recent period. The EBIT and EBITDA margins are negative, highlighting operational challenges. Revenue growth has been negative over the recent years, showing a need for turnaround strategies.

Balance Sheet

The balance sheet is relatively strong with a high equity ratio and low levels of debt, resulting in a favorable debt-to-equity ratio. However, the return on equity is negative due to recent net losses. The company has a substantial cash reserve, indicating a cushion for short-term obligations.

Cash Flow

The company faces significant challenges with cash flow as evidenced by negative free cash flow growth and operating cash flow in the latest period. The free cash flow to net income ratio is unfavorable due to net losses, suggesting inefficiencies in converting earnings to cash.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
11.97B	11.55B	13.17B	13.26B	15.56B	13.77B
	Gross Profit
5.54B	5.08B	6.56B	6.76B	8.71B	6.16B
	EBIT
-377.00M	-961.00M	558.00M	251.00M	1.70B	-775.00M
	EBITDA
152.00M	-504.00M	1.18B	-142.00M	2.33B	-170.00M
	Net Income Common Stockholders
-354.00M	-1.01B	585.00M	-740.00M	1.02B	-1.33B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
9.65B	8.31B	12.70B	11.24B	13.25B	11.11B
	Total Assets
19.47B	19.26B	21.39B	20.48B	22.14B	20.36B
	Total Debt
16.00M	13.00M	26.00M	60.00M	110.00M	176.00M
	Net Debt
-9.63B	-8.30B	-12.68B	-11.18B	-13.14B	-10.93B
	Total Liabilities
1.94B	2.40B	3.08B	2.68B	3.33B	2.41B
	Stockholders Equity
17.54B	16.85B	18.32B	17.81B	18.81B	17.95B
Cash Flow		Free Cash Flow
0.00	-3.14B	1.10B	-1.37B	2.44B	-1.46B
	Operating Cash Flow
0.00	-1.80B	1.51B	-733.00M	3.00B	-1.04B
	Investing Cash Flow
0.00	-2.68B	117.00M	-1.08B	-639.00M	3.32B
	Financing Cash Flow
0.00	-509.00M	-160.00M	-193.00M	-225.00M	-219.00M

Charle Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 388.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9885, the sentiment is Neutral. The current price of 388 is below the 20-day moving average (MA) of 398.55, below the 50-day MA of 388.96, and above the 200-day MA of 369.53, indicating a neutral trend. The MACD of -0.57 indicates Positive momentum. The RSI at 43.11 is Neutral, neither overbought nor oversold. The STOCH value of 7.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:9885.

Charle Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3123	79 Outperform	¥6.15B	7.29		3.33%	-9.85%	-8.43%
3320	79 Outperform	¥8.61B	5.92		2.56%	1.86%	-13.39%
7126	78 Outperform	¥5.39B	9.12		1.79%	5.65%	67.65%
8127	76 Outperform	¥7.91B	33.12		3.12%	-3.35%	-41.42%
2776	67 Neutral	¥4.88B	345.48		―	219.88%	73.21%
Sector *	62 Neutral	$6.86B	11.07	2.77%	4.27%	2.66%	-24.95%
9885	53 Neutral	¥6.14B	―		2.06%	-12.30%	-274.85%