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

• Market Cap: ¥6.03B
• Dividend Yield: 2.1%
• Average Volume (3M): 9.39K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.47
• Revenue Growth: -3.36%
• EPS Growth: -814.41%
• Country: JP
• Employees: 227
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): -6.73
• Shares Outstanding: 16,086,250
• 10 Day Avg. Volume: 7,400
• 30 Day Avg. Volume: 9,390
• 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: ¥387.00
• Price Target Upside: 1.57% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 53 Neutral
• Price Target: ¥387.00 ▲(1.57% Upside)

The overall stock score of Charle Co., Ltd. is primarily influenced by its financial performance, which is challenged by declining revenues and negative cash flows, despite a strong balance sheet. Technical analysis shows neutral indicators, while valuation is hindered by a negative P/E ratio, though partially offset by a decent dividend yield.

Charle Co., Ltd. Business Overview & Revenue Model

Company Description

Charle Co.,Ltd. engages in the sale of apparel, cosmetics, health foods, etc. It primarily sells women's underwear, innerwear, and leg knits, as well as men's and kids clothing; and skin, body, and hair care products. The company sells its products through mail order and door-to-door channels. Charle Co.,Ltd. was founded in 1975 and is headquartered in Kobe, Japan.

How the Company Makes Money

Charle Co., Ltd. generates revenue through multiple streams, primarily from the sale of its apparel products. The company operates a network of retail outlets and also engages in wholesale distribution to other retailers. In addition to direct sales, Charle Co., Ltd. may partner with other businesses to expand its market reach, although specific partnership details are not available. The company's earnings are significantly influenced by consumer trends in the fashion industry, as well as its ability to manage inventory and supply chain operations efficiently to meet consumer demand.

Charle Co., Ltd. Financial Statement Overview

Summary

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

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.55B	11.55B	13.17B	13.26B	15.56B	13.77B
Gross Profit	5.08B	5.08B	6.56B	6.76B	8.71B	6.16B
EBITDA	-504.00M	-504.00M	1.18B	773.00M	2.33B	-170.00M
Net Income	-1.01B	-1.01B	585.00M	-740.00M	1.02B	-1.33B
Balance Sheet
Total Assets	19.26B	19.26B	21.39B	20.48B	22.14B	20.36B
Cash, Cash Equivalents and Short-Term Investments	8.31B	8.31B	12.70B	11.24B	13.25B	11.11B
Total Debt	13.00M	13.00M	26.00M	60.00M	110.00M	176.00M
Total Liabilities	2.40B	2.40B	3.08B	2.68B	3.33B	2.41B
Stockholders Equity	16.85B	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: 381.00
• 50DMA: Positive
• 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:9885, the sentiment is Neutral. The current price of 381 is below the 20-day moving average (MA) of 381.90, above the 50-day MA of 378.02, and above the 200-day MA of 375.34, indicating a neutral trend. The MACD of 1.02 indicates Positive momentum. The RSI at 49.37 is Neutral, neither overbought nor oversold. The STOCH value of 22.12 is Neutral, 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
3320	79 Outperform	9.67B	6.87	7.61%	2.88%	-1.05%	-9.49%
3123	77 Outperform	8.05B	10.53	4.27%	2.55%	-5.12%	-24.98%
8127	76 Outperform	12.94B	86.16	2.03%	2.54%	-4.37%	-54.08%
7126	72 Outperform	4.80B	9.90	―	2.21%	2.62%	10.90%
2776	59 Neutral	6.57B	-59.65	1.14%	―	348.40%	71.18%
9885	53 Neutral	¥6.03B	―	―	2.10%	-3.36%	-814.41%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%