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Charle Co., Ltd. (JP:9885)
:9885
Japanese Market
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Charle Co., Ltd. (9885) AI Stock Analysis

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JP:9885

Charle Co., Ltd.

(9885)

Rating:53Neutral
Price Target:
¥390.00
▲(2.36% Upside)
Charle Co., Ltd. faces significant financial challenges, particularly in income and cash flow, which are the most impactful factors. The technical analysis shows moderate strength, providing some support. Valuation concerns due to negative earnings are partially offset by a reasonable dividend yield.

Charle Co., Ltd. (9885) vs. iShares MSCI Japan ETF (EWJ)

Charle Co., Ltd. Business Overview & Revenue Model

Company DescriptionCharle Co., Ltd. (9885) is a Japan-based company primarily engaged in the distribution of apparel products. The company operates through various segments, focusing on the manufacturing, wholesale, and retail of clothing and accessories. Charle Co. Ltd. is known for its extensive range of fashion items, catering to diverse consumer needs, and is committed to delivering high-quality products through its distribution channels.
How the Company Makes MoneyCharle 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
40
Negative
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
75
Positive
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
30
Negative
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue11.55B11.55B13.17B13.26B15.56B13.77B
Gross Profit5.08B5.08B6.56B6.76B8.71B6.16B
EBITDA-504.00M-504.00M1.18B773.00M2.33B-170.00M
Net Income-1.01B-1.01B585.00M-740.00M1.02B-1.33B
Balance Sheet
Total Assets19.26B19.26B21.39B20.48B22.14B20.36B
Cash, Cash Equivalents and Short-Term Investments8.31B8.31B12.70B11.24B13.25B11.11B
Total Debt13.00M13.00M26.00M60.00M110.00M176.00M
Total Liabilities2.40B2.40B3.08B2.68B3.33B2.41B
Stockholders Equity16.85B16.85B18.32B17.81B18.81B17.95B
Cash Flow
Free Cash Flow0.00-3.14B1.10B-1.37B2.44B-1.46B
Operating Cash Flow0.00-1.80B1.51B-733.00M3.00B-1.04B
Investing Cash Flow0.00-2.68B117.00M-1.08B-639.00M3.32B
Financing Cash Flow0.00-509.00M-160.00M-193.00M-225.00M-219.00M

Charle Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price381.00
Price Trends
50DMA
377.74
Positive
100DMA
385.30
Negative
200DMA
372.71
Positive
Market Momentum
MACD
0.81
Negative
RSI
51.95
Neutral
STOCH
60.61
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9885, the sentiment is Positive. The current price of 381 is above the 20-day moving average (MA) of 379.15, above the 50-day MA of 377.74, and above the 200-day MA of 372.71, indicating a bullish trend. The MACD of 0.81 indicates Negative momentum. The RSI at 51.95 is Neutral, neither overbought nor oversold. The STOCH value of 60.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9885.

Charle Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
¥9.68B6.67
2.88%1.86%-13.39%
77
Outperform
¥7.53B9.86
2.59%-5.12%-24.98%
76
Outperform
¥8.38B55.80
3.89%-4.37%-54.08%
72
Outperform
¥4.89B8.28
2.17%5.65%67.65%
70
Outperform
¥6.95B345.48
219.88%73.21%
61
Neutral
$17.87B13.25-4.88%3.05%1.25%-14.67%
53
Neutral
¥6.03B
2.10%-3.36%-814.41%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:9885
Charle Co., Ltd.
380.00
0.02
<0.01%
JP:2776
SHINTO Holdings,Inc.
160.00
-37.00
-18.78%
JP:3123
Saibo Co., Ltd.
617.00
140.03
29.36%
JP:3320
Cross Plus Inc.
1,323.00
253.96
23.76%
JP:7126
Global Style Co., Ltd.
1,534.00
144.80
10.42%
JP:8127
Yamato International Inc.
411.00
84.91
26.04%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 30, 2025