Verite Co., Ltd. (9904) AI Stock Analysis

• Market Cap: ¥11.13B
• Dividend Yield: 5.21%
• Average Volume (3M): 16.64K
• Price to Earnings (P/E): 13.2
• Beta (1Y): 0.13
• Revenue Growth: 6.89%
• EPS Growth: -1.46%
• Country: JP
• Employees: 388
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Luxury Goods
• EPS (TTM): 7.10
• Shares Outstanding: 27,230,824
• 10 Day Avg. Volume: 18,910
• 30 Day Avg. Volume: 16,636
• PEG Ratio: 1.29
• Price to Book (P/B): 2.20
• Price to Sales (P/S): 1.24
• P/FCF Ratio: 30.60
• 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: 75 Outperform
• Price Target: ¥467.00 ▲(24.87% Upside)
• Action: Reiterated Date: 10/16/25
• Date: Action: Reiterated 10/16/25

Verite Co., Ltd. scores well due to its strong financial performance and balanced valuation. The technical analysis suggests stability, though not indicating strong momentum. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Prudent balance sheet

Low leverage and a ~59% equity ratio provide financial flexibility over the next 2–6 months and beyond, cushioning cyclical retail swings. An improving ROE (12.7%) indicates management is generating higher returns on capital, supporting reinvestment and shareholder distributions while limiting solvency risk.

Strong cash generation

Rising free cash flow and operating cash outperformance versus net income signal durable internal funding for capex, store upkeep, and dividends. Consistent cash generation reduces reliance on external financing and strengthens the company’s ability to execute strategic initiatives over the medium term.

High and sustainable margins

A ~68% gross margin and improving net margin reflect strong pricing power and favorable product mix in the jewelry niche. Margin durability supports resilience to cost pressures, funds reinvestment, and underpins long-term profitability even with modest revenue growth.

Negative Factors

Modest top-line growth

A 4% year-over-year revenue gain is positive but modest, limiting operating leverage and the pace at which scale benefits accrue. If top-line trends remain tepid, margin improvements must carry earnings growth, making the business more sensitive to demand shocks or competitive pricing moves.

Negative EPS growth indicator

A materially negative EPS growth metric suggests recent earnings volatility or one-off impacts that compressed per-share profitability. Persistent EPS weakness can constrain retained earnings and dividend sustainability, and signals earnings drivers need stabilization for dependable long-term returns.

Revenue concentration in retail sales

Dependence on a single core retail revenue stream concentrates exposure to consumer traffic, store performance, and in-store demand cycles. Lack of material diversification (wholesale, licensing, or services) leaves growth and risk mitigation reliant on same-store sales and pricing actions.

Verite Co., Ltd. Business Overview & Revenue Model

Company Description

Verite Co., Ltd. operates a chain of jewelry stores under the Vérité, Maharaja Diamond, Velicia, and Mimikazari brands in Japan. The company's stores offer jewelry, jewels, precious metals, watches, and fashion goods. The company was formerly known as Jewel Verite Ohkubo Co., Ltd. and changed its name to Verite Co., Ltd. in August 2005. Verite Co., Ltd. was founded in 1936 and is headquartered in Yokohama, Japan. Verite Co., Ltd. is a subsidiary of Jewel Source Japan Holdings Co. Ltd.

How the Company Makes Money

Verite generates revenue primarily through retail sales of jewelry to end customers via its store network. Its core revenue stream is the sales value of jewelry items sold (product sales at retail prices), with earnings influenced by sales volume, average selling price, product mix, and store performance. Information on additional material revenue streams (e.g., wholesale, licensing, financing/credit fees, service/repair income), major partnerships, or other specific contributing factors is null.

Verite Co., Ltd. Financial Statement Overview

Summary

Verite Co., Ltd. demonstrates strong financial health with consistent profitability, robust operational efficiency, and solid cash flow generation. The balance sheet is stable with prudent leverage and a strong equity base, though continued focus on revenue growth is advisable.

Income Statement

Verite Co., Ltd. showcases strong profitability with a consistent gross profit margin around 68% in recent years. The net profit margin improved from 6.6% to 7.2% over the last year, indicating efficient cost management. Revenue growth is modest but positive, with a 4% increase from 2024 to 2025. EBIT and EBITDA margins remain healthy, reflecting robust operational efficiency.

Balance Sheet

The company maintains a solid balance sheet with a debt-to-equity ratio of approximately 0.34, indicating prudent leverage. The equity ratio is stable at around 59%, reflecting a strong equity base. Return on Equity is commendable, improving to 12.7% in 2025, highlighting effective capital utilization.

Cash Flow

Verite Co., Ltd. exhibits a healthy cash flow position, with free cash flow growing by 7.7% from 2024 to 2025. Operating cash flow remains strong relative to net income, underscoring solid cash generation capabilities. The free cash flow to net income ratio is healthy, supporting financial flexibility.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	7.95B	7.64B	7.62B	7.27B	7.54B
Gross Profit	5.38B	5.34B	5.42B	5.19B	4.42B
EBITDA	1.05B	936.00M	996.00M	899.00M	703.00M
Net Income	569.00M	502.00M	545.00M	464.00M	583.00M
Balance Sheet
Total Assets	7.55B	7.66B	7.38B	7.57B	8.06B
Cash, Cash Equivalents and Short-Term Investments	1.99B	2.12B	1.88B	2.16B	2.49B
Total Debt	1.50B	1.50B	1.00B	1.50B	1.10B
Total Liabilities	3.08B	3.22B	2.92B	3.20B	2.65B
Stockholders Equity	4.47B	4.44B	4.46B	4.37B	5.41B
Cash Flow
Free Cash Flow	321.00M	298.00M	722.00M	777.00M	711.00M
Operating Cash Flow	407.00M	456.00M	893.00M	864.00M	857.00M
Investing Cash Flow	-37.00M	-168.00M	-201.00M	-98.00M	-157.00M
Financing Cash Flow	-504.00M	-45.00M	-970.00M	-1.10B	-423.00M

Verite Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 374.00
• 50DMA: Positive
• 100DMA: Positive
• 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:9904, the sentiment is Positive. The current price of 374 is below the 20-day moving average (MA) of 410.05, below the 50-day MA of 397.08, and above the 200-day MA of 369.70, indicating a bullish trend. The MACD of 4.96 indicates Positive momentum. The RSI at 58.03 is Neutral, neither overbought nor oversold. The STOCH value of 50.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9904.

Verite Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9904	75 Outperform	¥11.13B	13.22	―	5.21%	6.89%	-1.46%
7638	72 Outperform	¥27.98B	5.77	―	3.03%	34.99%	211.99%
7937	68 Neutral	¥50.55B	6.98	2.46%	3.50%	22.68%	-9.41%
2736	65 Neutral	¥2.33B	-6.03	―	1.21%	1.04%	-66.56%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7810	50 Neutral	¥3.34B	79.60	―	0.25%	18.69%	5.17%
7872	50 Neutral	¥6.68B	-1,548.06	―	4.64%	-0.68%	46.43%

Verite Co., Ltd. Corporate Events

Vérité Posts Solid February Sales Growth on Higher Customer Spending

Vérité Co., Ltd. reported its February 2026 flash sales figures, showing solid year-to-date growth in sales, footfall, and average customer spend compared with the previous year. The data indicate that sales gains are being driven more by higher spending per customer than by traffic growth, while the number of stores continues to rise, suggesting an ongoing expansion strategy and strengthening of its retail footprint.

Existing stores also posted improved performance versus last year, though their growth trails the overall network, highlighting the contribution of newly opened locations to total sales. By presenting figures on a basis that excludes the impact of new revenue recognition standards, the company aims to offer stakeholders a consistent view of operational trends and underlying demand in its core retail business.

The most recent analyst rating on (JP:9904) stock is a Buy with a Yen460.00 price target. To see the full list of analyst forecasts on Verite Co., Ltd. stock, see the JP:9904 Stock Forecast page.

Vérité Posts Higher January Sales on Strong Per-Customer Spending Amid Store Portfolio Adjustments

Vérité Co., Ltd. reported January 2026 same-store and total sales indices that continued to exceed year-earlier levels, driven primarily by higher average customer spending despite only modest growth in customer footfall. Existing-store sales and companywide sales remained above the prior year, indicating resilient consumer demand and improvements in sales efficiency per customer. The store network saw a net increase versus the previous year, although the Verite Seibu Hon-kawagoe PePe store was closed on January 13, 2026, reflecting ongoing portfolio optimization. Overall, the latest monthly figures suggest the company is sustaining positive momentum in revenue trends while fine-tuning its store base, which is likely supportive for its operational performance in the current fiscal year.

The most recent analyst rating on (JP:9904) stock is a Buy with a Yen420.00 price target. To see the full list of analyst forecasts on Verite Co., Ltd. stock, see the JP:9904 Stock Forecast page.