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Verite Co., Ltd. (JP:9904)
:9904
Japanese Market

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

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JP

Verite Co., Ltd.

(9904)

Rating:76Outperform
Price Target:
¥414.00
▲(11.59%Upside)
Verite Co., Ltd. receives a strong score driven by robust financial performance and solid valuation metrics. Technical analysis supports a positive outlook, though momentum indicators suggest caution as the stock nears overbought territory. The absence of recent earnings call insights or corporate events means these areas do not impact the current evaluation.

Verite Co., Ltd. (9904) vs. iShares MSCI Japan ETF (EWJ)

Verite Co., Ltd. Business Overview & Revenue Model

Company DescriptionVerite Co., Ltd. (9904) is a Japanese company primarily engaged in the retail business, with a focus on the sale of jewelry and related accessories. The company operates a chain of retail stores under the brand 'Verite' and offers a diverse range of products including rings, necklaces, bracelets, and earrings. Verite Co., Ltd. is distinguished by its commitment to providing high-quality jewelry at competitive prices, catering to a broad customer base in Japan.
How the Company Makes MoneyVerite Co., Ltd. generates revenue primarily through the sale of jewelry and accessories at its retail stores. The company's key revenue streams include direct sales to consumers through its brick-and-mortar locations and online sales via its e-commerce platform. Verite Co., Ltd. may also engage in strategic partnerships with suppliers to ensure a steady supply of raw materials at favorable prices, contributing to its cost efficiency and profitability. Additionally, the company focuses on marketing and promotional activities to drive customer engagement and increase sales volume. Seasonal promotions and exclusive collections are significant factors that help in boosting sales during peak shopping periods.

Verite Co., Ltd. Financial Statement Overview

Summary
Verite Co., Ltd. demonstrates strong financial health with steady growth in revenue and profitability. The balance sheet is robust with manageable leverage and strong equity backing. Cash flow generation is solid, providing flexibility for future investments.
Income Statement
85
Very Positive
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
80
Positive
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
78
Positive
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue7.95B7.64B7.62B7.27B7.54B
Gross Profit5.38B5.34B5.42B5.19B4.42B
EBITDA1.05B936.00M996.00M899.00M888.00M
Net Income569.00M502.00M545.00M464.00M583.00M
Balance Sheet
Total Assets7.55B7.66B7.38B7.57B8.06B
Cash, Cash Equivalents and Short-Term Investments1.99B2.12B1.88B2.16B2.49B
Total Debt1.50B1.50B1.00B1.50B1.10B
Total Liabilities3.08B3.22B2.92B3.20B2.65B
Stockholders Equity4.47B4.44B4.46B4.37B5.41B
Cash Flow
Free Cash Flow321.00M298.00M722.00M777.00M711.00M
Operating Cash Flow407.00M456.00M893.00M864.00M857.00M
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 Price371.00
Price Trends
50DMA
357.13
Positive
100DMA
353.21
Positive
200DMA
352.62
Positive
Market Momentum
MACD
2.99
Positive
RSI
62.12
Neutral
STOCH
52.63
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 371 is above the 20-day moving average (MA) of 366.07, above the 50-day MA of 357.13, and above the 200-day MA of 352.62, indicating a bullish trend. The MACD of 2.99 indicates Positive momentum. The RSI at 62.12 is Neutral, neither overbought nor oversold. The STOCH value of 52.63 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

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
¥9.99B17.55
5.70%4.03%13.35%
68
Neutral
¥23.87B11.86
0.66%31.02%76.65%
67
Neutral
¥253.34B13.186.44%2.78%5.06%-11.83%
66
Neutral
¥2.35B12.41
1.02%9.40%-56.59%
64
Neutral
¥35.11B17.682.90%3.12%23.18%89.08%
54
Neutral
¥2.90B37.41
0.20%7.20%34.29%
49
Neutral
¥6.09B
4.71%-1.35%64.68%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:9904
Verite Co., Ltd.
371.00
3.17
0.86%
JP:2736
Festaria Holdings Company Limited
651.00
126.08
24.02%
JP:7638
NEW ART HOLDINGS Co., Ltd.
1,354.00
-193.43
-12.50%
JP:7810
Crossfor Co. Ltd.
170.00
-49.61
-22.59%
JP:7872
Estelle Holdings Co., Ltd.
573.00
-52.47
-8.39%
JP:7937
Tsutsumi Jewelry Co
2,245.00
131.55
6.22%
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: May 27, 2025