BELC Co., Ltd. (9974) AI Stock Analysis

• Market Cap: ¥168.39B
• Dividend Yield: 1.64%
• Average Volume (3M): 18.13K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 0.32
• Revenue Growth: 10.13%
• EPS Growth: 23.77%
• Country: JP
• Employees: 2,590
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Grocery Stores
• EPS (TTM): 119.01
• Shares Outstanding: 20,867,800
• 10 Day Avg. Volume: 17,380
• 30 Day Avg. Volume: 18,130
• PEG Ratio: 0.70
• Price to Book (P/B): 1.25
• Price to Sales (P/S): 0.36
• P/FCF Ratio: 29.21
• 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): 658.6
• Revenue Forecast (FY): ¥460.70B

• Rating: 76 Outperform
• Price Target: ¥9,119.00 ▲(25.09% Upside)
• Action: Reiterated Date: 08/01/25
• Date: Action: Reiterated 08/01/25

BELC Co., Ltd.'s financial performance is the most significant factor, showcasing strong revenue and profit growth with effective cost management and cash generation. Technical analysis suggests short-term caution, while valuation is reasonable, supporting a stable investment outlook.

Positive Factors

Consistent Revenue Growth

Sustained top-line expansion over multiple years indicates durable customer demand and successful store operations. This scale growth supports purchasing leverage, fixed-cost absorption and long-term sales momentum, strengthening cash generation potential and resilience versus short shocks.

Improving Gross Margins

Rising gross margins reflect better procurement, pricing and product mix control, which are structural drivers of profitability. Sustained margin improvement enhances the firm’s ability to fund investments and absorb cost inflation without eroding operating profitability over the medium term.

Strong Cash Generation

Consistent operating cash flow and growing free cash flow provide durable financial flexibility for reinvestment, dividends or debt repayment. Reliable cash conversion reduces refinancing risk and supports strategic initiatives, a lasting strength over 2–6 months and beyond.

Negative Factors

Low Net Profit Margin

A net margin near 3% limits the buffer against input cost inflation or competitive price pressure. Structural margin thinness makes earnings sensitive to commodity and labor cost swings and constrains internal funding for initiatives without further margin or efficiency gains.

Need for Cost and Debt Vigilance

While leverage is currently moderate, management acknowledgment of needed monitoring implies limited headroom for additional debt-funded growth. Continued focus on cost control and conservative leverage is necessary to preserve flexibility and credit profile over the medium term.

Concentration in Store Sales

Heavy reliance on traditional in-store retailing leaves the business exposed to structural shifts toward online channels and changing consumer behavior. Lack of diversified revenue levers constrains long-term growth optionality and increases sensitivity to store traffic trends.

BELC Co., Ltd. Business Overview & Revenue Model

Company Description

BELC Co., Ltd. (9974) is a prominent retail company based in Japan, primarily engaged in the supermarket and grocery sector. The company operates a chain of supermarkets that offer a wide range of products, including fresh produce, processed foods, household goods, and health and beauty items. With a focus on providing quality products and customer service, BELC serves various regions, catering to the everyday needs of consumers and maintaining a strong presence in the Japanese retail market.

How the Company Makes Money

BELC Co., Ltd. generates revenue primarily through the sales of its supermarket products. The company operates a network of retail outlets that sell food and non-food items, which constitutes the bulk of its revenue streams. Key revenue sources include direct sales from grocery items, seasonal promotions, and special offers that attract customers. Additionally, BELC may engage in partnerships with suppliers and manufacturers, which can enhance its product offerings and optimize supply chain efficiencies. The company also benefits from customer loyalty programs and strategic marketing initiatives that drive repeat business and increase average transaction values.

BELC Co., Ltd. Financial Statement Overview

Summary

BELC Co., Ltd. exhibits strong financial performance with consistent revenue and profit growth, effective cost management, and a robust balance sheet. The company demonstrates solid cash flow generation, providing financial flexibility. However, there is room for improvement in cost control and debt management.

Income Statement

BELC Co., Ltd. has demonstrated consistent revenue growth, with a notable increase from ¥239.5 billion in 2020 to ¥387.8 billion in 2025. Gross profit margins have remained healthy, improving to 28.2% in 2025 from 26.2% in 2020. Net profit margins have also seen an uptick, reaching 3.2% in 2025. The company maintained stable EBIT and EBITDA margins, indicating strong operational efficiency. However, the net profit margin suggests room for improvement in cost management.

Balance Sheet

The balance sheet of BELC Co., Ltd. reflects a strong equity position, with the equity ratio improving to 54.8% in 2025. The debt-to-equity ratio is manageable at 0.33, showcasing prudent financial leverage. Return on equity (ROE) has been stable, indicating effective use of equity capital. Despite these strengths, monitoring debt levels remains crucial to maintaining financial stability.

Cash Flow

BELC Co., Ltd. exhibits robust cash flow generation, with operating cash flow consistently outpacing net income. Free cash flow has grown significantly, demonstrating effective capital expenditure management. The free cash flow to net income ratio highlights the company's ability to convert earnings into cash, which is a positive indicator for financial flexibility. Nevertheless, continued focus on optimizing capital expenditures could enhance cash flow further.

Breakdown	TTM	Feb 2025	Feb 2024	Feb 2023	Feb 2022	Feb 2021
Income Statement
Total Revenue	409.13B	387.78B	351.86B	310.82B	300.27B	284.46B
Gross Profit	114.13B	109.42B	99.95B	89.87B	77.10B	73.30B
EBITDA	24.88B	24.84B	21.83B	20.86B	19.36B	18.16B
Net Income	12.36B	12.38B	10.68B	9.61B	9.19B	8.83B
Balance Sheet
Total Assets	215.71B	200.72B	184.36B	169.31B	153.21B	136.56B
Cash, Cash Equivalents and Short-Term Investments	21.47B	17.83B	17.03B	15.58B	11.79B	7.37B
Total Debt	40.77B	36.77B	34.51B	35.83B	29.70B	22.00B
Total Liabilities	101.02B	90.79B	84.40B	78.00B	69.56B	60.28B
Stockholders Equity	114.68B	109.92B	99.97B	91.30B	83.65B	76.28B
Cash Flow
Free Cash Flow	0.00	4.72B	2.76B	-1.26B	212.00M	3.19B
Operating Cash Flow	0.00	22.69B	21.06B	15.62B	17.06B	17.35B
Investing Cash Flow	0.00	-21.72B	-16.23B	-15.93B	-18.48B	-14.00B
Financing Cash Flow	0.00	-165.00M	-3.38B	4.10B	5.84B	-3.50B

BELC Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7290.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9974, the sentiment is Positive. The current price of 7290 is below the 20-day moving average (MA) of 7665.80, below the 50-day MA of 7586.99, and below the 200-day MA of 7365.31, indicating a bullish trend. The MACD of 53.55 indicates Negative momentum. The RSI at 54.85 is Neutral, neither overbought nor oversold. The STOCH value of 47.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9974.

BELC Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8198	78 Outperform	¥119.81B	10.89	―	1.92%	2.30%	26.52%
9974	76 Outperform	¥168.39B	13.58	―	1.64%	10.13%	23.77%
8167	74 Outperform	¥60.28B	11.45	―	3.31%	4.92%	19.73%
2742	72 Outperform	¥105.07B	11.22	―	1.47%	7.75%	-1.68%
8194	72 Outperform	¥235.24B	13.04	―	2.43%	4.48%	13.17%
9823	71 Outperform	¥94.14B	16.05	―	1.34%	20.50%	10.77%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

BELC Co., Ltd. Corporate Events

Belc Posts Higher Sales but Flat Profits, Affirms Dividend and Full-Year Outlook

Belc Co., Ltd. reported consolidated operating income of ¥315.7 billion for the nine months ended November 30, 2025, up 10.5% year on year, while operating profit edged down 0.7% to ¥12.5 billion and profit attributable to owners of parent was flat at ¥8.6 billion, indicating that higher sales were largely offset by cost and margin pressures. Total assets rose to ¥221.8 billion and net assets to ¥115.9 billion, though the equity ratio slipped to 52.2%, and the company maintained its dividend policy with a planned full-year payout of ¥124 per share and left its full-year 2025/26 earnings forecast unchanged, signaling stable but modest profit growth expectations and a continued commitment to shareholder returns.

The most recent analyst rating on (JP:9974) stock is a Buy with a Yen8193.00 price target. To see the full list of analyst forecasts on BELC Co., Ltd. stock, see the JP:9974 Stock Forecast page.