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

• Market Cap: ¥152.95B
• Dividend Yield: 1.69%
• Average Volume (3M): 23.42K
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.30
• Revenue Growth: 10.13%
• EPS Growth: 23.77%
• Country: JP
• Employees: 2,590
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Grocery Stores
• EPS (TTM): 163.86
• Shares Outstanding: 20,867,800
• 10 Day Avg. Volume: 19,450
• 30 Day Avg. Volume: 23,423
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ¥8,193.00 ▲(12.39% Upside)

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

Revenue Growth

BELC's consistent revenue growth indicates strong market demand and effective business expansion, supporting long-term financial health.

Cash Flow Generation

Strong cash flow generation enhances BELC's financial flexibility, allowing for strategic investments and debt management.

Board Changes

Leadership changes in strategic roles can enhance operational efficiency and support long-term growth initiatives.

Negative Factors

Cost Management

While profitability is strong, further optimizing cost management could improve margins and financial stability.

Debt Levels

Prudent debt management is essential to avoid financial strain and ensure long-term sustainability.

Net Profit Margin

Enhancing net profit margins through better cost control could lead to improved profitability and shareholder value.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	398.03B	387.78B	351.86B	310.82B	300.27B	284.46B
Gross Profit	111.69B	109.42B	99.95B	89.87B	77.10B	73.30B
EBITDA	24.93B	24.84B	21.83B	20.86B	19.36B	18.16B
Net Income	12.50B	12.38B	10.68B	9.61B	9.19B	8.83B
Balance Sheet
Total Assets	212.92B	200.72B	184.36B	169.31B	153.21B	136.56B
Cash, Cash Equivalents and Short-Term Investments	25.76B	17.83B	17.03B	15.58B	11.79B	7.37B
Total Debt	43.46B	36.77B	34.51B	35.83B	29.70B	22.00B
Total Liabilities	101.67B	90.79B	84.40B	78.00B	69.56B	60.28B
Stockholders Equity	111.25B	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: Negative
• Last Price: 7290.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9974, the sentiment is Negative. The current price of 7290 is below the 20-day moving average (MA) of 7444.00, below the 50-day MA of 7446.60, and above the 200-day MA of 7182.13, indicating a neutral trend. The MACD of 11.59 indicates Positive momentum. The RSI at 44.28 is Neutral, neither overbought nor oversold. The STOCH value of 8.77 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9974.

BELC Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9823	79 Outperform	¥78.21B	13.85	―	1.45%	20.50%	10.77%
8198	78 Outperform	¥109.63B	9.97	―	1.94%	2.30%	26.52%
9974	76 Outperform	¥152.95B	12.36	―	1.69%	10.13%	23.77%
8167	74 Outperform	¥57.52B	10.20	―	3.35%	4.92%	19.73%
2742	72 Outperform	¥96.26B	10.67	―	1.51%	7.75%	-1.68%
8194	72 Outperform	¥208.51B	11.54	―	2.55%	4.48%	13.17%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

BELC Co., Ltd. Corporate Events

Belc Co., Ltd. Expands Shareholder Benefit Program with New Additions

Belc Co., Ltd. announced an expansion of its shareholder benefit program, effective from February 2026, which includes the addition of donations as a new benefit and the introduction of Belc Pay, an electronic money card usable in Belc stores, starting February 2027. These changes aim to encourage long-term shareholding and enhance shareholder participation in social contributions, reflecting the company’s commitment to shareholder value and corporate responsibility.

Belc Co., Ltd. Reports Mixed Financial Results for H1 2025

Belc Co., Ltd. reported its consolidated financial results for the six months ending August 31, 2025, showing an 11.3% increase in operating income compared to the previous period. Despite this growth, the company experienced slight declines in operating profit and ordinary profit by 1.7% and 2.4%, respectively. The equity ratio also decreased slightly from 54.8% to 53.2%, indicating a shift in the company’s financial structure. The company maintained its dividend forecast, reflecting stability in shareholder returns. These results suggest a stable yet challenging financial environment for Belc, with implications for its market positioning and stakeholder confidence.