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Belluna Co., Ltd. (JP:9997)
:9997
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Belluna Co., Ltd. (9997) AI Stock Analysis

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JP:9997

Belluna Co., Ltd.

(9997)

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Neutral 62 (OpenAI - 5.2)
Rating:62Neutral
Price Target:
¥1,138.00
▲(2.89% Upside)
Action:Downgraded
Date:05/15/26
The score is supported most by attractive valuation (very low P/E and solid dividend yield) and a moderately positive technical setup with price above key moving averages. Offsetting these positives, financial performance is constrained by consistently negative free cash flow and increasing leverage, which adds funding risk despite the recent earnings rebound.
Positive Factors
Direct-to-consumer multi-channel model
Belluna’s core DTC model (catalog + e-commerce) creates durable customer relationships and control over assortment, pricing and margins. Owning distribution and customer data supports repeat purchases, targeted marketing, and long-term unit economics if execution and fulfillment remain efficient.
Negative Factors
Persistent negative free cash flow
Multi-year negative free cash flow and a steep 2026 cash burn undermine financial flexibility. Even with operating profits, weak cash conversion forces reliance on external funding for capex, working capital or distributions, raising long-term funding risk and constraining reinvestment capacity.
Read all positive and negative factors
Positive Factors
Negative Factors
Direct-to-consumer multi-channel model
Belluna’s core DTC model (catalog + e-commerce) creates durable customer relationships and control over assortment, pricing and margins. Owning distribution and customer data supports repeat purchases, targeted marketing, and long-term unit economics if execution and fulfillment remain efficient.
Read all positive factors

Belluna Co., Ltd. (9997) vs. iShares MSCI Japan ETF (EWJ)

Belluna Co., Ltd. Business Overview & Revenue Model

Company Description
Belluna Co., Ltd., along with its affiliated entities, operates primarily within the direct marketing sector. The company's diverse activities are structured into seven distinct divisions: General Mail Order, Specialty Mail Order, Retail Store Sal...
How the Company Makes Money
Belluna makes money mainly by selling consumer goods directly to end customers through its mail-order/catalog channel and online (e-commerce) channel. Revenue is generated when customers purchase products from Belluna’s proprietary catalogs and we...

Belluna Co., Ltd. Financial Statement Overview

Summary
Earnings have improved recently with modest revenue growth and a rebound in net income, but the overall financial picture is held back by rising leverage and persistently weak cash generation. Multi-year negative free cash flow (including a sharp deterioration in 2026) is the key risk and reduces financial flexibility.
Income Statement
63
Positive
Balance Sheet
54
Neutral
Cash Flow
38
Negative
BreakdownMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue218.10B210.86B208.30B212.38B220.13B
Gross Profit137.20B129.23B126.34B125.70B129.31B
EBITDA24.17B20.32B16.19B16.85B18.17B
Net Income11.54B8.80B5.84B7.42B10.20B
Balance Sheet
Total Assets340.14B312.46B300.69B285.59B254.18B
Cash, Cash Equivalents and Short-Term Investments34.95B36.21B37.40B32.28B29.57B
Total Debt150.04B130.26B119.55B111.34B84.32B
Total Liabilities188.68B170.80B164.50B159.15B135.13B
Stockholders Equity151.34B141.31B135.19B125.50B118.27B
Cash Flow
Free Cash Flow-14.84B-5.34B-4.01B-21.76B-9.47B
Operating Cash Flow18.46B9.69B12.77B8.24B7.15B
Investing Cash Flow-32.29B-17.79B-14.40B-29.92B-17.03B
Financing Cash Flow13.91B6.72B5.97B23.53B8.65B

Belluna Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1106.00
Price Trends
50DMA
983.92
Negative
100DMA
933.66
Positive
200DMA
947.61
Positive
Market Momentum
MACD
17.61
Positive
RSI
40.01
Neutral
STOCH
20.12
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9997, the sentiment is Negative. The current price of 1106 is above the 20-day moving average (MA) of 1047.75, above the 50-day MA of 983.92, and above the 200-day MA of 947.61, indicating a neutral trend. The MACD of 17.61 indicates Positive momentum. The RSI at 40.01 is Neutral, neither overbought nor oversold. The STOCH value of 20.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9997.

Belluna 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
73
Outperform
¥121.02B16.761.61%4.94%-13.55%
69
Neutral
¥1.02T20.8749.71%3.47%6.32%6.95%
69
Neutral
¥58.89B18.164.27%5.31%-18.01%
62
Neutral
¥103.84B8.807.95%3.44%4.35%37.52%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
56
Neutral
¥48.46B-20.973.31%0.69%-377.56%
46
Neutral
¥1.82T-14.68-14.02%10.70%36.82%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:9997
Belluna Co., Ltd.
983.00
61.25
6.65%
JP:4755
Rakuten
831.60
54.50
7.01%
JP:3092
ZOZO
1,138.50
-316.54
-21.75%
JP:7545
Nishimatsuya Chain Co., Ltd.
1,972.00
-285.93
-12.66%
JP:8005
Scroll Corporation
1,809.00
795.95
78.57%
JP:8281
XEBIO Holdings CO., LTD.
1,074.00
-39.86
-3.58%

Belluna Co., Ltd. Corporate Events

Belluna Q1 Profit Rises Despite Pressure on Operating Margin
Jul 31, 2026
Belluna Co., Ltd. reported consolidated net sales of 52.18 billion yen for the first quarter of the fiscal year ending March 2027, a 2.7 percent increase year on year, while cost of sales edged down by 0.9 percent. However, selling, general and ad...
Belluna Posts Higher Q1 Earnings Despite Operating Profit Decline, Confirms Full-Year Outlook
Jul 31, 2026
Belluna reported consolidated net sales of ¥52.2 billion for the first quarter ended June 30, 2026, a 2.7% year-on-year increase, while operating profit fell 21.8% to ¥1.24 billion, indicating margin pressure in its core operations. Ordi...
Belluna to Allocate Treasury Shares for Director Restricted Stock Compensation
Jul 23, 2026
Belluna Co., Ltd. has approved the disposal of 27,740 treasury shares as part of a restricted stock compensation plan for eight directors and four audit and supervisory committee member directors, at a disposal price of 1,069 yen per share, totali...
Belluna’s June Sales Rise 7% as Hotel Growth Offsets Apparel Weakness
Jul 15, 2026
Belluna Co., Ltd., a diversified Japanese company listed on the TSE Prime Market, operates specialty mail-order, apparel and goods, cosmetics and health foods, gourmet and wine, nurse-related services, and a growing hotel portfolio. It also engage...
Belluna Details Governance and Ownership of Unlisted Affiliate Friend Stage Holdings
Jun 30, 2026
Belluna Co., Ltd. has disclosed the financial settlement and corporate structure details of Friend Stage Holdings Co., Ltd., an unlisted related company for the fiscal year ended March 31, 2026. Friend Stage Holdings, headquartered in Ageo, Saitam...
Belluna Details Governance and Transactions With Major Affiliated Shareholders
Jun 30, 2026
Belluna Co., Ltd. has disclosed the status of its controlling shareholders and affiliated companies, identifying Friend Stage Holdings Co., Ltd. as the entity with the greatest influence due to its role as parent of Friend Stage Co., Ltd. and its ...
Belluna’s May Sales Dip 2% as Hotel Surge Fails to Offset Apparel Weakness
Jun 15, 2026
Belluna reported that its hotel business posted strong growth in May 2026, with sales rising 30% year on year to 2,922 million yen, driven by higher occupancy at Sapporo Hotel by Granbell, improved average daily rates at Ginza Hotel by Granbell, a...
Belluna Reshapes Board With New Inside and Outside Directors Ahead of June Shareholders’ Meeting
May 29, 2026
Belluna Co., Ltd. announced a series of board and officer appointments following deliberations by its Nomination and Remuneration Committee, with the changes to be formally approved at the 50th Annual General Meeting of Shareholders on June 25, 20...
Belluna Lifts April Sales 5% on Hotel Gains and Expanding E-Commerce
May 15, 2026
Belluna Co., Ltd. reported that consolidated group sales for April 2026 rose 5% year on year to 16,765 million yen, reflecting solid growth across key segments despite selective reductions in traditional marketing channels. The company’s rec...
Belluna boosts FY2026 profit, raises dividend and guides for steady growth
May 13, 2026
Belluna Co., Ltd. reported consolidated net sales of ¥218.1 billion for the fiscal year ended March 2026, up 3.4% year on year, with operating profit surging 38.6% to ¥16.5 billion and profit attributable to owners of parent climbing 31....
Belluna Posts Strong Profit Surge for Fiscal 2026, Beating Earnings Plan
May 13, 2026
Belluna Co., Ltd. reported consolidated results for the fiscal year ended March 31, 2026, showing net sales of ¥218.09 billion, a 3.4% year-on-year increase and 1.6% above plan. Operating profit surged 38.6% to ¥16.47 billion, while ordi...
Belluna Posts Strong FY2026 Profit Growth and Hikes Dividend
May 13, 2026
Belluna Co., Ltd. reported consolidated net sales of ¥218.1 billion for the fiscal year ended March 2026, up 3.4% year on year, with operating profit jumping 38.6% to ¥16.5 billion and profit attributable to owners of parent rising 31.2%...
Belluna Delivers Strong Fiscal 2026 Profit Growth, Beating Earnings Plan
May 13, 2026
Belluna Co., Ltd. reported consolidated net sales of ¥218.09 billion for the fiscal year ended March 31, 2026, a 3.4 percent increase year on year, while keeping cost of sales slightly lower and allowing selling, general and administrative ex...
Belluna Lifts Earnings Outlook and Hikes Dividend on Strong Property and Retail Performance
May 7, 2026
Belluna has raised its consolidated earnings forecast for the fiscal year ending March 31, 2026, citing stronger performance in its property and apparel and goods businesses. Robust domestic hotel demand driven by domestic travel and inbound touri...
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 15, 2026