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

• Market Cap: ¥86.82B
• Dividend Yield: 2.98%
• Average Volume (3M): 442.70K
• Price to Earnings (P/E): 5.4
• Beta (1Y): 0.62
• Revenue Growth: 1.15%
• EPS Growth: 86.72%
• Country: JP
• Employees: 3,825
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 45.97
• Shares Outstanding: 97,244,470
• 10 Day Avg. Volume: 199,110
• 30 Day Avg. Volume: 442,696
• PEG Ratio: 0.20
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 0.43
• P/FCF Ratio: -17.07
• 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: 71 Outperform
• Price Target: ¥992.00 ▼(-0.50% Downside)
• Action: Upgraded Date: 11/28/25
• Date: Action: Upgraded 11/28/25

Belluna Co., Ltd. receives a solid score driven by strong financial performance and attractive valuation. While technical analysis presents mixed signals, the low P/E ratio and healthy dividend yield enhance its appeal. The company's financial health is robust, though attention to debt levels and cash flow management is advised.

Positive Factors

Direct-to-consumer, multi-channel retail model

Belluna’s DTC mail-order plus e-commerce and catalog channels create durable customer access and margin control. Owning marketing and fulfillment reduces dependence on third-party retailers, supports direct customer data, and sustains repeat sales and targeted merchandising over many quarters.

Strong gross and operating margins

Consistently strong gross and EBITDA margins indicate efficient sourcing, pricing power or category mix advantages. Margin strength provides a buffer against demand swings and supports reinvestment or dividends, making core profitability more resilient over a multi‑quarter horizon.

Healthy ROE and stable equity ratio

A healthy ROE and stable equity ratio signal efficient capital deployment and a reasonable capital cushion. This supports sustained dividend capacity and reinvestment without immediate dilution, improving long-term shareholder value if operating performance holds.

Negative Factors

Rising leverage (higher debt-to-equity)

Increasing debt-to-equity raises financial risk and interest burden, reducing flexibility for capex or strategic investments. If revenue or cash flow weakens, higher leverage can force cost cuts or refinancing at unfavorable terms, impairing long-term stability.

Negative/free cash flow challenges

Persistent negative free cash flow means operating profits are not fully converting to spendable cash after investments. This constrains debt repayment, dividends or growth spending and may require external financing, undermining financial resilience over several quarters.

Net profit margin volatility and slight revenue dip

Volatile net margins and a recent revenue dip point to structural pressures (competition, pricing or cost swings) that can impair earnings predictability. Sustained margin variability complicates planning and weakens conviction in steady long‑term earnings growth.

Belluna Co., Ltd. Business Overview & Revenue Model

Company Description

Belluna Co., Ltd. (9997) is a Japanese company primarily engaged in the mail-order retail sector, specializing in a diverse range of products including apparel, health and beauty items, and household goods. The company operates through various channels, including catalogs, television shopping, and online platforms, catering to a wide customer base. Belluna also engages in the sale of lifestyle-related products and services, contributing to its presence in the broader retail market.

How the Company Makes Money

Belluna primarily makes money by selling consumer products directly to end customers through its mail-order (direct marketing) platform. Revenue is generated when customers purchase items marketed via Belluna’s catalogs and digital channels (e-commerce), with sales recognized on the sale of merchandise. The company’s core revenue stream is product sales across its mail-order assortment; additional earnings may come from related services and ancillary businesses operated alongside the core commerce operation, but specific breakdowns, margins, or named partnerships are null.

Belluna Co., Ltd. Financial Statement Overview

Summary

Belluna Co., Ltd. demonstrates solid financial health with strong revenue generation and profit margins. However, increasing debt levels and challenges in managing free cash flow suggest the need for improved financial strategies.

Income Statement

Belluna Co., Ltd. has shown a consistent revenue trend over the years with a slight dip in 2025. The Gross Profit Margin remains strong, reflecting efficient cost management. However, the Net Profit Margin has shown fluctuations, indicating some volatility in managing operational expenses. The EBIT and EBITDA margins are solid, contributing to overall profitability, though there's room for improvement in stabilizing net income.

Balance Sheet

The company's balance sheet indicates a reasonable equity position with a Debt-to-Equity Ratio that has increased over recent years, suggesting higher leverage. Return on Equity is healthy, indicating efficient use of equity. The Equity Ratio shows a stable capital structure, but increasing debt levels could pose a risk if not managed carefully.

Cash Flow

Belluna's cash flow statement highlights challenges with Free Cash Flow, which has been negative in recent years. The Operating Cash Flow to Net Income Ratio is positive, suggesting that operating activities are generating sufficient cash relative to net income. However, the Free Cash Flow to Net Income Ratio indicates potential issues in covering net income with free cash flow, warranting attention to capital expenditures.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	210.31B	210.86B	208.30B	212.38B	220.13B	206.49B
Gross Profit	129.55B	129.23B	126.34B	125.70B	129.31B	121.56B
EBITDA	19.02B	20.32B	16.19B	16.85B	18.17B	21.95B
Net Income	8.54B	8.80B	5.84B	7.42B	10.20B	11.04B
Balance Sheet
Total Assets	317.11B	312.46B	300.69B	285.59B	254.18B	240.21B
Cash, Cash Equivalents and Short-Term Investments	32.01B	36.21B	37.40B	32.28B	29.57B	30.96B
Total Debt	137.55B	130.26B	119.55B	111.34B	84.32B	73.40B
Total Liabilities	177.37B	170.80B	164.50B	159.15B	135.13B	126.98B
Stockholders Equity	139.39B	141.31B	135.19B	125.50B	118.27B	112.62B
Cash Flow
Free Cash Flow	0.00	-5.34B	-4.01B	-21.76B	-9.47B	12.54B
Operating Cash Flow	0.00	9.69B	12.77B	8.24B	7.15B	20.77B
Investing Cash Flow	0.00	-17.79B	-14.40B	-29.92B	-17.03B	-5.18B
Financing Cash Flow	0.00	6.72B	5.97B	23.53B	8.65B	-7.00B

Belluna Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 997.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 997 is above the 20-day moving average (MA) of 943.40, above the 50-day MA of 963.92, and above the 200-day MA of 969.80, indicating a bearish trend. The MACD of -17.11 indicates Positive momentum. The RSI at 34.10 is Neutral, neither overbought nor oversold. The STOCH value of 20.05 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8005	74 Outperform	¥45.18B	18.73	―	4.27%	6.15%	-25.28%
9997	71 Outperform	¥86.82B	5.42	6.96%	2.98%	1.15%	86.72%
3092	65 Neutral	¥960.48B	17.87	49.14%	2.82%	6.80%	0.62%
7545	65 Neutral	¥126.31B	16.01	―	1.54%	4.78%	3.50%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8281	60 Neutral	¥44.92B	15.79	―	3.31%	0.88%	-138.66%
4755	41 Neutral	¥1.62T	-12.21	-21.14%	―	11.45%	42.34%

Belluna Co., Ltd. Corporate Events

Belluna lifts February sales 3% as hotel expansion offsets apparel slowdown

Belluna reported consolidated group sales of ¥15,814 million for February 2026, a 3% year-on-year increase, supported by overall growth in its diversified operations despite mixed performance across segments. While several growth-oriented units, including the hotels business, delivered higher sales, some sustainability-focused areas such as apparel and goods experienced declines, reflecting a strategic emphasis on profitability and operational discipline.

The hotels business was a key growth driver, with February sales rising 43% year-on-year to ¥3,235 million, largely due to contributions from newly opened and acquired properties such as Sapporo Hotel by Granbell, Hotel Zuiho, and Akiu Grand Hotel, even as Hokkaido city hotels saw weaker revenue from occupancy-focused rate control. In contrast, the apparel and goods segment posted an 11% sales drop to ¥4,358 million, impacted by weather-related catalogue delivery delays and a deliberate reduction in printed publications to protect margins, highlighting Belluna’s ongoing balance between expansion and profitability management.

These results underscore Belluna’s increasing reliance on its hotel portfolio as a growth engine while its traditional mail-order businesses remain sensitive to logistics and strategic shifts in marketing channels. For stakeholders, the modest overall sales growth, combined with robust hotel expansion and tighter control over less profitable activities, signals a gradual repositioning of the company’s revenue mix toward areas with stronger medium-term growth potential.

The most recent analyst rating on (JP:9997) stock is a Hold with a Yen1041.00 price target. To see the full list of analyst forecasts on Belluna Co., Ltd. stock, see the JP:9997 Stock Forecast page.

Belluna to Shift Top Shareholder Stake to Parent Firm via Merger

Belluna Co., Ltd. announced that its major and principal shareholder will change on March 31, 2026, due to an absorption-type merger in which Friend Stage Co., Ltd. will take over Friend Stage Asset Management Co., Ltd. As a result, Friend Stage will directly inherit 41,383,714 Belluna shares, representing 43.02% of voting rights, making it the top shareholder.

The restructuring effectively shifts Belluna’s largest shareholding from an asset management subsidiary to its parent company, consolidating ownership under Friend Stage without altering the overall control profile. Belluna stated that the change will have no impact on its management structure or business performance, suggesting limited operational disruption for stakeholders despite the formal change in major shareholder status.

The most recent analyst rating on (JP:9997) stock is a Hold with a Yen1041.00 price target. To see the full list of analyst forecasts on Belluna Co., Ltd. stock, see the JP:9997 Stock Forecast page.

Belluna’s January Sales Climb 10% on Hotel and Wine Strength

Belluna reported that consolidated group sales in January 2026 rose 10% year on year to 15,554 million yen, driven primarily by robust growth in its hotel and wine operations despite some pricing pressure. Segment disclosures note that overseas hotel sales and certain overseas subsidiaries are excluded from the figures, while several newly consolidated hotels, including Sapporo Hotel by Granbell, Hotel Zuiho and Akiu Grand Hotel, were added during fiscal 2024–2025 and contributed to the latest results.

In the hotel business, average daily room rates declined amid softer room prices in Japan’s Kansai area and reduced Chinese inbound tourism, but higher occupancy rates and newly consolidated properties lifted January hotel sales 51% to 3,413 million yen. In the wine business, strong new customer acquisition through e-commerce pushed sales up 11% to 845 million yen, underscoring continued momentum in Belluna’s growth segments and supporting its overall revenue expansion despite flat or modest declines in some mature categories.

The most recent analyst rating on (JP:9997) stock is a Hold with a Yen1041.00 price target. To see the full list of analyst forecasts on Belluna Co., Ltd. stock, see the JP:9997 Stock Forecast page.

Belluna Posts Strong Profit Growth on Modest Sales Increase in Q3 FY2026

Belluna Co., Ltd. reported consolidated net sales of 164.36 billion yen for the third quarter ended December 31, 2025, a 3.6% year-on-year increase, reflecting steady topline growth. Operating profit surged 48.1% to 10.86 billion yen as cost of sales and selling, general and administrative expenses rose more modestly than revenue, while ordinary profit climbed 25.9% to 10.96 billion yen despite higher commission and interest expenses. Net profit jumped 44.7% to 7.75 billion yen, supported in part by a 0.96 billion yen increase in gains on the sale of investment securities, and the company is targeting full-year net sales of 214.6 billion yen and operating and ordinary profit of 13.5 billion yen, indicating confidence in sustained earnings momentum.

The most recent analyst rating on (JP:9997) stock is a Hold with a Yen1041.00 price target. To see the full list of analyst forecasts on Belluna Co., Ltd. stock, see the JP:9997 Stock Forecast page.

Belluna Delivers Strong Q3 Earnings Growth and Confirms Full-Year Outlook

Belluna Co., Ltd. reported solid growth for the nine months ended December 31, 2025, with consolidated net sales rising 3.6% year on year to ¥164.36 billion, operating profit jumping 48.1% to ¥10.87 billion, and profit attributable to owners of parent climbing 44.7% to ¥7.75 billion, reflecting improved profitability and stronger earnings momentum. The company’s financial position expanded with total assets increasing to ¥344.27 billion and net assets to ¥147.26 billion, while capital adequacy remained robust at 42.7%; it also confirmed an unchanged full-year forecast for the fiscal year ending March 2026, targeting modest sales and profit growth and maintaining a planned annual dividend of ¥30 per share, signaling management’s confidence in earnings stability and continued shareholder returns.

The most recent analyst rating on (JP:9997) stock is a Hold with a Yen1041.00 price target. To see the full list of analyst forecasts on Belluna Co., Ltd. stock, see the JP:9997 Stock Forecast page.

Belluna’s December Sales Edge Up 4% on Strong Hotels and Wine Businesses

Belluna reported that consolidated group sales in December 2025 rose 4% year on year to ¥24.7 billion, driven chiefly by a sharp 45% increase in hotel business sales to ¥3.5 billion and a solid 19% rise in wine business sales to ¥1.23 billion. Despite headwinds from an early December earthquake that dampened demand at some Hokkaido properties and a collapse in room rates in Kyoto due to voluntary travel restraint by Chinese tourists, hotel performance was significantly boosted by the recent acquisitions of Hotel Zuiho and Akiu Grand Hotel, underscoring Belluna’s expanding footprint in the domestic hospitality market and the growing contribution of its tourism-related and e-commerce wine operations to overall revenue growth.

The most recent analyst rating on (JP:9997) stock is a Hold with a Yen1041.00 price target. To see the full list of analyst forecasts on Belluna Co., Ltd. stock, see the JP:9997 Stock Forecast page.