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Halows Co., Ltd. (JP:2742)
:2742
Japanese Market
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Halows Co., Ltd. (2742) AI Stock Analysis

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JP:2742

Halows Co., Ltd.

(2742)

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Outperform 70 (OpenAI - Gpt-5.6Sol)
Rating:70Outperform
Price Target:
¥4,466.00
▼(-2.81% Downside)
Action:Reiterated
Date:08/06/26
The score is primarily driven by solid financial performance—steady growth, resilient operating margins, and meaningfully lower leverage—partly offset by mixed cash-flow quality. Technicals materially detract due to a clear downtrend across major moving averages and weak momentum. Valuation helps, with a low P/E and a moderate dividend yield providing support.
Positive Factors
Consistent revenue growth
Sustained revenue growth indicates continued consumer demand for Halows’ grocery and daily-necessities offering. A multi-year expansion pattern provides a durable base for store productivity, supports operating leverage, and strengthens the company’s ability to fund ongoing retail growth.
Negative Factors
Thin and pressured net margin
Halows converts only a thin portion of sales into net profit, leaving earnings sensitive to modest changes in costs or operating conditions. The recent margin dip indicates that higher revenue has not translated fully into bottom-line expansion, limiting earnings resilience.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent revenue growth
Sustained revenue growth indicates continued consumer demand for Halows’ grocery and daily-necessities offering. A multi-year expansion pattern provides a durable base for store productivity, supports operating leverage, and strengthens the company’s ability to fund ongoing retail growth.
Read all positive factors

Halows Co., Ltd. (2742) vs. iShares MSCI Japan ETF (EWJ)

Halows Co., Ltd. Business Overview & Revenue Model

Company Description
Operating a chain of supermarket stores, Halows Co.,Ltd. serves customers across several prefectures in Japan, specifically Hiroshima, Okayama, Kagawa, Ehime, Tokushima, and Hyogo. The company was founded in 1958 and initially operated as Fuchu Su...
How the Company Makes Money
Halows primarily generates revenue through retail sales to consumers at its supermarkets. Key revenue streams include (1) sales of food and grocery items (fresh foods, packaged foods, beverages, and household consumables), and (2) sales of non-foo...

Halows Co., Ltd. Financial Statement Overview

Summary
Strong overall fundamentals for grocery retail: consistent multi-year revenue growth and resilient operating profitability, alongside a materially improved balance sheet with sharply reduced leverage. Offsetting factors are thin net margins with some recent pressure and historically volatile free cash flow (2026 FCF notably below net income).
Income Statement
78
Positive
Balance Sheet
86
Very Positive
Cash Flow
73
Positive
BreakdownTTMFeb 2026Feb 2025Feb 2024Feb 2023Feb 2022
Income Statement
Total Revenue229.60B225.72B210.75B195.44B174.11B163.37B
Gross Profit57.88B57.05B54.03B50.09B44.31B40.87B
EBITDA17.82B17.93B17.11B15.54B13.14B12.61B
Net Income8.83B8.99B8.91B8.59B6.20B5.93B
Balance Sheet
Total Assets137.03B136.01B114.01B104.79B99.52B87.64B
Cash, Cash Equivalents and Short-Term Investments23.09B23.06B15.03B18.14B17.84B14.66B
Total Debt11.09B10.93B11.13B15.14B19.44B14.09B
Total Liabilities58.05B58.27B43.58B42.27B44.71B38.23B
Stockholders Equity78.97B77.74B70.43B62.51B54.81B49.40B
Cash Flow
Free Cash Flow0.0013.51B3.88B6.35B-176.00M-4.33B
Operating Cash Flow0.0026.20B15.89B13.15B10.62B3.28B
Investing Cash Flow0.00-14.02B-13.76B-7.25B-11.52B-7.82B
Financing Cash Flow0.00-2.51B-5.25B-5.60B4.08B-4.05B

Halows Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4595.00
Price Trends
50DMA
3809.43
Positive
100DMA
3854.37
Positive
200DMA
4182.12
Negative
Market Momentum
MACD
67.61
Negative
RSI
61.09
Neutral
STOCH
58.70
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2742, the sentiment is Positive. The current price of 4595 is above the 20-day moving average (MA) of 3923.20, above the 50-day MA of 3809.43, and above the 200-day MA of 4182.12, indicating a neutral trend. The MACD of 67.61 indicates Negative momentum. The RSI at 61.09 is Neutral, neither overbought nor oversold. The STOCH value of 58.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2742.

Halows Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
¥32.55B23.532.23%15.49%3.69%
71
Outperform
¥109.15B11.082.48%0.95%3.40%
70
Outperform
¥86.99B9.811.77%6.78%-1.61%
67
Neutral
¥240.69B18.772.44%3.25%1.50%
65
Neutral
¥143.14B11.671.87%7.40%-1.99%
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
56
Neutral
¥54.63B9.422.23%21.09%6.94%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2742
Halows Co., Ltd.
4,060.00
-936.88
-18.75%
JP:7596
Uoriki Co., Ltd.
2,333.00
-225.51
-8.81%
JP:8194
Life Corporation
2,782.00
331.40
13.52%
JP:8198
Maxvalu Tokai Co., Ltd.
3,430.00
228.55
7.14%
JP:9823
Mammy Mart Corporation
1,015.00
-393.26
-27.93%
JP:9974
BELC Co., Ltd.
6,860.00
-510.33
-6.92%

Halows Co., Ltd. Corporate Events

Halows Balances Revenue Growth and Margin Pressure While Raising Dividend Outlook
Jun 24, 2026
Halows reported a 7.2% year-on-year increase in operating revenue to ¥57.9 billion for the three months ended May 31, 2026, but operating profit fell 10.5% to ¥2.7 billion and net profit declined 7.2% to ¥2.0 billion, reflecting mar...
Halows Finalizes Stock Compensation-Type Options for Internal Directors
Jun 12, 2026
Halows Co., Ltd. has finalized the details of a stock compensation-type stock option program for its directors, following a board resolution made in late May 2026. The plan covers eight internal directors, excluding audit and outside members, and ...
Halows Director Resigns from Audit and Supervisory Committee Role
Jun 12, 2026
Halows Co., Ltd. announced the resignation of outside director Hitoshi Okamoto from his role as a director serving as an Audit and Supervisory Committee member, effective June 12, 2026. The company stated that the resignation was due to personal r...
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: Aug 06, 2026