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Halows Co., Ltd. (2742) AI Stock Analysis
Halows Co., Ltd.
(TSE/TYO:2742)
The overall score is driven primarily by strong financial performance, including consistent revenue growth, improving profitability, deleveraging, and healthier cash flows, which underpin the company’s resilience in a competitive grocery market. A relatively attractive valuation with a low P/E and moderate dividend yield further supports the score. These strengths are partly offset by subdued technicals, as the share price trends below longer-term moving averages and lacks clear bullish momentum, suggesting limited near-term price strength despite solid fundamentals.
Halows Co., Ltd. (2742) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 77.96B
- Dividend Yield
- 1.97%
- Average Volume (3M)
- 43.61K
- Price to Earnings (P/E)
- 8.6
- Beta (1Y)
- 0.50
- Revenue Growth
- 6.48%
- EPS Growth
- 0.54%
- Country
- Japan
- Employees
- 1,437
- Sector
- Consumer Defensive
- Sector Strength
- 62
- Industry
- Grocery Stores
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 Super...
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-food d...
Halows Co., Ltd. Financial Statement Overview
Summary
Halows demonstrates strong financial health, with steady revenue growth, stable gross margins, improving net margin to around 4%, sharply reduced leverage (debt-to-equity near 5.6%), and robust ROE above 11%, while operating and free cash flow have strengthened notably despite some past volatility.
Income Statement
82Very PositiveBalance Sheet
88Very PositiveCash Flow
75Positive| Breakdown | TTM | Feb 2026 | Feb 2025 | Feb 2024 | Feb 2023 | Feb 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 233.19B | 225.72B | 210.75B | 195.44B | 174.11B | 163.37B |
| Gross Profit | 58.86B | 57.05B | 54.03B | 50.09B | 44.31B | 40.87B |
| EBITDA | 17.83B | 17.57B | 17.11B | 15.54B | 13.14B | 12.61B |
| Net Income | 9.04B | 8.99B | 8.91B | 8.59B | 6.20B | 5.93B |
Balance Sheet | ||||||
| Total Assets | 128.13B | 136.01B | 114.01B | 104.79B | 99.52B | 87.64B |
| Cash, Cash Equivalents and Short-Term Investments | 13.80B | 23.06B | 15.03B | 18.14B | 17.84B | 14.66B |
| Total Debt | 11.31B | 10.93B | 11.13B | 15.14B | 19.44B | 14.09B |
| Total Liabilities | 46.98B | 58.27B | 43.58B | 42.27B | 44.71B | 38.23B |
| Stockholders Equity | 81.15B | 77.74B | 70.43B | 62.51B | 54.81B | 49.40B |
Cash Flow | ||||||
| Free Cash Flow | 0 | 13.51B | 3.88B | 6.35B | -176.00M | -4.33B |
| Operating Cash Flow | 0 | 26.20B | 15.89B | 13.15B | 10.62B | 3.28B |
| Investing Cash Flow | 0 | -14.02B | -13.76B | -7.25B | -11.52B | -7.82B |
| Financing Cash Flow | 0 | -2.51B | -5.25B | -5.60B | 4.08B | -4.05B |
Halows Co., Ltd. Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2742, the sentiment is Negative. The current price of 3650.00 is below the 20-day moving average (MA) of 3674.50, below the 50-day MA of 3831.45, and below the 200-day MA of 4044.78, indicating a bearish trend. The MACD of -50.31 indicates Positive momentum. The RSI at 44.29 is Neutral, neither overbought nor oversold. The STOCH value of 28.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2742.
Halows Co., Ltd. Peers Comparison
Overall Rating
- JP:274278Outperform
JP:759672.6Outperform
JP:819871Outperform
JP:819466Neutral
JP:997465Neutral
JP:982356Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:2742 | 78Outperform | JPY 78.02B | 8.62 | ― | 1.97% | 6.48% | 0.54% |
| JP:7596 | 73Outperform | JPY 29.44B | 21.08 | ― | 2.49% | 15.49% | 3.69% |
| JP:8198 | 71Outperform | JPY 98.65B | 12.63 | ― | 2.74% | 0.90% | -28.84% |
| JP:8194 | 66Neutral | JPY 213.70B | 20.08 | ― | 2.70% | 2.59% | 0.10% |
| JP:9974 | 65Neutral | JPY 135.63B | 12.21 | ― | 1.96% | 4.94% | -9.98% |
| Sector * | 62Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% |
| JP:9823 | 56Neutral | JPY 49.36B | 8.37 | ― | 2.35% | 21.09% | 6.94% |
* Consumer Defensive Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:2742 | Halows Co., Ltd. | 3650.00 | -643.57 | -14.99% | |
| JP:7596 | Uoriki Co., Ltd. | 2090.00 | -177.29 | -7.82% | |
| JP:8194 | Life Corporation | 2514.00 | 163.85 | 6.97% | |
| JP:8198 | Maxvalu Tokai Co., Ltd. | 3105.00 | -262.64 | -7.80% | |
| JP:9823 | Mammy Mart Corporation | 902.00 | -665.58 | -42.46% | |
| JP:9974 | BELC Co., Ltd. | 6520.00 | -634.13 | -8.86% |
Halows Co., Ltd. Corporate Events
Halows Balances Revenue Growth and Margin Pressure While Raising Dividend Outlook
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 margin...
Halows Finalizes Stock Compensation-Type Options for Internal Directors
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 aut...
Halows Director Resigns from Audit and Supervisory Committee Role
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 reas...
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