Beauty Kadan Holdings Co. Ltd. (3041) AI Stock Analysis

Beauty Kadan Holdings Co. Ltd.

(TSE/TYO:3041)

Select Model

Rating:38Underperform

Price Target:JPY 338.00▼(-6.11% Downside)

Action:reiterated

Date:08/19/26

With an overall score of 38, the stock is under immense fundamental and technical pressure. The most critical factors driving this low score are the severe erosion of profitability, alarming cash burn, and high balance sheet leverage. Coupled with a negative P/E ratio and firmly bearish price trends, the stock carries elevated risk and requires an immediate operational turnaround to stabilize.

Positive Factors

Revenue diversificationThe company combines product revenue from flowers and related goods with service revenue from ceremonial events. This gives it more than one monetization channel and may provide some resilience across consumer gifting and event-related demand over the next several quarters.

Negative Factors

Profitability deteriorationThe latest results show weakening demand alongside a return to losses and negative operating margin. This reduces internal funding capacity and makes recovery more dependent on improved execution, while the sharp earnings reversal raises concern about near-term earnings durability.

Beauty Kadan Holdings Co. Ltd. (3041) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 1.48B
Dividend Yield: 1.16%
Average Volume (3M): 6,550
Price to Earnings (P/E): -8.5
Beta (1Y): 0.50
Revenue Growth: -3.95%
EPS Growth: -510.13%
Country: Japan
Employees: 248
Sector: General
Sector Strength: 55
Industry: Personal Products & Services

Beauty Kadan Holdings Co. Ltd. Business Overview & Revenue Model

Company Description

Beauty Kadan Holdings Co., Ltd. is predominantly involved in the conceptualization, crafting, and installation of fresh flower altars throughout Japan. Beyond this primary endeavor, the company's operations extend to providing bespoke bridal floral d...

How the Company Makes Money

Beauty Kadan Holdings generates revenue primarily through its operating subsidiaries by selling and distributing flowers and related items for consumer gifting and event/ceremonial use, and by providing ceremonial-event related services. Key revenue...

Beauty Kadan Holdings Co. Ltd. Financial Statement Overview

Summary

The company faces severe financial distress marked by a 2.5% revenue contraction, plunging margins, and substantial net losses. Operations are burning cash aggressively with negative 198 million in operating cash flow, while a spiked debt-to-equity ratio of 3.36x leaves the balance sheet highly vulnerable.

Income Statement

25Negative

Balance Sheet

35Negative

Cash Flow

20Very Negative

Financial statement breakdown
Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	7.30B	7.30B	7.60B	6.98B	6.41B	5.86B
Gross Profit	706.40M	706.40M	975.31M	994.39M	941.02M	902.62M
EBITDA	-80.84M	-105.63M	181.81M	145.53M	179.44M	178.31M
Net Income	-174.43M	-174.43M	42.99M	28.54M	88.82M	86.32M
Balance Sheet
Total Assets	2.41B	2.41B	2.90B	2.72B	2.46B	2.44B
Cash, Cash Equivalents and Short-Term Investments	760.12M	760.12M	1.22B	1.07B	954.90M	950.45M
Total Debt	1.40B	1.40B	1.60B	1.49B	1.31B	1.31B
Total Liabilities	2.00B	2.00B	2.29B	2.17B	1.92B	1.91B
Stockholders Equity	417.11M	417.11M	610.30M	544.11M	545.46M	488.94M
Cash Flow
Free Cash Flow	0	-239.86M	-123.75M	25.39M	91.42M	143.87M
Operating Cash Flow	0	-198.20M	-32.59M	98.46M	105.99M	157.78M
Investing Cash Flow	0	-40.58M	69.79M	-72.39M	-31.45M	-14.99M
Financing Cash Flow	0	-220.97M	111.29M	90.40M	-70.09M	-168.69M

Beauty Kadan Holdings Co. Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price360.00

Price Trends

50DMA398.12Negative

100DMA424.68Negative

200DMA474.96Negative

Market Momentum

MACD-9.54Positive

RSI7.53Positive

STOCH2.36Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3041, the sentiment is Negative. The current price of 360.00 is below the 20-day moving average (MA) of 387.50, below the 50-day MA of 398.12, and below the 200-day MA of 474.96, indicating a bearish trend. The MACD of -9.54 indicates Positive momentum. The RSI at 7.53 is Positive, neither overbought nor oversold. The STOCH value of 2.36 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3041.

Beauty Kadan Holdings Co. Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:3041 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:9160	78Outperform	JPY 12.42B	6.28	―	―	41.94%	43.09%
JP:2305	63Neutral	JPY 30.47B	19.47	―	2.80%	-4.42%	-1.75%
JP:2424	62Neutral	JPY 3.43B	12.16	―	1.32%	5.56%	-35.55%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:4331	50Neutral	JPY 12.25B	43.66	―	6.10%	―	―
JP:4679	43Neutral	JPY 1.95B	-8.37	―	―	-5.68%	-15204.69%
JP:3041	38Underperform	JPY 1.48B	-8.46	―	1.16%	-3.95%	-510.13%

* General Sector Average

Performance Comparison

JP:3041 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:3041	Beauty Kadan Holdings Co. Ltd.	360.00	-92.00	-20.35%
JP:2305	Studio Alice Co., Ltd.	1785.00	-202.50	-10.19%
JP:2424	Brass Corp.	608.00	-25.90	-4.09%
JP:4331	Take and Give. Needs Co., Ltd.	836.00	77.52	10.22%
JP:4679	TAYA Co.,Ltd.	262.00	27.00	11.49%
JP:9160	NOVARESE,Inc.	324.00	-21.00	-6.09%

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 19, 2026

Beauty Kadan Holdings Co. Ltd. AI Stock Analysis