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

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Beauty Kadan Holdings Co. Ltd.

(TSE/TYO:3041)

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Rating:40Underperform

Price Target:JPY 337.00▼(-5.07% Downside)

Action:downgraded

Date:08/19/26

The score is primarily driven down by weak financial performance: margin compression, a return to losses, sustained negative operating/free cash flow, and elevated leverage. Technicals also show a clear downtrend across moving averages and negative MACD, partially offset by oversold RSI/Stochastic readings. Valuation provides limited support given the negative P/E and only a modest dividend yield.

Positive Factors

Integrated funeral-service offeringThe company’s activities cover funeral operations, ceremony arrangements, and associated goods and services, creating an integrated offering for bereaved families. This broad service scope supports relevance across the memorial process and provides a foundation for ongoing customer demand.

Negative Factors

Sharp profitability deteriorationThe latest deterioration combines lower revenue with negative operating profit, a return to net losses, and substantial gross-margin compression. This weakens earnings quality and suggests that pricing power or cost control is not currently sufficient to protect profitability.

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

Market Cap: JPY 1.46B
Dividend Yield: 1.18%
Average Volume (3M): 7,160
Price to Earnings (P/E): -8.4
Beta (1Y): 0.53
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...

Beauty Kadan Holdings Co. Ltd. Financial Statement Overview

Summary

Latest year performance deteriorated sharply: revenue fell (~2.5%), operating profit turned negative, and the company returned to a net loss. Gross margin compressed materially (to ~9.7%), leverage is elevated and rising (debt-to-equity ~3.36x), and operating/free cash flow have been negative for two consecutive years—indicating limited financial cushion and higher refinancing risk if weakness persists.

Income Statement

38Negative

Balance Sheet

32Negative

Cash Flow

25Negative

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 Price355.00

Price Trends

50DMA392.30Negative

100DMA413.31Negative

200DMA471.81Negative

Market Momentum

MACD-12.48Positive

RSI22.16Positive

STOCH21.68Neutral

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 355.00 is below the 20-day moving average (MA) of 374.05, below the 50-day MA of 392.30, and below the 200-day MA of 471.81, indicating a bearish trend. The MACD of -12.48 indicates Positive momentum. The RSI at 22.16 is Positive, neither overbought nor oversold. The STOCH value of 21.68 is Neutral, 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 12.26B	6.42	―	―	41.94%	43.09%
JP:2424	62Neutral	JPY 3.39B	11.92	―	1.34%	5.56%	-35.55%
JP:2305	60Neutral	JPY 31.00B	19.92	―	2.75%	-4.42%	-1.75%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:4331	50Neutral	JPY 12.10B	43.03	―	6.10%	―	―
JP:4679	41Neutral	JPY 1.95B	-8.31	―	―	-5.68%	-15204.69%
JP:3041	40Underperform	JPY 1.44B	-8.37	―	1.18%	-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.	355.00	-101.00	-22.15%
JP:2305	Studio Alice Co., Ltd.	1819.00	-155.83	-7.89%
JP:2424	Brass Corp.	598.00	-32.94	-5.22%
JP:4331	Take and Give. Needs Co., Ltd.	836.00	110.13	15.17%
JP:4679	TAYA Co.,Ltd.	260.00	19.00	7.88%
JP:9160	NOVARESE,Inc.	330.00	-16.00	-4.62%

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