J FRONT RETAILING Co Ltd (JP:3086)
:3086
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J FRONT RETAILING Co
(3086)
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Rating:70Outperform
Price Target:
¥3,196.00
▲(39.02% Upside)
Action:Reiterated
Date:06/23/26
The score is supported primarily by solid financial stabilization (profitability restored, leverage reduced, consistently positive cash flow) and strong technical uptrend/momentum. The main offset is valuation: a ~25.7 P/E with only a ~1.86% dividend yield looks less compelling given recent softening in revenue and net income.
Positive Factors
Consistent cash generation
Operating and free cash flow have been positive each year and FCF tracked earnings (~79% of net income in 2026). That durable cash generation underpins the business's ability to fund maintenance capex, pay dividends and reduce debt, preserving liquidity and strategic optionality over the medium term.
Negative Factors
Cooling revenue momentum
After rapid growth in prior years, a slight revenue decline signals a maturing top line. Plateauing sales constrain long-term EPS and organic growth, limit economies of scale from fixed costs, and require meaningful strategic initiatives (product mix, omnichannel or real-estate activation) to restore durable revenue expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent cash generation
Operating and free cash flow have been positive each year and FCF tracked earnings (~79% of net income in 2026). That durable cash generation underpins the business's ability to fund maintenance capex, pay dividends and reduce debt, preserving liquidity and strategic optionality over the medium term.
Read all positive factors
J FRONT RETAILING Co (3086) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥797.90B
Dividend Yield2.58%
Average Volume (3M)1.30M
Price to Earnings (P/E)28.6
Beta (1Y)1.18
Revenue Growth0.73%
EPS Growth-29.62%
CountryJP
Employees5,343
SectorConsumer Cyclical
Sector Strength84
IndustryDepartment Stores
Share Statistics
EPS (TTM)112.86
Shares Outstanding270,565,770
10 Day Avg. Volume1,064,720
30 Day Avg. Volume1,303,113
Financial Highlights & Ratios
PEG Ratio-0.77
Price to Book (P/B)1.55
Price to Sales (P/S)1.45
P/FCF Ratio12.23
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)126.02
Revenue Forecast (FY)¥459.64B
J FRONT RETAILING Co Business Overview & Revenue Model
Company Description
J. Front Retailing Co., Ltd., together with its subsidiaries, operates department stores. The company operates through Department Store Business, Shopping Center (SC) Business, Developer Business, and Payment and Finance Business segments. The Dep...
How the Company Makes Money
J. Front Retailing makes money mainly through its retail business, led by department store operations. Its core revenue stream is sales generated at group-operated stores (including in-store product sales across categories such as apparel, cosmeti...
J FRONT RETAILING Co Earnings Call Summary
Earnings Call Date:Oct 08, 2024
(Q2-2024)
| % Change Since: |
Next Earnings Date:Jun 30, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted significant revenue growth and successful cost control, particularly in the Department Store segment, along with a promising outlook for the full year. However, challenges remain in certain business segments, notably in maintaining profit margins and managing unexpected expenses. The sentiment is balanced with both notable achievements and areas requiring further improvement.Positive Updates
Significant Revenue Growth
Consolidated gross sales for the first half of FY 2023 were JPY 540.1 billion, with revenue at JPY 191.6 billion, marking double-digit growth year-on-year. Business profit increased 48.2% to JPY 20.1 billion, and operating profit rose 48.7% to JPY 19.6 billion.
Negative Updates
Lower Profit Margins in Key Segments
Revenue was JPY 3.8 billion lower than forecast due to lower profit margins in the Department Store business and weaker commission income in the Shopping Center segment.
Read all updates
Q2-2024 Updates
Positive
Negative
Significant Revenue Growth
Consolidated gross sales for the first half of FY 2023 were JPY 540.1 billion, with revenue at JPY 191.6 billion, marking double-digit growth year-on-year. Business profit increased 48.2% to JPY 20.1 billion, and operating profit rose 48.7% to JPY 19.6 billion.
Read all positive updates
Company Guidance
In the earnings call for Q2 2024, the executives provided detailed guidance on the company's financial performance and future outlook. Consolidated gross sales for the first half of FY 2023 reached JPY 540.1 billion, with revenue of JPY 191.6 billion, reflecting double-digit growth year-on-year. Business profit surged 48.2% to JPY 20.1 billion, while operating profit rose 48.7% to JPY 19.6 billion. Profit attributable to owners of the parent increased by 27.0% to JPY 12.9 billion. Looking ahead, the full year FY 2023 forecast anticipates consolidated gross sales of JPY 1.131 billion, a 13.2% increase year-on-year, with business profit expected to climb 71.0% to JPY 42.5 billion and operating profit projected to more than double to JPY 40 billion. Profit attributable to owners of the parent is estimated to rise 89.6% to JPY 27 billion. The company also plans a year-end dividend of JPY 17 per share, bringing the annual dividend to JPY 33, up JPY 2 from the previous year, with ROE and ROIC anticipated at 7.4% and 4.9%, respectively. Executives highlighted the potential for growth driven by inbound tourism and strong domestic consumption, particularly in luxury segments, while cautious about cost management and strategic investments for sustained profitability.J FRONT RETAILING Co Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
66
Positive
Cash Flow
70
Positive
| Breakdown | Feb 2026 | Feb 2025 | Feb 2024 | Feb 2023 | Feb 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 445.09B | 441.88B | 407.01B | 359.68B | 331.48B |
| Gross Profit | 215.41B | 187.63B | 170.46B | 142.62B | 121.87B |
| EBITDA | 95.10B | 105.65B | 92.68B | 71.20B | 61.71B |
| Net Income | 28.28B | 41.42B | 29.91B | 14.24B | 4.32B |
Balance Sheet | |||||
| Total Assets | 1.14T | 1.16T | 1.11T | 1.12T | 1.19T |
| Cash, Cash Equivalents and Short-Term Investments | 36.10B | 54.98B | 71.34B | 39.87B | 93.28B |
| Total Debt | 336.68B | 363.58B | 364.40B | 413.95B | 502.11B |
| Total Liabilities | 713.54B | 740.91B | 720.49B | 749.54B | 830.78B |
| Stockholders Equity | 415.59B | 409.65B | 381.90B | 359.38B | 350.37B |
Cash Flow | |||||
| Free Cash Flow | 52.84B | 71.40B | 83.66B | 56.84B | 44.05B |
| Operating Cash Flow | 66.99B | 85.81B | 90.69B | 65.48B | 49.87B |
| Investing Cash Flow | -15.15B | -28.31B | 13.43B | -13.37B | -5.29B |
| Financing Cash Flow | -70.78B | -74.00B | -72.75B | -105.69B | -80.39B |
J FRONT RETAILING Co Technical Analysis
Positive
2299.00
Price Trends
2365.87
Positive
2422.89
Positive
2360.71
Positive
Market Momentum
138.98
Negative
81.68
Negative
86.59
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3086, the sentiment is Positive. The current price of 2299 is below the 20-day moving average (MA) of 2395.80, below the 50-day MA of 2365.87, and below the 200-day MA of 2360.71, indicating a bullish trend. The MACD of 138.98 indicates Negative momentum. The RSI at 81.68 is Negative, neither overbought nor oversold. The STOCH value of 86.59 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3086.
J FRONT RETAILING Co Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | ¥1.45T | 19.13 | 9.37% | 2.59% | -1.78% | 51.07% | |
70 Outperform | ¥797.90B | 28.58 | 7.58% | 2.58% | 0.73% | -29.62% | |
68 Neutral | ¥349.97B | 11.16 | 4.97% | 2.01% | -0.23% | -17.40% | |
64 Neutral | ¥1.92T | 31.25 | 17.34% | 0.72% | 16.20% | 16.84% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | ¥993.38B | 10.86 | 9.25% | 1.48% | 2.96% | 13.23% | |
58 Neutral | ¥765.46B | -94.70 | 9.06% | 1.84% | -1.23% | -124.02% |
* Consumer Cyclical Sector Average
JP:3086
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J FRONT RETAILING Co Corporate Events
J. Front Retailing Sees Department Store Stabilization and Strong PARCO Growth in May 2026
Jun 15, 2026
J. Front Retailing reported mixed consolidated revenue trends for May 2026, with total group sales down year on year but modest growth for the first half overall, highlighting divergent performance across segments. The department store business sa...
J. FRONT RETAILING Completes ¥10 Billion Share Buyback Ahead of Schedule
Jun 5, 2026
J. FRONT RETAILING has completed a share buyback authorized under Article 459 of the Companies Act and its Articles of Incorporation, repurchasing 726,400 common shares for about ¥1.62 billion via market purchases on the Tokyo Stock Exchange ...
J. FRONT RETAILING Advances Share Buyback, Acquires 3.6 Million Shares
Jun 1, 2026
J. FRONT RETAILING has executed a share buyback under provisions of the Companies Act and its Articles of Incorporation, repurchasing 2,277,700 common shares for approximately ¥5.18 billion between May 1 and May 31, 2026 via market purchases ...
J. Front Retailing Posts Steady April Growth on Strong Department Store and PARCO Sales
May 15, 2026
J. Front Retailing reported modest consolidated revenue growth for April 2026, with total sales up 1.1% year on year and 5.0% for the first half to date under IFRS, driven mainly by strong performance in its payment and finance segment and steady ...
J. FRONT RETAILING Advances Share Buyback Under ¥10 Billion Program
May 1, 2026
J. FRONT RETAILING Co., Ltd. has repurchased 1,335,800 of its own common shares for a total of ¥3.21 billion between April 15 and April 30, 2026, through market purchases on the Tokyo Stock Exchange. This buyback forms part of a previously au...
J. FRONT RETAILING Declares Record Annual Dividend of ¥54 Per Share
Apr 27, 2026
J. FRONT RETAILING has resolved to pay a year-end cash dividend of ¥27 per share for the fiscal year ended February 28, 2026, matching its latest forecast and resulting in total annual dividends of ¥54 per share. This payout, funded from...
J. FRONT RETAILING Corrects Errors in March 2026 Consolidated Revenue Report
Apr 16, 2026
J. FRONT RETAILING announced that it has revised its Consolidated Revenue Report for March 2026, prepared under IFRS, originally released on April 15, 2026. The correction applies to the revenue by segment data, where the company identified inaccu...
J. Front Retailing Sees Mixed March Results as Department and SC Sales Rise but Developer Business Slumps
Apr 15, 2026
J. Front Retailing reported a 0.7% year-on-year decline in total consolidated revenue for March 2026, as weakness in its developer business contrasted with solid gains in its payment and finance operations, which rose 19%. The department store bus...
J. FRONT RETAILING Launches ESOP-Based Share Plan for Senior Staff
Apr 14, 2026
J. FRONT RETAILING has decided to introduce a share granting plan using an Employee Stock Ownership Plan trust for senior employees at the company and its group subsidiaries. The program will allocate company shares and cash based on performance-l...
J. FRONT RETAILING Launches ¥10 Billion Share Buyback Under Medium-Term Plan
Apr 14, 2026
J. FRONT RETAILING has approved a share buyback of up to 5 million common shares, equivalent to about 2 percent of its outstanding stock, with a maximum total value of ¥10 billion. The purchases will be conducted via market transactions on th...
J. Front Retailing Posts Higher Sales but Profit Slump and Margin Pressure in FY2025
Apr 14, 2026
J. Front Retailing reported consolidated gross sales of ¥1,290.5 billion for the fiscal year ended February 28, 2026, up 1.7% year on year, with revenue rising 0.7% to ¥445.1 billion and gross profit improving 1.3%, lifting the gross mar...
J. FRONT RETAILING Sees Profit Drop but Lifts Dividend and Plans Share Buyback
Apr 14, 2026
J. FRONT RETAILING reported modest top-line growth for the fiscal year ended February 28, 2026, with gross sales up 1.7% and sales revenue up 0.7%, but profits declined as business profit fell 5.4% and profit attributable to owners of parent dropp...
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.