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J FRONT RETAILING Co
(3086)
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Rating:57Neutral
Price Target:
¥2,723.00
▼(-13.25% Downside)
Action:Reiterated
Date:10/02/26
The score is primarily supported by solid profitability and strong free cash flow generation with improving leverage trends. However, it is meaningfully held back by weak technical momentum (price below key moving averages and negative MACD) and a valuation that looks only average given modest growth and easing profitability.
Positive Factors
Strong Cash Generation
Strong operating and free cash flow indicates that reported earnings are supported by cash conversion, giving J. Front Retailing resources to maintain stores, invest selectively, and return capital. The 17% FCF growth also provides resilience through changing retail conditions.
Negative Factors
Weak Revenue Growth
Weak recent revenue growth points to limited expansion in the underlying retail business and makes future earnings more dependent on margins or productivity improvements. The modest annual increase also suggests that sales momentum may remain restrained over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Cash Generation
Strong operating and free cash flow indicates that reported earnings are supported by cash conversion, giving J. Front Retailing resources to maintain stores, invest selectively, and return capital. The 17% FCF growth also provides resilience through changing retail conditions.
Read all positive factors
J FRONT RETAILING Co (3086) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥684.63B
Dividend Yield2%
Average Volume (3M)1.39M
Price to Earnings (P/E)25.1
Beta (1Y)0.66
Revenue Growth-2.32%
EPS Growth-30.08%
CountryJP
Employees5,584
SectorConsumer Cyclical
Sector Strength84
IndustryDepartment Stores
Share Statistics
EPS (TTM)110.81
Shares Outstanding270,565,770
10 Day Avg. Volume1,253,040
30 Day Avg. Volume1,385,716
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)130.65
Revenue Forecast (FY)¥459.80B
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 primarily makes money through retail sales generated in its department stores. The core revenue stream is merchandise sales to customers across major store categories (e.g., fashion/apparel, cosmetics/beauty, food and confection...
J FRONT RETAILING Co Earnings Call Summary
Earnings Call Date:Oct 08, 2024
(Q2-2024)
| % Change Since: |
Next Earnings Date:Dec 22, 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
62
Positive
Balance Sheet
58
Neutral
Cash Flow
71
Positive
| Breakdown | TTM | Feb 2026 | Feb 2025 | Feb 2024 | Feb 2023 | Feb 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 440.73B | 445.09B | 441.88B | 407.01B | 359.68B | 331.48B |
| Gross Profit | 216.24B | 215.41B | 187.63B | 170.46B | 142.62B | 121.87B |
| EBITDA | 92.51B | 95.10B | 105.65B | 92.68B | 71.20B | 61.71B |
| Net Income | 27.50B | 28.28B | 41.42B | 29.91B | 14.24B | 4.32B |
Balance Sheet | ||||||
| Total Assets | 1.15T | 1.14T | 1.16T | 1.11T | 1.12T | 1.19T |
| Cash, Cash Equivalents and Short-Term Investments | 25.59B | 36.10B | 54.98B | 71.34B | 39.87B | 93.28B |
| Total Debt | 353.44B | 336.68B | 363.58B | 364.40B | 413.95B | 502.11B |
| Total Liabilities | 727.52B | 713.54B | 740.91B | 720.49B | 749.54B | 830.78B |
| Stockholders Equity | 410.94B | 415.59B | 409.65B | 381.90B | 359.38B | 350.37B |
Cash Flow | ||||||
| Free Cash Flow | 62.02B | 52.84B | 71.40B | 83.66B | 56.84B | 44.05B |
| Operating Cash Flow | 77.20B | 66.99B | 85.81B | 90.69B | 65.48B | 49.87B |
| Investing Cash Flow | -32.27B | -15.15B | -28.31B | 13.43B | -13.37B | -5.29B |
| Financing Cash Flow | -56.80B | -70.78B | -74.00B | -72.75B | -105.69B | -80.39B |
J FRONT RETAILING Co Technical Analysis
Positive
3139.00
Price Trends
2813.75
Negative
2756.80
Negative
2563.51
Positive
Market Momentum
-29.58
Negative
53.65
Neutral
93.82
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 3139 is above the 20-day moving average (MA) of 2656.82, above the 50-day MA of 2813.75, and above the 200-day MA of 2563.51, indicating a neutral trend. The MACD of -29.58 indicates Negative momentum. The RSI at 53.65 is Neutral, neither overbought nor oversold. The STOCH value of 93.82 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 |
|---|---|---|---|---|---|---|---|
82 Outperform | ¥2.41T | 35.88 | 17.86% | 0.72% | 16.81% | 28.07% | |
74 Outperform | ¥1.23T | 15.22 | 13.31% | 3.50% | 0.06% | 43.97% | |
73 Outperform | ¥340.94B | 8.94 | 11.83% | 1.72% | -0.35% | 209.70% | |
71 Outperform | ¥949.44B | 9.27 | 10.94% | 2.03% | 5.27% | 33.74% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
57 Neutral | ¥684.63B | 25.07 | 6.72% | 2.00% | -2.32% | -30.08% | |
52 Neutral | ¥629.84B | -170.35 | -0.88% | 1.73% | 1.79% | -114.35% |
* Consumer Cyclical Sector Average
JP:3086
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J FRONT RETAILING Co Corporate Events
J. Front Retailing Sees PARCO Growth Offset Softer Department Store Sales in August 2026
Sep 15, 2026
J. Front Retailing reported mixed performance across its segments for August and the first half of fiscal 2026, with total consolidated revenue roughly flat year on year in August and modest growth over the half. Department store gross sales slipp...
J. FRONT RETAILING Reports Increase in Stake by Major Shareholder 3D Investment Partners
Sep 7, 2026
J. FRONT RETAILING Co., Ltd. has disclosed a change in its major shareholders following a Large Shareholder Report filed with the Kanto Local Finance Bureau. Singapore-based 3D Investment Partners Pte. Ltd., an investment advisory firm, has increa...
J. Front Retailing Sees Mixed July as PARCO Growth Offsets Softer Department Store Sales
Aug 17, 2026
J. Front Retailing reported a slight year-on-year decline in consolidated revenue for July, as weakness in its department store and developer businesses offset strong gains in shopping center and payment and finance operations. The department stor...
J. Front Retailing posts mixed June results as PARCO outperforms department stores
Jul 15, 2026
J. Front Retailing reported modest consolidated revenue growth for June 2026, with total sales up year on year and stronger momentum in the first half, driven mainly by solid performance in its shopping center and payment and finance segments. The...
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.