Misawa & Co., Ltd. (3169) AI Stock Analysis

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Misawa & Co., Ltd.

(TSE/TYO:3169)

Select Model

Rating:60Neutral

Price Target:JPY 725.00▲(4.92% Upside)

Action:reiterated

Date:11/05/26

The score is primarily supported by a conservative balance sheet and improved recent free cash flow, but it is held back by a clear deterioration in profitability and ROE alongside a return to revenue decline. Technicals are neutral-to-mildly supportive (above key longer-term moving averages) but without strong momentum, and valuation is a notable headwind given the high P/E and modest dividend yield.

Positive Factors

Conservative balance sheetLow leverage and stable-to-improving equity provide financial resilience and reduce dependence on borrowing. This gives Misawa greater flexibility to manage weaker demand, sustain retail operations, and fund selected investments without the balance-sheet pressure associated with materially higher debt.

Negative Factors

Recent revenue declineThe return to revenue contraction signals weaker recent demand or reduced sales momentum across the retail and e-commerce model. If the decline persists, lower sales volume can limit operating leverage, reduce purchasing efficiency, and make it harder to restore profitability over the coming quarters.

Misawa & Co., Ltd. (3169) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 4.90B
Dividend Yield: 1.16%
Average Volume (3M): 4,431
Price to Earnings (P/E): 28.4
Beta (1Y): 0.21
Revenue Growth: 5.58%
EPS Growth: 68.97%
Country: Japan
Employees: 166
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Specialty Retail

Misawa & Co., Ltd. Business Overview & Revenue Model

Company Description

Misawa & Co., Ltd. engages in the management of lifestyle shops in Japan. It operates in Unico Business and Food Business segments. The company plans and sells furniture, curtains, rugs, fabrics, and interior and miscellaneous goods under the unico a...

How the Company Makes Money

The company primarily makes money by selling furniture and home/lifestyle goods to end customers through its retail operations. Revenue is generated from (1) in-store sales at company-operated locations and (2) online sales via e-commerce, with earni...

Misawa & Co., Ltd. Financial Statement Overview

Summary

Financial profile is resilient but earnings quality has weakened. Revenue has been broadly flat and turned negative in 2026 (~-3.8% YoY), while profitability compressed sharply (net margin down to ~1.0% in 2026 from ~6% in 2021–2022) and ROE fell to ~3.9%. Offsetting this, the balance sheet is conservatively financed (debt-to-equity ~9% in 2026) and recent cash generation improved with positive 2026 free cash flow (~¥473M), though cash flow has been volatile historically.

Income Statement

56Neutral

Balance Sheet

74Positive

Cash Flow

67Positive

Financial statement breakdown
Breakdown	TTM	Jan 2026	Jan 2025	Jan 2024	Jan 2023	Jan 2022
Income Statement
Total Revenue	11.92B	12.16B	12.64B	12.09B	12.20B	11.63B
Gross Profit	5.88B	6.20B	6.16B	5.81B	6.17B	7.12B
EBITDA	197.42M	307.05M	413.06M	160.12M	631.48M	1.16B
Net Income	48.04M	124.83M	187.36M	12.27M	341.04M	692.53M
Balance Sheet
Total Assets	4.78B	5.52B	5.08B	5.16B	4.52B	4.55B
Cash, Cash Equivalents and Short-Term Investments	819.05M	1.36B	1.10B	1.12B	641.26M	940.25M
Total Debt	85.42M	301.25M	54.17M	79.17M	134.76M	35.84M
Total Liabilities	1.79B	2.28B	1.91B	2.12B	1.40B	1.65B
Stockholders Equity	2.99B	3.24B	3.17B	3.04B	3.12B	2.90B
Cash Flow
Free Cash Flow	0	473.33M	270.46M	605.13M	-100.32M	170.67M
Operating Cash Flow	0	631.15M	357.93M	825.15M	74.79M	251.27M
Investing Cash Flow	0	-534.15M	-254.03M	-304.88M	-257.29M	-134.32M
Financing Cash Flow	0	158.03M	-117.52M	-44.25M	-116.50M	-262.36M

Misawa & Co., Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price691.00

Price Trends

50DMA688.44Positive

100DMA672.08Positive

200DMA658.33Positive

Market Momentum

MACD0.20Positive

RSI50.43Neutral

STOCH49.02Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3169, the sentiment is Positive. The current price of 691.00 is below the 20-day moving average (MA) of 692.60, above the 50-day MA of 688.44, and above the 200-day MA of 658.33, indicating a neutral trend. The MACD of 0.20 indicates Positive momentum. The RSI at 50.43 is Neutral, neither overbought nor oversold. The STOCH value of 49.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3169.

Misawa & Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:3169 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:9956	70Outperform	JPY 200.01B	8.77	―	3.81%	9.04%	13.87%
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
JP:3169	60Neutral	JPY 4.89B	28.44	―	1.16%	5.58%	68.97%
JP:8278	58Neutral	JPY 177.44B	20.34	―	1.49%	-1.47%	119.37%
JP:2698	57Neutral	JPY 49.41B	243.03	―	0.56%	4.05%	-75.04%
JP:3222	50Neutral	JPY 162.13B	-24.05	―	2.06%	10.71%	-523.13%
JP:9946	42Neutral	JPY 52.13B	-5.08	―	1.12%	2.66%	-81.23%

* Consumer Cyclical Sector Average

Performance Comparison

JP:3169 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:3169	Misawa & Co., Ltd.	691.00	2.03	0.30%
JP:2698	Can Do Co., Ltd.	3025.00	-453.48	-13.04%
JP:3222	United Super Markets Holdings, Inc.	777.00	-66.00	-7.83%
JP:8278	Fuji Co., Ltd.	2019.00	42.04	2.13%
JP:9946	Ministop Co., Ltd.	1783.00	-240.02	-11.86%
JP:9956	Valor Holdings Co., Ltd.	1561.00	94.23	6.42%

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: Nov 05, 2026

Misawa & Co., Ltd. AI Stock Analysis