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Japan Eyewear Holdings Co.,Ltd. (5889) AI Stock Analysis

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JP:5889

Japan Eyewear Holdings Co.,Ltd.

(TSE/TYO:5889)

Select Model
Rating:73Outperform
Price Target:JPY 2,284.00▲(2.28% Upside)
Action:reiterated
Date:09/15/26

The score is driven primarily by strong financial performance (high margins, solid free cash flow, and improved leverage) and supported by reasonable valuation (moderate P/E and attractive yield). These positives are partially offset by weak technicals, with price below key moving averages and negative MACD despite oversold readings.

Positive Factors
Strong profitability and operating leverageVery high TTM margins indicate strong profitability and meaningful operating leverage in the business. This provides a durable earnings base, supports reinvestment and resilience, and gives the company more capacity to absorb moderate cost pressure while maintaining attractive returns.
Negative Factors
Remaining absolute debt burdenAlthough leverage has improved substantially, the remaining debt balance is still sizable in absolute terms. This can limit financial flexibility and leave the company more exposed to financing conditions, interest costs, and the need to prioritize repayment over discretionary growth investment.

Japan Eyewear Holdings Co.,Ltd. (5889) vs. iShares MSCI Japan ETF (EWJ)

-10%0%10%20%30%40%JP:5889+14.69%EWJ+15.75%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 53.65B
Dividend Yield
3.81%
Average Volume (3M)
161.68K
Price to Earnings (P/E)
12.5
Beta (1Y)
0.93
Revenue Growth
15.36%
EPS Growth
5.16%
Country
Japan
Employees
637
Sector
General
Sector Strength
55
Industry
Medical - Instruments & Supplies

Japan Eyewear Holdings Co.,Ltd. Business Overview & Revenue Model

Company Description

Japan Eyewear Holdings Co., Ltd., through its subsidiaries, engages in the designing, manufacturing, and selling eyeglasses in Japan. The company was incorporated in 2019 and is based in Sabae, Japan.

How the Company Makes Money

Japan Eyewear Holdings Co.,Ltd. generates earnings primarily through its consolidated subsidiaries by selling eyewear products to end customers via retail operations. Key revenue drivers typically include (1) product sales of prescription eyeglasses...

Japan Eyewear Holdings Co.,Ltd. Financial Statement Overview

Summary

Strong profitability and operating leverage with very high TTM margins, supported by material multi-year revenue expansion. Cash generation is solid with strong TTM free cash flow and high cash conversion. Key risks are uneven growth, historical cash-flow coverage volatility, and a still-notable absolute debt load despite much improved leverage.

Income Statement

88Very Positive

Balance Sheet

76Positive

Cash Flow

84Very Positive
Financial statement breakdown
BreakdownTTMJan 2026Jan 2025Jan 2024Jan 2023Jan 2022
Income Statement
Total Revenue19.96B18.64B16.67B13.53B10.72B7.07B
Gross Profit15.67B14.67B13.15B10.49B8.21B5.48B
EBITDA8.47B7.87B7.01B5.18B3.63B2.29B
Net Income4.28B3.78B3.99B2.22B293.00M90.00M
Balance Sheet
Total Assets41.18B39.91B38.83B34.77B31.17B30.79B
Cash, Cash Equivalents and Short-Term Investments3.62B3.05B3.93B4.43B2.21B2.20B
Total Debt15.83B15.60B16.65B16.46B17.11B18.23B
Total Liabilities21.67B21.72B22.41B21.49B22.09B22.34B
Stockholders Equity19.51B18.19B16.42B13.27B4.68B4.37B
Cash Flow
Free Cash Flow5.50B4.64B3.08B2.67B2.62B1.35B
Operating Cash Flow5.86B5.36B5.26B3.45B2.94B1.61B
Investing Cash Flow-242.00M-1.42B-2.41B-904.00M-359.00M-5.56B
Financing Cash Flow-5.13B-4.86B-3.38B-388.00M-2.61B4.64B

Japan Eyewear Holdings Co.,Ltd. Technical Analysis

Technical Analysis SentimentPositive
Last Price2233.00

Price Trends

50DMA2282.64Negative
100DMA2344.56Negative
200DMA2189.10Positive

Market Momentum

MACD-26.49Negative
RSI55.70Neutral
STOCH89.69Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5889, the sentiment is Positive. The current price of 2233.00 is above the 20-day moving average (MA) of 2130.55, below the 50-day MA of 2282.64, and above the 200-day MA of 2189.10, indicating a neutral trend. The MACD of -26.49 indicates Negative momentum. The RSI at 55.70 is Neutral, neither overbought nor oversold. The STOCH value of 89.69 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5889.

Japan Eyewear Holdings Co.,Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:5889 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:7741JP:774182OutperformJPY 7.86T28.8727.70%1.26%13.02%38.15%
JP:5889JP:588973OutperformJPY 53.22B12.49―3.81%15.36%5.16%
JP:3046JP:304669NeutralJPY 154.98B20.4522.48%1.51%14.41%-6.42%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:7780JP:778055NeutralJPY 145.48B19.997.70%1.45%5.05%50.43%

* General Sector Average

Performance Comparison

-20%0%20%40%60%JP:5889JP:7741JP:3046JP:7780Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:5889 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:5889Japan Eyewear Holdings Co.,Ltd.2233.00228.2911.39%
JP:7741HOYA CORPORATION23860.00-180.20-0.75%
JP:3046JINS HOLDINGS 6880.00440.566.84%
JP:7780Menicon Co 1930.00724.2560.07%

Japan Eyewear Holdings Co.,Ltd. Corporate Events

Japan Eyewear Holdings Raises Interim Dividend and Signals Higher Annual Payout

Sep 11, 2026

Japan Eyewear Holdings has approved an interim dividend for the current fiscal year, with a record date of July 31, 2026, setting the payout at 43 yen per share, unchanged from its latest forecast and slightly above the previous year’s interim divide...

Japan Eyewear Holdings Posts Double-Digit Profit Growth and Lifts Interim Dividend

Sep 11, 2026

Japan Eyewear Holdings reported strong interim results for the six months ended July 31, 2026, with revenue up 14.8% year on year to ¥10,258 million and operating profit rising 21.4% to ¥3,503 million, driven by improved profitability and higher EBIT...

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: Sep 15, 2026