QB Net Holdings Co., Ltd. (6571) AI Stock Analysis

• Market Cap: ¥15.62B
• Dividend Yield: 2.27%
• Average Volume (3M): 67.88K
• Price to Earnings (P/E): 18.8
• Beta (1Y): 0.03
• Revenue Growth: 2.78%
• EPS Growth: -51.62%
• Country: JP
• Employees: 2,401
• Sector: Consumer Cyclical
• Sector Strength: 77
• Industry: Personal Products & Services
• EPS (TTM): 14.54
• Shares Outstanding: 13,158,800
• 10 Day Avg. Volume: 70,320
• 30 Day Avg. Volume: 67,880
• PEG Ratio: -0.97
• Price to Book (P/B): 1.02
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.94
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: ¥1,322.00 ▲(11.37%Upside)

QB Net Holdings' overall score reflects its strong financial performance and bullish technical indicators. The company's solid revenue growth and operational efficiency are key strengths, while the current technical indicators suggest positive market sentiment. Valuation is moderate, providing a balanced investment case.

QB Net Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

QB Net Holdings Co., Ltd. (6571) is a Japan-based company primarily engaged in the operation of quick service hair salons. The company is known for its 'QB HOUSE' brand, which offers affordable and convenient haircut services without the need for reservations. QB Net Holdings operates a chain of salons in Japan, as well as internationally, focusing on delivering high-quality, time-efficient grooming services to its customers.

How the Company Makes Money

QB Net Holdings Co., Ltd. generates revenue primarily through providing hair cutting services at its 'QB HOUSE' salons. The company charges customers a fixed fee for each haircut, emphasizing quick and efficient service to maximize customer turnover. This business model allows the company to serve a high volume of clients daily, contributing to its revenue growth. Additionally, QB Net Holdings may engage in strategic partnerships or franchising agreements to expand its brand presence and market reach, further supporting its earnings. The company also focuses on optimizing operational costs and maintaining a lean service model to ensure profitability.

QB Net Holdings Co., Ltd. Financial Statement Overview

Summary

QB Net Holdings Co., Ltd. exhibits a strong financial performance characterized by substantial revenue growth and effective cash flow management. While profitability margins have faced some pressure, the company's solid balance sheet underpins its financial stability.

Income Statement

The company has demonstrated strong revenue growth over the years, with a notable increase from JPY 20,564M in 2022 to JPY 24,927M in TTM 2024, representing a robust revenue growth trajectory. Gross profit margins have also improved, reaching 21.4% in TTM 2024, up from 19.6% in the previous year, indicating enhanced cost management. However, the net profit margin has slightly decreased to 3.0% from 5.3% in 2023, suggesting some pressure on profitability after accounting for all expenses.

Balance Sheet

The balance sheet shows a stable financial position with an equity ratio of 43.3% in TTM 2024, indicating a healthy level of equity financing. The debt-to-equity ratio remains moderate at approximately 1.06, suggesting manageable leverage levels. Return on Equity (ROE) has decreased to 5.2% from 10.1% in 2023, signaling a decline in shareholder returns.

Cash Flow

Cash flow analysis reveals strong operational cash flows, with operating cash flow consistently exceeding net income, reflected by a high operating cash flow to net income ratio of 5.65. Free cash flow is also robust, demonstrating a growth rate from JPY 4,256M in 2023 to JPY 4,166M in 2024. Strong free cash flow generation supports potential reinvestment and debt servicing capabilities.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
24.93B	24.76B	22.75B	20.56B	18.93B	19.09B
	Gross Profit
5.34B	5.83B	5.29B	4.03B	2.50B	2.84B
	EBIT
1.42B	2.17B	2.14B	1.40B	463.00M	239.00M
	EBITDA
4.97B	5.61B	5.44B	4.58B	3.73B	3.46B
	Net Income Common Stockholders
737.50M	1.30B	1.44B	856.00M	243.00M	104.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.05B	4.70B	4.45B	3.75B	4.60B	5.12B
	Total Assets
32.79B	32.30B	31.11B	29.74B	30.63B	32.72B
	Total Debt
14.98B	14.13B	14.87B	15.34B	18.21B	20.52B
	Net Debt
9.93B	9.43B	10.44B	11.62B	13.61B	15.41B
	Total Liabilities
18.61B	18.13B	18.23B	18.35B	20.48B	22.93B
	Stockholders Equity
14.18B	14.17B	12.87B	11.39B	10.16B	9.79B
Cash Flow		Free Cash Flow
2.90B	4.17B	4.26B	4.23B	3.66B	2.02B
	Operating Cash Flow
4.17B	5.06B	4.69B	4.71B	4.05B	2.75B
	Investing Cash Flow
-1.35B	-846.00M	-484.00M	-558.00M	-393.00M	-838.00M
	Financing Cash Flow
-2.69B	-4.12B	-3.60B	-5.25B	-4.22B	721.00M

QB Net Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1187.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6571, the sentiment is Positive. The current price of 1187 is above the 20-day moving average (MA) of 1137.50, above the 50-day MA of 1091.24, and above the 200-day MA of 1058.76, indicating a bullish trend. The MACD of 25.25 indicates Negative momentum. The RSI at 62.93 is Neutral, neither overbought nor oversold. The STOCH value of 78.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6571.

QB Net Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7358	81 Outperform	¥12.28B	10.82		3.16%	8.66%	33.81%
9251	80 Outperform	¥14.39B	12.49		2.97%	8.41%	―
9262	77 Outperform	¥8.37B	13.44		1.95%	8.71%	-3.96%
6571	75 Outperform	¥15.62B	18.75		2.27%	2.78%	-51.62%
7523	73 Outperform	¥9.56B	8.04		4.29%	-2.50%	-18.37%
Sector *	62 Neutral	$6.90B	11.12	2.92%	3.89%	2.68%	-25.06%
4679	38 Underperform	¥1.24B	―		―	-6.77%	60.81%

QB Net Holdings Co., Ltd. Corporate Events

QB Net Holdings Reports Q3 Revenue Growth Amid Profit Decline

QB Net Holdings Co., Ltd. reported a slight increase in revenue for the third quarter of the fiscal year ending June 2025, with a 2.7% rise compared to the previous year. However, the company experienced significant declines in operating profit and profit before tax, attributed to a challenging market environment. The company also announced the consolidation of QB HOUSE VIETNAM COMPANY LIMITED, expanding its operational scope. Despite the financial challenges, QB Net Holdings maintains its dividend forecast, signaling confidence in its long-term strategy.