Global Style Co., Ltd. (7126) AI Stock Analysis

• Market Cap: ¥4.80B
• Dividend Yield: 2.21%
• Average Volume (3M): 4.32K
• Price to Earnings (P/E): 9.9
• Beta (1Y): 0.47
• Revenue Growth: 2.62%
• EPS Growth: 10.90%
• Country: JP
• Employees: 267
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 11.52
• Shares Outstanding: 3,502,744
• 10 Day Avg. Volume: 4,280
• 30 Day Avg. Volume: 4,316
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,678.00
• Price Target Upside: 12.32% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: ¥1,678.00 ▲(12.32% Upside)

The overall stock score of 72 reflects strong financial performance with solid revenue growth and improved cash flows, despite some pressure on profitability margins. The valuation is attractive with a low P/E ratio and a decent dividend yield. However, technical indicators suggest a lack of strong upward momentum, which tempers the overall score.

Global Style Co., Ltd. Business Overview & Revenue Model

Company Description

Global Style Co.,Ltd. engages in the management of specialty stores. It manufactures and wholesales men's clothing, including suit and coat fabrics, and custom-made suits and shirts for men, women, kids, and juniors, as well as offers espresso coffee under the Borbone brand name through cafes and restaurants. The company provides custom coats and shoes, and ready-made products, such as ties and belts, etc. It operates stores under the TANGOYA and Global Style brand names. The company was formerly known as Tangoya Co.,Ltd. and changed its name to Global Style Co.,Ltd. in November 2022. Global Style Co.,Ltd. was founded in 1928 and is headquartered in Osaka, Japan.

How the Company Makes Money

Global Style Co., Ltd. generates revenue through various streams primarily centered around its core business of fashion and apparel. The company's main revenue stream comes from the sale of its clothing and accessories through multiple channels, including retail stores, online platforms, and wholesale partnerships. By leveraging strategic partnerships with retailers and distributors, the company expands its market reach and enhances sales volumes. Additionally, Global Style Co., Ltd. invests in marketing and branding to strengthen its brand presence and attract a broader customer base, thus contributing to its earnings.

Global Style Co., Ltd. Financial Statement Overview

Summary

Global Style Co., Ltd. exhibits strong revenue growth and operational efficiency, although profitability margins have slightly compressed. The balance sheet reflects a balanced approach to debt and equity financing, with improved return on equity. Cash flow dynamics have significantly improved, showcasing stronger cash generation capabilities. Overall, the company is on a positive trajectory with solid growth and improving cash flows, but needs to focus on enhancing profitability margins.

Income Statement

Global Style Co., Ltd. has demonstrated consistent revenue growth over the past several years, with a 7.3% increase from 2023 to 2024. The gross profit margin stands strong at 53.6% for 2024. However, the net profit margin slightly decreased to 4.0%, down from 4.5% in 2023, indicating some pressure on profitability. EBIT and EBITDA margins are stable at 5.6% and 8.1%, respectively, reflecting decent operational efficiency.

Balance Sheet

The balance sheet reveals a debt-to-equity ratio of 1.24, showing significant leverage but within acceptable industry norms. The return on equity improved to 18.1%, up from 22.9% in 2023, suggesting effective use of equity to generate profits. The equity ratio is 32.7%, indicating a moderate reliance on equity financing.

Cash Flow

Cash flow analysis indicates a substantial recovery in free cash flow, turning positive to ¥220 million in 2024 from a negative free cash flow in 2023. Operating cash flow to net income ratio is robust at 1.41, while free cash flow to net income ratio also improved, indicating enhanced cash generation capability relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.54B	11.17B	10.41B	9.09B	8.33B	9.02B
Gross Profit	6.30B	5.99B	5.57B	4.85B	4.30B	4.17B
EBITDA	1.14B	907.37M	864.78M	793.25M	551.28M	456.25M
Net Income	586.93M	443.76M	473.24M	343.05M	244.31M	184.80M
Balance Sheet
Total Assets	8.70B	7.51B	7.32B	6.68B	5.80B	6.07B
Cash, Cash Equivalents and Short-Term Investments	1.36B	901.35M	1.11B	1.34B	1.33B	1.42B
Total Debt	3.11B	3.04B	3.36B	3.27B	3.09B	3.56B
Total Liabilities	6.10B	5.06B	5.26B	5.08B	4.76B	5.25B
Stockholders Equity	2.60B	2.46B	2.06B	1.61B	1.04B	815.23M
Cash Flow
Free Cash Flow	0.00	220.30M	-244.54M	-316.44M	687.52M	-936.14M
Operating Cash Flow	0.00	625.67M	267.46M	550.15M	782.80M	-713.74M
Investing Cash Flow	0.00	-449.38M	-550.95M	-950.57M	-109.88M	-155.15M
Financing Cash Flow	0.00	-386.39M	52.46M	401.68M	-760.30M	1.27B

Global Style Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1494.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7126, the sentiment is Negative. The current price of 1494 is below the 20-day moving average (MA) of 1526.05, below the 50-day MA of 1529.78, and above the 200-day MA of 1475.87, indicating a neutral trend. The MACD of -7.96 indicates Positive momentum. The RSI at 34.40 is Neutral, neither overbought nor oversold. The STOCH value of 8.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7126.

Global Style Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8115	80 Outperform	6.77B	9.74	10.68%	3.23%	8.55%	29.19%
3123	77 Outperform	8.05B	10.53	4.27%	2.55%	-5.12%	-24.98%
7126	72 Outperform	¥4.80B	9.90	―	2.21%	2.62%	10.90%
3524	70 Outperform	3.80B	8.12	7.33%	3.41%	4.96%	-23.40%
2776	59 Neutral	6.57B	-59.65	1.14%	―	348.40%	71.18%
3409	41 Neutral	4.94B	-55.73	-4.69%	―	21.44%	47.95%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%