JAPAN CRAFT HOLDINGS CO.,LTD. (7135) AI Stock Analysis

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JAPAN CRAFT HOLDINGS CO.,LTD.

(TSE/TYO:7135)

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Rating:47Neutral

Price Target:JPY 180.00▲(6.51% Upside)

Action:reiterated

Date:08/19/26

The overall score is 47, reflecting a high-risk profile. The most significant factor is the company's persistent inability to generate positive operating cash flow despite a recent recovery in accounting profits, which raises concerns about financial sustainability. This is compounded by a highly leveraged balance sheet and strongly bearish technical momentum, with the stock trading well below all major moving averages. The reasonable P/E ratio and modest dividend yield provide little buffer against these fundamental and technical headwinds.

Positive Factors

Return to Net ProfitabilityThe return to positive net income marks meaningful recovery from the prior loss period. If sustained, it can improve internal funding capacity, strengthen stakeholder confidence, and provide a foundation for rebuilding profitability.

Negative Factors

Persistent Cash BurnContinued negative operating and free cash flow means accounting profitability has not yet translated into self-funding operations. Persistent cash burn can increase refinancing needs, constrain investment, and heighten liquidity risk over the coming quarters.

JAPAN CRAFT HOLDINGS CO.,LTD. (7135) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 6.31B
Dividend Yield: 1.78%
Average Volume (3M): 25.57K
Price to Earnings (P/E): 14.6
Beta (1Y): 0.34
Revenue Growth: -1.34%
EPS Growth: ―
Country: Japan
Employees: 247
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Apparel - Retail

JAPAN CRAFT HOLDINGS CO.,LTD. Business Overview & Revenue Model

Company Description

Japan Craft Holdings Co., Ltd., which was established in 1961 and is based in Nagoya, Japan, was formerly known as Fujikyu Holdings Co., Ltd. The company operates a diverse business portfolio, primarily focusing on the retail sale of craft materials,...

How the Company Makes Money

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JAPAN CRAFT HOLDINGS CO.,LTD. Financial Statement Overview

Summary

Financial performance is weak. While profitability has recovered to a net profit, the net margin is razor-thin at 3.1% and revenue is flat. Critically, the balance sheet is highly leveraged (D/E 0.91) and the company has burned cash from operations for six consecutive years, making the profit recovery fragile and unsustainable.

Income Statement

62Positive

Balance Sheet

45Neutral

Cash Flow

35Negative

Financial statement breakdown
Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2022
Income Statement
Total Revenue	14.04B	14.04B	14.05B	15.39B	15.71B	16.99B
Gross Profit	7.92B	7.92B	8.07B	8.31B	8.62B	9.52B
EBITDA	371.84M	190.26M	10.17M	-1.79B	-2.23B	-2.85B
Net Income	431.98M	431.98M	-257.98M	-2.09B	-2.69B	-3.28B
Balance Sheet
Total Assets	11.03B	11.03B	11.56B	11.29B	10.19B	12.71B
Cash, Cash Equivalents and Short-Term Investments	1.89B	1.89B	2.30B	1.91B	1.33B	2.08B
Total Debt	3.58B	3.58B	3.54B	3.34B	30.63M	1.89B
Total Liabilities	7.07B	7.07B	7.86B	8.32B	3.96B	7.69B
Stockholders Equity	3.96B	3.96B	3.69B	2.97B	6.23B	5.03B
Cash Flow
Free Cash Flow	0	-288.55M	-603.99M	-1.62B	-2.53B	-1.10B
Operating Cash Flow	0	-235.00M	-501.89M	-1.53B	-2.33B	-935.36M
Investing Cash Flow	0	-191.18M	-233.03M	-60.59M	-305.41M	730.58M
Financing Cash Flow	0	34.40M	1.13B	1.42B	-293.31M	-561.71M

JAPAN CRAFT HOLDINGS CO.,LTD. Technical Analysis

Technical Analysis SentimentNeutral

Last Price169.00

Price Trends

50DMA171.64Negative

100DMA190.53Negative

200DMA201.97Negative

Market Momentum

MACD-1.43Negative

RSI51.43Neutral

STOCH65.28Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7135, the sentiment is Neutral. The current price of 169.00 is above the 20-day moving average (MA) of 166.95, below the 50-day MA of 171.64, and below the 200-day MA of 201.97, indicating a neutral trend. The MACD of -1.43 indicates Negative momentum. The RSI at 51.43 is Neutral, neither overbought nor oversold. The STOCH value of 65.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7135.

JAPAN CRAFT HOLDINGS CO.,LTD. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:7135 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:7606	79Outperform	JPY 73.83B	10.95	―	3.79%	6.76%	90.68%
JP:8219	79Outperform	JPY 116.72B	32.25	3.90%	5.94%	-1.25%	-27.12%
JP:8214	71Outperform	JPY 146.08B	18.22	―	5.17%	0.03%	-7.35%
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
JP:7494	61Neutral	JPY 7.52B	4.14	―	4.42%	-7.77%	116.59%
JP:7416	54Neutral	JPY 10.93B	-14.21	―	2.32%	-3.04%	-33.42%
JP:7135	47Neutral	JPY 6.31B	14.59	―	1.78%	-1.34%	―

* Consumer Cyclical Sector Average

Performance Comparison

JP:7135 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:7135	JAPAN CRAFT HOLDINGS CO.,LTD.	169.00	-54.93	-24.53%
JP:8219	AOYAMA TRADING Co., Ltd.	775.00	43.92	6.01%
JP:7416	Haruyama Holdings Inc.	668.00	-11.17	-1.65%
JP:7494	Konaka Co., Ltd.	226.00	-5.14	-2.23%
JP:7606	UNITED ARROWS LTD.	2667.00	635.13	31.26%
JP:8214	AOKI Holdings, Inc.	1741.00	184.15	11.83%

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: Aug 19, 2026

JAPAN CRAFT HOLDINGS CO.,LTD. AI Stock Analysis