Nakayamafuku Co., Ltd. (7442) AI Stock Analysis

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Nakayamafuku Co., Ltd.

(TSE/TYO:7442)

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Rating:62Neutral

Price Target:JPY 494.00▲(5.11% Upside)

Action:reiterated

Date:11/12/26

The overall score of 62 reflects a company with a strong balance sheet and attractive valuation, offset by weak technical momentum and volatile cash flows. The primary strength is the company's low financial risk and growing equity base, which provides stability. The low P/E and solid dividend yield further support the investment case. However, the stock is under near-term selling pressure as indicated by bearish technicals, and the inconsistent cash flow generation remains a key risk to monitor.

Positive Factors

Revenue and earnings recoveryFY2026 revenue returned to growth after a choppy trajectory, while operating profit and net income improved versus FY2025. This combination indicates a recent recovery in demand and earnings, giving the company a better base for sustaining operations over the next several quarters.

Negative Factors

Persistently thin marginsVery thin operating and net margins leave limited room to absorb weaker sales, higher costs, or unfavorable product mix. Even with recent profit improvement, the low margin base constrains earnings resilience and makes sustained returns dependent on efficient purchasing and distribution.

Nakayamafuku Co., Ltd. (7442) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 8.89B
Dividend Yield: 2.58%
Average Volume (3M): 11.68K
Price to Earnings (P/E): 11.0
Beta (1Y): 0.31
Revenue Growth: 9.46%
EPS Growth: 11.24%
Country: Japan
Employees: 430
Sector: General
Sector Strength: 55
Industry: Industrial - Distribution

Nakayamafuku Co., Ltd. Business Overview & Revenue Model

Company Description

Established in Osaka, Japan, in 1925, Nakayamafuku Co.,Ltd. is a diversified enterprise that engages in the global and domestic trade of an extensive selection of home-use items. Their operations include the wholesale, import, export, manufacturing,...

How the Company Makes Money

Nakayamafuku generates revenue mainly by selling household and lifestyle-related products it procures and distributes. Its core revenue model is based on (1) wholesale/trading sales to third-party retailers and other business customers, where it earn...

Nakayamafuku Co., Ltd. Financial Statement Overview

Summary

Financial performance is mixed but improving. The balance sheet is a key strength with very low leverage (debt-to-equity of 0.10) and growing equity. Income statement shows a recovery in revenue and net profit margin after a volatile period, though margins remain thin. Cash flow is the weak point, having been uneven with a sharp dip in FY2025 before recovering in FY2026. Overall, the company is on a positive trajectory but needs to demonstrate sustained cash generation.

Income Statement

55Neutral

Balance Sheet

85Very Positive

Cash Flow

60Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	44.49B	43.05B	40.95B	38.59B	39.89B	42.72B
Gross Profit	8.74B	8.40B	7.82B	7.18B	7.91B	8.38B
EBITDA	1.45B	1.52B	1.34B	631.60M	1.40B	1.35B
Net Income	677.34M	667.55M	526.98M	14.44M	600.55M	568.03M
Balance Sheet
Total Assets	32.15B	33.05B	32.80B	32.89B	31.39B	31.04B
Cash, Cash Equivalents and Short-Term Investments	3.79B	5.41B	7.25B	6.44B	5.76B	5.00B
Total Debt	2.33B	2.39B	4.66B	3.54B	3.96B	4.35B
Total Liabilities	8.93B	9.37B	10.39B	10.46B	9.62B	9.77B
Stockholders Equity	23.22B	23.68B	22.40B	22.43B	21.77B	21.26B
Cash Flow
Free Cash Flow	0	279.64M	-551.22M	973.59M	689.44M	4.52M
Operating Cash Flow	0	353.83M	43.84M	1.35B	739.22M	1.14B
Investing Cash Flow	0	235.29M	22.31M	57.12M	742.29M	-1.16B
Financing Cash Flow	0	-2.43B	747.71M	-731.70M	-717.65M	-341.45M

Nakayamafuku Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price470.00

Price Trends

50DMA473.54Negative

100DMA478.18Negative

200DMA469.32Negative

Market Momentum

MACD-1.23Positive

RSI45.04Neutral

STOCH27.78Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7442, the sentiment is Negative. The current price of 470.00 is above the 20-day moving average (MA) of 468.00, below the 50-day MA of 473.54, and above the 200-day MA of 469.32, indicating a bearish trend. The MACD of -1.23 indicates Positive momentum. The RSI at 45.04 is Neutral, neither overbought nor oversold. The STOCH value of 27.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7442.

Nakayamafuku Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:7442 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:3092	76Outperform	JPY 1.04T	20.87	49.53%	3.47%	6.46%	8.48%
JP:3396	71Outperform	JPY 5.54B	15.92	―	2.39%	-1.29%	-0.27%
JP:7442	62Neutral	JPY 9.12B	11.02	―	2.58%	9.46%	11.24%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:3192	43Neutral	JPY 1.17B	-650.00	―	―	―	―
JP:9557	42Neutral	JPY 1.69B	-6.25	―	―	4.40%	-1101.16%
JP:8165	40Underperform	JPY 3.66B	-4.43	―	―	-7.63%	-125.49%

* General Sector Average

Performance Comparison

JP:7442 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:7442	Nakayamafuku Co., Ltd.	470.00	73.25	18.46%
JP:3092	ZOZO	1158.00	-89.44	-7.17%
JP:3192	Shirohato Co., Ltd.	209.00	-71.00	-25.36%
JP:3396	Felissimo Corporation	835.00	-8.50	-1.01%
JP:8165	Senshukai Co., Ltd.	73.00	-151.00	-67.41%
JP:9557	airCloset, Inc.	194.00	-102.00	-34.46%

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 12, 2026

Nakayamafuku Co., Ltd. AI Stock Analysis