RIGHT ON Co., Ltd. (7445) AI Stock Analysis

• Market Cap: ¥9.12B
• Dividend Yield: N/A
• Average Volume (3M): 153.01K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.33
• Revenue Growth: -21.09%
• EPS Growth: -165.71%
• Country: JP
• Employees: 776
• Sector: Consumer Cyclical
• Sector Strength: 67
• Industry: Apparel - Retail
• EPS (TTM): -365.33
• Shares Outstanding: 35,540,592
• 10 Day Avg. Volume: 304,210
• 30 Day Avg. Volume: 153,013
• PEG Ratio: -0.08
• Price to Book (P/B): 12.26
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 35.63
• 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

RIGHT ON Co., Ltd. demonstrates a weak financial performance with declining revenues, negative profitability, and liquidity challenges. Technical analysis indicates a bearish trend with prices below key moving averages. Valuation is unattractive with a negative P/E ratio and no dividend yield. Overall, the stock presents significant risks and limited investor appeal.

RIGHT ON Co., Ltd. Business Overview & Revenue Model

Company Description

RIGHT ON Co., Ltd. (7445) is a Japan-based company primarily engaged in the retail sale of casual clothing and related accessories. The company operates a chain of retail stores across Japan, offering a wide range of apparel products such as jeans, shirts, outerwear, and accessories for men, women, and children. RIGHT ON is known for its diverse product lineup, including both private label and popular international brands, targeting a broad demographic of fashion-conscious consumers.

How the Company Makes Money

RIGHT ON Co., Ltd. generates revenue primarily through the sale of apparel and accessories in its retail stores and online platform. The company earns money by purchasing clothing items in bulk from manufacturers and selling them at a markup to consumers. RIGHT ON operates numerous retail outlets across Japan, which serve as the primary distribution channels for its products. Additionally, the company has an e-commerce platform that extends its reach to customers who prefer online shopping. Significant partnerships with well-known fashion brands enhance its product offerings, attracting a larger customer base. Seasonal promotions, loyalty programs, and strategic store locations also contribute to the company's revenue streams by driving foot traffic and encouraging repeat purchases.

RIGHT ON Co., Ltd. Financial Statement Overview

Summary

RIGHT ON Co., Ltd. faces significant financial challenges with declining revenues, persistent losses, negative margins, increased leverage, and negative operating and free cash flows. These factors indicate poor financial health with substantial risks.

Income Statement

RIGHT ON Co., Ltd. has experienced a significant decline in total revenue from 2019 through 2024, with a noticeable drop from 73.96 billion yen in 2019 to 38.81 billion yen in 2024. The gross profit margin has decreased, and the company consistently reported negative net income, indicating persistent profitability challenges. The EBIT and EBITDA margins are negative, reflecting operational inefficiencies and potential cost management issues. Overall, the income statement points to a struggling financial performance with declining revenues and negative profitability margins.

Balance Sheet

The balance sheet of RIGHT ON Co., Ltd. shows a concerning trend with declining total assets and stockholders' equity, reducing from 46.61 billion yen in 2019 to 15.3 billion yen in 2024. The debt-to-equity ratio has worsened, indicating increased financial leverage and potential solvency risk. The equity ratio has decreased significantly, reflecting reduced financial stability. Despite a decrease in total liabilities, the substantial reduction in equity is alarming. Overall, the balance sheet suggests weakened financial health and increased leverage risk.

Cash Flow

The cash flow analysis reveals operational challenges, with negative operating cash flows for most years, although there was a brief positive in 2022. Free cash flow remains negative, highlighting cash generation issues. The operating cash flow to net income ratio consistently reflects poor cash conversion. Although capital expenditures are relatively low, the negative free cash flow and operating cash flow trends indicate ongoing liquidity and operational efficiency issues. Overall, the cash flow statement shows cash management difficulties and liquidity risks.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
45.21B	38.81B	46.93B	48.23B	49.60B	52.97B
	Gross Profit
21.33B	14.98B	22.57B	23.76B	25.16B	24.61B
	EBIT
-1.57B	-5.04B	-922.00M	143.00M	159.00M	-3.78B
	EBITDA
-2.29B	-11.44B	-1.56B	429.00M	-1.03B	-4.54B
	Net Income Common Stockholders
-3.21B	-12.14B	-2.54B	-1.17B	-2.07B	-5.72B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
14.84B	1.16B	3.48B	8.22B	6.18B	10.20B
	Total Assets
58.53B	15.30B	27.00B	34.04B	34.27B	39.72B
	Total Debt
11.27B	2.44B	5.15B	7.68B	7.32B	10.34B
	Net Debt
-3.57B	1.29B	1.67B	-535.00M	1.14B	136.00M
	Total Liabilities
30.14B	14.98B	14.44B	19.01B	19.32B	22.75B
	Stockholders Equity
28.39B	316.00M	12.56B	15.03B	14.94B	16.97B
Cash Flow		Free Cash Flow
1.06B	-717.00M	-2.31B	88.00M	-1.02B	-5.03B
	Operating Cash Flow
1.15B	-577.00M	-1.72B	682.00M	-528.00M	-3.54B
	Investing Cash Flow
-119.00M	823.00M	-460.00M	-287.00M	-471.00M	-1.52B
	Financing Cash Flow
-827.50M	-2.77B	-2.56B	1.67B	-3.02B	1.70B

RIGHT ON Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 266.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7445, the sentiment is Positive. The current price of 266 is above the 20-day moving average (MA) of 242.05, above the 50-day MA of 219.92, and above the 200-day MA of 256.36, indicating a neutral trend. The MACD of 10.00 indicates Positive momentum. The RSI at 66.66 is Neutral, neither overbought nor oversold. The STOCH value of 34.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7445.

RIGHT ON Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8255	80 Outperform	¥101.69B	10.96		2.52%	4.84%	-4.24%
7606	75 Outperform	¥61.01B	13.80		2.94%	10.32%	35.08%
7649	74 Outperform	¥569.01B	21.27	10.45%	1.09%	17.94%	18.31%
8016	73 Outperform	€75.68B	8.89	10.13%	4.85%	9.90%	28.80%
Sector *	61 Neutral	$6.93B	11.84	2.89%	3.91%	2.59%	-21.68%
7601	54 Neutral	¥2.18B	6.24		―	-2.76%	-18.40%
7445	34 Underperform	¥9.12B	―	-180.01%	―	-21.09%	-165.71%