Konaka Co., Ltd. (7494) AI Stock Analysis

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Konaka Co., Ltd.

(TSE/TYO:7494)

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Rating:61Neutral

Price Target:JPY 248.00▲(9.73% Upside)

Action:reiterated

Date:08/04/26

The score is driven primarily by weak financial performance (declining revenue, very low profitability, and challenged free cash flow), partially offset by strong valuation (very low P/E and solid dividend yield). Technicals add a modest positive tailwind, though near-overbought signals temper the outlook.

Positive Factors

High gross marginA 60.05% gross margin signals durable product-level profitability from pricing power or favorable cost structure in men's formalwear. This provides a multi-quarter buffer to absorb SG&A and retail cost swings, supports reinvestment in stores/services, and underpins long-term margin resilience.

Negative Factors

Declining revenue trendA persistent revenue decline compresses scale and undermines fixed-cost absorption across a physical store base. Over several quarters this limits pricing leverage and reinvestment capacity, strains inventory turns and makes it harder to modernize channels or regain market share in business apparel.

Konaka Co., Ltd. (7494) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 7.64B
Dividend Yield: 4.42%
Average Volume (3M): 29.93K
Price to Earnings (P/E): 4.1
Beta (1Y): 0.40
Revenue Growth: -8.51%
EPS Growth: ―
Country: Japan
Employees: 1,882
Sector: General
Sector Strength: 55
Industry: Apparel - Retail

Konaka Co., Ltd. Business Overview & Revenue Model

Company Description

Konaka Co.,Ltd. operates a network of specialty retail outlets across Japan. These stores primarily focus on men's apparel and associated fashion items. By April 30, 2020, the company managed 459 locations, trading under banners such as Men's clothin...

How the Company Makes Money

Konaka primarily makes money by retailing apparel and related items, earning revenue from the sale of men’s businesswear (notably suits) and complementary products (e.g., shirts, ties, and other accessories). Its core revenue model is merchandise sal...

Konaka Co., Ltd. Financial Statement Overview

Summary

Financial performance is weak: revenue is declining (-2.85%) and profitability is thin (net margin 0.86% with a negative EBIT margin). The balance sheet is moderately stable with manageable leverage (debt-to-equity 0.86) but low shareholder returns (ROE 2.87%). Cash flow is a concern, with negative free cash flow growth and limited cash generation relative to earnings.

Income Statement

45Neutral

Balance Sheet

50Neutral

Cash Flow

40Negative

Financial statement breakdown
Breakdown	TTM	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	52.25B	55.49B	62.22B	65.80B	63.17B	58.58B
Gross Profit	31.28B	33.32B	36.04B	38.14B	36.05B	32.83B
EBITDA	-272.00M	587.00M	-1.60B	150.00M	-2.64B	-1.94B
Net Income	1.84B	478.00M	-3.06B	-161.00M	-3.23B	-1.94B
Balance Sheet
Total Assets	37.15B	42.27B	44.46B	53.13B	54.32B	58.84B
Cash, Cash Equivalents and Short-Term Investments	3.63B	3.20B	2.18B	5.89B	6.74B	6.34B
Total Debt	10.30B	14.36B	15.43B	19.85B	22.00B	22.28B
Total Liabilities	19.96B	25.64B	28.22B	33.64B	34.52B	33.78B
Stockholders Equity	17.18B	16.63B	16.23B	19.05B	19.13B	23.34B
Cash Flow
Free Cash Flow	478.00M	478.00M	-2.40B	-1.06B	356.00M	-4.34B
Operating Cash Flow	1.22B	1.22B	-228.00M	415.00M	1.64B	-3.28B
Investing Cash Flow	1.03B	1.03B	2.02B	1.25B	-567.00M	5.40B
Financing Cash Flow	-1.24B	-1.24B	-4.81B	-2.73B	-844.00M	-2.02B

Konaka Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price226.00

Price Trends

50DMA232.63Negative

100DMA229.55Negative

200DMA230.81Negative

Market Momentum

MACD-1.47Positive

RSI40.99Neutral

STOCH11.11Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7494, the sentiment is Negative. The current price of 226.00 is below the 20-day moving average (MA) of 227.95, below the 50-day MA of 232.63, and below the 200-day MA of 230.81, indicating a bearish trend. The MACD of -1.47 indicates Positive momentum. The RSI at 40.99 is Neutral, neither overbought nor oversold. The STOCH value of 11.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7494.

Konaka Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:7494 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:8219	79Outperform	JPY 112.50B	32.00	3.90%	6.05%	-1.25%	-27.12%
JP:3566	73Outperform	JPY 6.04B	11.94	―	0.84%	16.63%	8.14%
JP:7564	73Outperform	JPY 436.62B	18.48	―	1.68%	20.81%	26.89%
JP:8214	71Outperform	JPY 143.81B	16.98	―	5.31%	0.03%	-7.35%
JP:2792	67Neutral	JPY 39.32B	16.07	―	3.93%	-3.56%	-29.47%
JP:7494	61Neutral	JPY 7.52B	4.14	―	4.42%	-8.51%	―
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:7494 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:7494	Konaka Co., Ltd.	226.00	-14.73	-6.12%
JP:8219	AOYAMA TRADING Co., Ltd.	760.00	19.48	2.63%
JP:2792	HONEYS HOLDINGS CO. LTD.	1401.00	-59.76	-4.09%
JP:3566	UNIFORM NEXT CO. LTD.	597.00	-62.16	-9.43%
JP:7564	Workman Co., Ltd.	5310.00	-1075.03	-16.84%
JP:8214	AOKI Holdings, Inc.	1696.00	136.31	8.74%

Konaka Co., Ltd. Corporate Events

Konaka Boosts Profit and Balance Sheet Despite Lower Sales in First Half

May 15, 2026

Konaka Co., Ltd. reported a 6.3% year-on-year decline in net sales to ¥30.26 billion for the six months ended March 31, 2026, with operating profit down 40.6% and ordinary profit down 33.6%, reflecting continued top-line weakness. Despite this, profi...

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 04, 2026

Konaka Co., Ltd. AI Stock Analysis