Kohnan Shoji Co., Ltd. AI Stock Analysis
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Kohnan Shoji Co., Ltd. (7516) AI Stock Analysis
Kohnan Shoji Co., Ltd.
(TSE/TYO:7516)
Kohnan Shoji earns a moderate score. The main drag is deteriorating financial quality: despite consistent revenue growth, net and operating margins are in multi-year decline, ROE has nearly halved since FY2021, leverage is creeping higher, and free cash flow conversion remains volatile — signs that expansion is outpacing efficiency gains. Offsetting this, the shares are in a healthy technical uptrend, trading above all key moving averages with supportive momentum, and the valuation is undemanding at 9.7x earnings with a 2.78% dividend yield. The result is a stock with appealing price action and cheap pricing, but one whose rating is capped until margins and capital efficiency stabilize. Earnings call and corporate event components were excluded due to lack of data, with their weight redistributed across the remaining factors.
Kohnan Shoji Co., Ltd. (7516) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 138.97B
- Dividend Yield
- 2.80%
- Average Volume (3M)
- 87.15K
- Price to Earnings (P/E)
- 9.8
- Beta (1Y)
- 0.22
- Revenue Growth
- 6.28%
- EPS Growth
- 2.40%
- Country
- Japan
- Employees
- 5,244
- Sector
- General
- Sector Strength
- 55
- Industry
- Home Improvement
Kohnan Shoji Co., Ltd. Business Overview & Revenue Model
Company Description
Kohnan Shoji Co., Ltd. is a Japanese retail company that manages a network of home improvement and household product stores, serving both individual consumers and professional clients. Their main home center outlets provide an extensive array of good...
How the Company Makes Money
Kohnan Shoji primarily makes money by retailing merchandise to consumers through its home center stores and related retail formats. Its core revenue stream is product sales across multiple categories such as DIY-related goods (e.g., tools and materia...
Kohnan Shoji Co., Ltd. Financial Statement Overview
Summary
Weak-to-mixed fundamentals. Revenue has grown steadily from ¥442B (FY2021) to a projected ¥520B (FY2026), but profitability is eroding: net margin has compressed from ~4.2% to ~2.4%, EBIT margin from ~6.6% to ~4.3%, and net income is set to fall to ¥12.3B from ¥14.2B. Growth is also decelerating sharply to ~1.9% in FY2026. The balance sheet is expanding but increasingly leveraged, with debt rising to ¥206B and debt-to-equity climbing to ~1.19, while ROE has nearly halved to ~7.1%. Cash flow remains the softest area — operating cash flow has stabilized near ¥22–23B, well below the ¥35B FY2021 peak, and free cash flow has been volatile (negative ¥5.1B in FY2023, projected ¥9.1B in FY2026), reflecting lumpy capex and weak earnings-to-cash conversion.
Income Statement
48NeutralBalance Sheet
40NegativeCash Flow
42Neutral| Breakdown | TTM | Feb 2026 | Feb 2025 | Feb 2024 | Feb 2023 | Feb 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 541.87B | 519.78B | 501.40B | 472.65B | 439.02B | 441.22B |
| Gross Profit | 212.56B | 203.25B | 196.57B | 187.12B | 175.72B | 176.01B |
| EBITDA | 43.05B | 39.41B | 40.69B | 39.07B | 36.19B | 39.52B |
| Net Income | 13.90B | 12.26B | 14.21B | 14.05B | 13.23B | 15.59B |
Balance Sheet | ||||||
| Total Assets | 540.13B | 504.79B | 479.01B | 458.56B | 419.25B | 398.08B |
| Cash, Cash Equivalents and Short-Term Investments | 16.23B | 15.52B | 10.84B | 11.72B | 9.22B | 12.24B |
| Total Debt | 218.93B | 206.05B | 193.19B | 196.18B | 170.91B | 159.52B |
| Total Liabilities | 354.24B | 330.94B | 313.21B | 301.30B | 269.69B | 255.63B |
| Stockholders Equity | 185.44B | 173.40B | 165.79B | 157.26B | 149.56B | 142.44B |
Cash Flow | ||||||
| Free Cash Flow | 0 | 9.12B | 2.23B | 4.50B | -5.12B | 8.09B |
| Operating Cash Flow | 0 | 22.99B | 22.44B | 22.49B | 9.40B | 17.44B |
| Investing Cash Flow | 0 | -20.65B | -21.72B | -24.01B | -17.93B | -12.68B |
| Financing Cash Flow | 0 | 1.46B | -1.43B | 2.50B | 5.43B | -7.29B |
Kohnan Shoji Co., Ltd. Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7516, the sentiment is Positive. The current price of 4820.00 is above the 20-day moving average (MA) of 4698.50, above the 50-day MA of 4552.60, and above the 200-day MA of 4184.79, indicating a bullish trend. The MACD of 70.91 indicates Negative momentum. The RSI at 59.07 is Neutral, neither overbought nor oversold. The STOCH value of 70.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7516.
Kohnan Shoji Co., Ltd. Peers Comparison
Overall Rating
JP:305076Outperform
JP:319170Outperform- JP:751661Neutral
JP:821860Neutral
JP:990345.2Neutral
JP:279043Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:3050 | 76Outperform | JPY 224.06B | 13.94 | ― | 2.84% | 5.43% | -7.20% |
| JP:3191 | 70Outperform | JPY 134.10B | 15.04 | ― | 3.73% | 5.08% | 11.77% |
| JP:7516 | 61Neutral | JPY 148.63B | 9.80 | ― | 2.80% | 6.28% | 2.40% |
| JP:8218 | 60Neutral | JPY 193.85B | 12.05 | ― | 1.42% | 2.97% | 8.67% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| JP:9903 | 45Neutral | JPY 5.85B | 19.34 | ― | 2.38% | -1.59% | -36.98% |
| JP:2790 | 43Neutral | JPY 55.07B | -2640.54 | -0.01% | 2.97% | -0.01% | -103.07% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:7516 | Kohnan Shoji Co., Ltd. | 4820.00 | 1154.92 | 31.51% | |
| JP:2790 | NAFCO Co., Ltd. | 1954.00 | 32.98 | 1.72% | |
| JP:3050 | DCM Holdings Co., Ltd. | 1690.00 | 245.26 | 16.98% | |
| JP:3191 | Joyful Honda Co. Ltd. | 2250.00 | 256.56 | 12.87% | |
| JP:8218 | KOMERI CO., LTD. | 4015.00 | 804.81 | 25.07% | |
| JP:9903 | Kanseki Co., Ltd. | 848.00 | 7.46 | 0.89% |
Kohnan Shoji Co., Ltd. Corporate Events
Kohnan Shoji Purchases ¥243.5 Million in Treasury Stock
Kohnan Shoji Co., Ltd. reported that it purchased 52,300 shares of its common stock on the Tokyo Stock Exchange between October 14 and October 31, 2026, for a total of ¥243.488 million.The purchases were made under a board-approved treasury-stock pro...
Kohnan Shoji Reshapes Executive Roles to Bolster E-Commerce Strategy
Kohnan Shoji Co., Ltd., listed on the TSE Prime, operates in the retail and home improvement sector, focusing on sales planning, promotion and a range of sales channels including home center (HC) operations, e-commerce and professional (PRO) sales. T...
Kohnan Shoji Raises Interim Dividend, Signals Higher Annual Payout
Kohnan Shoji Co., Ltd. has approved an interim dividend of 70 yen per share for the fiscal year with a record date of August 31, 2026, matching its previous forecast and exceeding last year’s interim payment of 65 yen. The total interim payout will b...
Kohnan Shoji Launches ¥1.5 Billion Share Buyback and Raises Dividends
Kohnan Shoji Co., Ltd. has authorized a new share buyback program to bolster shareholder returns and enhance capital efficiency amid a changing management environment. The retailer plans to repurchase up to 450,000 shares, equivalent to 1.51% of outs...
Kohnan Shoji Unveils FY2/27 Q2 Results and Growth Strategy Focus
Kohnan Shoji Co., Ltd. has released presentation materials covering its financial results for the second quarter of the fiscal year ending February 2027, spanning March 1 to August 31, 2026. The documents outline the company’s performance for the per...
Kohnan Shoji Posts Double-Digit Profit Growth and Raises Interim Dividend
Kohnan Shoji Co., Ltd., a home center and household goods retailer listed on the Tokyo Stock Exchange, reported a stronger financial position for the six months ended August 31, 2026, with total assets rising to ¥540.1 billion and an equity-to-asset...
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 05, 2026