TipRanks
Go Ultimate55% OFF

Kohnan Shoji Co., Ltd. (7516) AI Stock Analysis

JP:7516

Kohnan Shoji Co., Ltd.

(TSE/TYO:7516)

Select Model
Rating:50.5Neutral
Price Target:JPY 4,672.00â–¼(-0.06% Downside)
Action:reiterated
Date:08/05/26

The overall score of 50.5 reflects significant concerns about declining profitability and rising leverage, as indicated by the low financial performance score. These weaknesses are partially offset by an attractive valuation, while technical indicators are neutral. Investors should monitor the company's ability to improve operational efficiency.

Positive Factors
Steady Revenue GrowthSteady revenue growth indicates continued consumer demand across Kohnan Shoji’s home improvement, household, and daily-life merchandise categories. Even with some deceleration, sustained top-line expansion supports store productivity, merchandising scale, and the company’s ability to maintain relevance across recurring consumer needs.
Negative Factors
Operating Margin CompressionFalling operating and net margins show that revenue growth is translating into less profit. Persistent margin compression can weaken returns on each store and merchandise sale, reduce resilience against cost pressure, and limit the earnings benefit of future sales growth unless operating leverage improves.

Kohnan Shoji Co., Ltd. (7516) vs. iShares MSCI Japan ETF (EWJ)

-5%0%5%10%15%20%25%30%35%JP:7516+28.51%EWJ+17.00%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 134.64B
Dividend Yield
2.90%
Average Volume (3M)
86.69K
Price to Earnings (P/E)
9.5
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

Kohnan Shoji's revenue growth is modest and gross margin healthy, but operating and net margins are declining, leverage is rising, and cash flow coverage has weakened. Overall financial health is below average, warranting a low score.

Income Statement

38Negative

Balance Sheet

36Negative

Cash Flow

35Negative
Financial statement breakdown
BreakdownTTMFeb 2026Feb 2025Feb 2024Feb 2023Feb 2022
Income Statement
Total Revenue541.87B519.78B501.40B472.65B439.02B441.22B
Gross Profit212.56B203.25B196.57B187.12B175.72B176.01B
EBITDA43.05B39.41B40.69B39.07B36.19B39.52B
Net Income13.90B12.26B14.21B14.05B13.23B15.59B
Balance Sheet
Total Assets540.13B504.79B479.01B458.56B419.25B398.08B
Cash, Cash Equivalents and Short-Term Investments16.23B15.52B10.84B11.72B9.22B12.24B
Total Debt218.93B206.05B193.19B196.18B170.91B159.52B
Total Liabilities354.24B330.94B313.21B301.30B269.69B255.63B
Stockholders Equity185.44B173.40B165.79B157.26B149.56B142.44B
Cash Flow
Free Cash Flow09.12B2.23B4.50B-5.12B8.09B
Operating Cash Flow022.99B22.44B22.49B9.40B17.44B
Investing Cash Flow0-20.65B-21.72B-24.01B-17.93B-12.68B
Financing Cash Flow01.46B-1.43B2.50B5.43B-7.29B

Kohnan Shoji Co., Ltd. Technical Analysis

Technical Analysis SentimentPositive
Last Price4675.00

Price Trends

50DMA4497.43Positive
100DMA4283.77Positive
200DMA4148.80Positive

Market Momentum

MACD63.08Positive
RSI57.13Neutral
STOCH16.56Positive

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 4675.00 is above the 20-day moving average (MA) of 4549.75, above the 50-day MA of 4497.43, and above the 200-day MA of 4148.80, indicating a bullish trend. The MACD of 63.08 indicates Positive momentum. The RSI at 57.13 is Neutral, neither overbought nor oversold. The STOCH value of 16.56 is Positive, 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

UnderperformOutperform
Sector (55)

Financial Indicators

JP:7516 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:3191JP:319176OutperformJPY 139.00B15.59―3.61%3.06%10.38%
JP:8218JP:821860NeutralJPY 192.13B11.74―1.46%2.97%8.67%
JP:3050JP:305059NeutralJPY 221.04B13.28―2.98%5.43%-7.20%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:7516JP:751651NeutralJPY 146.43B9.48―2.90%6.28%2.40%
JP:9903JP:990345NeutralJPY 5.98B19.62―3.49%-1.59%-36.98%
JP:2790JP:279045NeutralJPY 56.35B134.030.24%2.94%-2.53%―

* General Sector Average

Performance Comparison

0%20%40%JP:7516JP:2790JP:3050JP:3191JP:8218JP:9903Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:7516 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:7516Kohnan Shoji Co., Ltd.4660.001014.3227.82%
JP:2790NAFCO Co., Ltd.1973.008.160.42%
JP:3050DCM Holdings Co., Ltd.1610.00216.7615.56%
JP:3191Joyful Honda Co. Ltd.2328.00360.5318.32%
JP:8218KOMERI CO., LTD.3910.00783.5125.06%
JP:9903Kanseki Co., Ltd.860.0027.283.28%

Kohnan Shoji Co., Ltd. Corporate Events

Kohnan Shoji Reshapes Executive Roles to Bolster E-Commerce Strategy

Oct 19, 2026

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

Oct 13, 2026

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...

Kohnan Shoji Launches ¥1.5 Billion Share Buyback and Raises Dividends

Oct 13, 2026

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

Oct 13, 2026

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 t...

Kohnan Shoji Posts Double-Digit Profit Growth and Raises Interim Dividend

Oct 13, 2026

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-a...

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