Three F Co., Ltd. (7544) AI Stock Analysis

Three F Co., Ltd.

(TSE/TYO:7544)

Select Model

Rating:89Outperform

Price Target:JPY 674.00▲(22.77% Upside)

Action:reiterated

Date:08/04/26

The overall score of 89 is heavily supported by the company's exceptional, debt-free financial health and very attractive valuation multiples. A strong P/E ratio, reliable free cash flow, and an established bullish trend in the market make this a compelling holding with minimal leverage risk.

Positive Factors

Debt-free Balance SheetA zero-debt balance sheet materially reduces financial risk and preserves strategic optionality. It supports capital allocation for store investment, working capital or dividends without refinancing pressure, and provides resilience versus cyclicality in grocery demand over the next several months.

Negative Factors

Thin Net MarginA ~2.5% net margin leaves limited buffer against inflationary input costs, wage pressure or margin erosion from promotions. Small adverse cost or pricing moves could materially compress profits, so long-term profitability depends on sustaining pricing power and tight operational efficiency.

Three F Co., Ltd. (7544) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 4.16B
Dividend Yield: 3.64%
Average Volume (3M): 4,667
Price to Earnings (P/E): 11.2
Beta (1Y): 0.12
Revenue Growth: 4.23%
EPS Growth: -2.89%
Country: Japan
Employees: 112
Sector: Consumer Defensive
Sector Strength: 62
Industry: Grocery Stores

Three F Co., Ltd. Business Overview & Revenue Model

Company Description

Three F Co.,Ltd. oversees a chain of convenience and franchise outlets within Japan, specifically focusing on the Tokyo, Kanagawa, Chiba, and Saitama regions. The firm was established in 1979 and maintains its principal office in Yokohama, Japan.

How the Company Makes Money

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Three F Co., Ltd. Financial Statement Overview

Summary

Scored an 89 due to accelerating top-line growth, a highly impressive debt-free balance sheet, and robust free cash flow generation. The turnaround to positive net income further highlights strong earnings quality and financial stability.

Income Statement

85Very Positive

Balance Sheet

95Very Positive

Cash Flow

88Very Positive

Financial statement breakdown
Breakdown	TTM	Feb 2025	Feb 2024	Feb 2023	Feb 2022	Feb 2021
Income Statement
Total Revenue	15.08B	15.08B	13.91B	13.86B	13.21B	12.53B
Gross Profit	11.71B	11.71B	11.09B	10.80B	10.13B	9.73B
EBITDA	2.59B	1.42B	1.01B	941.00M	213.00M	223.00M
Net Income	382.00M	382.00M	289.00M	218.00M	-163.00M	-24.00M
Balance Sheet
Total Assets	5.76B	5.76B	5.11B	4.99B	4.35B	5.07B
Cash, Cash Equivalents and Short-Term Investments	4.77B	4.77B	4.16B	4.08B	3.41B	3.76B
Total Debt	0	0	0	0	0	0
Total Liabilities	903.00M	903.00M	672.00M	821.00M	538.00M	526.00M
Stockholders Equity	4.14B	4.14B	3.85B	3.64B	3.49B	3.90B
Cash Flow
Free Cash Flow	0	1.08B	473.00M	818.00M	38.00M	-18.00M
Operating Cash Flow	0	1.09B	519.00M	818.00M	38.00M	41.00M
Investing Cash Flow	0	-3.00M	-40.00M	35.00M	11.00M	-49.00M
Financing Cash Flow	0	-475.00M	-397.00M	-185.00M	-483.00M	-247.00M

Three F Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

JP:7544 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:7544	89Outperform	JPY 4.17B	11.24	―	3.64%	4.23%	-2.89%
JP:4380	82Outperform	JPY 6.46B	13.52	―	1.89%	7.25%	20.99%
JP:2735	67Neutral	JPY 9.93B	8.91	―	2.61%	4.75%	30.29%
Sector *	62Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
JP:2687	62Neutral	JPY 2.33B	-2.29	―	4.26%	0.71%	-519.58%
JP:2747	54Neutral	JPY 4.10B	77.74	―	1.55%	-0.54%	-63.91%
JP:7515	50Neutral	JPY 4.36B	20.77	―	0.64%	2.59%	197.33%

* Consumer Defensive Sector Average

Performance Comparison

JP:7544 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:7544	Three F Co., Ltd.	549.00	16.19	3.04%
JP:2687	CVS Bay Area Inc.	470.00	-67.39	-12.54%
JP:2735	Watts Co., Ltd.	766.00	154.79	25.33%
JP:2747	Hokuyu Lucky Co., Ltd.	3230.00	74.46	2.36%
JP:4380	M-mart, Inc.	663.00	49.10	8.00%
JP:7515	Maruyoshi Center Inc.	4510.00	286.84	6.79%

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

Three F Co., Ltd. AI Stock Analysis