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Nishimatsuya Chain Co., Ltd. (7545) AI Stock Analysis

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JP:7545

Nishimatsuya Chain Co., Ltd.

(TSE/TYO:7545)

Select Model
Rating:69Neutral
Price Target:JPY 2,059.00▲(8.77% Upside)
Action:reiterated
Date:11/07/26

The score is driven primarily by strong financial resilience (very low leverage and generally positive cash generation), partially offset by a notable recent operating slowdown (2026 revenue and profitability decline). Technicals are a secondary drag with the stock below key moving averages and negative MACD, while valuation is neutral-to-slightly supportive with a mid-range P/E and modest dividend yield.

Positive Factors
Minimal LeverageThe very low debt burden gives Nishimatsuya substantial financial flexibility and limits exposure to interest costs or refinancing pressure. Consistent growth in equity and assets further supports resilience, allowing the retailer to sustain operations and fund priorities through changing demand conditions.
Negative Factors
Sharp Revenue ContractionA roughly 17% annual revenue contraction is a material deterioration after several years of growth and signals weaker demand, store traffic, or pricing conditions. If sustained, lower sales would reduce operating leverage and make it harder to preserve earnings while supporting the store base.

Nishimatsuya Chain Co., Ltd. (7545) vs. iShares MSCI Japan ETF (EWJ)

-20%-10%0%10%20%30%JP:7545-9.43%EWJ+15.75%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 113.70B
Dividend Yield
1.74%
Average Volume (3M)
278.35K
Price to Earnings (P/E)
16.5
Beta (1Y)
0.18
Revenue Growth
5.07%
EPS Growth
-18.11%
Country
Japan
Employees
733
Sector
General
Sector Strength
55
Industry
Specialty Retail

Nishimatsuya Chain Co., Ltd. Business Overview & Revenue Model

Company Description

Nishimatsuya Chain Co., Ltd. is a Japanese retailer specializing in products for infants and children, operating numerous dedicated outlets across the country. Its extensive inventory caters to newborns, toddlers, and young children, featuring a dive...

How the Company Makes Money

Nishimatsuya primarily makes money through retail sales in Japan via its directly operated store network. Its core revenue stream is the sale of baby and children’s products (notably apparel) along with other child-rearing and maternity-related merch...

Nishimatsuya Chain Co., Ltd. Financial Statement Overview

Summary

Strong balance sheet with minimal leverage and steadily growing equity/assets supports high resilience. Cash flow is consistently positive with solid recent free cash flow, though somewhat volatile. The key offset is the latest annual downturn (2026) with a sharp revenue decline and weaker profitability versus 2025.

Income Statement

67Positive

Balance Sheet

88Very Positive

Cash Flow

74Positive
Financial statement breakdown
BreakdownTTMFeb 2026Feb 2025Feb 2024Feb 2023Feb 2022
Income Statement
Total Revenue193.37B193.37B185.97B177.19B169.52B163.02B
Gross Profit64.72B64.72B62.55B60.12B57.69B57.94B
EBITDA11.66B11.66B13.76B13.36B12.38B13.75B
Net Income6.85B6.85B8.20B8.20B7.64B8.50B
Balance Sheet
Total Assets160.25B160.25B149.82B141.34B129.90B122.86B
Cash, Cash Equivalents and Short-Term Investments72.49B72.49B67.83B63.06B59.22B60.92B
Total Debt1.77B1.77B1.15B563.00M1.09B830.00M
Total Liabilities61.58B61.58B58.55B56.35B52.80B50.56B
Stockholders Equity98.67B98.67B91.27B84.98B77.10B72.30B
Cash Flow
Free Cash Flow08.07B6.78B8.24B918.00M7.00B
Operating Cash Flow010.65B9.13B11.54B3.47B8.75B
Investing Cash Flow0-2.56B-1.83B-4.50B-2.41B-1.35B
Financing Cash Flow0-2.67B-2.44B-2.18B-2.97B-4.28B

Nishimatsuya Chain Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative
Last Price1893.00

Price Trends

50DMA1939.96Negative
100DMA1953.91Negative
200DMA2008.65Negative

Market Momentum

MACD-11.74Negative
RSI47.01Neutral
STOCH41.76Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7545, the sentiment is Negative. The current price of 1893.00 is below the 20-day moving average (MA) of 1904.20, below the 50-day MA of 1939.96, and below the 200-day MA of 2008.65, indicating a bearish trend. The MACD of -11.74 indicates Negative momentum. The RSI at 47.01 is Neutral, neither overbought nor oversold. The STOCH value of 41.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7545.

Nishimatsuya Chain Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:7545 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:3028JP:302873OutperformJPY 97.99B13.49―2.16%7.60%35.96%
JP:7685JP:768572OutperformJPY 160.76B19.04―0.49%57.65%100.02%
JP:7545JP:754569NeutralJPY 114.94B16.50―1.74%5.07%-18.11%
JP:7552JP:755268NeutralJPY 298.00B29.91―1.45%18.63%24.52%
JP:9997JP:999761NeutralJPY 103.55B8.747.79%4.01%4.81%22.61%
JP:8281JP:828159NeutralJPY 48.23B124.02―3.18%2.60%―
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%

* General Sector Average

Performance Comparison

0%50%100%JP:7545JP:9997JP:3028JP:7552JP:7685JP:8281Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:7545 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:7545Nishimatsuya Chain Co., Ltd.1893.00-210.91-10.02%
JP:9997Belluna Co., Ltd.1060.0055.905.57%
JP:3028Alpen Co., Ltd.2551.00279.6612.31%
JP:7552Happinet Corporation6550.003485.19113.72%
JP:7685BuySell Technologies Co., Ltd.2566.00909.5854.91%
JP:8281XEBIO Holdings CO., LTD.1101.009.590.88%

Nishimatsuya Chain Co., Ltd. Corporate Events

Nishimatsuya Posts Solid October Traffic as Warm Weather Hits Winter Wear Sales

Oct 21, 2026

Nishimatsuya Chain Co., Ltd. is a Japan-based retailer listed on the Tokyo Stock Exchange Prime Market that operates a nationwide chain of stores and an online shop, mainly focused on baby, children’s clothing, and related daily necessities. The comp...

Nishimatsuya Chain Completes ¥300 Million Share Buyback Ahead of Schedule

Oct 8, 2026

Nishimatsuya Chain Co., Ltd. has completed a share buyback authorized under Japan’s Companies Act, repurchasing 154,700 shares of its common stock on the Tokyo Stock Exchange between October 5 and October 7, 2026. The buyback totaled approximately ¥2...

Nishimatsuya Chain Launches Share Buyback to Bolster Capital Policy and Shareholder Returns

Oct 1, 2026

Nishimatsuya Chain Co., Ltd. has approved a share buyback program, under which it will repurchase up to 189,000 shares of its common stock, representing about 0.32% of its outstanding shares, for a maximum of 300 million yen. The buyback, to be execu...

Nishimatsuya Chain Raises Interim Dividend and Ups Annual Payout Forecast

Oct 1, 2026

Nishimatsuya Chain Co., Ltd. has approved an interim dividend of ¥17 per share for shareholders of record on August 20, 2026, up from the earlier forecast of ¥16 and above the prior year’s interim level. The total payout for this interim dividend wil...

Nishimatsuya Chain Posts Higher Sales but Lower Profit, Lifts Dividend Outlook

Oct 1, 2026

Nishimatsuya Chain reported consolidated net sales of ¥102.6 billion for the six months ended August 20, 2026, up 5.8% year on year, while operating profit slipped 3.7% to ¥7.0 billion and ordinary profit declined 1.7% to ¥7.4 billion. Profit attribu...

Nishimatsuya Chain Posts Strong September Sales on Robust Autumn Apparel Demand

Sep 24, 2026

Nishimatsuya Chain reported strong domestic performance for September 2026, with all-store net sales up 15.2% year on year, driven by a 12.5% increase in customer numbers and higher sales per customer. Existing stores also posted solid growth, with n...

Nishimatsuya Chain Sees August Sales and Customer Gains as Store Network Expands

Aug 21, 2026

Nishimatsuya Chain reported that in August 2026, domestic net sales and customer numbers rose year on year at both all stores and existing stores, with modest gains in sales per customer. Strong demand for summer clothing, childcare products and fash...

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: Nov 07, 2026