POPLAR Co., Ltd. (7601) AI Stock Analysis

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POPLAR Co., Ltd.

(TSE/TYO:7601)

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Rating:53Neutral

Price Target:JPY 157.00▲(2.61% Upside)

Action:reiterated

Date:11/05/26

The overall score of 53 is primarily constrained by a severe, chronic revenue contraction and an unattractive valuation, with a steep P/E ratio of 27.6x offering limited margin of safety. While management has successfully de-risked the balance sheet through aggressive deleveraging and restored positive operating cash flows, the absence of top-line growth catalysts limits long-term upside. A persistent technical downtrend further reinforces bearish sentiment, though strongly oversold indicators suggest limited immediate downside risk.

Positive Factors

Earnings turnaroundThe shift from deep losses to positive earnings provides a stronger operating foundation and reduces immediate financial stress. If the company can preserve profitability, the turnaround may support reinvestment, debt reduction, and greater resilience over the next several quarters.

Negative Factors

Persistent revenue declineRecurring revenue contraction indicates weakening commercial momentum and limits the scale from which POPLAR can generate earnings. Without a sustained recovery in sales, fixed operating costs may remain harder to absorb and the recent earnings turnaround could prove difficult to maintain.

POPLAR Co., Ltd. (7601) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 1.80B
Dividend Yield: ―
Average Volume (3M): 28.22K
Price to Earnings (P/E): 27.3
Beta (1Y): 0.32
Revenue Growth: -0.91%
EPS Growth: -64.92%
Country: Japan
Employees: 181
Sector: General
Sector Strength: 55
Industry: Grocery Stores

POPLAR Co., Ltd. Business Overview & Revenue Model

Company Description

Poplar Co., Ltd. operates convenience stores in Japan. The company operates in two segments, Smart Store Business and Lawson Poplar Business. The Smart Store Business segments operate under the Popura and Seikatsu Saika brands. The Lawson Poplar Busi...

POPLAR Co., Ltd. Financial Statement Overview

Summary

A textbook balance sheet turnaround and robust free cash flow generation are heavily offset by a severe, multi-year top-line revenue contraction and compressing net profits.

Income Statement

40Negative

Balance Sheet

85Very Positive

Cash Flow

75Positive

Financial statement breakdown
Breakdown	TTM	Feb 2026	Feb 2025	Feb 2024	Feb 2023	Feb 2022
Income Statement
Total Revenue	11.65B	11.65B	12.03B	12.37B	13.06B	13.63B
Gross Profit	5.42B	5.33B	5.41B	5.37B	5.27B	4.84B
EBITDA	373.75M	383.00M	466.72M	450.60M	165.97M	-993.82M
Net Income	101.21M	134.67M	376.33M	462.00M	-237.80M	-518.49M
Balance Sheet
Total Assets	3.87B	3.95B	3.78B	3.83B	3.87B	4.18B
Cash, Cash Equivalents and Short-Term Investments	604.67M	841.14M	806.12M	752.37M	828.05M	802.31M
Total Debt	382.65M	374.69M	533.60M	911.03M	1.87B	1.82B
Total Liabilities	2.87B	3.07B	3.00B	3.35B	4.57B	4.61B
Stockholders Equity	997.98M	879.10M	780.83M	477.07M	-694.24M	-429.43M
Cash Flow
Free Cash Flow	0	264.90M	352.31M	65.38M	23.47M	-2.45B
Operating Cash Flow	0	487.84M	433.06M	79.83M	101.54M	-2.43B
Investing Cash Flow	0	-232.88M	26.35M	322.66M	-100.73M	872.55M
Financing Cash Flow	0	-219.94M	-405.66M	-478.17M	24.93M	-182.11M

POPLAR Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price153.00

Price Trends

50DMA162.36Negative

100DMA164.11Negative

200DMA168.38Negative

Market Momentum

MACD-2.79Positive

RSI28.04Positive

STOCH27.78Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7601, the sentiment is Negative. The current price of 153.00 is below the 20-day moving average (MA) of 159.95, below the 50-day MA of 162.36, and below the 200-day MA of 168.38, indicating a bearish trend. The MACD of -2.79 indicates Positive momentum. The RSI at 28.04 is Positive, neither overbought nor oversold. The STOCH value of 27.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7601.

POPLAR Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:7601 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:9956	70Outperform	JPY 192.78B	9.90	―	2.43%	9.04%	14.45%
JP:8278	58Neutral	JPY 179.18B	20.73	―	1.45%	-1.47%	119.37%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:7601	53Neutral	JPY 1.80B	27.27	―	―	-0.91%	-64.92%
JP:3222	50Neutral	JPY 163.58B	-24.26	―	2.03%	10.71%	-523.13%
JP:8273	48Neutral	JPY 215.24B	12.28	―	2.99%	0.92%	46.70%
JP:9946	42Neutral	JPY 51.81B	-5.12	―	1.12%	2.66%	-81.23%

* General Sector Average

Performance Comparison

JP:7601 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:7601	POPLAR Co., Ltd.	153.00	-20.00	-11.56%
JP:3222	United Super Markets Holdings, Inc.	789.00	-54.00	-6.41%
JP:8273	Izumi Co., Ltd.	1002.00	63.09	6.72%
JP:8278	Fuji Co., Ltd.	2067.00	82.15	4.14%
JP:9946	Ministop Co., Ltd.	1786.00	-252.85	-12.40%
JP:9956	Valor Holdings Co., Ltd.	1627.00	116.22	7.69%

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 05, 2026

POPLAR Co., Ltd. AI Stock Analysis