YU-WA Creation Holdings Co., Ltd. (7615) AI Stock Analysis

• Market Cap: ¥2.98B
• Dividend Yield: 6.32%
• Average Volume (3M): 7.69M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.85
• Revenue Growth: -14.14%
• EPS Growth: 71.50%
• Country: JP
• Employees: 437
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): 6.92
• Shares Outstanding: 16,826,400
• 10 Day Avg. Volume: 1,566,620
• 30 Day Avg. Volume: 7,687,056
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥237.00
• Price Target Upside: 33.90% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 55 Neutral
• Price Target: ¥237.00 ▲(33.90% Upside)

The overall stock score is primarily influenced by the company's challenging financial performance, which poses significant risks. However, positive technical indicators provide some optimism, suggesting potential short-term price stability. The valuation is unattractive due to negative earnings and lack of dividends, further weighing down the score.

YU-WA Creation Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

YU-WA Creation Holdings Co.,Ltd. engages in the sale of kimono and jewelry products in Japan. The company operates 46 stores and online stores. The company was formerly known as Kyoto Kimono Yuzen Co.,Ltd. and changed its name to YU-WA Creation Holdings Co.,Ltd. in October 2021. The company was incorporated in 1971 and is headquartered in Tokyo, Japan.

How the Company Makes Money

YU-WA Creation Holdings Co., Ltd. generates its revenue primarily through the wholesale distribution of consumer electronics and home appliances. The company purchases these products from manufacturers and suppliers and sells them to retailers and other businesses. It benefits from economies of scale and a broad distribution network, allowing it to offer competitive pricing and maintain robust sales volumes. Additionally, the company may form strategic partnerships with key suppliers to secure favorable terms and exclusive distribution rights, further enhancing its revenue potential.

YU-WA Creation Holdings Co., Ltd. Financial Statement Overview

Summary

YU-WA Creation Holdings Co., Ltd. is facing significant financial challenges, with declining revenues, consistent losses, and a weakening balance sheet. Despite strong gross margins, operational inefficiencies and cash flow issues are major concerns.

Income Statement

YU-WA Creation Holdings Co., Ltd. has faced significant challenges in maintaining stable revenue and profitability. The revenue has been on a declining trend from 2020 to 2025, with a decrease from 10.5 billion in 2020 to 5.16 billion in 2025. The company consistently reports a negative net income, indicating ongoing profitability issues. Notably, the gross profit margin remains relatively strong at around 58.7% in 2025, but the EBIT and net profit margins are negative, reflecting operational inefficiencies.

Balance Sheet

The balance sheet shows a concerning trend of decreasing stockholders' equity from 5.34 billion in 2020 to 1.98 billion in 2025, pointing to weakening financial health. The company has managed to maintain a low debt-to-equity ratio due to high equity levels earlier in the period, but this is deteriorating as equity decreases. The equity ratio has also declined, indicating increased financial leverage and potential risks.

Cash Flow

Cash flow analysis reveals persistent negative operating cash flow, indicating cash generation issues from core operations. Free cash flow has been consistently negative, although there is a slight improvement in 2025 compared to 2024. The operating cash flow to net income ratio and free cash flow to net income ratio are unfavorable, suggesting difficulties in converting earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.16B	5.16B	7.02B	8.33B	8.48B	7.67B
Gross Profit	3.03B	3.03B	3.72B	5.17B	5.22B	4.81B
EBITDA	-846.67M	-891.27M	-1.20B	-348.68M	-108.39M	243.06M
Net Income	-922.31M	-923.11M	-1.34B	-468.98M	-185.18M	77.48M
Balance Sheet
Total Assets	7.28B	7.28B	8.91B	10.90B	11.86B	12.21B
Cash, Cash Equivalents and Short-Term Investments	1.67B	1.67B	2.48B	3.23B	3.97B	4.28B
Total Debt	606.76M	606.76M	1.34B	1.47B	1.43B	1.31B
Total Liabilities	5.30B	5.30B	6.20B	6.79B	7.07B	6.88B
Stockholders Equity	1.98B	1.98B	2.71B	4.11B	4.79B	5.33B
Cash Flow
Free Cash Flow	0.00	-398.42M	-702.45M	-502.39M	-451.49M	-738.92M
Operating Cash Flow	0.00	-268.01M	-641.49M	-444.00M	-334.98M	-651.05M
Investing Cash Flow	0.00	13.53M	77.99M	-59.17M	-742.00K	433.77M
Financing Cash Flow	0.00	-554.21M	-193.17M	-233.27M	17.40M	923.45M

YU-WA Creation Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 177.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7615, the sentiment is Positive. The current price of 177 is below the 20-day moving average (MA) of 217.50, above the 50-day MA of 164.04, and above the 200-day MA of 106.55, indicating a neutral trend. The MACD of 2.56 indicates Positive momentum. The RSI at 44.25 is Neutral, neither overbought nor oversold. The STOCH value of 2.38 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7615.

YU-WA Creation Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9271	73 Outperform	5.95B	12.47	72.77%	―	37.51%	176.25%
8013	59 Neutral	2.91B	-142.34	1.52%	―	0.58%	-2526.19%
7615	55 Neutral	¥2.98B	―	―	6.32%	-14.14%	71.50%
2778	52 Neutral	1.72B	-11.95	-3.01%	―	-6.82%	-146.83%
7603	40 Underperform	6.69B	-2.79	-119.29%	―	-10.95%	-19.17%
9878	38 Underperform	1.97B	-2.08	-295.40%	1.49%	-20.86%	-2441.42%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%