NEW ART HOLDINGS Co., Ltd. (7638) AI Stock Analysis

NEW ART HOLDINGS Co., Ltd.

(TSE/TYO:7638)

Select Model

Rating:78Outperform

Price Target:JPY 1,626.00▲(22.26% Upside)

Action:reiterated

Date:08/18/26

The stock scores well due to a combination of attractive valuation and solid financial performance. A low P/E of 10.4 and high 5.6% dividend yield are standout features. Financials are robust, driven by strong cash generation and healthy margins. Technicals confirm a bullish trend, though near-term overbought signals introduce some caution.

Positive Factors

Revenue and margin expansionMeaningful revenue growth combined with strong gross and EBIT margins indicates solid customer demand and operating efficiency. If maintained, this profitability profile can support reinvestment, resilience, and sustained earnings growth over the next several quarters.

Negative Factors

Net margin volatilityVolatile net margins indicate that earnings remain sensitive to costs or non-operating items even as gross and EBIT margins improve. This can make profit growth less predictable and reduce the reliability of long-term earnings and dividend planning.

NEW ART HOLDINGS Co., Ltd. (7638) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 22.82B
Dividend Yield: 6.02%
Average Volume (3M): 19.38K
Price to Earnings (P/E): 8.6
Beta (1Y): 0.41
Revenue Growth: 10.59%
EPS Growth: 31.31%
Country: Japan
Employees: 981
Sector: General
Sector Strength: 55
Industry: Luxury Goods

NEW ART HOLDINGS Co., Ltd. Business Overview & Revenue Model

Company Description

NEW ART HOLDINGS Co., Ltd. operates bridal jewelry business in Japan. The company offers bridal and fashion jewelry; artworks; and planning and operation of art auctions. It operates esthetic salons; manufactures and sales cosmetics and health food p...

How the Company Makes Money

The company primarily makes money through sales generated by its operating subsidiaries. Key revenue streams include: (1) Retail and related sales of jewelry products—revenue is recognized when jewelry is sold to customers through the group’s sales c...

NEW ART HOLDINGS Co., Ltd. Financial Statement Overview

Summary

Solid profitability with expanding operating margins (15.4%) and strong ROE (21.1%). Revenue growth accelerated to 8.2%. Balance sheet is healthy with low leverage (debt/equity 0.74). Cash flow surged, with FCF at 92% of net income. Slight margin softening and historical volatility temper the score.

Income Statement

78Positive

Balance Sheet

82Very Positive

Cash Flow

75Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	32.72B	32.02B	27.64B	21.10B	21.46B	18.72B
Gross Profit	19.71B	19.28B	16.78B	13.68B	13.54B	12.15B
EBITDA	5.45B	5.39B	4.42B	3.07B	3.37B	2.62B
Net Income	2.65B	2.35B	1.98B	1.09B	1.73B	1.48B
Balance Sheet
Total Assets	28.01B	28.11B	27.33B	21.99B	22.39B	20.91B
Cash, Cash Equivalents and Short-Term Investments	1.72B	2.24B	1.35B	1.71B	2.66B	3.32B
Total Debt	8.69B	8.20B	9.17B	7.12B	6.75B	5.53B
Total Liabilities	16.37B	16.24B	16.66B	13.12B	13.00B	11.26B
Stockholders Equity	10.95B	11.16B	9.94B	8.66B	9.23B	9.50B
Cash Flow
Free Cash Flow	0	3.14B	1.19B	356.15M	1.14B	1.30B
Operating Cash Flow	0	3.40B	1.76B	1.91B	1.97B	1.90B
Investing Cash Flow	0	-370.55M	-455.74M	-1.44B	-1.05B	-926.35M
Financing Cash Flow	0	-2.44B	-1.58B	-1.48B	-1.70B	-843.95M

NEW ART HOLDINGS Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price1330.00

Price Trends

50DMA1381.12Negative

100DMA1371.29Negative

200DMA1407.56Negative

Market Momentum

MACD-15.66Positive

RSI37.32Neutral

STOCH33.94Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7638, the sentiment is Negative. The current price of 1330.00 is below the 20-day moving average (MA) of 1345.20, below the 50-day MA of 1381.12, and below the 200-day MA of 1407.56, indicating a bearish trend. The MACD of -15.66 indicates Positive momentum. The RSI at 37.32 is Neutral, neither overbought nor oversold. The STOCH value of 33.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7638.

NEW ART HOLDINGS Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:7638 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:7638	78Outperform	JPY 23.48B	8.60	―	6.02%	10.59%	31.31%
JP:7769	71Outperform	JPY 30.80B	25.15	―	6.64%	7.58%	-40.23%
JP:7937	71Outperform	JPY 38.61B	10.83	5.17%	4.86%	39.41%	127.01%
JP:9990	67Neutral	JPY 21.65B	11.21	―	4.70%	0.30%	-18.45%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:2736	48Neutral	JPY 2.16B	18.88	―	1.17%	9.71%	-35.71%
JP:7810	43Neutral	JPY 2.56B	94.74	―	0.44%	47.35%	26.49%

* General Sector Average

Performance Comparison

JP:7638 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:7638	NEW ART HOLDINGS Co., Ltd.	1330.00	-62.93	-4.52%
JP:7937	Tsutsumi Jewelry Co	2471.00	299.52	13.79%
JP:2736	Festaria Holdings Company Limited	599.00	43.91	7.91%
JP:7769	Rhythm Co., Ltd.	3730.00	591.13	18.83%
JP:7810	Crossfor Co. Ltd.	144.00	-5.39	-3.61%
JP:9990	SAC'S BAR HOLDINGS INC.	745.00	-6.14	-0.82%

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 18, 2026

NEW ART HOLDINGS Co., Ltd. AI Stock Analysis