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Estelle Holdings Co., Ltd. (JP:7872)
:7872
Japanese Market
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Estelle Holdings Co., Ltd. (7872) AI Stock Analysis

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JP:7872

Estelle Holdings Co., Ltd.

(7872)

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Neutral 55 (OpenAI - 5.2)
Rating:55Neutral
Price Target:
¥607.00
▲(2.71% Upside)
Action:Reiterated
Date:05/18/26
Overall score is driven primarily by improving revenue but still-weak profitability and uneven cash generation, which keep financial quality moderate. Technical signals are largely neutral with slightly negative momentum, while valuation is supported by a strong dividend yield but offset by negative P/E due to minimal earnings.
Positive Factors
Gross margin strength
Consistently high gross margins (~54–60%) indicate structural pricing power and a favorable product mix in jewelry retail. That margin buffer supports absorption of operating expenses, enables potential operating leverage as sales recover, and underpins durable profitability if cost control continues.
Negative Factors
Thin operating profitability
An operating margin near 2% provides very limited resilience to cost inflation, markdowns, or demand shocks. This thin profitability restricts reinvestment in stores, marketing or digital channels and makes long-term earnings power fragile until margins sustainably improve.
Read all positive and negative factors
Positive Factors
Negative Factors
Gross margin strength
Consistently high gross margins (~54–60%) indicate structural pricing power and a favorable product mix in jewelry retail. That margin buffer supports absorption of operating expenses, enables potential operating leverage as sales recover, and underpins durable profitability if cost control continues.
Read all positive factors

Estelle Holdings Co., Ltd. (7872) vs. iShares MSCI Japan ETF (EWJ)

Estelle Holdings Co., Ltd. Business Overview & Revenue Model

Company Description
Estelle Holdings Co.,Ltd. manufactures and sells jewelry in Japan. The company offers pearls and gemstones; and eyeglass frames. It also engages in food and restaurant business, as well as other businesses comprising of cosmetic and fashion busine...
How the Company Makes Money
The company primarily makes money by selling jewelry products to end customers, generating revenue at the point of sale through its retail operations. Its core revenue stream is product sales (e.g., jewelry items), with earnings driven by sales vo...

Estelle Holdings Co., Ltd. Financial Statement Overview

Summary
Sales recovered in 2026 (+8.5%) and gross margins are strong (~54–60%), but operating profitability remains thin (~2%) and net margin is near breakeven (~0.1%) after losses in 2024–2025. Cash flow is volatile with inconsistent free cash flow, indicating the turnaround is still fragile.
Income Statement
56
Neutral
Balance Sheet
62
Positive
Cash Flow
48
Neutral
BreakdownMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue33.89B31.27B31.70B29.63B29.98B
Gross Profit18.16B17.53B17.59B17.13B17.41B
EBITDA727.00M251.00M541.00M550.00M882.00M
Net Income46.00M-345.00M-978.00M100.00M73.00M
Balance Sheet
Total Assets30.09B29.92B32.05B33.86B34.57B
Cash, Cash Equivalents and Short-Term Investments5.11B5.11B6.41B6.65B8.62B
Total Debt8.97B9.60B10.38B10.71B10.90B
Total Liabilities17.80B17.68B19.42B19.90B20.47B
Stockholders Equity11.65B11.91B12.40B13.74B13.92B
Cash Flow
Free Cash Flow685.00M-344.00M402.00M-1.62B-399.00M
Operating Cash Flow1.02B118.00M984.00M-1.15B34.00M
Investing Cash Flow-72.00M-244.00M-546.00M-383.00M-349.00M
Financing Cash Flow-914.00M-1.06B-711.00M-472.00M499.00M

Estelle Holdings Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price591.00
Price Trends
50DMA
596.32
Positive
100DMA
596.70
Positive
200DMA
583.72
Positive
Market Momentum
MACD
3.06
Negative
RSI
59.15
Neutral
STOCH
60.26
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7872, the sentiment is Positive. The current price of 591 is below the 20-day moving average (MA) of 600.80, below the 50-day MA of 596.32, and above the 200-day MA of 583.72, indicating a bullish trend. The MACD of 3.06 indicates Negative momentum. The RSI at 59.15 is Neutral, neither overbought nor oversold. The STOCH value of 60.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7872.

Estelle Holdings Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
¥40.85B10.972.46%3.50%41.84%85.85%
71
Outperform
¥24.38B9.973.03%15.82%20.82%
70
Outperform
¥31.96B13.471.93%6.40%210.55%
65
Neutral
¥2.44B30.131.21%5.56%-57.40%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
55
Neutral
¥6.43B140.794.64%8.38%
43
Neutral
¥2.83B20.290.25%47.30%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7872
Estelle Holdings Co., Ltd.
604.00
55.67
10.15%
JP:7937
Tsutsumi Jewelry Co
2,592.00
439.97
20.44%
JP:2736
Festaria Holdings Company Limited
678.00
-20.77
-2.97%
JP:7638
NEW ART HOLDINGS Co., Ltd.
1,368.00
65.61
5.04%
JP:7769
Rhythm Co., Ltd.
3,850.00
970.92
33.72%
JP:7810
Crossfor Co. Ltd.
156.00
-5.65
-3.50%
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: May 18, 2026