Estelle Holdings Co., Ltd. (7872) AI Stock Analysis

• Market Cap: ¥6.16B
• Dividend Yield: 4.66%
• Average Volume (3M): 5.09K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.20
• Revenue Growth: 1.44%
• EPS Growth: -2.50%
• Country: JP
• Employees: 2,642
• Sector: Consumer Cyclical
• Sector Strength: 77
• Industry: Luxury Goods
• EPS (TTM): 7.84
• Shares Outstanding: 11,459,223
• 10 Day Avg. Volume: 2,900
• 30 Day Avg. Volume: 5,090
• PEG Ratio: -0.20
• Price to Book (P/B): 0.51
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Estelle Holdings Co., Ltd. is facing significant financial challenges, particularly in profitability and cash flow management, which are reflected in its overall stock score of 42. The technical analysis indicates a bearish trend, and the negative P/E ratio underscores the company's unprofitability. While the dividend yield offers some investor appeal, the overall outlook remains cautious due to liquidity concerns and operational inefficiencies.

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

Company Description

Estelle Holdings Co., Ltd. (7872) is a Japan-based company primarily engaged in the production and sale of jewelry products. The company operates through its Jewelry-related segment, offering a wide range of jewelry pieces, including rings, necklaces, and bracelets. Estelle Holdings is known for its craftsmanship and high-quality materials, catering to both individual customers and retail businesses. The company aims to deliver innovative and stylish products that meet the evolving demands of fashion-conscious consumers.

How the Company Makes Money

Estelle Holdings Co., Ltd. generates revenue chiefly through the sale of its jewelry products. The company operates various retail outlets and utilizes online platforms to reach a diverse customer base. Key revenue streams include direct sales to consumers through its branded stores and e-commerce platforms, as well as wholesale distribution to other retailers. Estelle Holdings may also engage in strategic partnerships or collaborations with fashion designers and other brands to enhance its product offerings and market reach. Additionally, the company continually invests in marketing and brand development to attract and retain customers, which is crucial for sustaining its revenue growth.

Estelle Holdings Co., Ltd. Financial Statement Overview

Summary

Estelle Holdings Co., Ltd. faces financial difficulties, particularly in cash flow management and profitability. The income statement shows declining net income, while the balance sheet reflects stable but slightly strained leverage. Cash flow challenges are pronounced, indicating potential liquidity risks. The company needs to focus on improving operational efficiency and enhancing cash generation to stabilize its financial position.

Income Statement

The company's income statement reveals declining financial health, with negative net income in recent periods, indicating profitability challenges. The gross profit margin remains stable, but the net profit margin has deteriorated, reflecting operational inefficiencies or increased costs. Revenue growth is stagnant, showing a slight decline in the most recent TTM period compared to the previous year.

Balance Sheet

The balance sheet presents a mixed picture. While the company maintains a moderate debt-to-equity ratio, indicating manageable leverage, the equity ratio shows a slight decrease, suggesting a drop in shareholder equity relative to total assets. The return on equity is negative due to recent losses, highlighting issues with generating shareholder value.

Cash Flow

The cash flow statement highlights significant concerns, with operating cash flow turning negative, severely impacting free cash flow. The lack of free cash flow growth and negative ratios relative to net income underline cash generation issues, raising concerns about liquidity and financial flexibility.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
31.46B	31.70B	29.63B	29.98B	27.96B	32.17B
	Gross Profit
17.53B	17.59B	17.13B	17.41B	16.73B	19.58B
	EBIT
187.00M	164.00M	106.00M	566.00M	421.00M	1.37B
	EBITDA
408.00M	538.00M	546.00M	882.00M	617.00M	1.81B
	Net Income Common Stockholders
-714.00M	-979.00M	100.00M	73.00M	306.00M	620.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.86B	6.41B	6.65B	8.62B	8.38B	8.95B
	Total Assets
31.31B	32.03B	33.84B	34.58B	33.77B	34.70B
	Total Debt
10.69B	10.38B	10.71B	10.90B	10.11B	10.02B
	Net Debt
4.84B	3.97B	4.06B	2.28B	1.74B	1.07B
	Total Liabilities
19.30B	19.40B	19.86B	20.59B	19.67B	20.56B
	Stockholders Equity
11.72B	12.40B	13.76B	13.81B	13.96B	13.99B
Cash Flow		Free Cash Flow
0.00	402.00M	-1.62B	-399.00M	-435.00M	736.00M
	Operating Cash Flow
0.00	984.00M	-1.15B	34.00M	131.00M	1.41B
	Investing Cash Flow
0.00	-546.00M	-383.00M	-349.00M	-500.00M	-699.00M
	Financing Cash Flow
0.00	-711.00M	-472.00M	499.00M	-190.00M	-163.00M

Estelle Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 580.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7872, the sentiment is Negative. The current price of 580 is above the 20-day moving average (MA) of 574.10, above the 50-day MA of 579.47, and below the 200-day MA of 586.23, indicating a bearish trend. The MACD of -0.74 indicates Negative momentum. The RSI at 44.60 is Neutral, neither overbought nor oversold. The STOCH value of 45.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7872.

Estelle Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7532	74 Outperform	¥2.67T	28.81	16.35%	0.74%	8.25%	6.55%
7630	73 Outperform	¥149.24B	47.03		1.71%	10.64%	18.07%
8233	68 Neutral	$348.85B	9.07	8.38%	2.04%	6.94%	26.04%
8278	62 Neutral	¥179.70B	47.06		1.45%	0.99%	-48.66%
Sector *	61 Neutral	$6.98B	11.29	2.93%	3.90%	2.60%	-21.72%
8237	61 Neutral	¥51.26B	21.51		1.24%	16.65%	-9.43%
7872	42 Neutral	¥6.16B	―		4.66%	1.44%	-2.50%