Regal Corporation (7938) AI Stock Analysis

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Regal Corporation

(7938)

60Neutral

Regal Corporation scores moderately due to its promising revenue growth and improved profit margins. However, operational efficiency challenges, high debt levels, and negative cash flows weigh on its financial performance. Technical indicators suggest caution with a bearish trend, though valuation metrics appear fair. Investors should be mindful of the company's need to improve cash management and operational efficiency to support long-term growth.

Regal Corporation (7938) vs. S&P 500 (SPY)

Market Cap

¥8.15B

Dividend Yield2.97%

Average Volume (3M)3.82K

Price to Earnings (P/E)11.7

Beta (1Y)0.50

Revenue Growth3.57%

EPS Growth214.31%

CountryJP

Employees952

SectorConsumer Cyclical

Sector Strength60

IndustryApparel - Footwear & Accessories

Share Statistics

EPS (TTM)188.31

Shares Outstanding3,250,000

10 Day Avg. Volume4,180

30 Day Avg. Volume3,820

Financial Highlights & Ratios

PEG Ratio-0.79

Price to Book (P/B)0.61

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Regal Corporation Business Overview & Revenue Model

Company DescriptionRegal Corporation manufactures, sells, and repairs various shoes for men and women. It sells its products through stores and online stores. The company was formerly known as Nippon Shoe Co., Ltd. and changed its name to Regal Corporation in October 1990. Regal Corporation was incorporated in 1902 and is headquartered in Urayasu, Japan.

How the Company Makes MoneyRegal Corporation generates revenue through the sale of footwear products, which are produced in-house and distributed through both wholesale channels and its own retail network. The company earns money by selling shoes to retailers and directly to consumers via its branded stores and e-commerce platforms. Additionally, strategic partnerships with distributors and collaborations with other fashion brands enhance their market presence and contribute to revenue growth. Seasonal trends and consumer preferences significantly influence sales, making product innovation and marketing crucial for sustaining profitability.

Regal Corporation Financial Statement Overview

Summary

Regal Corporation shows promising revenue growth and improved profitability margins. However, operational efficiency remains a challenge, and high debt levels pose risks. Cash flow management is a critical area for improvement to ensure sustainable growth. The company should focus on reducing leverage and enhancing cash generation to strengthen its financial position.

Income Statement

Positive

Regal Corporation has shown consistent revenue growth from 2021 to 2024, with a notable increase in gross profit margins from 37.9% in 2021 to 48.5% in TTM 2024. However, EBIT margin has remained low at 1.7% in TTM 2024, indicating operational efficiency challenges. Net profit margin improved to 1.8% in TTM 2024 from negative figures in prior years, reflecting better profitability. Overall, the company exhibits positive revenue trends but needs to enhance operational efficiency.

Balance Sheet

Positive

The company's debt-to-equity ratio has decreased from 1.16 in 2021 to 0.75 in TTM 2024, indicating improved leverage management. However, equity ratio remains stable around 47.8% in TTM 2024, showing limited increase in financial stability. Return on equity improved from negative in previous years to 3.4% in TTM 2024, suggesting enhanced shareholder returns. Nonetheless, the company still carries significant debt levels, which could pose risks in adverse conditions.

Cash Flow

Neutral

Regal Corporation's cash flow performance faces challenges, with no positive free cash flow in recent periods. Operating cash flow was negative in the latest annual report, and free cash flow to net income ratio is unavailable due to missing data. These factors indicate potential liquidity concerns and the need for better cash management strategies. The company must focus on improving cash flow generation to support growth and debt obligations.

TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Breakdown
Income Statement		Total Revenue
23.76B	23.73B	22.56B	20.81B	19.20B	29.15B
	Gross Profit
11.53B	11.25B	10.81B	9.72B	7.91B	12.50B
	EBIT
406.00M	518.00M	293.00M	159.00M	-2.18B	-727.00M
	EBITDA
848.50M	1.00B	546.00M	376.00M	-3.59B	-431.00M
	Net Income Common Stockholders
425.00M	427.00M	491.00M	138.00M	-4.42B	-1.30B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.62B	5.20B	6.73B	7.97B	6.89B	3.29B
	Total Assets
25.81B	27.80B	27.50B	27.38B	27.87B	28.70B
	Total Debt
9.32B	10.59B	10.55B	11.40B	11.93B	6.10B
	Net Debt
5.70B	5.39B	3.82B	3.43B	5.04B	2.81B
	Total Liabilities
13.46B	15.35B	16.54B	17.10B	17.59B	14.34B
	Stockholders Equity
12.35B	12.42B	10.93B	10.25B	10.26B	14.33B
Cash Flow		Free Cash Flow
0.00	-1.52B	-821.00M	1.36B	-2.69B	-799.00M
	Operating Cash Flow
0.00	-1.05B	102.00M	1.54B	-2.50B	-435.00M
	Investing Cash Flow
0.00	-296.00M	-485.00M	45.00M	445.00M	-393.00M
	Financing Cash Flow
0.00	-186.00M	-884.00M	-593.00M	5.67B	411.00M

Regal Corporation Technical Analysis

Technical Analysis Sentiment

Positive

Last Price2355.00

Price Trends

50DMA

2377.46

Positive

100DMA

2489.89

Positive

200DMA

2518.78

Positive

Market Momentum

MACD

6.37

Negative

RSI

68.95

Neutral

STOCH

46.78

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7938, the sentiment is Positive. The current price of 2355 is above the 20-day moving average (MA) of 2324.90, below the 50-day MA of 2377.46, and below the 200-day MA of 2518.78, indicating a bullish trend. The MACD of 6.37 indicates Negative momentum. The RSI at 68.95 is Neutral, neither overbought nor oversold. The STOCH value of 46.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7938.

Regal Corporation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7606	75 Outperform	¥61.01B	13.80		2.92%	10.32%	35.08%
8214	74 Outperform	¥122.75B	12.85		5.13%	4.38%	10.39%
8016	73 Outperform	€75.95B	8.93	10.13%	4.80%	9.90%	28.80%
8219	65 Neutral	€101.83B	11.05	5.34%	6.35%	1.72%	15.08%
9831	64 Neutral	¥367.59B	11.30	4.20%	2.84%	1.27%	-19.36%
Sector *	61 Neutral	$6.92B	11.84	3.00%	3.95%	2.60%	-21.94%
7938	60 Neutral	¥8.15B	11.66		2.97%	3.57%	214.31%

* Consumer Cyclical Sector Average

Performance Comparison

JP:7938

Regal Corporation

2,555.00

522.14

25.68%

JP:7606

UNITED ARROWS LTD.

2,141.00

364.87

20.54%

JP:8214

AOKI Holdings, Inc.

1,481.00

243.11

19.64%

JP:8016

Onward Holdings Co., Ltd.

558.00

-20.01

-3.46%

JP:8219

AOYAMA TRADING Co., Ltd.

2,037.00

538.21

35.91%

JP:9831

Yamada Denki Co

439.60

19.42

4.62%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.