Kintetsu Department Store Co.Ltd. (8244) AI Stock Analysis

1 Followers

Kintetsu Department Store Co.Ltd.

(TSE/TYO:8244)

Select Model

Rating:72Outperform

Price Target:JPY 2,220.00▲(11.17% Upside)

Action:reiterated

Date:11/06/26

The overall score of 72 is primarily driven by the company's strong financial health, marked by a pristine balance sheet and solid cash flow generation. The successful earnings turnaround provides a stable foundation. Technical trends are supportive, with the stock in a clear uptrend, though near-term overbought signals warrant some caution. The main detractor is the high valuation, with a P/E ratio above 34, which limits upside potential and weighs on the overall assessment.

Positive Factors

Deleveraging and stronger capital baseSharp deleveraging materially improves financial flexibility and reduces the burden of interest and refinancing risk. The expanded equity base gives Kintetsu Department Store more capacity to withstand demand fluctuations, sustain operations, and fund selective reinvestment over the coming quarters.

Negative Factors

Thin and volatile marginsThin margins leave limited protection against changes in pricing, costs, or consumer demand. Historical gross-margin volatility shows that profitability can weaken materially when operating conditions deteriorate, making consistent execution necessary to preserve the recent recovery.

Kintetsu Department Store Co.Ltd. (8244) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 79.74B
Dividend Yield: 1.03%
Average Volume (3M): 53.10K
Price to Earnings (P/E): 34.7
Beta (1Y): 0.24
Revenue Growth: -1.31%
EPS Growth: -59.26%
Country: Japan
Employees: 1,954
Sector: General
Sector Strength: 55
Industry: Department Stores

Kintetsu Department Store Co.Ltd. Business Overview & Revenue Model

Company Description

Kintetsu Department Store Co., Ltd. is a Japanese retailer primarily engaged in operating department stores across the country. Established in Osaka, Japan, in 1920, the enterprise functions as a subsidiary of Kintetsu Group Holdings Co., Ltd.

How the Company Makes Money

The company primarily makes money through (1) direct retail sales in its department stores, earning gross profit on merchandise sold across key categories such as fashion, cosmetics, gifts, household items, and food; (2) commissions and fees from con...

Kintetsu Department Store Co.Ltd. Financial Statement Overview

Summary

The company has executed a successful turnaround with steady revenue growth and improving margins. The balance sheet is exceptionally strong with minimal debt (debt-to-equity of 0.05) and growing equity. Cash flows are robust, with operating cash flow comfortably exceeding net income. The primary weakness is the still-modest net profit margin of 3.0%.

Income Statement

75Positive

Balance Sheet

85Very Positive

Cash Flow

80Positive

Financial statement breakdown
Breakdown	TTM	Feb 2026	Feb 2025	Feb 2024	Feb 2023	Feb 2022
Income Statement
Total Revenue	120.27B	125.45B	115.11B	113.51B	107.85B	98.15B
Gross Profit	61.53B	58.94B	53.30B	50.19B	47.69B	42.67B
EBITDA	7.31B	11.19B	10.17B	9.63B	7.97B	5.26B
Net Income	2.35B	3.71B	3.48B	2.78B	1.89B	-775.00M
Balance Sheet
Total Assets	121.00B	124.75B	115.86B	116.59B	119.30B	120.08B
Cash, Cash Equivalents and Short-Term Investments	3.29B	4.66B	2.59B	3.73B	3.24B	4.10B
Total Debt	6.25B	2.32B	4.81B	6.27B	12.86B	17.43B
Total Liabilities	73.15B	78.92B	77.28B	79.27B	84.71B	86.77B
Stockholders Equity	47.85B	45.83B	38.58B	37.32B	34.59B	33.31B
Cash Flow
Free Cash Flow	0	11.10B	2.79B	7.06B	4.91B	-141.00M
Operating Cash Flow	0	15.23B	6.73B	10.17B	7.56B	2.50B
Investing Cash Flow	0	-12.49B	-3.90B	-2.19B	-3.02B	-3.30B
Financing Cash Flow	0	-669.00M	-3.97B	-7.49B	-5.40B	-715.00M

Kintetsu Department Store Co.Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price1997.00

Price Trends

50DMA1900.58Positive

100DMA1872.88Positive

200DMA1814.24Positive

Market Momentum

MACD20.51Negative

RSI54.33Neutral

STOCH66.13Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8244, the sentiment is Positive. The current price of 1997.00 is above the 20-day moving average (MA) of 1905.05, above the 50-day MA of 1900.58, and above the 200-day MA of 1814.24, indicating a bullish trend. The MACD of 20.51 indicates Negative momentum. The RSI at 54.33 is Neutral, neither overbought nor oversold. The STOCH value of 66.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8244.

Kintetsu Department Store Co.Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:8244 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:3099	74Outperform	JPY 1.24T	15.86	13.31%	3.34%	0.06%	43.97%
JP:8242	73Outperform	JPY 336.31B	8.57	12.34%	1.69%	-0.44%	172.74%
JP:8244	72Outperform	JPY 78.49B	34.72	―	1.03%	-1.31%	-59.26%
JP:9005	71Outperform	JPY 923.26B	10.06	9.73%	2.02%	5.59%	5.11%
JP:3086	57Neutral	JPY 749.22B	27.77	6.63%	1.79%	-2.97%	-8.55%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:8233	50Neutral	JPY 654.70B	-53.31	-2.91%	1.70%	2.19%	-133.68%

* General Sector Average

Performance Comparison

JP:8244 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:8244	Kintetsu Department Store Co.Ltd.	1997.00	63.37	3.28%
JP:3099	Isetan Mitsukoshi Holdings	1794.50	512.28	39.95%
JP:3086	J FRONT RETAILING Co	3074.00	803.75	35.40%
JP:8233	Takashimaya Company	2288.50	584.42	34.30%
JP:9005	Tokyu Corporation	1587.00	-137.67	-7.98%
JP:8242	H2O Retailing Corporation	2838.50	712.13	33.49%

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: Nov 05, 2026

Kintetsu Department Store Co.Ltd. AI Stock Analysis