Izutsuya Co., Ltd. (8260) AI Stock Analysis

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Izutsuya Co., Ltd.

(TSE/TYO:8260)

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Rating:51.6Neutral

Price Target:JPY 383.00▲(11.01% Upside)

Action:reiterated

Date:08/27/26

The overall score is moderate, primarily constrained by weak financial performance marked by declining sales and compressed margins, despite strong cash flow and debt reduction. The stock's low P/E ratio provides a valuation cushion, and short-term technicals are neutral-to-positive, but the longer-term downtrend and high debt levels limit upside potential.

Positive Factors

Recurring Free Cash FlowRecurring free cash flow provides an internal funding source for store operations, debt service, and selective investment. Its consistency and reasonable conversion from earnings improve financial resilience and reduce reliance on external financing over the next several quarters.

Negative Factors

Revenue ContractionDeclining revenue indicates that Izutsuya is operating from a weaker top-line base than in 2021–2022. Continued contraction would reduce operating leverage, limit investment capacity, and make it harder for the company to rebuild sustainable earnings across its regional store network.

Izutsuya Co., Ltd. (8260) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 3.86B
Dividend Yield: 1.74%
Average Volume (3M): 10.58K
Price to Earnings (P/E): 10.1
Beta (1Y): 0.23
Revenue Growth: -3.00%
EPS Growth: -59.11%
Country: Japan
Employees: 651
Sector: General
Sector Strength: 55
Industry: Department Stores

Izutsuya Co., Ltd. Business Overview & Revenue Model

Company Description

Izutsuya Co., Ltd. operates department stores and the Friends' Association Project in Japan. The company engages in sales of domestic and imported products including clothing, personal belongings, general merchandise, household goods, and food produc...

How the Company Makes Money

Izutsuya makes money primarily through retail sales generated at its department store operations, where revenue is recognized from selling merchandise such as apparel, accessories, and household/general goods to consumers. A key component of a depart...

Izutsuya Co., Ltd. Financial Statement Overview

Summary

Financial performance is mixed. Revenue and margins are declining, with net margin falling to 2.3%. However, the company remains profitable, cash flow generation is robust, and the balance sheet is improving through consistent debt reduction. The high debt/EBITDA of 6.7x remains a concern.

Income Statement

42Neutral

Balance Sheet

46Neutral

Cash Flow

50Neutral

Financial statement breakdown
Breakdown	TTM	Feb 2025	Feb 2024	Feb 2023	Feb 2023	Feb 2021
Income Statement
Total Revenue	21.28B	21.28B	22.16B	22.57B	22.52B	50.53B
Gross Profit	10.73B	9.30B	11.17B	11.32B	11.31B	11.58B
EBITDA	2.08B	1.93B	2.37B	2.81B	2.68B	1.78B
Net Income	491.00M	491.00M	999.00M	1.02B	966.00M	111.00M
Balance Sheet
Total Assets	43.33B	43.33B	44.85B	46.72B	46.03B	48.36B
Cash, Cash Equivalents and Short-Term Investments	2.65B	2.65B	2.77B	3.66B	3.40B	3.93B
Total Debt	12.97B	12.97B	14.49B	16.65B	15.83B	19.96B
Total Liabilities	31.12B	31.12B	32.93B	36.60B	35.06B	40.10B
Stockholders Equity	12.21B	12.21B	11.92B	10.11B	10.97B	8.26B
Cash Flow
Free Cash Flow	0	1.47B	1.03B	1.56B	1.35B	670.00M
Operating Cash Flow	0	1.83B	1.37B	2.01B	1.91B	887.00M
Investing Cash Flow	0	-300.00M	-421.00M	13.00M	-608.00M	-72.00M
Financing Cash Flow	0	-1.66B	-1.58B	-1.97B	-1.57B	-987.00M

Izutsuya Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price345.00

Price Trends

50DMA372.68Negative

100DMA375.47Negative

200DMA413.22Negative

Market Momentum

MACD-7.93Positive

RSI35.67Neutral

STOCH43.86Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8260, the sentiment is Negative. The current price of 345.00 is below the 20-day moving average (MA) of 361.00, below the 50-day MA of 372.68, and below the 200-day MA of 413.22, indicating a bearish trend. The MACD of -7.93 indicates Positive momentum. The RSI at 35.67 is Neutral, neither overbought nor oversold. The STOCH value of 43.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8260.

Izutsuya Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:8260 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:8244	78Outperform	JPY 78.49B	34.72	―	1.03%	-1.31%	-59.26%
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:8237	62Neutral	JPY 145.39B	49.13	―	0.45%	-1.02%	613.66%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:8260	52Neutral	JPY 3.98B	10.15	―	1.74%	-3.00%	-59.11%
JP:8233	50Neutral	JPY 654.70B	-53.31	-2.91%	1.70%	2.19%	-133.68%

* General Sector Average

Performance Comparison

JP:8260 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:8260	Izutsuya Co., Ltd.	345.00	-70.15	-16.90%
JP:3099	Isetan Mitsukoshi Holdings	1794.50	512.28	39.95%
JP:8233	Takashimaya Company	2288.50	584.42	34.30%
JP:8242	H2O Retailing Corporation	2838.50	712.13	33.49%
JP:8237	Matsuya Co., Ltd.	2643.00	774.63	41.46%
JP:8244	Kintetsu Department Store Co.Ltd.	1997.00	63.37	3.28%

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 27, 2026

Izutsuya Co., Ltd. AI Stock Analysis