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Verite Co., Ltd.
(9904)
Select Model
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Rating:62Neutral
Price Target:
¥252.00
▼(-32.62% Downside)
Action:Reiterated
Date:08/18/26
The score is led by mixed financial performance: strong revenue re-acceleration and a notable free-cash-flow rebound are positives, but materially weaker margins and higher leverage reduce confidence in earnings durability. Technicals are a headwind due to the stock trading well below longer-term moving averages, while valuation is supported by a high dividend yield and a moderate P/E.
Positive Factors
Revenue Growth
The renewed top-line expansion indicates improving demand for Verite’s jewelry and accessories, supporting store productivity and revenue scale. If sustained, growth can improve fixed-cost absorption and provide a foundation for rebuilding profitability.
Negative Factors
Margin Compression
The sharp decline in profitability shows that revenue growth is not currently translating efficiently into earnings. Higher costs, weaker operating leverage, or product and promotional pressures could persist, limiting returns even if sales continue to expand.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
The renewed top-line expansion indicates improving demand for Verite’s jewelry and accessories, supporting store productivity and revenue scale. If sustained, growth can improve fixed-cost absorption and provide a foundation for rebuilding profitability.
Read all positive factors
Verite Co., Ltd. (9904) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥6.65B
Dividend Yield5.53%
Average Volume (3M)25.33K
Price to Earnings (P/E)16.3
Beta (1Y)>-0.01
Revenue Growth23.28%
EPS Growth-15.32%
CountryJP
Employees505
SectorGeneral
Sector StrengthN/A
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.78
Shares Outstanding27,230,824
10 Day Avg. Volume34,190
30 Day Avg. Volume25,330
Financial Highlights & Ratios
PEG Ratio-0.77
Price to Book (P/B)2.55
Price to Sales (P/S)1.14
P/FCF Ratio11.01
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
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Verite Co., Ltd. Business Overview & Revenue Model
Company Description
Operating a network of jewelry retail outlets across Japan, Verite Co., Ltd. manages brands including Vérité, Maharaja Diamond, Velicia, and Mimikazari. These establishments provide customers with a diverse selection of products, ranging from fine...
How the Company Makes Money
Verite generates revenue primarily by selling jewelry and related products directly to end customers through its retail stores. Its core revenue stream is product sales (i.e., the retail margin between the selling price and the company’s cost of p...
Verite Co., Ltd. Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
58
Neutral
Cash Flow
70
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 9.44B | 7.95B | 7.64B | 7.62B | 7.27B |
| Gross Profit | 6.14B | 5.38B | 5.22B | 5.33B | 5.10B |
| EBITDA | 656.00M | 1.05B | 932.00M | 994.00M | 899.00M |
| Net Income | 322.00M | 569.00M | 502.00M | 545.00M | 464.00M |
Balance Sheet | |||||
| Total Assets | 8.48B | 7.55B | 7.67B | 7.38B | 7.57B |
| Cash, Cash Equivalents and Short-Term Investments | 3.07B | 1.99B | 2.12B | 1.88B | 2.16B |
| Total Debt | 2.20B | 1.50B | 1.50B | 1.00B | 1.50B |
| Total Liabilities | 4.26B | 3.08B | 3.23B | 2.92B | 3.20B |
| Stockholders Equity | 4.22B | 4.47B | 4.44B | 4.46B | 4.37B |
Cash Flow | |||||
| Free Cash Flow | 978.00M | 321.00M | 319.00M | 792.00M | 779.00M |
| Operating Cash Flow | 1.17B | 407.00M | 456.00M | 893.00M | 864.00M |
| Investing Cash Flow | -218.00M | -37.00M | -168.00M | -201.00M | -98.00M |
| Financing Cash Flow | 132.00M | -504.00M | -45.00M | -970.00M | -1.10B |
Verite Co., Ltd. Technical Analysis
Negative
374.00
Price Trends
240.80
Positive
262.46
Negative
323.64
Negative
Market Momentum
1.05
Positive
49.55
Neutral
23.43
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9904, the sentiment is Negative. The current price of 374 is above the 20-day moving average (MA) of 244.05, above the 50-day MA of 240.80, and above the 200-day MA of 323.64, indicating a neutral trend. The MACD of 1.05 indicates Positive momentum. The RSI at 49.55 is Neutral, neither overbought nor oversold. The STOCH value of 23.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9904.
Verite Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | ¥39.93B | 11.01 | 5.17% | 4.51% | 39.41% | 127.01% | |
71 Outperform | ¥31.38B | 25.55 | ― | 4.42% | 7.58% | -40.23% | |
71 Outperform | ¥21.73B | 11.22 | ― | 4.69% | 0.30% | -18.45% | |
62 Neutral | ¥6.65B | 16.32 | ― | 5.53% | 23.28% | -15.32% | |
61 Neutral | ¥2.19B | 26.71 | ― | 1.16% | 5.56% | -57.40% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
45 Neutral | ¥2.77B | 20.68 | ― | 0.40% | 47.30% | ― |
* General Sector Average
JP:9904
Verite Co., Ltd.
244.00
-109.98
-31.07%
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JP:9990
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Verite Co., Ltd. Corporate Events
Vérité boosts sales and store count as July figures outpace prior year
Aug 6, 2026
Vérité Co., Ltd. reported strong year-on-year growth in July 2026, with total sales rising in the mid-teens percentage range, supported by higher average customer spend and modest increases in footfall. Existing stores also showed solid ...
Vérité boosts June sales on back of new store openings
Jul 6, 2026
Vérité Co., Ltd., traded on the Standard Tokyo market under code 9904, is a jewelry-focused retail chain whose results are closely tied to its store base, customer visits and average spending. The company operates multiple formats, track...
Vérité Posts Double-Digit May Sales Growth as Store Network Expands
Jun 5, 2026
Vérité Co., Ltd. reported strong year-on-year performance for May 2026, with total company sales rising about 19% and existing store sales up roughly 15%, driven by higher customer traffic and a notable increase in average customer spend...
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.