BELC Co., Ltd. (9974) AI Stock Analysis

BELC Co., Ltd.

(TSE/TYO:9974)

Select Model

Rating:70Outperform

Price Target:JPY 7,018.00▲(7.97% Upside)

Action:reiterated

Date:08/06/26

BELC's overall score of 70 reflects a mix of strong fundamentals and attractive valuation offset by bearish technical trends and cash flow concerns. The company has shown consistent growth and profitability, with a solid balance sheet. However, recent capital expenditures have led to negative free cash flow, and the stock is currently in a downtrend, trading below its key moving averages. The low P/E ratio and dividend yield provide a margin of safety. No additional insights from recent earnings calls or corporate events.

Positive Factors

Revenue ExpansionSteady revenue expansion, including the latest period’s pronounced step-up, indicates continued store-level sales momentum and customer demand. If sustained, it can support operating leverage and strengthen BELC’s ability to fund growth.

Negative Factors

Volatile Free Cash FlowNegative and volatile free cash flow reduces the quality of earnings conversion and can constrain financial flexibility. Although operating cash flow remains positive, recurring investment or working-capital needs may require continued funding as BELC expands stores.

BELC Co., Ltd. (9974) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 135.40B
Dividend Yield: 1.97%
Average Volume (3M): 35.88K
Price to Earnings (P/E): 12.2
Beta (1Y): 0.21
Revenue Growth: 4.94%
EPS Growth: -9.98%
Country: Japan
Employees: 2,914
Sector: General
Sector Strength: 55
Industry: Grocery Stores

BELC Co., Ltd. Business Overview & Revenue Model

Company Description

Belc Co. Ltd. manages a widespread network of grocery supermarkets. The company offers a comprehensive selection of food items, including fresh and processed meats, seafood, produce (both fresh and prepared), dairy and egg products, various processed...

How the Company Makes Money

BELC makes money mainly by selling merchandise—primarily food (fresh foods such as produce, meat, seafood; processed and packaged foods; beverages) and everyday household necessities (e.g., toiletries and other consumables)—to individual consumers in...

BELC Co., Ltd. Financial Statement Overview

Summary

Strong revenue growth and profitability, healthy balance sheet, but cash flow weakened by heavy investments. Combined assessment of income statement (85), balance sheet (85), and cash flow (70) yields a score of 80.

Income Statement

85Very Positive

Balance Sheet

85Very Positive

Cash Flow

70Positive

Financial statement breakdown
Breakdown	TTM	Feb 2026	Feb 2025	Feb 2024	Feb 2023	Feb 2022
Income Statement
Total Revenue	423.43B	423.43B	387.78B	351.86B	310.82B	300.27B
Gross Profit	118.89B	118.89B	109.42B	99.95B	89.87B	77.10B
EBITDA	26.15B	26.15B	24.84B	21.83B	20.86B	19.36B
Net Income	12.68B	12.68B	12.38B	10.68B	9.61B	9.19B
Balance Sheet
Total Assets	221.38B	221.38B	202.19B	185.82B	170.70B	154.44B
Cash, Cash Equivalents and Short-Term Investments	19.85B	19.85B	17.83B	17.03B	15.58B	11.79B
Total Debt	43.70B	43.70B	36.77B	34.51B	35.83B	29.70B
Total Liabilities	100.78B	100.78B	92.26B	85.85B	79.39B	70.79B
Stockholders Equity	120.59B	120.59B	109.92B	99.97B	91.30B	83.65B
Cash Flow
Free Cash Flow	0	-2.27B	4.72B	3.80B	-988.00M	724.00M
Operating Cash Flow	0	20.93B	22.69B	21.06B	15.62B	17.06B
Investing Cash Flow	0	-22.77B	-21.72B	-16.23B	-15.93B	-18.48B
Financing Cash Flow	0	3.78B	-165.00M	-3.38B	4.10B	5.84B

BELC Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:9974 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:8198	71Outperform	JPY 98.65B	12.60	―	2.74%	0.90%	-28.84%
JP:9974	70Outperform	JPY 135.63B	12.18	―	1.97%	4.94%	-9.98%
JP:8194	66Neutral	JPY 213.70B	19.73	―	2.75%	2.59%	0.10%
JP:8167	65Neutral	JPY 60.33B	13.16	―	2.91%	3.50%	-18.66%
JP:2742	63Neutral	JPY 78.02B	8.60	―	1.98%	6.48%	0.54%
JP:9823	56Neutral	JPY 49.36B	8.51	―	2.31%	21.09%	6.94%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:9974 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:9974	BELC Co., Ltd.	6500.00	-614.82	-8.64%
JP:2742	Halows Co., Ltd.	3640.00	-663.41	-15.42%
JP:8167	RETAIL PARTNERS CO., LTD.	1376.00	121.98	9.73%
JP:8194	Life Corporation	2470.00	111.07	4.71%
JP:8198	Maxvalu Tokai Co., Ltd.	3100.00	-316.51	-9.26%
JP:9823	Mammy Mart Corporation	917.00	-634.88	-40.91%

BELC Co., Ltd. Corporate Events

Belc Posts Profit Decline Despite Higher Sales, Keeps Dividend Growth Outlook

Jul 10, 2026

Belc reported consolidated operating income of ¥107.75 billion for the three months ended May 31, 2026, up 3.9% year on year, while operating profit, ordinary profit and profit attributable to owners of parent all declined by around mid-teens pe...

Belc weighs reducing minimum investment unit to broaden investor base

May 20, 2026

Belc Co., Ltd. announced its approach and policy regarding a possible reduction in the minimum investment unit for its shares, in line with Tokyo Stock Exchange regulations. The company views a lower minimum investment amount as a way to broaden inve...

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 06, 2026

BELC Co., Ltd. AI Stock Analysis