Breaking Down Joyful Honda Co., Ltd. Financial Health: Key Insights for Investors

Investors seeking a concise, number-driven snapshot of Joyful Honda Co., Ltd. (3191.T) will want to dig into how the retailer reported net sales of ¥135.74 billion for the fiscal year ending June 20, 2025-up 1.81% from ¥133.33 billion-while trailing twelve‑month revenue sits at ¥135.33 billion, even as Q3 revenue fell 9.33% YoY to ¥33.85 billion; profitability shows stability with an operating margin of 8.3% and ROE of 6.9% (down from 7.6%), earnings of ¥133.69 per share (P/E 15.90), and a strong liquidity position highlighted by net cash of ¥21.53 billion (cash and marketable securities ¥32.19 billion vs. total debt ¥10.66 billion), while the board has raised the annual dividend to ¥84 per share (yield ~3.97%), making valuation metrics-market cap ~¥128.12 billion, P/S 0.95-paired with conservative debt (D/E 13.21%) and a ¥58.61 million revenue per employee (2,309 employees) critical touchpoints to consider before exploring the company's medium‑term plan, store strategy, and operational risks in the full analysis.

Joyful Honda Co., Ltd. (3191.T) - Revenue Analysis

• FY2025 net sales: 135.74 billion yen (+1.81% vs FY2024)
• FY2024 net sales: 133.33 billion yen (prior year showed -12.93% YoY)
• Q3 (ending Sep 20, 2025) revenue: 33.85 billion yen (-9.33% YoY)
• TTM revenue: 135.33 billion yen (-12.68% YoY)
• Revenue per employee: ~58.61 million yen (2,309 employees)
• Price-to-Sales (P/S) ratio: 0.95

• Quarterly volatility: Q3 YoY drop of 9.33% signals near-term demand softness.
• TTM decline (-12.68%) vs FY2025 headline growth suggests one-off timing or seasonal factors affecting recent revenue.
• Revenue per employee (≈58.61M JPY) provides a productivity benchmark versus peers in retail/home improvement.
• P/S of 0.95 reflects conservative market valuation relative to revenue generation.

Joyful Honda Co., Ltd. (3191.T) - Profitability Metrics

Key profitability indicators for Joyful Honda Co., Ltd. (3191.T) show stable operating efficiency with slight compression in shareholder returns. The figures below summarize the most recent fiscal-year comparisons and market-relative earnings metrics.

• Operating profit margin (FY2025): 8.3% (FY2024: 8.3%)
• Ordinary profit to total assets ratio (FY2025): 7.3% (FY2024: 7.3%)
• Return on equity (ROE) (FY2025): 6.9% (FY2024: 7.6%)
• Net profit margin (FY2025): not specified in available data
• Annual dividend: FY2025: 32.0 yen per share; announced FY2026: 84.0 yen per share
• Earnings per share (TTM): 133.69 yen; Price-to-earnings (P/E) ratio: 15.90

The stability in operating margin and asset-based profitability suggests consistent core operations, while the decline in ROE indicates modestly lower returns to equity holders year-over-year. The announced dividend increase to 84 yen per share for FY2026 signals a material change in cash return policy relative to FY2025's 32 yen per share. For broader investor context, see Exploring Joyful Honda Co., Ltd. Investor Profile: Who's Buying and Why?

Joyful Honda Co., Ltd. (3191.T) - Debt vs. Equity Structure

Joyful Honda presents a conservative capital structure with a clear net cash position and low leverage metrics relative to many retail peers.

• Debt-to-equity ratio: 13.21% - indicates low leverage.
• Net cash position: ¥21.53 billion.
• Cash & marketable securities: ¥32.19 billion.
• Total debt: ¥10.66 billion.
• Net cash per share: ¥337.57.

Key implications for investors:

• Low leverage reduces solvency risk and provides flexibility for capex, dividends, or buybacks.
• Significant cash and marketable securities support liquidity and short-term obligations.
• Absent coverage and EV multiples limit deeper leverage-efficiency and valuation comparisons; consider supplementing with up-to-date financial statements.

Related governance and strategic context: Mission Statement, Vision, & Core Values (2026) of Joyful Honda Co., Ltd.

Joyful Honda Co., Ltd. (3191.T) - Liquidity and Solvency

• Cash and cash equivalents (FY end June 20, 2025): ¥32.218 billion
• Net cash position: ¥21.53 billion (cash minus interest-bearing debt)
• Operating cash flows (FY): ¥9.069 billion (cash inflow)
• Investing cash flows (FY): -¥2.334 billion (net cash outflow)
• Financing cash flows (FY): -¥2.032 billion (net repayments/distributions)
• Current and quick ratios: not specified in available data

• Positive operating cash flow of ¥9.069bn supports ongoing working capital and capex needs.
• Investing outflow (-¥2.334bn) indicates reinvestment into business or assets rather than liquidity drain.
• Financing outflow (-¥2.032bn) is consistent with debt reduction or shareholder distributions, reinforcing solvency.
• With ¥32.218bn in cash and a net cash position of ¥21.53bn, the company is positioned to absorb short-term shocks despite unspecified current/quick ratios.

Joyful Honda Co., Ltd. (3191.T) - Valuation Analysis

• Market capitalization: 128.12 billion yen
• P/E ratio: 15.90 - indicates a moderate premium relative to current earnings
• P/S ratio: 0.95 - the market values the company at slightly less than one times annual revenue
• Net cash per share: 337.57 yen - reflects a strong liquidity buffer on a per-share basis
• Annual dividend: 84 yen per share; dividend yield: 3.97% - a meaningful cash return to shareholders
• EV/EBITDA: not available; EV/Free Cash Flow: not available - enterprise-value based multiples are currently not reported

• Interpretation: the P/E of 15.9 combined with a sub-1 P/S suggests earnings and revenue are being valued conservatively relative to many growth retailers.
• Liquidity and shareholder return: net cash of 337.57 yen per share plus a 3.97% yield increases the attractiveness for income and capital-preservation investors.
• Missing EV multiples limit enterprise-level comparisons; consider supplementing with operating cash flow and EBITDA disclosures when available.

Joyful Honda Co., Ltd. (3191.T) Risk Factors

Joyful Honda reported a slight decline in key quarterly metrics for the three months ended September 20, 2025, reflecting a mix of market and operational headwinds that investors should weigh carefully.

• Net sales for the quarter: ¥128.3 billion, down 1.8% year‑on‑year.
• Operating profit for the quarter: ¥5.4 billion, down 3.2% year‑on‑year.
• Despite growth in some sales categories, overall profit compression was driven by higher operating costs and margin pressure.

Key risk drivers and contextual factors:

• Market and consumer behavior shifts: Reduced discretionary spending and changing preferences for online vs. in-store purchases can depress traffic and average transaction values.
• Operational challenges: Higher logistics, labor and store operating costs have offset gains in certain product categories, squeezing operating income even where sales rose.
• Raw material and supply chain volatility: Fluctuating prices for timber, steel, plastics and appliances, plus potential delays or shortages, could raise COGS and inventory carrying costs.
• Competitive pressure: Rival home‑improvement and lifestyle retailers (brick‑and‑mortar and e‑commerce) may force margin concessions or higher marketing spend to retain market share.
• Regulatory and compliance risks: Changes in retail regulations, labor laws, product safety standards, or environmental compliance can increase expense and limit flexibility.
• Macroeconomic sensitivity: A slowdown in Japan's consumer spending, higher interest rates, or unfavorable FX moves (for imported goods) would negatively impact profitability.

Operational items investors should monitor closely:

• Inventory turns and ageing - rising inventories can signal weak demand or procurement mismatches.
• SG&A trends - increases in staffing, logistics and promotion expenses relative to sales.
• Category mix - reliance on lower‑margin categories amplifies sensitivity to cost inflation.
• Capital expenditure and new store openings - expansion that misses ROI targets could depress returns.

For a broader investor context and shareholder mix, see: Exploring Joyful Honda Co., Ltd. Investor Profile: Who's Buying and Why?

Joyful Honda Co., Ltd. (3191.T) - Growth Opportunities

• Medium-Term Plan period: fiscal years ending June 2026-June 2028.
• 50th anniversary milestone: 2025 (potential lift in brand recognition and loyalty).
• Store footprint: approximately 70 stores nationwide (large-category home center format and smaller specialty formats).
• Digital initiatives: rollout of online payments, in-store digital checkout enhancements, and mobile customer touchpoints.
• New formats under consideration: stand-alone specialty stores and optimized store layouts for higher SKU productivity.
• Sustainability & community: enhanced ESG reporting, local community programs, and store-level energy/sustainability measures.

• Operational focus: improve same-store sales through merchandising and service enhancements rather than purely adding locations.
• Customer experience: leveraging the 50th anniversary for targeted campaigns, loyalty drives, and community events to convert awareness into repeat visits.
• Risk/return: diversification into specialty stores and digital channels reduces dependence on large-format foot traffic but requires disciplined investment and rollout metrics.