istyle (TSE:3660) - Share price, News & Analysis

Q: What is the Fair Price of 3660 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

3660 (¥284) is trading above our estimate of [[fair value]] (¥183.11)

3660 fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	4/6
Past Performance	2/6
Financial Health	2/6
Dividends	0/6

3660 Stock Overview

istyle Inc. operates a beauty portal site @cosme in Japan and internationally.

Rewards

Price-To-Earnings ratio (17.6x) is below the Online Retail industry average (18.6x)

Earnings are forecast to grow 41.42% per year

Became profitable this year

Risk Analysis

Debt is not well covered by operating cash flow

Highly volatile share price over the past 3 months

Large one-off items impacting financial results

istyle Competitors

CrowdWorks

TSE:3900

JP¥23.6b

Hamee

TSE:3134

JP¥18.0b

LOCONDO

TSE:3558

JP¥14.1b

BEENOS

TSE:3328

JP¥25.2b

Price History & Performance

Summary of all time highs, changes and price drops for istyle
Historical stock prices
Current Share Price	JP¥284.00
52 Week High	JP¥480.00
52 Week Low	JP¥147.00
Beta	1.75
1 Month Change	20.34%
3 Month Change	79.75%
1 Year Change	-33.49%
3 Year Change	-52.67%
5 Year Change	-58.30%
Change since IPO	61.02%

Shareholder Returns

	3660	JP Online Retail	JP Market
7D	2.9%	4.8%	0.5%
1Y	-33.5%	-37.1%	-0.09%

Return vs Industry: 3660 exceeded the JP Online Retail industry which returned -37.1% over the past year.

Return vs Market: 3660 underperformed the JP Market which returned -0.1% over the past year.

Price Volatility

Is 3660's price volatile compared to industry and market?
3660 volatility
3660 Average Weekly Movement	8.9%
Online Retail Industry Average Movement	6.2%
Market Average Movement	3.9%
10% most volatile stocks in JP Market	8.1%
10% least volatile stocks in JP Market	2.1%

Stable Share Price: 3660 is more volatile than 90% of JP stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: 3660's weekly volatility (9%) has been stable over the past year, but is still higher than 75% of JP stocks.

About the Company

Founded	Employees	CEO	Website
1999	1,009	Tetsuro Yoshimatsu	https://www.istyle.co.jp

istyle Inc. operates a beauty portal site @cosme in Japan and internationally. The company also operates @cosme shopping, a cosmetics e-commerce site; @cosme store, a cosmetics specialty shop; @cosme Career, a job listing site for the cosmetics and beauty industries; Mogu-Navi, a food information site; Kusupa, a cooking school portal site; @cosme point, a site on which users can earn points; @cosme Q&A, a site at which members can share knowledge and tips on cosmetics and beauty; BLOOMBOX by @cosme, a service where beauty advisors curate a selection of beauty product samples for monthly delivery; Cooking School Park, an information site for cooking, baking, and confectionery classes; and 1dp, a platform that provides one-week diet plans based on user lifestyles and preferences. In addition, it operates @cosme blog, a beauty blog site for beauty gurus and professionals to share information; eatsmart, a food and health site; BeautyTech.jp, a digital magazine; MakeupAlley, a beauty community site; and @cosmo nippon that provides feedback posted to @cosme.

istyle Fundamentals Summary

How do istyle's earnings and revenue compare to its market cap?
3660 fundamental statistics
Market Cap	JP¥20.29b
Earnings (TTM)	JP¥1.15b
Revenue (TTM)	JP¥33.23b

17.6x

P/E Ratio

0.6x

P/S Ratio

Is 3660 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
3660 income statement (TTM)
Revenue	JP¥33.23b
Cost of Revenue	JP¥17.90b
Gross Profit	JP¥15.33b
Other Expenses	JP¥14.18b
Earnings	JP¥1.15b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 15, 2022

Earnings per share (EPS)	16.11
Gross Margin	46.13%
Net Profit Margin	3.46%
Debt/Equity Ratio	124.7%

How did 3660 perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is 3660 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 3660?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 3660. This is calculated by dividing 3660's market cap by their current preferred multiple.
What is 3660's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	JP¥20.29b

3660 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.7x
Enterprise Value/EBITDA	29.6x
PEG Ratio	0.4x

Price to Earnings Ratio vs Peers

How does 3660's PE Ratio compare to its peers?

3660 PE Ratio vs Peers

The above table shows the PE ratio for 3660 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	33x
3900 CrowdWorks	29.9x	n/a	JP¥23.6b
3134 Hamee	10.3x	5.0%	JP¥18.0b
3558 LOCONDO	11.3x	n/a	JP¥14.1b
3328 BEENOS	80.3x	72.0%	JP¥25.2b
3660 istyle	17.6x	41.4%	JP¥20.3b

Price-To-Earnings vs Peers: 3660 is good value based on its Price-To-Earnings Ratio (17.6x) compared to the peer average (33x).

Price to Earnings Ratio vs Industry

How does 3660's PE Ratio compare vs other companies in the JP Online Retail Industry?

Price-To-Earnings vs Industry: 3660 is good value based on its Price-To-Earnings Ratio (17.6x) compared to the JP Online Retail industry average (18.6x)

Price to Earnings Ratio vs Fair Ratio

What is 3660's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

3660 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	17.6x
Fair PE Ratio	24.6x

Price-To-Earnings vs Fair Ratio: 3660 is good value based on its Price-To-Earnings Ratio (17.6x) compared to the estimated Fair Price-To-Earnings Ratio (24.6x).

Share Price vs Fair Value

What is the Fair Price of 3660 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 3660 (¥284) is trading above our estimate of fair value (¥183.11)

Significantly Below Fair Value: 3660 is trading above our estimate of fair value.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

Discover undervalued companies

Future Growth

How is istyle forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

41.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3660's forecast earnings growth (41.4% per year) is above the savings rate (0.04%).

Earnings vs Market: 3660's earnings (41.4% per year) are forecast to grow faster than the JP market (8.6% per year).

High Growth Earnings: 3660's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 3660's revenue (13.5% per year) is forecast to grow faster than the JP market (4.4% per year).

High Growth Revenue: 3660's revenue (13.5% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 3660's Return on Equity is forecast to be low in 3 years time (8.7%).

Discover growth companies

Past Performance

How has istyle performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-31.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 3660 has a large one-off gain of ¥1.7B impacting its March 31 2022 financial results.

Growing Profit Margin: 3660 became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: 3660 has become profitable over the past 5 years, growing earnings by -31.6% per year.

Accelerating Growth: 3660 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 3660 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Online Retail industry (-11.5%).

Return on Equity

High ROE: 3660's Return on Equity (14%) is considered low.

Discover strong past performing companies

Financial Health

How is istyle's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 3660's short term assets (¥13.3B) exceed its short term liabilities (¥12.5B).

Long Term Liabilities: 3660's short term assets (¥13.3B) exceed its long term liabilities (¥1.9B).

Debt to Equity History and Analysis

Debt Level: 3660's net debt to equity ratio (45.7%) is considered high.

Reducing Debt: 3660's debt to equity ratio has increased from 70.1% to 124.7% over the past 5 years.

Debt Coverage: 3660's debt is not well covered by operating cash flow (16.4%).

Interest Coverage: Insufficient data to determine if 3660's interest payments on its debt are well covered by EBIT.

Balance Sheet

Discover healthy companies

Dividend

What is istyle current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate 3660's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 3660's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 3660's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 3660's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: 3660 is not paying a notable dividend for the JP market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as 3660 has not reported any payouts.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure

CEO

Tetsuro Yoshimatsu (50 yo)

22.33yrs

Tenure

Mr. Tetsuro Yoshimatsu serves as the Chief Executive Officer of istyle, Inc and has been its President since April 2000. Mr. Yoshimatsu established istyle, Ltd. (now istyle, Inc.) in July 1999.He establis...

Leadership Team

Experienced Management: 3660's management team is considered experienced (2.8 years average tenure).

Board Members

Experienced Board: 3660's board of directors are seasoned and experienced ( 14.5 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/08/06 00:00
End of Day Share Price	2022/08/05 00:00
Earnings	2022/03/31
Annual Earnings	2021/06/30