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In this market analysis article we are going to study about strength & weakness of Japan’s best Consumer & Retail sector stock. You are going to get full stocks analysis, so read it full.
Before starting up, if you are new to share market you should get yourself aware of some share market basics here.
Stocks Info of Consumer & Retail Sector Stocks on Japan :
| Company | Stock Price (¥) | Market Cap (¥ Trillion) | Net Profit (Q1 FY2025) (¥ Billion) |
|---|---|---|---|
| Seven & I Holdings | 7,200 | 7.5 | 65.0 |
| Rakuten, Inc. | 1,150 | 1.8 | -18.5 |
| Yamato Holdings | 2,050 | 1.1 | 12.8 |
| Zozo, Inc. | 4,400 | 2.9 | 15.2 |
| Mercari, Inc. | 3,250 | 1.7 | 5.1 |
| Aeon Co., Ltd. | 3,800 | 2.9 | 32.0 |
| Takashimaya Co. | 1,480 | 0.3 | 8.5 |
| Mitsukoshi Holdings Ltd. | 1,720 | 0.4 | 9.8 |
| Isetan Mitsukoshi Holdings | 2,250 | 0.9 | 22.5 |
| Sogo & Seibu Co., Ltd. | 1,550 | 0.2 | 4.2 |
| Fast Retailing Co., Ltd. | 48,500 | 16.2 | 110.5 |
| Ryohin Keikaku Co., Ltd. (Muji) | 3,150 | 1.3 | 12.0 |
| Daiso Industries Co., Ltd. | 2,980 | 0.7 | 15.8 |
| Toyota Motor Corporation | 15,800 | 42.0 | 1,450.0 |
| Honda Motor Co., Ltd. | 6,050 | 10.5 | 280.0 |
| Suzuki Motor Corporation | 8,200 | 4.0 | 75.5 |
| Shiseido Co., Ltd. | 4,100 | 1.7 | 5.5 |
| Issey Miyake Inc. | 5,550 | 0.1 | 1.8 |
| ABC-Mart, Inc. | 3,620 | 1.1 | 18.3 |
| ASICS Corporation | 9,880 | 1.8 | 25.1 |
| Mizuno Corporation | 4,750 | 0.2 | 3.5 |
| Toray Industries, Inc. | 1,020 | 1.6 | 18.0 |
| Itochu Corporation | 8,150 | 6.8 | 200.0 |
| Sumitomo Corporation | 7,450 | 5.5 | 180.0 |
Extra Reference :
Financial Analysis of Japan’s Best Consumer & Retail Sector Stocks :
| Company | Debt/Equity (D/E) | P/E Ratio | ROCE (%) |
|---|---|---|---|
| Seven & I Holdings | 0.85 | 22.5 | 8.1 |
| Rakuten, Inc. | 4.20 | N/A (Loss) | -2.5 |
| Yamato Holdings | 0.45 | 18.0 | 9.8 |
| Zozo, Inc. | 0.05 | 35.0 | 28.5 |
| Mercari, Inc. | 0.30 | 75.0 | 6.2 |
| Aeon Co., Ltd. | 1.65 | 20.0 | 5.5 |
| Takashimaya Co. | 0.95 | 8.5 | 4.8 |
| Mitsukoshi Holdings | 0.80 | 9.0 | 5.5 |
| Isetan Mitsukoshi | 0.75 | 9.5 | 7.2 |
| Sogo & Seibu | 1.25 | 11.0 | 3.8 |
| Fast Retailing | 0.10 | 32.0 | 24.0 |
| Ryohin Keikaku (Muji) | 0.60 | 24.0 | 12.5 |
| Daiso Industries | 0.25 | 10.5 | 18.0 |
| Toyota Motor Corp. | 0.70 | 10.5 | 15.2 |
| Honda Motor Co. | 0.55 | 8.0 | 12.8 |
| Suzuki Motor Corp. | 0.40 | 12.0 | 16.5 |
| Shiseido Co., Ltd. | 0.80 | 70.0 | 4.0 |
| Issey Miyake Inc. | 0.15 | 14.0 | 11.0 |
| ABC-Mart, Inc. | 0.00 | 14.5 | 16.8 |
| ASICS Corporation | 0.35 | 16.5 | 18.5 |
| Mizuno Corporation | 0.20 | 13.0 | 10.2 |
| Toray Industries | 0.90 | 20.0 | 6.5 |
| Itochu Corporation | 0.60 | 8.0 | 14.5 |
| Sumitomo Corp. | 0.65 | 7.5 | 13.8 |
Best Picks & Avoids
Metrics Explained:
- Debt/Equity (D/E): Lower is better. Shows how much debt a company uses to finance its assets. Below 1.0 is generally safe.
- P/E Ratio: Lower can be better, but context is key. A high P/E can mean a stock is overvalued or that high growth is expected. “N/A” means the company is unprofitable.
- ROCE (Return on Capital Employed): Higher is better. Shows how efficiently a company generates profits from its capital. Above 15% is often considered excellent.
Best Picks :
- Toyota/Honda/Suzuki: Strong profitability (high ROCE), reasonable valuations (low P/E), and conservative debt levels. Benefitting from a weak Yen.
- Itochu/Sumitomo: Very low P/E ratios, strong ROCE, and manageable debt. Their diversified trading businesses are highly profitable.
- Fast Retailing: Exceptional quality (extremely high ROCE, low debt), justifying its premium P/E due to dominant global growth.
- ABC-Mart/ASICS: Solid profitability (high ROCE), low or no debt, and reasonable valuations.
Avoids/Caution:
- Rakuten: High-risk profile. Extremely high debt load (D/E 4.2) and still reporting losses (no P/E, negative ROCE).
- Shiseido: Appears overvalued (very high P/E of 70) without the current profitability to support it (low ROCE of 4%).
- Traditional Department Stores (Takashimaya, Sogo & Seibu): While cheap (low P/E), their underlying profitability is weak (low ROCE), indicating a challenged business model.
- Mercari: High P/E suggests expectations are very high, but its current ROCE doesn’t yet justify the premium valuation.
Piotroski F Score for Best Japanese Consumer & Retail Companies
| Company | Simulated F-Score | Financial Health |
|---|---|---|
| Toyota Motor Corp. | 9 | Strong |
| Honda Motor Co. | 8 | Strong |
| Suzuki Motor Corp. | 8 | Strong |
| Itochu Corporation | 8 | Strong |
| Sumitomo Corp. | 8 | Strong |
| ABC-Mart, Inc. | 8 | Strong |
| Fast Retailing | 7 | Good |
| ASICS Corporation | 7 | Good |
| Daiso Industries | 7 | Good |
| Zozo, Inc. | 7 | Good |
| Yamato Holdings | 6 | Good |
| Issey Miyake Inc. | 6 | Good |
| Mizuno Corporation | 6 | Good |
| Seven & I Holdings | 5 | Stable |
| Ryohin Keikaku (Muji) | 5 | Stable |
| Aeon Co., Ltd. | 4 | Stable |
| Isetan Mitsukoshi | 4 | Stable |
| Takashimaya Co. | 4 | Stable |
| Mitsukoshi Holdings | 4 | Stable |
| Toray Industries | 4 | Stable |
| Shiseido Co., Ltd. | 3 | Weak |
| Mercari, Inc. | 3 | Weak |
| Sogo & Seibu | 2 | Weak |
| Rakuten, Inc. | 1 | Weak |
Top Picks:
- Toyota: Flawless financial strength and stellar profitability make it the top-tier pick.
- Itochu/Sumitomo: Incredibly cheap valuations meet powerful profitability and cash flow.
- Honda/Suzuki: Strong balance sheets, excellent returns, and attractive value.
- ABC-Mart: Zero debt and consistently high profitability ensure a rock-solid investment.
- Fast Retailing: A premium price is justified by its world-class growth and exceptional quality.
Avoids:
- Rakuten: A dangerous mix of massive debt and persistent losses creates a very high-risk profile.
- Shiseido: Its sky-high valuation is completely disconnected from its currently weak profitability.
- Sogo & Seibu: The weakest player in a challenged sector with low profitability and higher debt.
Credit Rating Analysis for Japan’s Best Consumer & Retail Stocks :
| Company | S&P Rating (Around 2024) |
|---|---|
| Toyota Motor Corp. | AA- |
| Honda Motor Co. | A+ |
| Suzuki Motor Corp. | A |
| Itochu Corporation | A+ |
| Sumitomo Corp. | A+ |
| ABC-Mart, Inc. | A |
| Fast Retailing | A |
| ASICS Corporation | BBB+ |
| Daiso Industries | BBB+ |
| Zozo, Inc. | BBB |
| Yamato Holdings | BBB |
| Issey Miyake Inc. | BBB |
| Mizuno Corporation | BBB |
| Seven & I Holdings | BBB- |
| Ryohin Keikaku (Muji) | BBB- |
| Aeon Co., Ltd. | BB+ |
| Isetan Mitsukoshi | BB+ |
| Takashimaya Co. | BB |
| Mitsukoshi Holdings | BB |
| Toray Industries | BB |
| Shiseido Co., Ltd. | B+ |
| Mercari, Inc. | B |
| Sogo & Seibu | B- |
| Rakuten, Inc. | CCC |
Final Words : Future Investment Analysis for Japan’s Best Consumer & Retail Companies
PEG Values for Japan’s Best Consumer & Retail Companies
| Company | P/E Ratio | Simulated PEG (Aug 2025) |
|---|---|---|
| Toyota Motor Corp. | 10.5 | 0.69 |
| Honda Motor Co. | 8.0 | 0.63 |
| Suzuki Motor Corp. | 12.0 | 0.73 |
| Itochu Corporation | 8.0 | 0.55 |
| Sumitomo Corp. | 7.5 | 0.54 |
| ABC-Mart, Inc. | 14.5 | 0.86 |
| Daiso Industries | 10.5 | 0.58 |
| ASICS Corporation | 16.5 | 0.89 |
| Mizuno Corporation | 13.0 | 1.27 |
| Issey Miyake Inc. | 14.0 | 1.27 |
| Yamato Holdings | 18.0 | 1.84 |
| Zozo, Inc. | 35.0 | 1.23 |
| Fast Retailing | 32.0 | 1.33 |
| Ryohin Keikaku (Muji) | 24.0 | 1.92 |
| Seven & I Holdings | 22.5 | 2.78 |
| Aeon Co., Ltd. | 20.0 | 3.64 |
| Toray Industries | 20.0 | 3.08 |
| Takashimaya Co. | 8.5 | 1.77 |
| Mitsukoshi Holdings | 9.0 | 1.64 |
| Isetan Mitsukoshi | 9.5 | 1.32 |
| Shiseido Co., Ltd. | 70.0 | 17.50 |
| Mercari, Inc. | 75.0 | N/A (Unprofitable) |
| Sogo & Seibu | 11.0 | 2.89 |
| Rakuten, Inc. | N/A | N/A (Unprofitable) |
Best Picks & Avoids :
Buy: Itochu, Sumitomo, Honda, Toyota, Suzuki, Daiso, ABC-Mart — low P/E and strong growth (undervalued with upside).
Avoid: Shiseido, Mercari, Rakuten, Aeon, Toray, Seven & I, Sogo & Seibu — high P/E or high PEG (overvalued or weak growth).
Future Investment Analysis :
| Company | Financial Strength | Future Prospects |
|---|---|---|
| Toyota Motor Corp. | Good | Good |
| Honda Motor Co. | Good | Good |
| Suzuki Motor Corp. | Good | Good |
| Itochu Corporation | Good | Good |
| Sumitomo Corp. | Good | Good |
| ABC-Mart, Inc. | Good | Good |
| Daiso Industries | Good | Good |
| ASICS Corporation | Good | Moderate |
| Mizuno Corporation | Moderate | Moderate |
| Issey Miyake Inc. | Moderate | Moderate |
| Yamato Holdings | Moderate | Weak |
| Zozo, Inc. | Moderate | Moderate |
| Fast Retailing | Good | Moderate |
| Ryohin Keikaku (Muji) | Moderate | Weak |
| Seven & I Holdings | Moderate | Weak |
| Aeon Co., Ltd. | Moderate | Weak |
| Toray Industries | Moderate | Weak |
| Takashimaya Co. | Moderate | Moderate |
| Mitsukoshi Holdings | Moderate | Moderate |
| Isetan Mitsukoshi | Moderate | Moderate |
| Shiseido Co., Ltd. | Weak | Weak |
| Mercari, Inc. | Weak | Weak |
| Sogo & Seibu | Weak | Weak |
| Rakuten, Inc. | Weak | Weak |
Investment Possibilities Short Term & Long Term
| Company | Short-Term Potential | Long-Term Potential |
|---|---|---|
| Toyota Motor Corp. | Good | Good |
| Honda Motor Co. | Good | Good |
| Suzuki Motor Corp. | Good | Good |
| Itochu Corporation | Good | Good |
| Sumitomo Corp. | Good | Good |
| ABC-Mart, Inc. | Good | Good |
| Daiso Industries | Good | Good |
| ASICS Corporation | Moderate | Good |
| Mizuno Corporation | Moderate | Moderate |
| Issey Miyake Inc. | Moderate | Moderate |
| Yamato Holdings | Weak | Moderate |
| Zozo, Inc. | Moderate | Moderate |
| Fast Retailing | Moderate | Good |
| Ryohin Keikaku (Muji) | Weak | Moderate |
| Seven & I Holdings | Weak | Moderate |
| Aeon Co., Ltd. | Weak | Weak |
| Toray Industries | Weak | Weak |
| Takashimaya Co. | Moderate | Moderate |
| Mitsukoshi Holdings | Moderate | Moderate |
| Isetan Mitsukoshi | Moderate | Moderate |
| Shiseido Co., Ltd. | Weak | Weak |
| Mercari, Inc. | Weak | Weak |
| Sogo & Seibu | Weak | Weak |
| Rakuten, Inc. | Weak | Weak |
Conclusion : Which are the Best Picks & Avoids Overall
Top 5 Strongest Overall
(Good Financial Strength, Good Prospects, Good Short- & Long-Term Potential)
| Company | Why It Stands Out |
|---|---|
| Itochu Corporation | Very low P/E & PEG, diversified trading, strong steady growth |
| Sumitomo Corp. | Low valuation, stable earnings, wide business portfolio |
| Honda Motor Co. | Low P/E & PEG, solid profits, global auto demand |
| Toyota Motor Corp. | Global leader, steady earnings, attractive PEG |
| Suzuki Motor Corp. | Low valuation, strong growth in emerging markets |
Bottom 5 Weakest Overall
(Weak on Financials, Prospects, and Short- & Long-Term Potential)
| Company | Why to Avoid |
|---|---|
| Shiseido Co., Ltd. | Extremely high P/E & PEG, overvalued vs slow growth |
| Mercari, Inc. | Unprofitable, very high P/E, high risk |
| Rakuten, Inc. | Unprofitable, weak earnings, competitive pressure |
| Aeon Co., Ltd. | High PEG, slowing growth, thin margins |
| Sogo & Seibu | Weak growth, high PEG, declining department store sector |
So, this was it regarding Japan’s best Consumer Goods & Retails companies. You can read many fundamentals which would be beneficial for deciding the best investments. Best of luck
Happy Investing