ABC MartInc (TSE:2670) Could Be 34% Undervalued As July Sales Momentum Improves

July sales update and why it matters for ABC-MartInc

ABC-MartInc (TSE:2670) released July 2026 sales figures, reporting all stores sales growth of 6.6%, compared with 4.2% a year earlier, and existing stores sales growth of 6.7%, compared with 4.5%.

See our latest analysis for ABC-MartInc.

The latest July sales update comes after a period where ABC-MartInc’s share price has gained 7.73% over 30 days and 6.91% year to date, yet the 1 year total shareholder return has declined 4.15%. This suggests improving short term momentum while the longer term picture remains more moderate.

If this kind of steady consumer demand interests you, it can also be useful to see what else is working in retail and beyond by checking a broader set of quality companies using the 11 top founder-led companies

ABC-MartInc looks like a solid footwear retailer with steady July sales and a share price that has climbed in recent months. The key question now is whether the current valuation still offers enough potential upside relative to the risk.

Preferred Price-to-Earnings of 14.7x for ABC-MartInc: Is it justified?

ABC-MartInc last closed at ¥2,823 and is trading on a P/E of 14.7x. This sits below the estimated fair P/E of 17.3x but above the 13.7x average for the JP Specialty Retail industry and below the 18.6x peer average.

The P/E ratio compares the current share price with the company’s earnings per share. For a retail business like ABC-MartInc, it gives a quick sense of how much investors are currently paying for each unit of earnings.

ABC-MartInc’s P/E of 14.7x is lower than the peer average of 18.6x, which points to a cheaper earnings multiple than similar companies. At the same time, it is higher than the 13.7x industry average, which suggests the market is still willing to pay a premium over the broader Specialty Retail group.

Explore the SWS fair ratio for ABC-MartInc

Result: Price-to-Earnings of 14.7x (UNDERVALUED)

However, investors in ABC-MartInc still face risks from any slowdown in consumer spending or from pressure on margins caused by higher sourcing and operating costs.

Find out about the key risks to this ABC-MartInc narrative.

Another view on ABC-MartInc using our DCF model

The earlier P/E check suggested ABC-MartInc looks inexpensive versus peers. Our DCF model tells a similar story. With the share price at ¥2,823 and an estimated future cash flow value of ¥3,788.62, the stock screens as undervalued on cash flows as well. That raises a simple question: Is the discount compensating you for slower forecast growth?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out ABC-MartInc for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 19 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

Does this mix of opportunity and risk around ABC-MartInc match your own view? Take a closer look at the key data points and move quickly to build your own stance by weighing the 3 key rewards and 1 important warning sign

Looking for more investment ideas beyond ABC-MartInc?

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• Sleep easier at night by checking the 54 resilient stocks with low risk scores that aim for more stable fundamentals and lower overall risk scores.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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