Revenue And Margin RecoverySustained revenue growth coupled with a meaningful net margin expansion implies the core retail operations have recovered structural profitability. That improvement supports durable cash generation potential and funds reinvestment or deleveraging once operating cash conversion catches up with accounting profits.

High Return On EquityA ROE of 25.65% indicates management is effectively deploying shareholders' equity to generate earnings. Persistently high ROE typically reflects competitive advantages or efficient capital allocation, enabling long-term shareholder value creation without excessive equity issuance.

Strong Operating MarginsElevated gross and EBITDA margins point to structural cost control and pricing power in the business model. Durable margins provide resilience to revenue swings, support investment in growth initiatives, and improve ability to service debt over medium term.

Bears Say

Negative Free Cash FlowA large negative FCF and an OCF/net income ratio of 0.37 show reported profits are not yet translating into cash. Persistent cash deficits constrain capex funding, dividends and debt paydown, increasing refinancing risk and limiting strategic optionality over the medium term.

Moderate Leverage And Sizable Debt LoadA debt/equity ratio above 1 indicates meaningful leverage that can magnify earnings volatility and raise interest expense sensitivity. If cash conversion remains weak, this leverage could constrain flexibility for investment, dividend policy, or require equity issuance under stress.

Earnings Volatility (EPS Decline)An extreme negative EPS growth rate signals volatile or previously impaired earnings. Such swings complicate reliable forecasting, raise execution risk for management, and suggest underlying profit drivers need stabilization before relying on sustained earnings improvement.

2687 FAQ

What was CVS Bay Area Inc.’s price range in the past 12 months?

CVS Bay Area Inc. lowest stock price was ¥473.00 and its highest was ¥660.00 in the past 12 months.

What is CVS Bay Area Inc.’s market cap?

CVS Bay Area Inc.’s market cap is ¥2.42B.

When is CVS Bay Area Inc.’s upcoming earnings report date?

CVS Bay Area Inc.’s upcoming earnings report date is Apr 10, 2026 which is in 22 days.

How were CVS Bay Area Inc.’s earnings last quarter?

CVS Bay Area Inc. released its earnings results on Jan 09, 2026. The company reported ¥7.83 earnings per share for the quarter, beating the consensus estimate of N/A by ¥7.83.

Is CVS Bay Area Inc. overvalued?

According to Wall Street analysts CVS Bay Area Inc.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does CVS Bay Area Inc. pay dividends?

CVS Bay Area Inc. pays a Semiannually dividend of ¥10 which represents an annual dividend yield of 4.73%. See more information on CVS Bay Area Inc. dividends here

What is CVS Bay Area Inc.’s EPS estimate?

CVS Bay Area Inc.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does CVS Bay Area Inc. have?

CVS Bay Area Inc. has 5,064,000 shares outstanding.

What happened to CVS Bay Area Inc.’s price movement after its last earnings report?

CVS Bay Area Inc. reported an EPS of ¥7.83 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went down -0.386%.

Which hedge fund is a major shareholder of CVS Bay Area Inc.?

Currently, no hedge funds are holding shares in JP:2687

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

CVS Bay Area Inc.

CVS Bay Area Inc. operates convenience stores under the Lawson brand in Japan. The company also operates hotels under the BAY HOTEL brand name. In addition, it provides various manned front desk and reception/office butler services for companies at condominiums; and cleaning services at convenience stores and condominiums, as well as uniform handles management services for corporations. The company operates 7 convenience stores and 8 hotels. CVS Bay Area Inc. was founded in 1981 and is headquartered in Chiba, Japan.