Diversified Dealership Revenue StreamsCarchs' operating model combines new/used vehicle sales with after-sales service and finance/insurance ancillary revenue. These multiple, complementary streams are structurally durable: after-sales and F&I typically deliver higher recurring margins and help stabilize cash flow through vehicle sales cycles.

Strong Equity PositionA high equity ratio provides a lasting capital buffer to absorb operating losses and supports operating subsidiaries that need inventory and floorplan financing. This structural strength improves access to credit and cushions the business during cyclical auto retail downturns.

Low Historical VolatilityThe company’s low beta reflects historically muted sensitivity to market swings, suggesting underlying business cash flows and earnings are less volatile. For a dealership group, lower operational volatility aids planning, working-capital management, and steadier execution of long-term strategies.

Bears Say

Persistent UnprofitabilitySustained negative operating profits and shrinking gross margins signal structural cost or pricing pressures. Persistent losses erode retained earnings, reduce reinvestment capacity, and can limit strategic options like network expansion or technology upgrades without external capital.

Negative Operating And Free Cash FlowChronic negative operating and free cash flow undermines the firm’s ability to fund working capital, maintenance capex, and dealer inventory without relying on external financing. Over months, this pressure can force cost cuts, asset sales, or equity/debt raises that dilute strategy execution.

Rising Leverage And Declining LiquidityIncreasing leverage alongside falling cash reserves raises interest and refinancing risk, especially if profitability does not recover. Structurally, higher fixed obligations reduce financial flexibility to invest in service networks or absorb demand shocks in the auto retail cycle.

7602 FAQ

What was Carchs Holdings Co., Ltd.’s price range in the past 12 months?

Carchs Holdings Co., Ltd. lowest stock price was ¥117.00 and its highest was ¥388.00 in the past 12 months.

What is Carchs Holdings Co., Ltd.’s market cap?

Carchs Holdings Co., Ltd.’s market cap is ¥5.42B.

When is Carchs Holdings Co., Ltd.’s upcoming earnings report date?

Carchs Holdings Co., Ltd.’s upcoming earnings report date is May 20, 2026 which is in 93 days.

How were Carchs Holdings Co., Ltd.’s earnings last quarter?

Carchs Holdings Co., Ltd. released its earnings results on Feb 10, 2026. The company reported -¥4.18 earnings per share for the quarter, missing the consensus estimate of N/A by -¥4.18.

Is Carchs Holdings Co., Ltd. overvalued?

According to Wall Street analysts Carchs Holdings Co., Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Carchs Holdings Co., Ltd. pay dividends?

Carchs Holdings Co., Ltd. pays a Annually dividend of ¥3 which represents an annual dividend yield of 1.08%. See more information on Carchs Holdings Co., Ltd. dividends here

What is Carchs Holdings Co., Ltd.’s EPS estimate?

Carchs Holdings Co., Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Carchs Holdings Co., Ltd. have?

Carchs Holdings Co., Ltd. has 24,106,009 shares outstanding.

What happened to Carchs Holdings Co., Ltd.’s price movement after its last earnings report?

Carchs Holdings Co., Ltd. reported an EPS of -¥4.18 in its last earnings report, missing expectations of N/A. Following the earnings report the stock price went down -0.752%.

Which hedge fund is a major shareholder of Carchs Holdings Co., Ltd.?

Currently, no hedge funds are holding shares in JP:7602

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

Carchs Holdings Co., Ltd.

Ledax Co., Ltd. engages in the management of its subsidiaries which are involved in the automobile business. Its services include purchase, sale, and distribution of cars. The company was founded on December 10, 1987 and is headquartered in Tokyo, Japan.