Cawachi Limited (2664) AI Stock Analysis

• Market Cap: ¥64.69B
• Dividend Yield: 2.76%
• Average Volume (3M): 35.49K
• Price to Earnings (P/E): 14.0
• Beta (1Y): 0.32
• Revenue Growth: -0.56%
• EPS Growth: 5.59%
• Country: JP
• Employees: 2,722
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Pharmaceuticals
• EPS (TTM): 63.26
• Shares Outstanding: 24,583,420
• 10 Day Avg. Volume: 30,120
• 30 Day Avg. Volume: 35,490
• PEG Ratio: 3.54
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 0.22
• P/FCF Ratio: 18.47
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥3,109.00 ▲(7.28% Upside)

Cawachi Limited's strong financial position and reasonable valuation are the primary strengths, contributing to a solid overall score. The technical analysis indicates stability but lacks strong momentum, while the absence of earnings call and corporate events data limits additional insights.

Positive Factors

Revenue Growth

Stable revenue growth indicates consistent demand for Cawachi's products, supporting long-term business sustainability and market presence.

Balance Sheet Strength

Low leverage and high equity reflect financial stability, allowing Cawachi to invest in growth opportunities and withstand economic fluctuations.

Cash Flow Improvement

Improved free cash flow enhances financial flexibility, enabling Cawachi to fund operations, reduce debt, and invest in strategic initiatives.

Negative Factors

Profitability Concerns

Low net profit margins indicate challenges in converting revenue into profit, potentially impacting long-term financial health and investor returns.

Cash Flow Conversion

Challenges in converting income to free cash flow may limit Cawachi's ability to reinvest in the business and manage financial obligations effectively.

Operational Efficiency

Low EBIT margins suggest limited operational efficiency, which could hinder Cawachi's ability to improve profitability and competitive positioning.

Cawachi Limited Business Overview & Revenue Model

Company Description

Cawachi Limited (2664) is a prominent player in the retail sector, primarily engaged in the sale of a wide range of consumer products including household goods, personal care items, and electronics. The company operates a network of retail outlets and an online platform, catering to diverse customer needs and preferences. With a focus on quality and affordability, Cawachi Limited aims to enhance the shopping experience through competitive pricing and a comprehensive product assortment.

How the Company Makes Money

Cawachi Limited generates revenue through multiple streams, predominantly from the direct sale of products in its retail stores and online platforms. The company employs a retail model that emphasizes volume sales, leveraging its extensive product range to attract a broad customer base. Additionally, Cawachi Limited may benefit from supplier partnerships that allow for favorable purchasing terms, enhancing profit margins. Seasonal promotions and discounts also play a critical role in driving sales, especially during peak shopping periods. Furthermore, the company may engage in loyalty programs, which encourage repeat business and customer retention, contributing to consistent income generation.

Cawachi Limited Financial Statement Overview

Summary

Cawachi Limited demonstrates stable revenue growth and strong cost control, with a solid balance sheet indicating low leverage and high equity. However, profitability and cash flow efficiency need improvement.

Income Statement

Cawachi Limited's income statement shows a stable revenue growth with a 0.65% increase from the previous year. The gross profit margin is consistent at around 23.2%, indicating strong cost management and efficiency. However, the net profit margin is relatively low at approximately 1.7%, suggesting limited profitability. The EBIT margin is low at 2.6%, but the EBITDA margin is slightly better at 3.9%, showcasing some operational efficiency. Overall, the company demonstrates stable revenue growth and strong cost control, but profitability remains a concern.

Balance Sheet

The balance sheet of Cawachi Limited displays a solid financial structure with a debt-to-equity ratio of 0.15, indicating low leverage. The return on equity is stable at 4.3%, showing efficient use of equity to generate profits. The equity ratio is strong at 57.3%, reflecting financial stability and a low reliance on debt. Overall, the balance sheet indicates a strong financial position with low leverage and high equity.

Cash Flow

Cawachi Limited's cash flow statement shows a significant improvement in free cash flow, with a growth rate of 232.5% from the previous year. The operating cash flow to net income ratio is 1.53, demonstrating strong cash generation relative to net income. However, the free cash flow to net income ratio is lower at 0.70, indicating some challenges in converting income into free cash flow. The cash flow position is improving, but there remains room for better conversion of earnings to free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	287.50B	287.82B	285.96B	281.87B	279.46B	284.49B
Gross Profit	66.44B	66.66B	65.80B	64.05B	63.15B	64.68B
EBITDA	10.85B	11.36B	11.49B	10.90B	12.16B	15.17B
Net Income	4.75B	4.88B	4.71B	4.18B	4.83B	7.11B
Balance Sheet
Total Assets	203.63B	199.60B	196.12B	194.50B	191.72B	194.10B
Cash, Cash Equivalents and Short-Term Investments	40.72B	36.67B	35.62B	38.45B	38.96B	41.23B
Total Debt	17.92B	16.60B	16.73B	19.55B	22.92B	26.41B
Total Liabilities	89.95B	85.19B	84.83B	86.77B	87.07B	93.24B
Stockholders Equity	113.68B	114.41B	111.30B	107.72B	104.65B	100.86B
Cash Flow
Free Cash Flow	0.00	3.40B	1.02B	4.11B	2.37B	12.09B
Operating Cash Flow	0.00	7.48B	6.40B	9.82B	6.87B	15.27B
Investing Cash Flow	0.00	-4.51B	-5.29B	-5.84B	-4.54B	-3.15B
Financing Cash Flow	0.00	-1.92B	-3.94B	-4.49B	-4.61B	-3.98B

Cawachi Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2898.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2664, the sentiment is Negative. The current price of 2898 is below the 20-day moving average (MA) of 2969.65, below the 50-day MA of 2961.02, and above the 200-day MA of 2844.93, indicating a neutral trend. The MACD of -21.38 indicates Positive momentum. The RSI at 38.88 is Neutral, neither overbought nor oversold. The STOCH value of 12.92 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2664.

Cawachi Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3148	78 Outperform	¥209.89B	13.19	―	2.38%	7.55%	16.01%
2664	72 Outperform	¥64.69B	13.99	―	2.76%	-0.56%	5.59%
3141	72 Outperform	¥646.79B	33.60	―	1.14%	7.79%	-13.09%
9989	69 Neutral	¥501.95B	15.82	11.50%	3.03%	6.32%	8.19%
3391	67 Neutral	¥1.26T	31.14	―	1.76%	―	―
3549	67 Neutral	¥349.19B	21.30	―	0.41%	15.81%	27.05%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Cawachi Limited Corporate Events

Cawachi Limited Revises Earnings and Dividend Forecasts Amid Market Challenges

Cawachi Limited has announced corrections to its previously issued earnings and dividend forecasts for the fiscal year, highlighting challenges such as a decline in consumer sentiment due to rising prices and increased competition. These adjustments reflect the company’s response to lower-than-expected net sales and fluctuating expenses, which may impact its financial performance and stakeholder expectations.

Cawachi Limited Revises Earnings and Dividend Forecast Amid Market Challenges

Cawachi Limited has revised its full-year earnings forecast for the fiscal year ending March 2026, citing a decline in consumer sentiment and increased competition as reasons for lower-than-expected sales and profits. Despite these challenges, the company has announced a revised dividend forecast, including a commemorative dividend to mark its 65th anniversary, reflecting its commitment to returning profits to shareholders and ensuring stable growth.

Cawachi Limited Reports Decline in Financial Performance but Increases Dividend Forecast

Cawachi Limited reported a decline in its financial performance for the six months ending September 15, 2025, with net sales and profits showing a year-on-year decrease. Despite the downturn, the company has revised its dividend forecast upwards, indicating a potential strategic shift to maintain shareholder value amidst challenging market conditions.