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Cawachi Limited (JP:2664)
:2664
Japanese Market
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Cawachi Limited (2664) AI Stock Analysis

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JP:2664

Cawachi Limited

(2664)

Rating:71Outperform
Price Target:
¥3,094.00
▲(10.50%Upside)
Cawachi Limited demonstrates solid financial performance with strong revenue growth and a robust balance sheet. Technical analysis indicates stable price levels with potential undervaluation. The valuation is fair, supported by an attractive dividend yield. Profitability and cash flow efficiency are areas for improvement.

Cawachi Limited (2664) vs. iShares MSCI Japan ETF (EWJ)

Cawachi Limited Business Overview & Revenue Model

Company DescriptionCawachi Limited (2664) is a Japanese retail company that operates a chain of drugstores across Japan. The company focuses on providing a wide range of pharmaceutical products, health and beauty goods, and daily necessities to its customers. Cawachi Limited has positioned itself as a convenient one-stop shop for health-related products and services, catering to a broad demographic within the Japanese market.
How the Company Makes MoneyCawachi Limited generates revenue primarily through the sale of pharmaceutical products, over-the-counter medications, cosmetics, and daily necessities in its retail stores. The company benefits from a diverse product offering that attracts a wide customer base, including individuals seeking prescription medications and those in need of everyday health and beauty products. Revenue is primarily driven by in-store sales, but the company also leverages online sales channels to reach a broader audience. Strategic partnerships with suppliers and manufacturers allow Cawachi Limited to maintain a competitive pricing strategy, further enhancing its profitability. Additionally, the company may engage in loyalty programs or promotions to boost sales and customer retention.

Cawachi Limited Financial Statement Overview

Summary
Cawachi Limited presents strong revenue growth with efficient cost management. The balance sheet is robust with low leverage and high equity, indicating financial stability. However, profitability is limited, and cash flow efficiency could be improved.
Income Statement
78
Positive
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
85
Very Positive
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
72
Positive
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue287.82B285.96B281.87B279.46B284.49B
Gross Profit66.66B65.80B64.05B63.15B64.68B
EBITDA11.36B11.49B10.90B12.07B14.96B
Net Income4.88B4.71B4.18B4.83B7.11B
Balance Sheet
Total Assets199.60B196.12B194.50B191.72B194.10B
Cash, Cash Equivalents and Short-Term Investments36.67B35.62B38.45B38.96B41.23B
Total Debt16.60B16.73B19.55B22.92B26.41B
Total Liabilities85.19B84.83B86.77B87.07B93.24B
Stockholders Equity114.41B111.30B107.72B104.65B100.86B
Cash Flow
Free Cash Flow3.40B1.02B4.11B2.37B12.09B
Operating Cash Flow7.48B6.40B9.82B6.87B15.27B
Investing Cash Flow-4.51B-5.29B-5.84B-4.54B-3.15B
Financing Cash Flow-1.92B-3.94B-4.49B-4.61B-3.98B

Cawachi Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2800.00
Price Trends
50DMA
2789.26
Negative
100DMA
2804.34
Negative
200DMA
2651.90
Positive
Market Momentum
MACD
-6.94
Positive
RSI
40.20
Neutral
STOCH
6.98
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 2800 is above the 20-day moving average (MA) of 2793.30, above the 50-day MA of 2789.26, and above the 200-day MA of 2651.90, indicating a neutral trend. The MACD of -6.94 indicates Positive momentum. The RSI at 40.20 is Neutral, neither overbought nor oversold. The STOCH value of 6.98 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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥223.79B14.58
1.92%8.98%0.10%
76
Outperform
¥432.05B23.44
0.34%14.79%35.84%
74
Outperform
¥535.77B29.19
1.40%7.43%-24.81%
73
Outperform
¥532.59B17.3311.61%2.90%6.66%5.56%
71
Outperform
$547.77B25.094.93%2.40%4.63%-47.30%
71
Outperform
¥62.50B13.17
2.91%0.27%3.69%
65
Neutral
¥351.75B9.37-3.15%2.47%11.67%-10.80%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2664
Cawachi Limited
2,800.00
450.69
19.18%
JP:3141
Welcia Holdings Co., Ltd.
2,570.50
718.13
38.77%
JP:3148
Create SD Holdings Co., Ltd.
3,515.00
600.92
20.62%
JP:3549
KUSURI NO AOKI HOLDINGS CO.,LTD.
4,120.00
1,361.91
49.38%
JP:9989
Sundrug Co
4,588.00
949.24
26.09%
JP:3391
TSURUHA Holdings
11,290.00
3,428.38
43.61%

Cawachi Limited Corporate Events

Cawachi Limited Reports Decline in Quarterly Profits Amid Stable Financial Position
Jul 24, 2025

Cawachi Limited reported a slight decrease in net sales and a significant drop in operating and ordinary profits for the three months ending June 15, 2025, compared to the same period in 2024. Despite these declines, the company maintains a stable financial position with a high equity-to-asset ratio. The forecast for the fiscal year ending March 2026 shows a modest increase in net sales and profits, indicating cautious optimism for future growth.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 02, 2025