Cawachi Limited (2664) AI Stock Analysis

• Market Cap: ¥62.30B
• Dividend Yield: 2.87%
• Average Volume (3M): 42.22K
• Price to Earnings (P/E): 12.8
• Beta (1Y): 0.31
• Revenue Growth: 0.65%
• EPS Growth: 3.63%
• Country: JP
• Employees: 2,722
• Sector: Healthcare
• Sector Strength: 39
• Industry: Medical - Pharmaceuticals
• EPS (TTM): 40.22
• Shares Outstanding: 24,583,420
• 10 Day Avg. Volume: 46,130
• 30 Day Avg. Volume: 42,223
• PEG Ratio: -0.90
• Price to Book (P/B): 0.47
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.43
• 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: ¥3,115.00
• Price Target Upside: 11.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 68 Neutral
• Price Target: ¥3,041.00 ▲(8.96%Upside)

The overall stock score for Cawachi Limited is driven primarily by its solid financial performance, characterized by strong revenue growth and a robust balance sheet. Mixed technical analysis signals and a fair valuation also contribute to the score. However, limited profitability and cash flow challenges are areas that need attention.

Cawachi Limited Business Overview & Revenue Model

Company Description

Cawachi 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 Money

Cawachi 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 shows stable revenue growth and strong cost management, but profitability is limited with a low net profit margin. The balance sheet is robust with low leverage and high equity, indicating financial stability. Cash flow generation is improving, but there's room for better conversion of earnings to free cash flow.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	357.02B	287.82B	285.96B	281.87B	279.46B	284.49B
Gross Profit	82.64B	66.66B	65.80B	64.05B	63.15B	64.68B
EBITDA	13.93B	11.36B	11.49B	10.90B	12.07B	14.96B
Net Income	5.65B	4.88B	4.71B	4.18B	4.83B	7.11B
Balance Sheet
Total Assets	203.18B	199.60B	196.12B	194.50B	191.72B	194.10B
Cash, Cash Equivalents and Short-Term Investments	37.08B	36.67B	35.62B	38.45B	38.96B	41.23B
Total Debt	16.83B	16.60B	16.73B	19.55B	22.92B	26.41B
Total Liabilities	89.67B	85.19B	84.83B	86.77B	87.07B	93.24B
Stockholders Equity	113.51B	114.41B	111.30B	107.72B	104.65B	100.86B
Cash Flow
Free Cash Flow	2.18B	3.40B	1.02B	4.11B	2.37B	12.09B
Operating Cash Flow	2.18B	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: Positive
• Last Price: 2791.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2664, the sentiment is Positive. The current price of 2791 is above the 20-day moving average (MA) of 2765.45, below the 50-day MA of 2792.62, and above the 200-day MA of 2636.54, indicating a neutral trend. The MACD of -7.27 indicates Negative momentum. The RSI at 48.96 is Neutral, neither overbought nor oversold. The STOCH value of 67.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	¥204.20B	14.62		2.10%	8.98%	0.10%
3549	76 Outperform	¥403.36B	21.88		0.36%	14.79%	35.84%
3141	74 Outperform	¥536.40B	29.23		1.40%	7.43%	-24.81%
9989	74 Outperform	¥529.90B	17.13	11.61%	2.87%	6.66%	5.56%
3391	71 Outperform	¥551.46B	25.27	4.93%	3.96%	4.63%	-47.30%
2664	68 Neutral	¥62.30B	12.76		2.87%	0.65%	3.63%
Sector *	64 Neutral	¥340.97B	10.86	-2.99%	2.57%	11.77%	-9.96%

Cawachi Limited Corporate Events

Cawachi Limited Reports Mixed Financial Results for Fiscal Year 2025

Cawachi Limited reported a slight increase in net sales for the fiscal year ending March 15, 2025, with a 0.6% rise to ¥287,816 million. Despite this, the company experienced a decrease in operating and ordinary profits by 1.8% and 3.1% respectively, highlighting challenges in maintaining profitability. The profit attributable to owners of the parent increased by 3.6%, indicating some resilience. The company has maintained its dividend payout, reflecting a stable return for shareholders.

Cawachi Limited Reports Resilient Financial Performance for Fiscal Year 2025

Cawachi Limited reported its consolidated financial results for the fiscal year ending March 15, 2025, showing a slight increase in net sales by 0.6% to ¥287,816 million. Despite a decrease in operating and ordinary profits, the company saw a 3.6% rise in profit attributable to owners of the parent, indicating resilience in its financial performance. The company also maintained its dividend payout, reflecting stability and a commitment to shareholder returns.