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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)

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Outperform 72 (OpenAI - 4o)
Rating:72Outperform
Price Target:
¥3,109.00
▲(6.25% 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.

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

Cawachi Limited Business Overview & Revenue Model

Company DescriptionCawachi 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 MoneyCawachi 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
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue287.50B287.82B285.96B281.87B279.46B284.49B
Gross Profit66.44B66.66B65.80B64.05B63.15B64.68B
EBITDA10.85B11.36B11.49B10.90B12.16B15.17B
Net Income4.75B4.88B4.71B4.18B4.83B7.11B
Balance Sheet
Total Assets203.63B199.60B196.12B194.50B191.72B194.10B
Cash, Cash Equivalents and Short-Term Investments40.72B36.67B35.62B38.45B38.96B41.23B
Total Debt17.92B16.60B16.73B19.55B22.92B26.41B
Total Liabilities89.95B85.19B84.83B86.77B87.07B93.24B
Stockholders Equity113.68B114.41B111.30B107.72B104.65B100.86B
Cash Flow
Free Cash Flow0.003.40B1.02B4.11B2.37B12.09B
Operating Cash Flow0.007.48B6.40B9.82B6.87B15.27B
Investing Cash Flow0.00-4.51B-5.29B-5.84B-4.54B-3.15B
Financing Cash Flow0.00-1.92B-3.94B-4.49B-4.61B-3.98B

Cawachi Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2926.00
Price Trends
50DMA
2880.32
Positive
100DMA
2834.56
Positive
200DMA
2771.19
Positive
Market Momentum
MACD
19.95
Negative
RSI
63.08
Neutral
STOCH
80.02
Negative
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 2926 is below the 20-day moving average (MA) of 2930.30, above the 50-day MA of 2880.32, and above the 200-day MA of 2771.19, indicating a bullish trend. The MACD of 19.95 indicates Negative momentum. The RSI at 63.08 is Neutral, neither overbought nor oversold. The STOCH value of 80.02 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2664.

Cawachi Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
¥202.93B12.762.10%7.55%16.01%
¥65.85B13.872.69%0.27%3.69%
¥607.56B31.001.18%7.79%-13.09%
$484.41B15.2412.18%3.08%6.64%6.38%
$619.73B27.8211.04%4.63%-47.30%
¥416.28B23.100.35%15.81%27.05%
$7.86B-0.30-43.30%2.27%22.53%-2.21%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2664
Cawachi Limited
2,975.00
504.29
20.41%
JP:9989
Sundrug Co
4,233.00
543.05
14.72%
JP:3391
TSURUHA Holdings
2,660.50
1,031.78
63.35%
JP:3141
Welcia Holdings Co., Ltd.
3,039.00
1,132.73
59.42%
JP:3148
Create SD Holdings Co., Ltd.
3,245.00
292.80
9.92%
JP:3549
KUSURI NO AOKI HOLDINGS CO.,LTD.
4,012.00
874.98
27.89%
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 21, 2025