Revenue & Margin RecoveryImproving top-line growth and materially higher gross and net margins indicate the company has tightened cost structure and/or improved pricing. Sustained margin expansion supports internal funding for reinvestment, strengthens earnings durability, and enhances resilience through business cycles.

Strong ROE & Equity BaseA materially improved ROE and a solid equity ratio signal efficient capital allocation and a meaningful shareholder capital buffer. Durable capital returns and a reasonable equity base support scalable growth without immediate dilution and improve long-term financial flexibility.

Diversified Healthcare Revenue StreamsA multi-pronged business model—retail pharmacies, PBM, managed care and insurance—creates recurring revenue, cross-sell opportunities and lower customer churn. Structural diversification reduces reliance on any single channel and supports steadier cash flows over economic cycles.

Bears Say

Negative Free Cash FlowPersistent negative free cash flow and weak cash conversion mean earnings are not yet translating into available cash. This constrains capacity for debt reduction, dividends, or capex without external financing, increasing long-term financing and execution risk if not remedied.

Moderate LeverageA D/E above 1.0 signals meaningful reliance on debt financing. Elevated leverage reduces flexibility to invest or absorb shocks, raises interest expense sensitivity, and can pressure margins or force asset sales if cash flow weakness persists or rates rise.

Earnings Volatility / EPS DeclineExtremely negative EPS growth and historical bouts of net losses point to earnings volatility and execution risk. Unpredictable profitability complicates long-term planning, investor confidence, and capital allocation, making consistent reinvestment and deleveraging harder.

2687 FAQ

What was CVS Bay Area Inc.’s price range in the past 12 months?

CVS Bay Area Inc. lowest stock price was ¥473.00 and its highest was ¥660.00 in the past 12 months.

What is CVS Bay Area Inc.’s market cap?

CVS Bay Area Inc.’s market cap is ¥2.60B.

When is CVS Bay Area Inc.’s upcoming earnings report date?

CVS Bay Area Inc.’s upcoming earnings report date is Apr 10, 2026 which is in 53 days.

How were CVS Bay Area Inc.’s earnings last quarter?

CVS Bay Area Inc. released its earnings results on Jan 09, 2026. The company reported ¥7.83 earnings per share for the quarter, beating the consensus estimate of N/A by ¥7.83.

Is CVS Bay Area Inc. overvalued?

According to Wall Street analysts CVS Bay Area Inc.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does CVS Bay Area Inc. pay dividends?

CVS Bay Area Inc. pays a Semiannually dividend of ¥10 which represents an annual dividend yield of 4.73%. See more information on CVS Bay Area Inc. dividends here

What is CVS Bay Area Inc.’s EPS estimate?

CVS Bay Area Inc.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does CVS Bay Area Inc. have?

CVS Bay Area Inc. has 5,064,000 shares outstanding.

What happened to CVS Bay Area Inc.’s price movement after its last earnings report?

CVS Bay Area Inc. reported an EPS of ¥7.83 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went down -0.386%.

Which hedge fund is a major shareholder of CVS Bay Area Inc.?

Currently, no hedge funds are holding shares in JP:2687

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

CVS Bay Area Inc.

CVS Bay Area Inc. operates convenience stores under the Lawson brand in Japan. The company also operates hotels under the BAY HOTEL brand name. In addition, it provides various manned front desk and reception/office butler services for companies at condominiums; and cleaning services at convenience stores and condominiums, as well as uniform handles management services for corporations. The company operates 7 convenience stores and 8 hotels. CVS Bay Area Inc. was founded in 1981 and is headquartered in Chiba, Japan.