CVS Bay Area Inc. (2687) AI Stock Analysis

• Market Cap: ¥3.01B
• Dividend Yield: 3.78%
• Average Volume (3M): 15.90K
• Price to Earnings (P/E): 3.0
• Beta (1Y): 0.42
• Revenue Growth: 4.04%
• EPS Growth: 41.13%
• Country: JP
• Employees: 202
• Sector: Consumer Defensive
• Sector Strength: 60
• Industry: Grocery Stores
• EPS (TTM): 9.33
• Shares Outstanding: 5,064,000
• 10 Day Avg. Volume: 12,940
• 30 Day Avg. Volume: 15,903
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥648.00
• Price Target Upside: 2.21% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 79 Outperform
• Price Target: ¥648.00 ▲(2.21% Upside)

CVS Bay Area Inc. scores well due to strong financial performance and attractive valuation. The company's recovery in profitability and stable balance sheet are significant strengths. Technical indicators suggest stable momentum with potential for growth. However, challenges in cash flow management and debt levels require careful monitoring.

CVS Bay Area Inc. Business Overview & Revenue Model

Company Description

CVS Bay Area Inc. (2687) is a diversified healthcare company operating primarily in the pharmacy and retail sectors. The company provides a range of services including prescription medications, over-the-counter drugs, health and wellness products, and various healthcare services through its network of retail pharmacies and clinics. CVS Bay Area Inc. focuses on enhancing patient care and promoting health through its comprehensive product offerings and accessible healthcare solutions.

How the Company Makes Money

CVS Bay Area Inc. generates revenue through multiple streams, primarily from the sale of prescription medications and health products at its retail locations. The company also earns significant income from its pharmacy benefit management (PBM) services, which involve managing prescription drug benefits for employers and insurance companies. Additional revenue comes from in-store clinics that provide basic healthcare services, as well as partnerships with healthcare providers and organizations that enhance patient access to care. The growing demand for health and wellness products, coupled with strategic collaborations and an expanding customer base, further contributes to the company's financial performance.

CVS Bay Area Inc. Financial Statement Overview

Summary

CVS Bay Area Inc. demonstrates a solid financial recovery with strong revenue growth and improved profit margins. The balance sheet shows reasonable leverage, but high free cash flow expenditures indicate potential cash generation challenges.

Income Statement

CVS Bay Area Inc. has shown remarkable revenue growth from 2020 to 2025, with a strong gross profit margin, enhancing from previous years. The net profit margin improved significantly, turning positive in recent periods, reflecting efficient cost management and operational improvements. However, there was volatility in EBIT and EBITDA margins, indicating some operational challenges in earlier years.

Balance Sheet

The company maintains a reasonable debt-to-equity ratio, showcasing a balance between leveraging for growth and financial stability. Return on Equity has improved, indicating better utilization of shareholders' funds. However, the equity ratio suggests relatively high leverage, a potential risk factor for financial stability if not managed carefully.

Cash Flow

There has been a positive trend in operating cash flow, moving from negative to positive, which is a strong indicator of improved liquidity and operational efficiency. However, free cash flow remains negative, indicating high capital expenditures relative to net income and potential challenges in cash generation.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	7.82B	7.52B	6.93B	7.21B	7.32B
Gross Profit	3.49B	3.28B	2.73B	2.28B	1.97B
EBITDA	1.41B	643.26M	195.64M	-618.08M	-999.78M
Net Income	1.12B	697.62M	-13.53M	-831.52M	-1.16B
Balance Sheet
Total Assets	11.27B	10.28B	8.68B	9.41B	10.51B
Cash, Cash Equivalents and Short-Term Investments	1.78B	1.89B	1.77B	1.73B	1.94B
Total Debt	5.29B	5.32B	4.48B	4.85B	4.88B
Total Liabilities	6.89B	6.92B	5.94B	6.57B	6.79B
Stockholders Equity	4.38B	3.36B	2.74B	2.83B	3.72B
Cash Flow
Free Cash Flow	-1.08B	-644.17M	-201.00M	-425.39M	-577.34M
Operating Cash Flow	410.52M	481.89M	-172.53M	-351.39M	120.76M
Investing Cash Flow	-384.36M	-1.08B	654.76M	232.76M	-341.04M
Financing Cash Flow	-129.65M	710.97M	-442.98M	-84.74M	550.89M

CVS Bay Area Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 634.00
• 50DMA: Positive
• 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:2687, the sentiment is Positive. The current price of 634 is above the 20-day moving average (MA) of 598.20, above the 50-day MA of 578.10, and above the 200-day MA of 546.99, indicating a bullish trend. The MACD of 10.35 indicates Positive momentum. The RSI at 66.71 is Neutral, neither overbought nor oversold. The STOCH value of 19.17 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2687.

CVS Bay Area Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9259	82 Outperform	¥4.01B	8.20		―	3.49%	16.08%
2687	79 Outperform	¥3.01B	2.97		3.78%	4.04%	41.13%
Sector *	69 Neutral	¥221.58B	21.75	8.23%	2.14%	4.96%	1.22%
2747	62 Neutral	¥3.91B	65.46		1.61%	-1.50%	-81.02%
5616	51 Neutral	¥2.98B	―		―	―	―
7515	48 Neutral	¥3.85B	594.99		0.73%	6.14%	-95.13%