CVS Bay Area Inc. (2687) AI Stock Analysis

• Market Cap: ¥2.82B
• Dividend Yield: 4.54%
• Average Volume (3M): 5.90K
• Price to Earnings (P/E): 2.5
• Beta (1Y): 0.36
• Revenue Growth: 4.03%
• EPS Growth: 60.99%
• Country: JP
• Employees: 202
• Sector: Consumer Defensive
• Sector Strength: 53
• Industry: Grocery Stores
• EPS (TTM): 9.33
• Shares Outstanding: 5,064,000
• 10 Day Avg. Volume: 5,730
• 30 Day Avg. Volume: 5,903
• PEG Ratio: 1.52
• Price to Book (P/B): 0.74
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -10.09
• 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: ¥630.00
• Price Target Upside: 10.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 82 Outperform
• Price Target: ¥630.00 ▲(10.33%Upside)

The stock's high score is driven by an attractive valuation and solid technical indicators, suggesting positive momentum. Financial performance shows significant recovery, but the high capital expenditures impacting free cash flow need attention.

CVS Bay Area Inc. Business Overview & Revenue Model

Company Description

CVS Bay Area Inc. (2687) is a regional subsidiary of CVS Health, a leading healthcare innovation company. The company operates within the retail pharmacy sector, providing a broad range of health services, wellness products, and pharmacy services. CVS Bay Area Inc. focuses on delivering high-quality healthcare solutions and convenience through its network of retail stores and online platforms within the Bay Area.

How the Company Makes Money

CVS Bay Area Inc. generates revenue primarily through the sale of prescription medications, over-the-counter drugs, and a wide variety of healthcare and wellness products available in its physical stores and online. The company's revenue model is multifaceted, incorporating pharmacy benefit management and retail sales. A significant portion of income comes from third-party insurance reimbursements and direct consumer payments for healthcare services. Additionally, CVS Bay Area Inc. benefits from partnerships with healthcare providers and insurance companies, which drive customer traffic and improve service offerings. The company also derives earnings from its MinuteClinic services, which offer affordable and accessible medical care for minor illnesses and general wellness needs.

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	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	7.82B	7.82B	7.52B	6.93B	7.21B	7.32B
Gross Profit	3.52B	3.49B	3.28B	2.73B	2.28B	1.97B
EBITDA	1.48B	1.41B	643.26M	195.64M	-618.08M	-999.78M
Net Income	1.22B	1.12B	697.62M	-13.53M	-831.52M	-1.16B
Balance Sheet
Total Assets	10.98B	11.27B	10.28B	8.68B	9.41B	10.51B
Cash, Cash Equivalents and Short-Term Investments	2.00B	1.78B	1.89B	1.77B	1.73B	1.94B
Total Debt	5.07B	5.29B	5.32B	4.48B	4.85B	4.88B
Total Liabilities	6.80B	6.89B	6.92B	5.94B	6.57B	6.79B
Stockholders Equity	4.17B	4.38B	3.36B	2.74B	2.83B	3.72B
Cash Flow
Free Cash Flow	0.00	-1.08B	-644.17M	-201.00M	-425.39M	-577.34M
Operating Cash Flow	0.00	410.52M	481.89M	-172.53M	-351.39M	120.76M
Investing Cash Flow	0.00	-384.36M	-1.08B	654.76M	232.76M	-341.04M
Financing Cash Flow	0.00	-129.65M	710.97M	-442.98M	-84.74M	550.89M

CVS Bay Area Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 571.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 571 is above the 20-day moving average (MA) of 564.60, above the 50-day MA of 554.52, and above the 200-day MA of 545.42, indicating a bullish trend. The MACD of 5.18 indicates Negative momentum. The RSI at 66.98 is Neutral, neither overbought nor oversold. The STOCH value of 82.79 is Negative, 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
2687	82 Outperform	¥2.82B	2.51		4.54%	4.03%	60.99%
9259	80 Outperform	¥3.98B	8.32		―	6.01%	3.35%
Sector *	65 Neutral	$26.88B	15.20	-4.27%	3.19%	1.02%	1.89%
2747	62 Neutral	¥3.87B	27.15		1.60%	-2.66%	-53.54%
7515	49 Neutral	¥3.77B	275.46		0.74%	4.81%	-89.88%
5616	44 Neutral	¥3.05B	―		―	―	―