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Watts Co., Ltd. (JP:2735)
:2735
Japanese Market
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Watts Co., Ltd. (2735) Price & Analysis

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2735 Stock Chart & Stats

¥639.00
-¥4.00(-0.62%)
At close: 4:00 PM EST
¥639.00
-¥4.00(-0.62%)

Bulls Say, Bears Say

Bulls Say
Conservative Balance SheetLow leverage (debt-to-equity ~0.26) gives Watts financial flexibility and resilience. A conservative balance sheet reduces refinancing and solvency risk, enabling continued store operations, measured investment or dividend payments during typical retail demand cycles and downturns.
Stable Gross MarginA consistent gross margin (~38%) reflects durable procurement and merchandising discipline in a value retail model. This margin buffer helps absorb input cost swings and supports the potential to maintain operating profits if SG&A and inventory turnover remain controlled.
Resilient Discount Retail ModelWatts' focus on low-priced daily necessities targets value-conscious, repeat customers, producing predictable foot traffic and high-frequency purchases. That structural consumer demand supports stable sales flows and inventory turnover, a durable advantage in household goods retailing.
Bears Say
Weak Net ProfitabilityA net margin around 1.4% means very thin bottom-line returns despite healthy gross margins. Limited net profitability constrains reinvestment, makes funding growth or higher dividends difficult, and leaves minimal buffer against cost inflation or competitive price pressure over the medium term.
Deteriorating Cash GenerationNegative free cash flow and falling operating cash flow indicate the company is not reliably converting earnings into cash. This undermines funding for capex, store upkeep, or dividends, and may force reliance on external financing, reducing strategic flexibility and increasing liquidity risk.
Slipping ROE & Top-line SoftnessROE declining to ~6.7% alongside recent revenue weakness suggests returns on invested capital are deteriorating. In a low-margin retail model, sustained top-line softness can compound poor capital efficiency and limit ability to justify new store investments or fend off competitors long-term.

2735 FAQ

What was Watts Co., Ltd.’s price range in the past 12 months?
Watts Co., Ltd. lowest stock price was ¥591.00 and its highest was ¥694.00 in the past 12 months.
    What is Watts Co., Ltd.’s market cap?
    Watts Co., Ltd.’s market cap is ¥8.73B.
      When is Watts Co., Ltd.’s upcoming earnings report date?
      Watts Co., Ltd.’s upcoming earnings report date is Oct 09, 2026 which is in 64 days.
        How were Watts Co., Ltd.’s earnings last quarter?
        Watts Co., Ltd. released its earnings results on Jul 09, 2026. The company reported ¥23.59 earnings per share for the quarter, beating the consensus estimate of N/A by ¥23.59.
          Is Watts Co., Ltd. overvalued?
          According to Wall Street analysts Watts Co., Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium
            Does Watts Co., Ltd. pay dividends?
            Watts Co., Ltd. pays a Semiannually dividend of ¥12.5 which represents an annual dividend yield of 2.95%. See more information on Watts Co., Ltd. dividends here
              What is Watts Co., Ltd.’s EPS estimate?
              Watts Co., Ltd.’s EPS estimate for its next earnings report is not yet available.
              How many shares outstanding does Watts Co., Ltd. have?
              Watts Co., Ltd. has 13,458,800 shares outstanding.
                What happened to Watts Co., Ltd.’s price movement after its last earnings report?
                Watts Co., Ltd. reported an EPS of ¥23.59 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went up 1.417%.
                  Which hedge fund is a major shareholder of Watts Co., Ltd.?
                  Currently, no hedge funds are holding shares in JP:2735
                  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

                    Watts Co., Ltd.

                    Watts Co., Ltd. and its subsidiaries engage in the wholesale and retail of daily essentials and household goods, serving customers both within Japan and internationally. The company also extends its operations to include grocery retail and a broader selection of lifestyle and general merchandise. Among its diverse retail formats, Watts is well-known for its 100-Yen shops. It further operates specific brand stores such as 'Buona vita' for groceries, 'Tokino: ne' for time-themed general goods, and 'KOMONOYA' and 'KOMONOKAEN' which are uniform shops. Established in 1995, Watts Co., Ltd. is headquartered in Osaka, Japan.

                    Watts Co., Ltd. (2735) Earnings & Revenues

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