Watts Co., Ltd. (JP:2735)
:2735
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Watts Co., Ltd.
(2735)
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Rating:51Neutral
Price Target:
¥642.00
▲(0.47% Upside)
Action:ReiteratedDate:12/19/25
The overall stock score of 51 for Watts Co., Ltd. reflects a cautious outlook, primarily driven by weak financial performance with significant cash flow concerns and low profitability. A reasonable valuation with an attractive P/E ratio and dividend yield provides some upside, while technical indicators remain neutral with mixed signals on price trends.
Positive Factors
Stable Gross Margins
Consistent gross margins indicate effective cost management, supporting long-term profitability and competitive pricing strategies.
Negative Factors
Declining Profitability
Falling net margins indicate challenges in maintaining profitability, which could impact long-term earnings potential and shareholder value.
Read all positive and negative factors
Positive Factors
Negative Factors
Stable Gross Margins
Consistent gross margins indicate effective cost management, supporting long-term profitability and competitive pricing strategies.
Read all positive factors
Watts Co., Ltd. (2735) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥7.80B
Dividend Yield3.67%
Average Volume (3M)47.25K
Price to Earnings (P/E)10.6
Beta (1Y)0.09
Revenue Growth0.52%
EPS Growth-3.78%
CountryJP
Employees436
SectorConsumer Defensive
Sector Strength42
IndustryGrocery Stores
Share Statistics
EPS (TTM)14.72
Shares Outstanding13,458,800
10 Day Avg. Volume68,620
30 Day Avg. Volume47,246
Financial Highlights & Ratios
PEG Ratio-2.79
Price to Book (P/B)0.67
Price to Sales (P/S)0.14
P/FCF Ratio-3.18
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)68
Revenue Forecast (FY)¥62.50B
Watts Co., Ltd. Business Overview & Revenue Model
Company Description
Watts Co., Ltd., together with its subsidiaries, engages in the wholesale and retail business of daily necessities and household items in Japan and internationally. It is also involved in the retail business of groceries; and wholesale and retail ...
How the Company Makes Money
Watts Co., Ltd. generates revenue through multiple streams, primarily from the sale of its core products which include plumbing fixtures, valves, and water quality solutions. The company benefits from a robust distribution network that allows it t...
Watts Co., Ltd. Financial Statement Overview
Summary
Income Statement
45
Neutral
Balance Sheet
60
Neutral
Cash Flow
30
Negative
| Breakdown | Aug 2025 | Aug 2024 | Aug 2023 | Aug 2022 | Aug 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 61.58B | 61.26B | 59.31B | 58.35B | 50.70B |
| Gross Profit | 23.91B | 23.59B | 22.45B | 22.28B | 19.63B |
| EBITDA | 2.37B | 1.99B | 1.37B | 1.69B | 2.05B |
| Net Income | 870.68M | 904.15M | 250.58M | 781.18M | 965.83M |
Balance Sheet | |||||
| Total Assets | 27.51B | 30.28B | 25.49B | 25.60B | 21.34B |
| Cash, Cash Equivalents and Short-Term Investments | 6.19B | 9.38B | 5.65B | 6.69B | 6.17B |
| Total Debt | 3.34B | 3.29B | 2.89B | 3.02B | 1.13B |
| Total Liabilities | 14.48B | 17.76B | 13.52B | 13.67B | 10.12B |
| Stockholders Equity | 13.03B | 12.52B | 11.96B | 11.93B | 11.22B |
Cash Flow | |||||
| Free Cash Flow | -2.73B | 3.49B | -326.73M | 1.17B | 58.65M |
| Operating Cash Flow | -1.77B | 4.04B | 221.06M | 1.72B | 378.26M |
| Investing Cash Flow | -1.08B | -538.15M | -667.97M | -975.79M | -778.97M |
| Financing Cash Flow | -351.25M | 233.22M | -633.15M | -328.61M | -51.97M |
Watts Co., Ltd. Technical Analysis
Negative
639.00
Price Trends
646.85
Negative
640.07
Negative
649.36
Negative
Market Momentum
-8.52
Positive
38.54
Neutral
41.52
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2735, the sentiment is Negative. The current price of 639 is above the 20-day moving average (MA) of 628.25, below the 50-day MA of 646.85, and below the 200-day MA of 649.36, indicating a bearish trend. The MACD of -8.52 indicates Positive momentum. The RSI at 38.54 is Neutral, neither overbought nor oversold. The STOCH value of 41.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2735.
Watts Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | ¥114.72B | 16.52 | ― | 1.92% | 2.30% | 26.52% | |
76 Outperform | ¥157.13B | 15.86 | ― | 1.64% | 10.13% | 23.77% | |
72 Outperform | ¥91.69B | 10.82 | ― | 1.47% | 7.75% | -1.68% | |
72 Outperform | ¥219.76B | 15.19 | ― | 2.43% | 4.48% | 13.17% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
51 Neutral | ¥7.80B | 10.63 | ― | 3.67% | 0.52% | -3.78% | |
45 Neutral | ¥12.56B | 29.59 | ― | 2.32% | 2.43% | 50.53% |
* Consumer Defensive Sector Average
JP:2735
Watts Co., Ltd.
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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.