tiprankstipranks
Trending News
More News >
Watts Co., Ltd. (JP:2735)
:2735
Japanese Market

Watts Co., Ltd. (2735) AI Stock Analysis

Compare
0 Followers

Top Page

JP

Watts Co., Ltd.

(2735)

Rating:77Outperform
Price Target:
Watts Co., Ltd. receives a strong score due to its robust financial health and positive technical indicators. The company's undervaluation and attractive dividend yield further enhance its appeal to investors, despite the RSI indicating potential overbought conditions.

Watts Co., Ltd. (2735) vs. iShares MSCI Japan ETF (EWJ)

Watts Co., Ltd. Business Overview & Revenue Model

Company DescriptionWatts Co., Ltd. is a Japanese company engaged in the retail sector, primarily focusing on the operation of 100-yen shops. Established in Japan, it offers a wide range of affordable everyday products, including household goods, food items, and lifestyle accessories. The company is committed to providing value to its customers through a diverse lineup of products that cater to various daily needs.
How the Company Makes MoneyWatts Co., Ltd. generates revenue primarily through the operation of its 100-yen shops, where it sells a variety of products at a fixed price point. The company's revenue streams include direct sales from its retail stores spread across Japan and overseas. Additionally, Watts Co., Ltd. benefits from strategic partnerships and supplier relationships that allow it to offer a wide range of products at competitive prices. The company's earnings are further supported by its ability to efficiently manage its supply chain and maintain a high turnover of inventory, ensuring steady sales and profitability.

Watts Co., Ltd. Financial Statement Overview

Summary
Watts Co., Ltd. demonstrates strong financial health with significant improvements in revenue and profitability metrics. The stable balance sheet and enhanced cash flow management position it well for future growth.
Income Statement
85
Very Positive
Watts Co., Ltd. has shown a strong performance in revenue growth with a 3.3% increase from the previous year. The gross profit margin remains healthy at 38.5%, indicating effective cost management. The net profit margin improved significantly to 1.5%, highlighting enhanced profitability. EBIT and EBITDA margins are at 2.0% and 3.2% respectively, showing operational efficiency.
Balance Sheet
75
Positive
The company's debt-to-equity ratio is 0.26, suggesting a conservative approach to leverage, which reduces financial risk. The return on equity is 7.2%, reflecting a reasonable level of profitability for shareholders. Equity ratio stands at 41.3%, indicating a stable capital structure and reliance on equity financing.
Cash Flow
80
Positive
Watts Co., Ltd. demonstrated remarkable improvement in cash flow, with free cash flow growing significantly. The operating cash flow to net income ratio is 4.47, indicating strong cash generation relative to net income. Despite previous negative free cash flow, the company has achieved robust free cash flow figures this period, signaling improved cash management.
Breakdown
TTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income StatementTotal Revenue
61.44B61.26B59.31B58.35B50.70B52.80B
Gross Profit
23.74B23.59B22.45B22.28B19.63B20.22B
EBIT
1.32B1.25B621.79M998.51M1.67B1.77B
EBITDA
1.70B1.97B1.10B1.68B1.97B1.52B
Net Income Common Stockholders
1.00B904.15M250.58M781.18M965.83M774.38M
Balance SheetCash, Cash Equivalents and Short-Term Investments
5.15B9.38B5.65B6.69B6.17B6.59B
Total Assets
20.88B30.28B25.49B25.60B21.34B21.54B
Total Debt
1.50B3.28B2.88B3.01B1.12B1.25B
Net Debt
-3.65B-6.10B-2.76B-3.68B-5.04B-5.34B
Total Liabilities
10.90B17.76B13.52B13.67B10.12B11.06B
Stockholders Equity
10.19B12.52B11.96B11.93B11.22B10.48B
Cash FlowFree Cash Flow
0.003.49B-398.77M1.06B-383.70M380.29M
Operating Cash Flow
0.004.04B221.06M1.72B378.26M922.10M
Investing Cash Flow
0.00-538.15M-667.97M-975.79M-778.97M-526.29M
Financing Cash Flow
0.00233.22M-633.15M-328.61M-51.97M106.09M

Watts Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price708.00
Price Trends
50DMA
701.84
Positive
100DMA
690.77
Positive
200DMA
700.87
Positive
Market Momentum
MACD
0.35
Positive
RSI
45.69
Neutral
STOCH
13.12
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2735, the sentiment is Neutral. The current price of 708 is below the 20-day moving average (MA) of 721.45, above the 50-day MA of 701.84, and above the 200-day MA of 700.87, indicating a neutral trend. The MACD of 0.35 indicates Positive momentum. The RSI at 45.69 is Neutral, neither overbought nor oversold. The STOCH value of 13.12 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2735.

Watts Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
¥10.47B7.00
2.38%15.66%2.87%
77
Outperform
¥9.14B9.29
4.31%2.42%154.96%
76
Outperform
¥11.63B11.08
1.55%6.01%-21.51%
73
Outperform
¥10.96B6.93
1.47%0.19%32.51%
65
Neutral
$8.88B15.034.75%203.74%3.58%-2.49%
55
Neutral
¥12.30B
2.39%0.65%-679.30%
41
Neutral
¥10.09B
-5.60%-23.60%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2735
Watts Co., Ltd.
709.00
51.38
7.81%
JP:3094
Super Value Co., Ltd.
796.00
-104.00
-11.56%
JP:3096
Ocean System Corporation
1,235.00
192.37
18.45%
JP:9846
Tenmaya Store Co., Ltd.
957.00
-86.36
-8.28%
JP:9890
Makiya Co., Ltd.
1,047.00
60.83
6.17%
JP:9993
Yamazawa Co., Ltd.
1,139.00
-99.42
-8.03%
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.