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Carchs Holdings Co., Ltd. (JP:7602)
:7602
Japanese Market
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Carchs Holdings Co., Ltd. (7602) AI Stock Analysis

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JP:7602

Carchs Holdings Co., Ltd.

(7602)

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Neutral 48 (OpenAI - 4o)
Rating:48Neutral
Price Target:
¥131.00
▼(-2.24% Downside)
Carchs Holdings Co., Ltd. faces significant financial challenges, with declining profitability and liquidity issues being the most critical factors. Technical analysis provides mixed signals, with bearish momentum and potential overbought conditions. The valuation is weak due to negative earnings, raising concerns about future performance. These factors collectively result in a low overall stock score.

Carchs Holdings Co., Ltd. (7602) vs. iShares MSCI Japan ETF (EWJ)

Carchs Holdings Co., Ltd. Business Overview & Revenue Model

Company DescriptionLedax Co., Ltd. engages in the management of its subsidiaries which are involved in the automobile business. Its services include purchase, sale, and distribution of cars. The company was founded on December 10, 1987 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyCarchs Holdings generates revenue through multiple streams. The primary revenue model is based on transaction fees collected from buyers and sellers using its online platforms. Additionally, the company earns money through value-added services such as vehicle inspections and certifications, which help build trust and transparency in transactions. Financing solutions offered in partnership with financial institutions further contribute to its revenue. Significant partnerships with automotive dealerships and financial service providers enhance Carchs' market reach and provide additional income opportunities. The growing trend of digitalization in the automotive sector also supports the company's revenue growth as more consumers turn to online platforms for vehicle transactions.

Carchs Holdings Co., Ltd. Financial Statement Overview

Summary
Carchs Holdings Co., Ltd. faces significant financial challenges with declining profitability, persistent net losses, and deteriorating cash flows. The balance sheet shows increased leverage and reduced liquidity, raising concerns about financial stability.
Income Statement
45
Neutral
Carchs Holdings Co., Ltd. has faced declining profitability with negative EBIT and net income in the latest period. Revenue growth was modest, but gross profit margins have decreased over the years, indicating cost structure challenges. Persistent net losses suggest financial instability.
Balance Sheet
60
Neutral
The company's balance sheet shows a strong equity position with a high equity ratio, reflecting some stability. However, the high debt-to-equity ratio in recent years points to increased leverage, which could pose risks if profitability does not improve. The declining trend in cash and short-term investments is also concerning.
Cash Flow
40
Negative
Carchs Holdings has experienced deteriorating cash flows, with negative operating and free cash flow in the latest period. The negative free cash flow growth rate and poor cash conversion metrics highlight liquidity concerns, potentially impacting future operations and investments.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue19.59B20.03B19.07B19.06B18.38B16.03B
Gross Profit2.85B2.90B3.15B2.69B3.36B3.50B
EBITDA-204.09M-1.49M243.28M-373.04M-157.84M330.50M
Net Income-301.69M-187.40M73.10M-514.87M-293.30M157.63M
Balance Sheet
Total Assets6.79B7.07B7.26B6.73B7.63B7.65B
Cash, Cash Equivalents and Short-Term Investments1.43B1.66B2.32B1.73B2.20B2.83B
Total Debt651.01M658.53M401.38M629.86M655.78M86.05M
Total Liabilities2.11B2.21B2.22B1.82B2.18B1.88B
Stockholders Equity4.43B4.61B4.81B4.73B5.28B5.61B
Cash Flow
Free Cash Flow0.00-873.13M781.69M-411.34M-1.27B-482.43M
Operating Cash Flow0.00-861.24M875.09M-311.25M-1.05B-319.63M
Investing Cash Flow0.0016.78M-67.93M499.87M-99.63M-181.97M
Financing Cash Flow0.0091.08M-228.62M-59.67M515.01M-112.06M

Carchs Holdings Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price134.00
Price Trends
50DMA
134.46
Negative
100DMA
133.98
Positive
200DMA
135.08
Negative
Market Momentum
MACD
-0.71
Negative
RSI
52.03
Neutral
STOCH
76.19
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7602, the sentiment is Positive. The current price of 134 is above the 20-day moving average (MA) of 132.95, below the 50-day MA of 134.46, and below the 200-day MA of 135.08, indicating a neutral trend. The MACD of -0.71 indicates Negative momentum. The RSI at 52.03 is Neutral, neither overbought nor oversold. The STOCH value of 76.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7602.

Carchs Holdings Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
¥2.36B9.123.42%9.42%15.60%
68
Neutral
¥4.84B7.224.25%3.67%-30.07%
68
Neutral
¥8.85B11.912.89%7.91%8.30%
64
Neutral
¥5.96B21.712.54%9.13%87.04%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
48
Neutral
¥2.75B139.381.49%0.91%-517.75%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7602
Carchs Holdings Co., Ltd.
134.00
-19.00
-12.42%
JP:2788
Apple International Co., Ltd.
353.00
-29.44
-7.70%
JP:3011
Banners Co., Ltd.
145.00
23.34
19.18%
JP:3377
BIKE-O & Co., Ltd.
433.00
-54.96
-11.26%
JP:7134
UP GARAGE GROUP Co.,Ltd.
1,126.00
251.20
28.72%
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.Date of analysis: Oct 24, 2025