Carchs Holdings Co., Ltd. (7602) AI Stock Analysis

• Market Cap: ¥3.48B
• Dividend Yield: 1.08%
• Average Volume (3M): 15.52K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.49
• Revenue Growth: -2.36%
• EPS Growth: -1738.42%
• Country: JP
• Employees: 211
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Dealerships
• EPS (TTM): 4.09
• Shares Outstanding: 24,106,009
• 10 Day Avg. Volume: 13,110
• 30 Day Avg. Volume: 15,516
• PEG Ratio: 0.05
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 0.16
• P/FCF Ratio: -3.56
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: ¥190.00 ▲(2.70% Upside)

The score is primarily constrained by weak financial performance (losses and negative cash flows) and the negative P/E that signals earnings instability. Technicals are supportive due to a strong trend above major moving averages, but the very overbought RSI tempers that positive signal.

Positive Factors

Market Position

As a leading player in the online used car market, Carchs benefits from a strong market position, which can drive long-term growth and competitive advantage.

Revenue Model

Diverse revenue streams from transaction fees, inspections, and financing solutions provide resilience and potential for sustainable growth.

Industry Trends

Digitalization in the automotive sector aligns with Carchs' online platform strategy, enhancing its growth prospects as more consumers shift online.

Negative Factors

Profitability Challenges

Negative EBIT and net income indicate ongoing profitability challenges, which could hinder long-term financial stability and growth.

Cash Flow Concerns

Negative operating and free cash flow highlight liquidity issues, potentially impacting the company's ability to fund operations and investments.

Leverage Risk

Increased leverage poses financial risk, especially if profitability does not improve, limiting financial flexibility and increasing vulnerability.

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

Company Description

Ledax 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 Money

Carchs 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. is facing significant financial challenges. The income statement reveals declining profitability and consistent net losses, while the balance sheet indicates increased leverage and reduced liquidity. Cash flow issues further compound the company's financial difficulties, raising concerns about its ability to sustain operations without strategic changes or improved market conditions.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.59B	20.03B	19.07B	19.06B	18.38B	16.03B
Gross Profit	2.85B	2.90B	3.15B	2.69B	3.36B	3.50B
EBITDA	-204.09M	-1.49M	243.28M	-373.04M	-157.84M	330.50M
Net Income	-301.69M	-187.40M	73.10M	-514.87M	-293.30M	157.63M
Balance Sheet
Total Assets	6.79B	7.07B	7.26B	6.73B	7.63B	7.65B
Cash, Cash Equivalents and Short-Term Investments	1.43B	1.66B	2.32B	1.73B	2.20B	2.83B
Total Debt	651.01M	658.53M	401.38M	629.86M	655.78M	86.05M
Total Liabilities	2.11B	2.21B	2.22B	1.82B	2.18B	1.88B
Stockholders Equity	4.43B	4.61B	4.81B	4.73B	5.28B	5.61B
Cash Flow
Free Cash Flow	0.00	-873.13M	781.69M	-411.34M	-1.27B	-482.43M
Operating Cash Flow	0.00	-861.24M	875.09M	-311.25M	-1.05B	-319.63M
Investing Cash Flow	0.00	16.78M	-67.93M	499.87M	-99.63M	-181.97M
Financing Cash Flow	0.00	91.08M	-228.62M	-59.67M	515.01M	-112.06M

Carchs Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 185.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 185 is above the 20-day moving average (MA) of 162.30, above the 50-day MA of 145.00, and above the 200-day MA of 136.71, indicating a bullish trend. The MACD of 7.37 indicates Positive momentum. The RSI at 57.36 is Neutral, neither overbought nor oversold. The STOCH value of 16.93 is Positive, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3011	73 Outperform	¥2.49B	9.61	―	3.25%	8.21%	9.93%
7134	71 Outperform	¥9.03B	12.66	―	2.82%	6.55%	1.07%
2788	66 Neutral	¥4.73B	8.42	―	4.45%	-2.69%	-48.36%
3377	64 Neutral	¥5.89B	21.45	―	2.74%	9.13%	87.04%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7602	48 Neutral	¥3.48B	-15.49	―	1.08%	-2.36%	-1738.42%