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

• Market Cap: ¥2.75B
• Dividend Yield: 1.49%
• Average Volume (3M): 15.52K
• Price to Earnings (P/E): 139.4
• Beta (1Y): 0.43
• Revenue Growth: 0.91%
• EPS Growth: -517.75%
• Country: JP
• Employees: 211
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Dealerships
• EPS (TTM): -8.20
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 48 Neutral
• 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. 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. 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

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: 134.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3011	70 Outperform	¥2.36B	9.12	―	3.42%	9.42%	15.60%
2788	68 Neutral	¥4.84B	7.22	―	4.25%	3.67%	-30.07%
7134	68 Neutral	¥8.85B	11.91	―	2.89%	7.91%	8.30%
3377	64 Neutral	¥5.96B	21.71	―	2.54%	9.13%	87.04%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7602	48 Neutral	¥2.75B	139.38	―	1.49%	0.91%	-517.75%