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

• Market Cap: ¥2.75B
• Dividend Yield: 1.49%
• Average Volume (3M): 16.58K
• Price to Earnings (P/E): 139.4
• Beta (1Y): 0.50
• Revenue Growth: 5.04%
• EPS Growth: -356.40%
• Country: JP
• Employees: 211
• Sector: Consumer Cyclical
• Sector Strength: 65
• Industry: Auto - Dealerships
• EPS (TTM): -4.67
• Shares Outstanding: 24,106,009
• 10 Day Avg. Volume: 12,710
• 30 Day Avg. Volume: 16,580
• PEG Ratio: 0.01
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥130.00
• Price Target Upside: -2.26% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 48 Neutral
• Price Target: ¥131.00 ▼(-1.50%Downside)

Carchs Holdings Co., Ltd. faces considerable financial instability with declining profitability and liquidity concerns. Technical analysis indicates neutral short-term momentum, providing no strong directional cues. The valuation suggests potential overvaluation due to negative earnings, further emphasizing the underlying financial risks.

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

Company Description

Carchs Holdings Co., Ltd. operates in the automotive industry, primarily focusing on the sale and purchase of used cars. The company is engaged in the domestic sale of automobiles, providing a wide selection of pre-owned vehicles to consumers. Carchs Holdings also offers related services, including vehicle inspections and maintenance, ensuring quality and reliability in its offerings.

How the Company Makes Money

Carchs Holdings Co., Ltd. generates revenue primarily through the buying and selling of used cars. The company purchases vehicles from auctions, individuals, and other sources, and then resells them to consumers at a markup. Additional revenue streams include service offerings such as vehicle inspections, maintenance, and other ancillary services aimed at enhancing customer satisfaction and ensuring vehicle quality. Strategic partnerships with automotive service providers and financial institutions may also contribute to its revenue, facilitating financing options for buyers and expanding its market reach.

Carchs Holdings Co., Ltd. Financial Statement Overview

Summary

Carchs Holdings Co., Ltd. is facing significant financial challenges, with declining profitability and consistent net losses. The increased leverage and reduced liquidity, along with cash flow issues, raise concerns about the company's 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	20.48B	20.03B	19.07B	19.06B	18.38B	16.03B
Gross Profit	3.04B	2.90B	3.15B	2.69B	3.36B	3.50B
EBITDA	90.02M	-1.49M	243.28M	-373.04M	-157.84M	330.50M
Net Income	20.37M	-187.40M	73.10M	-514.87M	-293.30M	157.63M
Balance Sheet
Total Assets	7.37B	7.07B	7.26B	6.73B	7.63B	7.65B
Cash, Cash Equivalents and Short-Term Investments	1.04B	1.66B	2.32B	1.73B	2.20B	2.83B
Total Debt	665.00M	658.53M	401.38M	629.86M	655.78M	86.05M
Total Liabilities	2.41B	2.21B	2.22B	1.82B	2.18B	1.88B
Stockholders Equity	4.70B	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: Negative
• Last Price: 133.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 133 is below the 20-day moving average (MA) of 134.30, above the 50-day MA of 131.94, and below the 200-day MA of 140.59, indicating a neutral trend. The MACD of 0.54 indicates Positive momentum. The RSI at 51.87 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
7134	76 Outperform	¥8.77B	11.07		2.95%	11.34%	22.75%
3011	73 Outperform	¥2.30B	8.70		3.55%	19.56%	36.08%
7623	71 Outperform	¥2.60B	11.53		2.28%	10.42%	109.09%
3377	68 Neutral	¥5.75B	11.11		2.67%	12.55%	―
Sector *	67 Neutral	¥251.56B	13.27	6.45%	2.72%	5.22%	-11.89%
2788	64 Neutral	¥4.73B	5.13		4.38%	10.95%	-24.17%
7602	48 Neutral	¥2.75B	139.38		1.49%	5.04%	-356.40%