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

• Market Cap: ¥2.79B
• Dividend Yield: 1.48%
• Average Volume (3M): 20.44K
• Price to Earnings (P/E): 139.4
• Beta (1Y): 0.42
• Revenue Growth: 0.91%
• EPS Growth: -517.75%
• Country: JP
• Employees: 211
• Sector: Consumer Cyclical
• Sector Strength: 75
• Industry: Auto - Dealerships
• EPS (TTM): -8.20
• Shares Outstanding: 24,106,009
• 10 Day Avg. Volume: 12,240
• 30 Day Avg. Volume: 20,440
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥135.00
• Price Target Upside: 0.00%
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 50 Neutral
• Price Target: ¥135.00 ▲(0.00% Upside)

Carchs Holdings Co., Ltd. faces significant financial challenges, with declining profitability and consistent net losses being the most impactful factors. The technical analysis provides a neutral outlook, while the valuation is weak due to negative earnings. The absence of earnings call data and notable corporate events limits additional insights.

Positive Factors

Market Position

Carchs Holdings' focus on the used car market positions it well within a sector that benefits from consumer demand for cost-effective vehicle options.

Revenue Streams

Diversified revenue streams through services like inspections and maintenance enhance customer satisfaction and provide stable income sources.

Strategic Partnerships

Partnerships with service providers and financial institutions can enhance market reach and offer financing options, supporting sales growth.

Negative Factors

Profitability Challenges

Ongoing net losses and declining profitability indicate financial instability, which could hinder long-term business sustainability.

Leverage Risks

Increased leverage raises financial risk, potentially impacting the company's ability to invest in growth or weather economic downturns.

Cash Flow Concerns

Negative cash flows highlight liquidity issues, which could restrict operational flexibility and investment capacity in the future.

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. 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	20.03B	20.03B	19.07B	19.06B	18.38B	16.03B
Gross Profit	2.90B	2.90B	3.15B	2.69B	3.36B	3.50B
EBITDA	-1.49M	-1.49M	243.28M	-373.04M	-157.84M	330.50M
Net Income	-186.82M	-187.40M	73.10M	-514.87M	-293.30M	157.63M
Balance Sheet
Total Assets	7.07B	7.07B	7.26B	6.73B	7.63B	7.65B
Cash, Cash Equivalents and Short-Term Investments	1.66B	1.66B	2.32B	1.73B	2.20B	2.83B
Total Debt	658.53M	658.53M	401.38M	629.86M	655.78M	86.05M
Total Liabilities	2.21B	2.21B	2.22B	1.82B	2.18B	1.88B
Stockholders Equity	4.61B	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: 135.00
• 50DMA: Positive
• 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 135 is above the 20-day moving average (MA) of 134.80, above the 50-day MA of 134.70, and below the 200-day MA of 136.70, indicating a neutral trend. The MACD of 0.58 indicates Negative momentum. The RSI at 54.64 is Neutral, neither overbought nor oversold. The STOCH value of 73.33 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	79 Outperform	¥2.47B	9.63		3.23%	9.42%	15.60%
7134	78 Outperform	¥9.29B	12.49		2.77%	7.91%	8.30%
2788	75 Outperform	¥5.14B	7.58		4.04%	3.67%	-30.07%
7623	74 Outperform	$2.61B	11.54		2.28%	8.67%	-11.05%
3377	70 Outperform	¥5.92B	11.43		2.59%	12.55%	―
Sector *	61 Neutral	$17.83B	12.89	-1.60%	3.03%	1.39%	-14.45%
7602	50 Neutral	¥2.79B	139.38		1.48%	0.91%	-517.75%