Sugi Holdings Co Ltd (JP:7649)
:7649
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Sugi Holdings Co
(7649)
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Rating:66Neutral
Price Target:
¥3,079.00
▼(-16.60% Downside)
Action:Downgraded
Date:04/10/26
The score is primarily supported by strong revenue growth and improved 2026 cash generation, but is held back by thin margins and a clear step-up in debt since 2025. Technicals are mildly supportive with positive momentum, while valuation is only average due to a ~23x P/E and a modest dividend yield.
Positive Factors
Revenue Growth Trend
Sugi's accelerating multi-year revenue trend indicates durable demand expansion for its drugstore and dispensing pharmacy model. Persistent top-line growth supports scale benefits, increases bargaining and investment capacity, and underpins long-term cash generation even if margins stay thin.
Negative Factors
Thin Profitability
Net margins near 3% leave limited buffer against cost inflation, reimbursement cuts, or supplier price pressure. Low margin structure constrains free cash available for growth or debt reduction, making returns sensitive to small revenue or cost shocks over a multi-month horizon.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth Trend
Sugi's accelerating multi-year revenue trend indicates durable demand expansion for its drugstore and dispensing pharmacy model. Persistent top-line growth supports scale benefits, increases bargaining and investment capacity, and underpins long-term cash generation even if margins stay thin.
Read all positive factors
Sugi Holdings Co (7649) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥537.25B
Dividend Yield0.96%
Average Volume (3M)634.13K
Price to Earnings (P/E)11.5
Beta (1Y)0.13
Revenue Growth15.07%
EPS Growth72.98%
CountryJP
Employees8,724
SectorHealthcare
Sector Strength45
IndustryMedical - Pharmaceuticals
Share Statistics
EPS (TTM)227.92
Shares Outstanding189,992,510
10 Day Avg. Volume884,930
30 Day Avg. Volume634,130
Financial Highlights & Ratios
PEG Ratio0.19
Price to Book (P/B)2.24
Price to Sales (P/S)0.64
P/FCF Ratio10.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥3,615.00Price Target Upside-2.09% Downside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)184.21
Revenue Forecast (FY)¥1.10T
Sugi Holdings Co Business Overview & Revenue Model
Company Description
Headquartered in Obu, Japan, Sugi Holdings Co.,Ltd. was established in 1976. This Japanese enterprise primarily operates a network of drugstores across the country. In addition to its retail activities, the company extends its offerings to include...
How the Company Makes Money
Sugi Holdings primarily earns revenue through (1) retail sales at its drugstores and (2) prescription dispensing services at in-store (or adjacent) pharmacies. Retail revenue is generated from the sale of over-the-counter pharmaceuticals, cosmetic...
Sugi Holdings Co Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
62
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Feb 2026 | Feb 2026 | Feb 2025 | Feb 2024 | Feb 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 964.38B | 1.01T | 878.02B | 744.48B | 667.65B | 625.48B |
| Gross Profit | 305.06B | 321.20B | 275.04B | 228.84B | 202.52B | 191.49B |
| EBITDA | 58.20B | 68.68B | 56.18B | 46.24B | 40.56B | 38.74B |
| Net Income | 41.25B | 44.98B | 25.69B | 21.98B | 19.01B | 19.39B |
Balance Sheet | ||||||
| Total Assets | 554.80B | 614.49B | 495.12B | 391.99B | 353.25B | 336.38B |
| Cash, Cash Equivalents and Short-Term Investments | 109.36B | 111.21B | 52.79B | 47.43B | 70.64B | 71.83B |
| Total Debt | 42.81B | 94.04B | 47.72B | 2.76B | 1.95B | 2.31B |
| Total Liabilities | 278.51B | 324.02B | 244.41B | 158.62B | 136.71B | 122.49B |
| Stockholders Equity | 276.28B | 290.46B | 250.70B | 233.36B | 216.54B | 213.89B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 63.69B | 13.31B | 8.21B | 20.09B | -13.57B |
| Operating Cash Flow | 0.00 | 86.78B | 36.94B | 39.04B | 38.28B | 7.17B |
| Investing Cash Flow | 0.00 | -69.64B | -33.28B | -30.98B | -23.26B | -23.89B |
| Financing Cash Flow | 0.00 | 41.21B | 11.63B | -5.28B | -14.21B | -5.29B |
Sugi Holdings Co Technical Analysis
Negative
3692.00
Price Trends
3215.95
Negative
3403.04
Negative
3509.07
Negative
Market Momentum
-116.86
Negative
36.83
Neutral
65.88
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7649, the sentiment is Negative. The current price of 3692 is above the 20-day moving average (MA) of 2909.07, above the 50-day MA of 3215.95, and above the 200-day MA of 3509.07, indicating a bearish trend. The MACD of -116.86 indicates Negative momentum. The RSI at 36.83 is Neutral, neither overbought nor oversold. The STOCH value of 65.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7649.
Sugi Holdings Co Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | ¥204.51B | 12.51 | ― | 2.35% | 7.84% | 17.59% | |
68 Neutral | ¥440.92B | 14.05 | 11.37% | 3.04% | 5.08% | 2.07% | |
67 Neutral | ¥348.71B | 18.01 | ― | 0.41% | 14.59% | 7.84% | |
66 Neutral | ¥537.25B | 11.47 | 15.71% | 0.96% | 15.07% | 72.98% | |
62 Neutral | ¥893.73B | 21.61 | ― | 1.72% | ― | ― | |
60 Neutral | ¥461.84B | 14.65 | ― | 0.93% | 6.74% | 6.60% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
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Sugi Holdings Co Corporate Events
SUGI Holdings Clarifies Relationship With Major Associated Shareholder Sugi Shoji
May 28, 2026
SUGI Holdings has disclosed that Sugi Shoji Co., Ltd., an asset management company for President Katsunori Sugiura and Senior Vice President Shinya Sugiura, holds 37.43% of its voting rights, while the two executives directly hold an additional 0....
Sugi Holdings to Grant ¥102 Million in Restricted Stock to Group Executives
May 21, 2026
Sugi Holdings has approved the disposal of 34,219 shares of treasury stock, worth about ¥102 million, as restricted stock remuneration to 45 internal directors, executive officers, and group company directors. The move expands a stock-based c...
Sugi Holdings Posts Strong April Sales Growth and Expands Store Network
May 15, 2026
Sugi Holdings reported that in April 2026, Sugi Pharmacy’s existing-store sales rose 5.3% year on year, driven by a 3.6% increase in the drugstore business and a robust 9.3% gain in the prescription business. On an all-store basis, sales cli...
Sugi Holdings Posts Strong March Sales and Expands Store Network
Apr 15, 2026
Sugi Holdings reported that in March 2026 existing-store sales at Sugi Pharmacy rose 5.7% year on year, driven by a 3.2% increase in the drugstore segment and a robust 12.0% gain in the prescription business. On an all-store basis, sales climbed 8...
SUGI Holdings Announces 2-for-1 Stock Split and Confirms Unchanged Effective Dividend
Apr 9, 2026
SUGI Holdings will implement a 2-for-1 stock split of its common shares, effective September 1, 2026, doubling the number of issued shares to about 380 million. The move aims to lower the share price per investment unit, making the stock more acce...
SUGI Holdings Fast-Tracks Full Control of Seki Yakuhin to Strengthen Drugstore Network
Apr 9, 2026
SUGI Holdings will accelerate its acquisition of Seki Yakuhin Co., Ltd., a drugstore and dispensing pharmacy chain rooted in Saitama Prefecture, converting it from an equity method affiliate to a consolidated subsidiary earlier than the originally...
Sugi Holdings Breaks ¥1 Trillion in Sales as Profit Surges 75%
Apr 9, 2026
Sugi Holdings reported robust consolidated results for the fiscal year ended February 28, 2026, with net sales surpassing ¥1 trillion, up 15.1% year on year, and profit attributable to owners of parent jumping 75.1%. Operating profit rose 14....
Sugi Holdings Posts Strong February Sales and Expands Store Network
Mar 13, 2026
Sugi Holdings reported solid growth for February 2026, with existing-store sales at Sugi Pharmacy rising 5.4% year on year, driven by a 2.4% increase in the drugstore segment and a strong 13.2% gain in the prescription business. On an all-store ba...
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.