Yakuodo Holdings Co., Ltd. (7679) AI Stock Analysis

• Market Cap: ¥40.78B
• Dividend Yield: 1.29%
• Average Volume (3M): 32.44K
• Price to Earnings (P/E): 9.4
• Beta (1Y): 0.51
• Revenue Growth: 7.12%
• EPS Growth: 14.14%
• Country: JP
• Employees: 978
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Pharmaceuticals
• EPS (TTM): 44.17
• Shares Outstanding: 19,740,220
• 10 Day Avg. Volume: 22,110
• 30 Day Avg. Volume: 32,443
• PEG Ratio: 0.71
• Price to Book (P/B): 0.97
• Price to Sales (P/S): 0.24
• P/FCF Ratio: 63.12
• 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: 66 Neutral
• Price Target: ¥2,169.00 ▲(0.09% Upside)
• Action: Downgraded Date: 10/03/25
• Date: Action: Downgraded 10/03/25

Yakuodo Holdings' strong financial performance is the primary driver of its score, supported by robust revenue growth and profitability. However, bearish technical indicators and cash flow volatility present challenges. The stock's valuation is reasonable, but market momentum is currently negative.

Positive Factors

Consistent revenue growth

Sustained top-line expansion over multiple years indicates durable demand and successful store-level sales or network growth. Persistent revenue growth supports operating scale, funds reinvestment in stores and services, and underpins longer-term margin improvement and cash generation potential.

Improving profitability and margins

Rising core profitability metrics imply better cost control, merchandising, and operating leverage within the retail model. Sustainable margin improvement enhances free cash flow potential and gives management room to invest in growth, competitive initiatives, or shareholder returns over the medium term.

Solid equity base and improving leverage

A strong equity ratio and declining leverage provide a durable financial cushion against shocks and lower refinancing risk. This capital structure supports capital expenditure, selective M&A or store rollout, and preserves strategic flexibility without excessive interest burden over the medium term.

Negative Factors

Volatile free cash flow

Material swings in free cash flow reduce predictability for investments, dividends and debt repayment. In retail, inventory and working-capital cycles can cause volatility; unless stabilized, inconsistent cash conversion can constrain strategic spending and raise financing needs in tighter periods.

Debt management requires attention

Although leverage is improving, explicit guidance that debt needs monitoring signals residual exposure. Ongoing debt-servicing or refinancing requirements could limit flexibility, especially if margins compress or macro conditions tighten, making careful liability management important.

Relatively low net profit margin

A sub-3% net margin provides limited buffer against cost inflation, competitive price pressure or adverse sales mix shifts. Low absolute profitability in retail reduces ability to absorb shocks or fund organic growth without relying on volume increases or further efficiency gains.

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

Company Description

YAKUODO HOLDINGS Co., Ltd., through its subsidiaries, engages in the management of drug stores in Japan. It operates 358 stores. The company was founded in 1978 and is headquartered in Morioka, Japan.

How the Company Makes Money

Yakuodo Holdings generates revenue primarily through the sale of pharmaceutical and healthcare products in its retail outlets. The company's revenue model is based on direct sales from its drugstores, where it earns profit margins on the products sold. In addition to its retail operations, Yakuodo may also benefit from partnerships with pharmaceutical manufacturers and suppliers, allowing for favorable procurement terms and exclusive product offerings. Other potential revenue streams include online sales through e-commerce platforms, loyalty programs that encourage repeat business, and expanding into healthcare services that complement their retail offerings. Overall, the company's focus on customer service and a wide product assortment helps drive sales and maintain a competitive edge in the market.

Yakuodo Holdings Co., Ltd. Financial Statement Overview

Summary

Yakuodo Holdings shows strong revenue growth and improved profitability margins. The balance sheet is stable with a solid equity base, though debt management requires attention. Cash flow management is improving, but volatility in free cash flow needs addressing.

Income Statement

Yakuodo Holdings has demonstrated consistent revenue growth, with a notable increase from ¥128.79 billion in 2023 to ¥151.96 billion in 2025. The gross profit margin has remained stable, averaging around 19.5% over the years. Net profit margins have improved, reaching 2.81% in 2025, indicating better cost management and operational efficiency. Furthermore, both EBIT and EBITDA margins show an upward trend, suggesting robust core business profitability.

Balance Sheet

The company's balance sheet reflects a stable financial structure with a debt-to-equity ratio improving over time, reaching 0.49 in 2025. The return on equity (ROE) has shown a positive trajectory, indicating effective utilization of shareholder funds. The equity ratio of 46.34% in 2025 suggests a solid equity base, providing a cushion against potential financial risks. However, the company should continue monitoring its debt levels to ensure long-term financial stability.

Cash Flow

Yakuodo Holdings experienced fluctuations in free cash flow, with growth from negative figures in 2022 to a positive ¥569 million in 2025. The operating cash flow to net income ratio suggests that the company is efficiently converting its earnings into cash. Nonetheless, the volatility in free cash flow growth rates indicates potential challenges in cash management, which the company needs to address to ensure sustainable cash flow generation.

Breakdown	TTM	Feb 2024	Feb 2023	Feb 2022	Feb 2021	Feb 2021
Income Statement
Total Revenue	157.99B	151.96B	142.24B	128.79B	120.31B	110.53B
Gross Profit	31.79B	29.66B	30.68B	28.25B	27.24B	25.66B
EBITDA	9.05B	8.71B	8.16B	7.56B	6.67B	7.10B
Net Income	4.44B	4.28B	3.83B	3.24B	2.96B	3.29B
Balance Sheet
Total Assets	88.88B	79.98B	70.78B	67.71B	62.30B	60.64B
Cash, Cash Equivalents and Short-Term Investments	6.97B	7.17B	4.95B	5.28B	4.25B	9.14B
Total Debt	15.41B	18.19B	13.60B	15.75B	15.61B	16.30B
Total Liabilities	50.15B	42.91B	37.47B	37.77B	34.76B	35.61B
Stockholders Equity	38.73B	37.06B	33.31B	29.94B	27.53B	25.02B
Cash Flow
Free Cash Flow	0.00	569.00M	3.47B	2.70B	-2.49B	876.00M
Operating Cash Flow	0.00	4.49B	5.63B	6.41B	3.69B	5.21B
Investing Cash Flow	0.00	-4.57B	-2.27B	-4.11B	-6.63B	-4.98B
Financing Cash Flow	0.00	2.30B	-3.69B	-1.27B	-1.95B	6.95B

Yakuodo Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2167.00
• 50DMA: Negative
• 100DMA: Negative
• 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:7679, the sentiment is Negative. The current price of 2167 is above the 20-day moving average (MA) of 2057.00, above the 50-day MA of 2092.60, and below the 200-day MA of 2167.83, indicating a neutral trend. The MACD of -0.15 indicates Negative momentum. The RSI at 50.62 is Neutral, neither overbought nor oversold. The STOCH value of 36.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7679.

Yakuodo Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3148	75 Outperform	¥211.78B	13.08	―	2.35%	7.55%	16.01%
9267	73 Outperform	¥136.75B	17.31	―	0.25%	9.97%	16.27%
2664	72 Outperform	¥71.76B	16.46	―	2.68%	-0.56%	5.59%
3544	67 Neutral	¥12.19B	22.27	―	1.24%	3.58%	-10.70%
3549	67 Neutral	¥388.39B	21.75	―	0.41%	15.81%	27.05%
7679	66 Neutral	¥40.78B	9.42	―	1.29%	7.12%	14.14%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Yakuodo Holdings Co., Ltd. Corporate Events

Yakuodo Posts Solid January Sales as Store Network Expands to 444 Locations

Yakuodo Holdings reported that in January 2026 net sales at all stores rose 8.0% year-on-year, supported by a 6.1% increase in customer numbers and higher average spending, while existing-store sales grew 2.3%, indicating solid underlying demand. The company continued its aggressive expansion strategy, opening six new outlets across Miyagi, Fukushima, Tochigi, Ibaraki and Yamagata prefectures and closing none, bringing the total store count to 444 as of January 31, 2026, with 41 new stores added in the current fiscal year and notable entry and build-out in Tochigi and Ibaraki; this sustained footprint growth underscores Yakuodo’s drive to consolidate its position in regional drugstore markets and potentially enhance its longer-term revenue base.

The most recent analyst rating on (JP:7679) stock is a Hold with a Yen2173.00 price target. To see the full list of analyst forecasts on Yakuodo Holdings Co., Ltd. stock, see the JP:7679 Stock Forecast page.

Yakuodo Posts December Sales Growth as Store Network Expands to 438 Locations

Yakuodo Holdings reported its December 2025 monthly flash sales, showing year-on-year growth in net sales of 5.5% at all stores and 0.3% at existing stores, with customer numbers continuing to rise despite a slight decline in average customer spend. The company continued its aggressive store expansion, opening five new outlets in December across Tochigi, Fukushima and Akita prefectures with no closures, bringing the total network to 438 stores as of December 31, 2025 and marking 35 new openings so far in the fiscal year ending February 28, 2026, underscoring its strategy of regional footprint expansion and reinforcing its competitive position in Japan’s drugstore market.

The most recent analyst rating on (JP:7679) stock is a Hold with a Yen2385.00 price target. To see the full list of analyst forecasts on Yakuodo Holdings Co., Ltd. stock, see the JP:7679 Stock Forecast page.

Yakuodo Holdings Lifts Sales and Assets but Projects Profit Decline for Full Year

For the nine months ended November 30, 2025, Yakuodo Holdings reported consolidated net sales of ¥123.6 billion, up 7.9% year on year, with operating profit edging up 1.6% to ¥4.65 billion and profit attributable to owners of parent essentially flat at ¥3.39 billion. While earnings growth was modest, the company’s total assets expanded to ¥96.2 billion and equity rose to ¥39.6 billion, though its equity ratio declined to 41.1%, indicating a greater asset base supported by relatively lower capital efficiency. The group maintained its dividend stance, having paid ¥28 per share in the year ended February 2025 and forecasting a slight increase to a total of ¥29 per share for the year ending February 2026, even as its full-year forecast anticipates higher sales but lower profits, reflecting cost pressures and a more challenging operating environment.

The most recent analyst rating on (JP:7679) stock is a Hold with a Yen2385.00 price target. To see the full list of analyst forecasts on Yakuodo Holdings Co., Ltd. stock, see the JP:7679 Stock Forecast page.

Yakuodo Lowers Full-Year Forecast and Scales Back Store Openings on Weaker Sales

Yakuodo Holdings has revised downward its full-year consolidated earnings forecast for the fiscal year ending February 28, 2026, citing weaker-than-expected sales at existing stores due to adverse weather conditions. The company now expects net sales of ¥163.9 billion, operating profit of ¥5.16 billion, ordinary profit of ¥5.35 billion, and profit attributable to owners of parent of ¥3.86 billion, reductions of 2.6% to 12.3% versus its previous forecast and implying lower earnings per share. Despite still projecting year-on-year growth in net sales from the prior fiscal year, profitability is set to decline versus plan, and Yakuodo is also scaling back its expansion pace, cutting its planned new store openings from 70 to 54, signaling a more cautious stance on growth amid softer demand and cost pressures for stakeholders.

The most recent analyst rating on (JP:7679) stock is a Hold with a Yen2385.00 price target. To see the full list of analyst forecasts on Yakuodo Holdings Co., Ltd. stock, see the JP:7679 Stock Forecast page.

Yakuodo Holdings Reports Strong November Sales and Expands Store Network

Yakuodo Holdings Co., Ltd. reported a positive year-on-year increase in net sales and customer numbers for November 2025, with net sales rising by 10.7% across all stores. The company also expanded its footprint by opening six new stores in November, bringing the total number of stores to 433, reflecting a strategic growth initiative in several prefectures.

The most recent analyst rating on (JP:7679) stock is a Hold with a Yen2385.00 price target. To see the full list of analyst forecasts on Yakuodo Holdings Co., Ltd. stock, see the JP:7679 Stock Forecast page.