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

• Market Cap: ¥39.01B
• Dividend Yield: 1.29%
• Average Volume (3M): 32.44K
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.49
• Revenue Growth: 7.12%
• EPS Growth: 14.14%
• Country: JP
• Employees: 978
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Pharmaceuticals
• EPS (TTM): 72.43
• 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: ¥2,121.00 ▼(-2.12% Downside)
• 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

Revenue Growth

Sustained top-line growth over multiple years indicates expanding customer demand and successful store-level execution. Durable revenue gains improve scale economics and provide recurring cash inflows to fund expansion, inventory, and strategic initiatives over the next several quarters.

Improving Profitability Margins

Upward trends in EBIT/EBITDA and net margins reflect better cost control and operational efficiency. Sustained margin expansion enhances the firm's ability to convert sales into lasting profitability, supporting reinvestment, resilience to price pressure, and longer-term return generation.

Balance Sheet Stability

A solid equity base and improving debt-to-equity provide financial flexibility and a buffer against shocks. This structural strength supports capital allocation choices, lending access, and investment in store operations without overly constraining strategic options over a medium-term horizon.

Negative Factors

Free Cash Flow Volatility

Material swings in free cash flow reduce predictability of internally available funds for capex, debt repayment, and dividends. Persistent volatility can force reliance on external financing during weak periods, limiting strategic flexibility and increasing execution risk over coming quarters.

Debt Requires Ongoing Monitoring

Although leverage has improved, management note to monitor debt implies remaining exposure. Elevated or mismanaged debt could impair resilience to demand shocks, raise interest costs, or constrain growth investments, making deleveraging and cash generation priorities for durable stability.

Low Absolute Net Margin

A sub-3% net margin, while improved, remains thin for sustaining high reinvestment or large dividends. This limited profitability leaves limited buffer against rising costs or competitive pressure and could constrain long-term free cash flow and strategic initiatives if margins revert.

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

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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	31.05B	29.66B	27.86B	25.45B	24.65B	23.27B
EBITDA	8.90B	8.43B	8.03B	7.46B	6.63B	7.36B
Net Income	4.44B	4.28B	3.83B	3.24B	2.96B	3.29B
Balance Sheet
Total Assets	88.88B	80.26B	71.07B	68.01B	62.59B	60.90B
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	43.19B	37.75B	38.06B	35.05B	35.87B
Stockholders Equity	38.73B	37.06B	33.31B	29.94B	27.53B	25.02B
Cash Flow
Free Cash Flow	0.00	569.00M	3.58B	2.76B	-2.33B	955.00M
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: Positive
• 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 2017.40, above the 50-day MA of 2027.24, and above the 200-day MA of 2138.31, indicating a bearish trend. The MACD of -10.57 indicates Positive momentum. The RSI at 42.88 is Neutral, neither overbought nor oversold. The STOCH value of 69.83 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
7649	75 Outperform	¥649.49B	23.29	15.71%	0.96%	21.81%	67.76%
9989	69 Neutral	¥458.11B	14.05	11.37%	3.04%	6.32%	8.19%
3391	67 Neutral	¥1.05T	25.31	―	1.72%	―	―
3549	67 Neutral	¥351.10B	20.79	―	0.41%	15.81%	27.05%
7679	66 Neutral	¥39.01B	12.36	―	1.29%	7.12%	14.14%
3349	60 Neutral	¥527.83B	22.79	―	0.93%	3.73%	18.84%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Yakuodo Holdings Co., Ltd. Corporate Events

Yakuodo Posts Solid February Sales and Accelerates Store Expansion

Yakuodo Holdings reported its February 2026 monthly sales flash, showing continued year-on-year growth across all stores, with net sales up 8.7% and both customer numbers and average spend generally above prior-year levels. Existing stores also posted modest gains, underscoring solid underlying demand, though the company noted the figures are preliminary and may differ from final results.

The group accelerated its expansion strategy during February, opening 13 new stores mainly in Ibaraki, Tochigi, Fukushima, and Akita prefectures, while closing one outlet in Iwate. This brought its network to 456 stores as of February 28, 2026, including four stores with dispensing pharmacies and one standalone prescription pharmacy, highlighting an aggressive footprint build-out that strengthens its regional presence and growth prospects.

The most recent analyst rating on (JP:7679) stock is a Hold with a Yen2120.00 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 Plans Generational Shift in Top Management and Board

Yakuodo Holdings has announced a planned generational shift in its leadership, appointing Managing Director Takahito Saigo as the new Representative Director and President, effective May 22, 2026, pending shareholder approval. Current President Tatsuhiro Saigo and Senior Vice President Kiyoko Saigo will step down from their representative roles to become advisors, signaling continuity alongside renewal at the top.

The company also outlined a refreshed board structure, with five director candidates excluding audit and supervisory committee members, including the promotion of Yasuhiro Saigo to Director and Senior Vice President and the reappointment of key internal and outside directors. One outside audit and supervisory committee member, Nozomi Takiura, is slated for reappointment, reinforcing existing governance and oversight frameworks as the group transitions to a younger management team.

These changes indicate a deliberate effort to strengthen corporate value and ensure long-term stability by combining new leadership with experienced advisors and reappointed outside directors. The planned structure suggests continued emphasis on strategic planning, corporate governance, and sales execution as Yakuodo navigates its competitive environment in the Japanese retail and healthcare market.

The most recent analyst rating on (JP:7679) stock is a Hold with a Yen2169.00 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 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.