Kakuyasu Group Co., Ltd. (7686) AI Stock Analysis

• Market Cap: ¥13.08B
• Dividend Yield: 4.4%
• Average Volume (3M): 18.73K
• Price to Earnings (P/E): 22.0
• Beta (1Y): 0.16
• Revenue Growth: 3.43%
• EPS Growth: -61.72%
• Country: JP
• Employees: 1,804
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Distribution
• EPS (TTM): 10.51
• Shares Outstanding: 29,070,900
• 10 Day Avg. Volume: 26,460
• 30 Day Avg. Volume: 18,733
• PEG Ratio: -0.40
• Price to Book (P/B): 3.34
• Price to Sales (P/S): 0.11
• P/FCF Ratio: 261.90
• 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

• Rating: 59 Neutral
• Price Target: ¥479.00 ▲(6.21% Upside)

Kakuyasu Group's overall stock score is primarily influenced by its financial performance and valuation. While the company shows revenue growth and an attractive dividend yield, challenges in profitability, high leverage, and bearish technical indicators weigh down the score.

Kakuyasu Group Co., Ltd. Business Overview & Revenue Model

Company Description

Kakuyasu Group Co., Ltd., together with its subsidiaries, engages in wholesale business of alcoholic beverages and other foodstuffs in Japan. The company provides investment management and home delivery services; and delivers dairy products. It also offers flowers through a select shop. Kakuyasu Group Co., Ltd. was founded in 1921 and is based in Tokyo, Japan.

How the Company Makes Money

Kakuyasu Group Co., Ltd. generates revenue through multiple streams, primarily from its retail and wholesale operations. The company earns money by selling alcoholic and non-alcoholic beverages directly to consumers through its physical retail stores and online platform. Additionally, Kakuyasu Group supplies products to restaurants, bars, and other businesses, contributing to its wholesale revenue. The company's delivery service, which promises quick and efficient delivery of products, is a significant driver of customer retention and sales growth. Strategic partnerships with beverage manufacturers and suppliers also play a crucial role in ensuring a diverse product offering and competitive pricing, further enhancing Kakuyasu Group's revenue potential.

Kakuyasu Group Co., Ltd. Financial Statement Overview

Summary

Kakuyasu Group shows solid revenue growth and improved equity ratios, but faces challenges in profitability and cash flow stability. The high debt-to-equity ratio and declining free cash flow are notable concerns.

Income Statement

Kakuyasu Group has demonstrated a solid growth trajectory in recent years, with a revenue growth rate of 3.95% from 2024 to 2025. The gross profit margin improved slightly to 23.09%. However, the net profit margin decreased to 0.40%, indicating some pressures on profitability. The EBIT margin also declined to 1.32%, reflecting operational efficiency challenges.

Balance Sheet

The balance sheet shows a moderate financial position with a debt-to-equity ratio of 2.17, indicating a relatively high level of leverage. The equity ratio improved to 11.73%, suggesting a gradual strengthening of the equity base. Return on equity declined to 12.67%, indicating a drop in profitability relative to shareholder equity.

Cash Flow

The cash flow statement indicates a challenging position with a free cash flow decline of 96.57% in 2025. The operating cash flow to net income ratio of 4.83 reflects strong cash conversion from operations. However, the free cash flow to net income ratio plummeted, highlighting potential issues in maintaining cash reserves.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	135.83B	134.51B	129.41B	114.96B	85.51B	80.23B
Gross Profit	31.75B	31.07B	29.53B	25.05B	18.23B	16.85B
EBITDA	2.47B	2.31B	3.69B	1.22B	-2.13B	-1.11B
Net Income	586.00M	536.00M	1.59B	609.00M	-2.81B	-1.60B
Balance Sheet
Total Assets	36.86B	36.06B	33.95B	33.09B	28.54B	26.99B
Cash, Cash Equivalents and Short-Term Investments	3.42B	2.84B	3.17B	2.73B	2.75B	2.52B
Total Debt	9.44B	9.19B	8.62B	10.47B	11.76B	9.98B
Total Liabilities	32.59B	31.83B	29.84B	30.27B	26.23B	23.78B
Stockholders Equity	4.27B	4.23B	4.11B	2.82B	2.31B	3.21B
Cash Flow
Free Cash Flow	0.00	54.00M	1.58B	1.36B	-3.61B	-2.05B
Operating Cash Flow	0.00	2.58B	2.79B	2.53B	-2.44B	-1.63B
Investing Cash Flow	0.00	-3.00B	-207.00M	-1.15B	-1.06B	-1.39B
Financing Cash Flow	0.00	74.00M	-2.14B	-1.42B	3.72B	2.06B

Kakuyasu Group Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 451.00
• 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:7686, the sentiment is Negative. The current price of 451 is below the 20-day moving average (MA) of 458.56, below the 50-day MA of 464.58, and below the 200-day MA of 470.83, indicating a bearish trend. The MACD of -3.99 indicates Positive momentum. The RSI at 44.32 is Neutral, neither overbought nor oversold. The STOCH value of 26.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7686.

Kakuyasu Group Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8006	78 Outperform	¥30.35B	12.21	―	7.55%	3.32%	-22.52%
7614	73 Outperform	¥10.25B	10.38	―	2.23%	5.62%	-21.92%
8030	70 Outperform	¥14.24B	5.24	―	3.06%	7.29%	10.64%
2816	63 Neutral	¥13.57B	40.06	―	1.28%	2.70%	-42.35%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
8039	60 Neutral	¥7.87B	22.22	―	1.00%	5.89%	82.20%
7686	59 Neutral	¥13.08B	22.03	―	4.40%	3.43%	-61.72%

Kakuyasu Group Co., Ltd. Corporate Events

HitoMile Co., Ltd. Reports Strong Q1 FY2025 Financial Results

HitoMile Co., Ltd. reported a 4.0% year-over-year increase in consolidated sales for the first quarter of FY2025, driven primarily by its B2B business and price hikes. The company’s operating profit surged by 30.1% due to expanded sales of private brand products and changes in cost recognition, despite a decline in store sales.