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

• Market Cap: ¥12.60B
• Dividend Yield: 4.65%
• Average Volume (3M): 52.23K
• Price to Earnings (P/E): 19.0
• Beta (1Y): 0.12
• Revenue Growth: 4.62%
• EPS Growth: -56.98%
• Country: JP
• Employees: 1,804
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Distribution
• EPS (TTM): N/A
• Shares Outstanding: 29,093,700
• 10 Day Avg. Volume: 26,080
• 30 Day Avg. Volume: 52,226
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: ¥431.00 ▼(-4.43% Downside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is driven primarily by mixed financial performance: modest revenue growth and improved gross margin are offset by very thin/declining profitability, high leverage, and a steep drop in free cash flow. Technicals further दब press the score due to a clear downtrend and weak momentum signals. Valuation provides partial support through a high dividend yield, with a moderate P/E.

Positive Factors

Revenue & Gross Margin Trend

Steady revenue growth with an improving gross margin indicates the company is growing sales while slightly improving cost or pricing dynamics. This supports sustainable top-line expansion and structural margin resilience over the next several months if trends continue.

Operating Cash Conversion

A high OCF-to-net-income ratio shows strong conversion of accounting profits into cash, signaling quality earnings and operational cash strength. That durable cash generation can fund working capital, support delivery operations and buffer leverage pressure over time.

Multi-channel Retail & Repeat B2B Demand

A diversified model across retail, delivery and B2B recurring orders reduces single-channel risk and creates predictable replenishment demand from restaurants and bars. This structural customer mix supports steady revenues and operational scale over months.

Negative Factors

Thin Profitability

Very slim operating and net margins leave limited room to absorb input cost shocks, compete on price, or invest in growth. Over a multi-month horizon, persistently low profitability constrains reinvestment and heightens vulnerability to margin pressure.

High Financial Leverage

Elevated leverage increases fixed financing costs and refinancing risk, reducing financial flexibility. With a thin equity base, the company has less cushion to weather downturns or fund strategic initiatives without raising costly external capital.

Severe Free Cash Flow Decline

A near-collapse in free cash flow signals stress in converting operations to distributable cash, possibly due to capex or working capital swings. This undermines capacity to service debt, sustain dividends, or finance growth without external funding.

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

Company Description

Kakuyasu Group Co., Ltd. (7686) is a Japanese company primarily engaged in the wholesale and retail distribution of alcoholic beverages, including sake, shochu, and wine. The company operates several retail stores and online platforms, catering to both individual consumers and businesses. It also focuses on the import and export of various alcoholic products and offers a range of associated services such as logistics and marketing support for beverage producers.

How the Company Makes Money

Kakuyasu Group Co., Ltd. generates revenue primarily through the sale of alcoholic beverages, leveraging both its physical retail locations and online e-commerce platforms. The company's revenue model is centered on wholesale distribution to restaurants, bars, and retailers, as well as direct sales to consumers. Key revenue streams include the sale of various alcoholic products, including premium and niche offerings that cater to specific market segments. Additionally, partnerships with local breweries and international suppliers enhance its product offerings and market reach. The company's ability to capitalize on trends in the beverage market, such as the growing demand for craft and specialty drinks, further contributes to its earnings.

Kakuyasu Group Co., Ltd. Financial Statement Overview

Summary

Revenue grew 3.95% and gross margin edged up to 23.09%, but profitability is thin and weakening (net margin 0.40%, EBIT margin 1.32%). Leverage is elevated (debt-to-equity 2.17) and free cash flow fell sharply (down 96.57%), despite strong operating cash conversion (OCF to net income 4.83).

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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 above the 20-day moving average (MA) of 436.85, above the 50-day MA of 438.48, and below the 200-day MA of 456.16, indicating a bearish trend. The MACD of -3.81 indicates Positive momentum. The RSI at 47.99 is Neutral, neither overbought nor oversold. The STOCH value of 42.64 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	¥33.40B	12.61	―	1.94%	3.15%	27.71%
7614	71 Outperform	¥10.94B	11.32	―	2.23%	7.53%	-17.97%
8030	68 Neutral	¥16.64B	5.56	―	3.17%	5.19%	11.04%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
8039	61 Neutral	¥9.37B	24.88	―	0.95%	6.26%	67.81%
7686	60 Neutral	¥12.60B	19.03	―	4.65%	4.62%	-56.98%
2816	60 Neutral	¥13.72B	30.85	―	1.29%	2.47%	-56.58%

Kakuyasu Group Co., Ltd. Corporate Events

Hitomile Lifts Profit Outlook Despite Trimmed Sales Forecast for FY2025

Hitomile Co., Ltd. has revised its consolidated earnings forecast for the fiscal year ending March 2026, projecting slightly lower sales than initially expected due to reduced sales volume to restaurant clients, though still above the prior year’s level. At the same time, the company now expects higher operating profit, recurring profit and net profit attributable to owners, supported by improved gross margins from price increases and reduced system-related expenses stemming from delays in a planned business restructuring system launch.

The updated guidance lowers forecast sales from JPY 142 billion to JPY 140 billion, but raises operating profit from JPY 1.44 billion to JPY 1.6 billion and net profit from JPY 0.5 billion to JPY 0.55 billion, lifting projected earnings per share from JPY 17.20 to JPY 19.06. This revision suggests Hitomile can offset softer top-line performance with better pricing and cost control, indicating a more resilient earnings structure that may reassure investors about profitability despite near-term demand headwinds in its restaurant-related business.

The most recent analyst rating on (JP:7686) stock is a Hold with a Yen404.00 price target. To see the full list of analyst forecasts on Kakuyasu Group Co., Ltd. stock, see the JP:7686 Stock Forecast page.

HitoMile Lifts FY2025 Forecast on Strong B2B and Profit Growth

HitoMile Co., Ltd., formerly Kakuyasu Group, reported consolidated sales of JPY 106.8 billion for the nine months to December 31, 2025, up 4.6% year on year, driven mainly by its core B2B quick and route delivery segments. Store sales declined, but the shift toward B2B and private brand products helped lift gross profit by 9.0% and operating profit by 19.0%, with margins supported by price increases and changes in cost recognition.

The company also flagged higher selling, general, and administrative expenses, particularly in system development for business restructuring, logistics-related delivery and rental costs, and planned store maintenance. Despite these rising costs, recurring profit and net profit both improved, and HitoMile announced an upward revision to its earnings forecast, signaling stronger-than-expected performance and a firmer financial footing for its ongoing transformation.

The most recent analyst rating on (JP:7686) stock is a Hold with a Yen404.00 price target. To see the full list of analyst forecasts on Kakuyasu Group Co., Ltd. stock, see the JP:7686 Stock Forecast page.

HitoMile Lifts Nine-Month Profit, Trims Full-Year Earnings Outlook

HitoMile Co., Ltd. reported consolidated sales of ¥106.7 billion for the nine months ended Dec. 31, 2025, up 4.6% year on year, with operating profit rising 19% to ¥2.05 billion and profit attributable to owners of parent increasing 16.9% to ¥782 million, reflecting improved profitability and higher earnings per share despite a modest equity ratio. The company maintained its dividend policy, factoring in the recent 3-for-1 share split, and updated its full-year forecast to ¥140 billion in sales but with lower operating and ordinary profit projections, signaling expectations of cost pressure or investment ahead while still targeting a slight increase in full-year bottom-line profit.

The most recent analyst rating on (JP:7686) stock is a Hold with a Yen404.00 price target. To see the full list of analyst forecasts on Kakuyasu Group Co., Ltd. stock, see the JP:7686 Stock Forecast page.

HitoMile’s Kakuyasu Lifts FY2025 Sales on Strong Delivery Growth Despite Store Closures

HitoMile Co., Ltd. reported non-consolidated monthly sales figures for its subsidiary Kakuyasu for January in FY2025, showing continued growth in delivery segments driven by higher customer spending and new client acquisition. Quick Delivery sales rose to 107.4% year on year as inquiries for high-priced products increased, lifting average customer spend above last year’s level.

Route Delivery sales climbed to 109.4% year on year, supported by an expanding customer base, strong performance at client chains, and increased transactions in non-alcoholic products, which together boosted both order volumes and average tickets. Store sales fell to 94.2% year on year due largely to the strategic closure of unprofitable outlets, but overall total sales still advanced to 106.5%, underscoring a shift toward more profitable delivery channels within the group’s sales mix.

Over the broader FY2025 period, both the first and second halves showed total sales hovering around 105% of the prior year, highlighting stable growth in Kakuyasu’s operations. The company’s focus on higher-value products, diversified product categories and the rationalization of its store network appears to be reinforcing its positioning in the beverage distribution market while reallocating resources toward expanding delivery-oriented revenues.

The most recent analyst rating on (JP:7686) stock is a Hold with a Yen404.00 price target. To see the full list of analyst forecasts on Kakuyasu Group Co., Ltd. stock, see the JP:7686 Stock Forecast page.

HitoMile’s Kakuyasu Lifts FY2025 Sales on Strong Delivery Growth Despite Store Weakness

HitoMile Co., Ltd. reported that its subsidiary Kakuyasu achieved solid overall growth in FY2025, with quick delivery sales rising 8.1% year on year and route delivery sales up 7.2%, driven by increases in both customer numbers and average spending per customer. Quick delivery benefited from new customer acquisition at individual restaurants and successful year-end sales promotions, while route delivery was supported by new store openings among partner chains and higher transaction values for non-alcoholic products. By contrast, store sales fell to 89.7% of the prior-year level due to the closure of unprofitable outlets and the absence of last year’s cashback campaign in Tokyo, which reduced customer traffic. Despite the drag from physical stores, total sales for Kakuyasu still climbed to 105.1% year on year, underscoring a shift toward delivery channels and highlighting the strategic importance of expanding partner networks and promotional initiatives.

The most recent analyst rating on (JP:7686) stock is a Hold with a Yen430.00 price target. To see the full list of analyst forecasts on Kakuyasu Group Co., Ltd. stock, see the JP:7686 Stock Forecast page.