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

• Market Cap: ¥12.04B
• Dividend Yield: 4.57%
• Average Volume (3M): 48.78K
• Price to Earnings (P/E): 19.0
• Beta (1Y): 0.17
• Revenue Growth: 4.62%
• EPS Growth: -56.98%
• Country: JP
• Employees: 1,804
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Distribution
• EPS (TTM): 2.43
• Shares Outstanding: 29,087,100
• 10 Day Avg. Volume: 85,080
• 30 Day Avg. Volume: 48,780
• 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: ¥430.00 ▼(-4.66% Downside)

The overall stock score is primarily influenced by financial performance challenges, particularly in profitability and cash flow. Technical analysis indicates bearish momentum, while valuation offers some support with a reasonable P/E ratio and attractive dividend yield.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and stability.

Equity Ratio Improvement

An improving equity ratio enhances financial stability and reduces risk, providing a stronger foundation for future growth and investment.

Gross Profit Margin

An improving gross profit margin suggests better cost management and pricing power, which can lead to enhanced profitability over time.

Negative Factors

High Leverage

High leverage increases financial risk and can limit the company's ability to invest in growth opportunities, impacting long-term financial health.

Profitability Challenges

Declining profitability margins can strain financial resources and limit the company's ability to reinvest in the business, affecting future growth.

Free Cash Flow Decline

A significant decline in free cash flow can hinder the company's ability to fund operations, pay down debt, and invest in growth, posing long-term risks.

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

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 above the 20-day moving average (MA) of 430.00, above the 50-day MA of 446.43, and below the 200-day MA of 470.52, indicating a bearish trend. The MACD of -9.56 indicates Positive momentum. The RSI at 36.16 is Neutral, neither overbought nor oversold. The STOCH value of 42.41 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	¥31.72B	13.28	―	1.79%	3.15%	27.71%
7614	71 Outperform	¥10.31B	10.34	―	2.23%	5.62%	-21.92%
8030	68 Neutral	¥13.84B	5.17	―	3.24%	5.19%	11.04%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
8039	61 Neutral	¥7.92B	22.34	―	0.97%	6.26%	67.81%
2816	60 Neutral	¥13.51B	45.05	―	1.29%	2.47%	-56.58%
7686	60 Neutral	¥12.04B	18.98	―	4.57%	4.62%	-56.98%

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.