Genky DrugStores Co., Ltd. (9267) AI Stock Analysis

• Market Cap: ¥129.44B
• Dividend Yield: 0.25%
• Average Volume (3M): 62.69K
• Price to Earnings (P/E): 16.4
• Beta (1Y): 0.21
• Revenue Growth: 9.97%
• EPS Growth: 16.27%
• Country: JP
• Employees: 1,661
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Pharmaceuticals
• EPS (TTM): 67.01
• Shares Outstanding: 31,009,169
• 10 Day Avg. Volume: 60,060
• 30 Day Avg. Volume: 62,690
• PEG Ratio: 1.39
• Price to Book (P/B): 2.17
• Price to Sales (P/S): 0.58
• P/FCF Ratio: -46.47
• 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: 73 Outperform
• Price Target: ¥4,702.00 ▼(-5.20% Downside)

Genky DrugStores Co., Ltd. shows strong financial performance with consistent revenue growth and profitability, which is the most significant factor in the overall score. The technical analysis indicates a bullish trend, supporting the positive outlook. However, the valuation is only fair, with a low dividend yield, which slightly tempers the overall score.

Positive Factors

Consistent revenue growth

Consistent revenue growth and sustained profitability point to durable demand for Genky's retail assortment (OTC, H&B, food). Recurring, high-frequency purchases in drugstores support stable top-line expansion and provide a platform for long-term store-level cash generation.

Healthy operating margins

Gross margin around 20% and improving net margin indicate operational efficiency in merchandising and store operations. Stable EBITDA/EBIT margins provide room to reinvest, absorb cost pressures, and sustain profitability across business cycles, strengthening long-term cash flow resilience.

Balanced leverage and strong ROE

A moderate D/E and ROE above 13% show Genky uses leverage prudently while generating solid returns on equity. This capital structure supports measured expansion and investment without excessive financial strain, preserving flexibility for strategic initiatives over time.

Negative Factors

Negative free cash flow

Negative free cash flow and a steep FCF decline suggest capital expenditures or working-capital needs outpace operating cash. If persistent, this undermines the company's ability to fund new stores, reduce debt, or return capital, weakening long-term financial flexibility.

Geographic concentration

Heavy concentration in Hokuriku and Chubu limits market diversification and scale benefits. Regional exposure increases sensitivity to local economic downturns or competitive shifts, constraining growth upside and making performance more vulnerable to localized risks.

Procurement sensitivity

The value-focused retail model depends on procurement competitiveness. Structural cost inflation, supplier consolidation, or weaker purchasing terms would compress margins. Limited pricing power in staples and OTC products heightens vulnerability to sustained input-cost pressure.

Genky DrugStores Co., Ltd. Business Overview & Revenue Model

Company Description

Genky DrugStores Co., Ltd. operates a chain of drug stores. The company was founded in 1988 and is headquartered in Sakai, Japan.

How the Company Makes Money

Genky DrugStores generates revenue primarily through the sale of a diverse array of products in its drugstores, which include prescription medications, over-the-counter drugs, personal care items, and groceries. The company's revenue model is built on high sales volume, driven by its extensive store network and strategic location choices that cater to consumer convenience. Key revenue streams include retail sales, which are bolstered by promotional campaigns, loyalty programs, and seasonal marketing strategies. Additionally, Genky may benefit from supplier partnerships, allowing for favorable purchasing terms and exclusive product offerings that enhance profit margins. The company's focus on expanding its footprint through new store openings and optimizing existing locations also contributes significantly to its earnings.

Genky DrugStores Co., Ltd. Financial Statement Overview

Summary

Genky DrugStores Co., Ltd. demonstrates a strong financial position with consistent revenue growth and profitability. The balance sheet reflects a stable leverage position, while the income statement shows robust margins. However, the negative free cash flow highlights a need for improved cash management strategies. Overall, the company is on a positive trajectory but should focus on enhancing cash flow stability.

Income Statement

Genky DrugStores Co., Ltd. has shown consistent revenue growth with a 4.51% increase in the latest year. The gross profit margin is healthy at approximately 20.36%, and the net profit margin has improved to 3.52%. EBIT and EBITDA margins are also stable, indicating strong operational efficiency. Overall, the income statement reflects a robust financial performance with positive growth trends.

Balance Sheet

The company's debt-to-equity ratio has improved over the years, currently at 0.64, indicating a balanced leverage position. The return on equity is strong at 13.55%, showcasing effective use of equity to generate profits. The equity ratio is stable, suggesting a solid financial structure. However, the company should continue monitoring its debt levels to maintain financial stability.

Cash Flow

Operating cash flow remains strong, but the free cash flow has turned negative, indicating potential challenges in cash generation after capital expenditures. The operating cash flow to net income ratio is healthy, but the negative free cash flow growth rate of -191.53% is a concern. The company needs to address its cash flow management to ensure long-term sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	200.79B	200.79B	184.86B	169.06B	154.64B	142.38B
Gross Profit	40.89B	40.89B	37.62B	34.55B	30.95B	30.29B
EBITDA	16.23B	16.41B	14.47B	11.73B	10.73B	10.78B
Net Income	7.07B	7.07B	6.32B	4.76B	4.42B	4.83B
Balance Sheet
Total Assets	127.33B	127.33B	113.94B	105.91B	97.12B	90.80B
Cash, Cash Equivalents and Short-Term Investments	6.22B	6.22B	5.90B	5.33B	5.44B	7.91B
Total Debt	34.37B	34.37B	30.65B	32.35B	30.96B	28.56B
Total Liabilities	73.89B	73.89B	67.26B	65.23B	60.88B	58.63B
Stockholders Equity	53.43B	53.43B	46.68B	40.68B	36.23B	32.17B
Cash Flow
Free Cash Flow	0.00	-2.50B	2.81B	-1.16B	-4.43B	3.12B
Operating Cash Flow	0.00	12.60B	13.26B	8.77B	6.08B	12.08B
Investing Cash Flow	0.00	-15.62B	-10.63B	-9.74B	-10.59B	-8.83B
Financing Cash Flow	0.00	3.35B	-2.06B	854.00M	2.04B	-1.95B

Genky DrugStores Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4960.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9267, the sentiment is Negative. The current price of 4960 is above the 20-day moving average (MA) of 4498.25, above the 50-day MA of 4813.81, and above the 200-day MA of 4386.71, indicating a bearish trend. The MACD of -171.02 indicates Positive momentum. The RSI at 33.98 is Neutral, neither overbought nor oversold. The STOCH value of 17.46 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9267.

Genky DrugStores Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7649	75 Outperform	¥670.78B	15.23	15.71%	0.96%	21.81%	67.76%
9267	73 Outperform	¥129.44B	16.40	―	0.25%	9.97%	16.27%
9989	69 Neutral	¥481.72B	15.18	11.50%	3.04%	6.32%	8.19%
3391	67 Neutral	¥1.11T	27.51	―	1.72%	―	―
3549	67 Neutral	¥387.34B	21.69	―	0.41%	15.81%	27.05%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Genky DrugStores Co., Ltd. Corporate Events

Genky DrugStores Sustains Growth as It Accelerates Store Expansion and Capital Investment

Genky DrugStores reported continued top-line and profit growth through FY2025 and into FY2026, supported by steady same-store sales increases, disciplined cost control, and an expanding store network. The company plans to accelerate new store openings to 66 outlets in FY2026 while keeping closures and renovations limited, lifting total stores toward the mid-500s and sustaining year-on-year revenue growth of around high single digits. Profitability metrics remain robust, with operating and ordinary profit margins hovering around 4.7–5.0%, rising EBITDA and net assets, and improving ROE and equity ratio, indicating a solid financial base despite negative free cash flow due to elevated capital expenditure for expansion. Per-share indicators, adjusted for a recent stock split, show rising earnings and book value alongside a modest, gradually increasing dividend, suggesting management is prioritizing reinvestment-led growth while maintaining shareholder returns at a conservative payout ratio.

The most recent analyst rating on (JP:9267) stock is a Buy with a Yen4934.00 price target. To see the full list of analyst forecasts on Genky DrugStores Co., Ltd. stock, see the JP:9267 Stock Forecast page.

Genky DrugStores Delivers Strong First-Half Profit Growth and Confirms Full-Year Outlook

Genky DrugStores reported solid results for the six months ended December 20, 2025, with net sales rising 10.6% year on year to ¥109.3 billion and net income attributable to owners of the parent increasing 23.0% to ¥4.0 billion, reflecting improved profitability and higher operating leverage. Total assets and equity also grew, pushing the equity ratio up to 42.8%, while the company maintained its dividend plan of ¥13.00 per share for the full fiscal year and left its full-year forecast unchanged, targeting 10.2% growth in net sales and an 11.1% rise in net income, signaling confidence in continued expansion for shareholders and other stakeholders.

The most recent analyst rating on (JP:9267) stock is a Buy with a Yen4934.00 price target. To see the full list of analyst forecasts on Genky DrugStores Co., Ltd. stock, see the JP:9267 Stock Forecast page.

Genky DrugStores Tops 500 Stores as January Sales Rise on Network Expansion

Genky DrugStores reported that in January of the fiscal year ending June 2026, total net sales across all stores rose 5.7% year on year, while existing-store sales dipped 1.4%, reflecting flat customer traffic and a decline in spending per customer. The chain continued its expansion, opening one new standardized regular store and ending the month with 500 outlets in total, with year-to-date figures showing double‑digit growth in all-store sales driven largely by new store openings, even as like-for-like sales growth moderated, underscoring the company’s reliance on network expansion and store standardization to sustain overall top-line growth.

The most recent analyst rating on (JP:9267) stock is a Buy with a Yen4934.00 price target. To see the full list of analyst forecasts on Genky DrugStores Co., Ltd. stock, see the JP:9267 Stock Forecast page.

Genky DrugStores Lifts Profit Outlook While Moderating New Store Openings Amid Rising Costs

Genky DrugStores has raised its consolidated earnings forecasts for both the first half and full fiscal year ending June 2026, projecting higher operating, ordinary and net income despite largely unchanged net sales. The upgrade reflects better-than-planned gross profit in the first half and a significant undershoot in selling, general and administrative expenses, particularly personnel costs, aided by the smooth full-scale rollout of self-checkout systems and tighter labor-hour control. While the company trimmed its plan for second-half new store openings from 45 to 41 due to rising construction costs and tighter schedules, it still expects a net increase of 58 stores for the year—more than 20% above the previous year’s expansion pace—underscoring continued aggressive network growth. Management highlights that strengthened store development capabilities are starting to yield results and reiterates its ambition to accelerate toward an annual opening pace of 100 stores, positioning the company for further scale gains even as it carefully manages profitability pressures from construction and consumer price sensitivity.

The most recent analyst rating on (JP:9267) stock is a Buy with a Yen4730.00 price target. To see the full list of analyst forecasts on Genky DrugStores Co., Ltd. stock, see the JP:9267 Stock Forecast page.

Genky DrugStores Posts Double-Digit Sales Growth as Store Network Expands to 499 Locations

In December of the fiscal year ending June 2026, Genky DrugStores reported solid growth, with all-store net sales up 10.6% year on year and existing-store sales up 3.3%, driven mainly by a 2.7% increase in customer traffic and a modest rise in spending per customer. For the first half of the fiscal year, all-store sales rose 10.6% and existing-store sales 4.2%, as the company accelerated its expansion to 499 locations by year-end through 20 new store openings and ongoing refurbishment of larger outlets into standardized regular stores, underscoring a strategy of disciplined footprint growth and format standardization that supports steady same-store performance.

The most recent analyst rating on (JP:9267) stock is a Buy with a Yen6024.00 price target. To see the full list of analyst forecasts on Genky DrugStores Co., Ltd. stock, see the JP:9267 Stock Forecast page.