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Cawachi Limited (JP:2664)
:2664
Japanese Market
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Cawachi Limited (2664) AI Stock Analysis

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JP:2664

Cawachi Limited

(2664)

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Neutral 66 (OpenAI - 5.2)
Rating:66Neutral
Price Target:
¥3,775.00
▲(4.28% Upside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by stable financial footing (low leverage and consistently positive operating cash flow) but constrained by flat-to-down revenue and thin profitability with a latest-year earnings decline. Technicals are a meaningful positive with price above key moving averages and neutral-to-positive momentum. Valuation is balanced: a ~3.0% dividend yield helps, while a ~22.8 P/E limits upside relative to recent earnings performance.
Positive Factors
Conservative balance sheet
Low leverage and sizeable equity provide financial resilience and long-term optionality. A debt-to-equity near 0.15 and modest absolute debt limits refinancing risk, preserves borrowing capacity for strategic investments, and helps the company withstand cyclical retail shocks without forcing asset sales.
Negative Factors
Flat-to-declining revenue trend
Persistent flat or slightly negative top-line growth constrains scale benefits and long-term earnings expansion. Without sustained revenue growth, investment in new formats, technology or store refreshes must compete with near-term cash needs, limiting the company’s ability to broaden market share.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Low leverage and sizeable equity provide financial resilience and long-term optionality. A debt-to-equity near 0.15 and modest absolute debt limits refinancing risk, preserves borrowing capacity for strategic investments, and helps the company withstand cyclical retail shocks without forcing asset sales.
Read all positive factors

Cawachi Limited (2664) vs. iShares MSCI Japan ETF (EWJ)

Cawachi Limited Business Overview & Revenue Model

Company Description
Cawachi Limited manages drugstores in Japan. It is involved in retail and insurance dispensing of medicines, medical-related products, health foods, childcare products, cosmetics, daily necessities, general foods, confectionery. The company was fo...
How the Company Makes Money
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Cawachi Limited Financial Statement Overview

Summary
Financials look stable but not strong. The balance sheet is conservatively positioned with low leverage (debt-to-equity ~0.15 in 2024–2025; 2026 debt ~¥16.1B vs equity ~¥115.9B), and operating cash flow has been consistently positive. However, revenue has been broadly flat with a modest decline in the latest year (2026: -1.0%), and profitability is thin with a step-down in 2026 results (net income ¥3.2B vs ¥4.9B in 2025; EBIT ¥6.7B vs ¥7.4B).
Income Statement
56
Neutral
Balance Sheet
74
Positive
Cash Flow
63
Positive
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue285.45B284.49B287.82B285.96B281.87B279.46B
Gross Profit65.46B65.26B66.66B65.80B64.05B63.15B
EBITDA11.82B11.20B11.36B11.49B10.90B12.16B
Net Income3.26B3.20B4.88B4.71B4.18B4.83B
Balance Sheet
Total Assets202.55B199.61B200.96B197.24B195.24B192.48B
Cash, Cash Equivalents and Short-Term Investments44.63B38.11B36.67B35.62B38.45B38.96B
Total Debt16.51B16.11B16.60B16.73B19.55B22.92B
Total Liabilities87.71B83.68B86.55B85.94B87.51B87.83B
Stockholders Equity114.83B115.93B114.41B111.30B107.72B104.65B
Cash Flow
Free Cash Flow0.004.66B3.40B1.02B4.11B2.37B
Operating Cash Flow0.008.87B7.48B6.40B9.82B6.87B
Investing Cash Flow0.00-5.16B-4.51B-5.29B-5.84B-4.54B
Financing Cash Flow0.00-2.27B-1.92B-3.94B-4.49B-4.61B

Cawachi Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3620.00
Price Trends
50DMA
3520.10
Positive
100DMA
3317.26
Positive
200DMA
3133.79
Positive
Market Momentum
MACD
91.19
Positive
RSI
61.65
Neutral
STOCH
30.39
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2664, the sentiment is Positive. The current price of 3620 is below the 20-day moving average (MA) of 3649.25, above the 50-day MA of 3520.10, and above the 200-day MA of 3133.79, indicating a bullish trend. The MACD of 91.19 indicates Positive momentum. The RSI at 61.65 is Neutral, neither overbought nor oversold. The STOCH value of 30.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2664.

Cawachi Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
¥438.35B13.7711.29%3.42%4.32%0.18%
67
Neutral
¥264.21B15.8110.75%1.20%12.20%-25.42%
66
Neutral
¥83.59B25.683.01%-0.72%-31.42%
64
Neutral
¥1.08T18.497.67%2.04%
64
Neutral
¥523.53B16.251.28%8.72%3.45%
64
Neutral
¥399.48B23.110.41%13.04%-0.05%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2664
Cawachi Limited
3,745.00
1,031.16
38.00%
JP:9989
Sundrug Co
3,723.00
-761.84
-16.99%
JP:7649
Sugi Holdings Co
1,339.00
-507.61
-27.49%
JP:3391
TSURUHA Holdings
2,378.50
125.68
5.58%
JP:3349
COSMOS Pharmaceutical Corporation
6,569.00
-2,224.76
-25.30%
JP:3549
KUSURI NO AOKI HOLDINGS CO.,LTD.
4,097.00
240.64
6.24%

Cawachi Limited Corporate Events

Cawachi Launches ¥2 Billion Share Buyback to Boost Shareholder Returns
Aug 3, 2026
Cawachi Limited’s board has approved a share buyback program authorizing the repurchase of up to 700,000 common shares, representing about 3.13% of outstanding stock, at a total cost of up to ¥2 billion. The buyback will run from August...
Cawachi Delivers Profit Growth in Q1 but Guides for Weaker Margins
Jul 29, 2026
Cawachi Limited reported a modest year-on-year increase in net sales to ¥71,981 million for the quarter ended June 15, 2026, with operating profit climbing 15.9% and profit attributable to owners of parent rising 5.5%. Earnings per share impr...
Cawachi Limited Profits Slump but Dividend Raised on 65th Anniversary
May 11, 2026
Cawachi Limited reported a slight 1.2% decline in net sales to ¥284.5 billion for the fiscal year ended March 15, 2026, with operating profit down 9.1% and profit attributable to owners of the parent dropping 34.5% to ¥3.2 billion, refle...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 06, 2026