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Cawachi Limited
(2664)
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Rating:66Neutral
Price Target:
¥4,406.00
▲(21.71% 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 gives Cawachi financial resilience and preserves flexibility to fund store operations, investment, or shareholder returns. The sizable equity base relative to debt also reduces refinancing pressure and provides a stronger cushion if retail conditions weaken over the next several quarters.
Negative Factors
Flat-to-declining revenue
Limited top-line growth constrains the company’s ability to expand earnings through scale and makes cost control more important. A modest annual revenue decline also suggests that store productivity or demand is not currently providing a strong foundation for sustained profit growth over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Low leverage gives Cawachi financial resilience and preserves flexibility to fund store operations, investment, or shareholder returns. The sizable equity base relative to debt also reduces refinancing pressure and provides a stronger cushion if retail conditions weaken over the next several quarters.
Read all positive factors
Cawachi Limited (2664) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥91.07B
Dividend Yield3.68%
Average Volume (3M)49.42K
Price to Earnings (P/E)28.0
Beta (1Y)0.24
Revenue Growth-0.72%
EPS Growth-31.42%
CountryJP
Employees2,750
SectorGeneral
Sector StrengthN/A
IndustryMedical - Pharmaceuticals
Share Statistics
EPS (TTM)145.82
Shares Outstanding24,583,420
10 Day Avg. Volume55,280
30 Day Avg. Volume49,420
Financial Highlights & Ratios
PEG Ratio-0.61
Price to Book (P/B)0.58
Price to Sales (P/S)0.23
P/FCF Ratio14.35
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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
Cawachi Limited primarily makes money by operating retail stores and generating sales revenue from products sold to consumers. Key revenue streams generally include (1) over-the-counter pharmaceuticals and health-related items, (2) health and beau...
Cawachi Limited Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
74
Positive
Cash Flow
63
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 285.45B | 284.49B | 287.82B | 285.96B | 281.87B | 279.46B |
| Gross Profit | 65.46B | 65.26B | 66.66B | 65.80B | 64.05B | 63.15B |
| EBITDA | 11.82B | 11.20B | 11.36B | 11.49B | 10.90B | 12.16B |
| Net Income | 3.26B | 3.20B | 4.88B | 4.71B | 4.18B | 4.83B |
Balance Sheet | ||||||
| Total Assets | 202.55B | 199.61B | 200.96B | 197.24B | 195.24B | 192.48B |
| Cash, Cash Equivalents and Short-Term Investments | 44.63B | 38.11B | 36.67B | 35.62B | 38.45B | 38.96B |
| Total Debt | 16.51B | 16.11B | 16.60B | 16.73B | 19.55B | 22.92B |
| Total Liabilities | 87.71B | 83.68B | 86.55B | 85.94B | 87.51B | 87.83B |
| Stockholders Equity | 114.83B | 115.93B | 114.41B | 111.30B | 107.72B | 104.65B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 4.66B | 3.40B | 1.02B | 4.11B | 2.37B |
| Operating Cash Flow | 0.00 | 8.87B | 7.48B | 6.40B | 9.82B | 6.87B |
| Investing Cash Flow | 0.00 | -5.16B | -4.51B | -5.29B | -5.84B | -4.54B |
| Financing Cash Flow | 0.00 | -2.27B | -1.92B | -3.94B | -4.49B | -4.61B |
Cawachi Limited Technical Analysis
Positive
3620.00
Price Trends
3758.34
Positive
3569.23
Positive
3265.50
Positive
Market Momentum
99.79
Negative
76.02
Negative
83.03
Negative
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 3871.25, below the 50-day MA of 3758.34, and above the 200-day MA of 3265.50, indicating a bullish trend. The MACD of 99.79 indicates Negative momentum. The RSI at 76.02 is Negative, neither overbought nor oversold. The STOCH value of 83.03 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2664.
Cawachi Limited Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | ¥427.47B | 13.59 | 11.15% | 3.61% | 4.32% | 0.18% | |
66 Neutral | ¥91.07B | 27.98 | ― | 3.68% | -0.72% | -31.42% | |
64 Neutral | ¥1.00T | 17.44 | 7.13% | 2.11% | ― | ― | |
62 Neutral | ¥488.12B | 15.52 | 9.94% | 1.39% | 8.97% | -29.54% | |
58 Neutral | ¥505.46B | 15.67 | ― | 1.29% | 8.99% | 3.61% | |
56 Neutral | ¥413.54B | 21.70 | ― | 0.34% | 12.54% | 15.87% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
JP:2664
Cawachi Limited
4,080.00
1,239.31
43.63%
JP:9989
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3,656.00
-430.36
-10.53%
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1,256.00
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-26.54%
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TSURUHA Holdings
2,226.50
-384.93
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COSMOS Pharmaceutical Corporation
6,350.00
-887.50
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JP:3549
KUSURI NO AOKI HOLDINGS CO.,LTD.
4,325.00
371.08
9.39%
Cawachi Limited Corporate Events
Cawachi Nears Limit in ¥2 Billion Share Buyback Program
Sep 2, 2026
Cawachi Limited has completed a board-approved program to repurchase its own common shares on the Tokyo Stock Exchange. The initiative reflects an active capital management strategy that may influence share liquidity and shareholder value in the n...
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...
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.