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Cawachi Limited (2664) AI Stock Analysis
Cawachi Limited
(TSE/TYO:2664)
The overall score of 72 reflects a highly stable company underpinned by robust cash flow generation, a fortress-like balance sheet, and strong technical momentum. The company provides a healthy 3.01% dividend yield, adding to its appeal. However, the score is constrained by notable top-line stagnation and margin compression, which remain the primary risks to operational growth and long-term valuation upside.
Cawachi Limited (2664) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 89.71B
- Dividend Yield
- 3.65%
- Average Volume (3M)
- 84.43K
- Price to Earnings (P/E)
- 30.7
- Beta (1Y)
- 0.22
- Revenue Growth
- -0.88%
- EPS Growth
- -35.26%
- Country
- Japan
- Employees
- 2,750
- Sector
- General
- Sector Strength
- 55
- Industry
- Medical - Pharmaceuticals
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 found...
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 beauty/...
Cawachi Limited Financial Statement Overview
Summary
Financial performance is characterized by an outstanding, deleveraging balance sheet and excellent free cash flow conversion (FCF to net income of 1.45x). However, this is partially offset by a sluggish income statement, which shows a flat top-line and a recent 34% year-over-year contraction in net income.
Income Statement
50NeutralBalance Sheet
85Very PositiveCash Flow
82Very 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 | 4.66B | 3.40B | 1.02B | 4.11B | 2.37B |
| Operating Cash Flow | 0 | 8.87B | 7.48B | 6.40B | 9.82B | 6.87B |
| Investing Cash Flow | 0 | -5.16B | -4.51B | -5.29B | -5.84B | -4.54B |
| Financing Cash Flow | 0 | -2.27B | -1.92B | -3.94B | -4.49B | -4.61B |
Cawachi Limited Technical Analysis
Price Trends
Market Momentum
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 4115.00 is above the 20-day moving average (MA) of 3975.75, above the 50-day MA of 3810.04, and above the 200-day MA of 3302.15, indicating a bullish trend. The MACD of 98.62 indicates Negative momentum. The RSI at 63.12 is Neutral, neither overbought nor oversold. The STOCH value of 76.95 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
- JP:266472Outperform
JP:764969Neutral
JP:998969Neutral
JP:334959.9Neutral
JP:354956Neutral
JP:339154Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:2664 | 72Outperform | JPY 92.64B | 30.69 | ― | 3.65% | -0.88% | -35.26% |
| JP:7649 | 69Neutral | JPY 506.97B | 16.22 | 9.94% | 1.33% | 8.97% | -29.54% |
| JP:9989 | 69Neutral | JPY 422.80B | 13.45 | 11.15% | 3.65% | 4.32% | 0.18% |
| JP:3349 | 60Neutral | JPY 480.15B | 14.81 | ― | 1.37% | 8.99% | 3.61% |
| JP:3549 | 56Neutral | JPY 418.12B | 22.60 | ― | 0.33% | 12.54% | 15.87% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| JP:3391 | 54Neutral | JPY 1.01T | 17.83 | 7.13% | 2.06% | ― | ― |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:2664 | Cawachi Limited | 4115.00 | 1278.13 | 45.05% | |
| JP:9989 | Sundrug Co | 3617.00 | -418.19 | -10.36% | |
| JP:7649 | Sugi Holdings Co | 1312.50 | -348.74 | -20.99% | |
| JP:3391 | TSURUHA Holdings | 2276.50 | -362.41 | -13.73% | |
| JP:3349 | COSMOS Pharmaceutical Corporation | 6002.00 | -893.40 | -12.96% | |
| JP:3549 | KUSURI NO AOKI HOLDINGS CO.,LTD. | 4505.00 | 662.44 | 17.24% |
Cawachi Limited Corporate Events
Cawachi trims full-year sales forecast but keeps profits on track
Cawachi Limited has revised its full-year earnings forecast for the fiscal year ending March 15, 2027, trimming projected net sales from 285 billion yen to 283 billion yen, while leaving operating profit, ordinary profit and profit attributable to ow...
Cawachi Limited Warns of Profit Decline Despite Stable Sales and Dividend Payouts
Cawachi Limited reported a modest 0.8% year-on-year decline in net sales to ¥144.1 billion for the first half of fiscal 2027, with operating profit down 6.2% and profit attributable to owners of parent falling 8.6%, leading to lower basic earnin...
Cawachi Nears Limit in ¥2 Billion Share Buyback Program
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 near...
Cawachi Launches ¥2 Billion Share Buyback to Boost Shareholder Returns
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 12...
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