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CVS Bay Area Inc. (JP:2687)
:2687
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CVS Bay Area Inc.
(2687)
Select Model
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Rating:79Outperform
Price Target:
¥648.00
▲(18.25% Upside)
CVS Bay Area Inc. scores well due to strong financial performance and attractive valuation. The company's recovery in profitability and stable balance sheet are significant strengths. Technical indicators suggest stable momentum with potential for growth. However, challenges in cash flow management and debt levels require careful monitoring.
CVS Bay Area Inc. (2687) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥2.76B
Dividend Yield4.11%
Average Volume (3M)7.88K
Price to Earnings (P/E)11.4
Beta (1Y)0.59
Revenue Growth2.93%
EPS Growth-81.08%
CountryJP
Employees202
SectorConsumer Defensive
Sector Strength42
IndustryGrocery Stores
Share Statistics
EPS (TTM)-22.75
Shares Outstanding5,064,000
10 Day Avg. Volume4,490
30 Day Avg. Volume7,883
Financial Highlights & Ratios
PEG Ratio0.04
Price to Book (P/B)0.61
Price to Sales (P/S)0.34
P/FCF Ratio-2.48
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
CVS Bay Area Inc. Business Overview & Revenue Model
Company DescriptionCVS Bay Area Inc. (2687) is a diversified healthcare company operating primarily in the pharmacy and retail sectors. The company provides a range of services including prescription medications, over-the-counter drugs, health and wellness products, and various healthcare services through its network of retail pharmacies and clinics. CVS Bay Area Inc. focuses on enhancing patient care and promoting health through its comprehensive product offerings and accessible healthcare solutions.
How the Company Makes MoneyCVS Bay Area Inc. generates revenue through multiple streams, primarily from the sale of prescription medications and health products at its retail locations. The company also earns significant income from its pharmacy benefit management (PBM) services, which involve managing prescription drug benefits for employers and insurance companies. Additional revenue comes from in-store clinics that provide basic healthcare services, as well as partnerships with healthcare providers and organizations that enhance patient access to care. The growing demand for health and wellness products, coupled with strategic collaborations and an expanding customer base, further contributes to the company's financial performance.
CVS Bay Area Inc. Financial Statement Overview
Summary
CVS Bay Area Inc. has shown strong recovery in its income statement with significant revenue growth and improved profit margins. The balance sheet is stable with moderate leverage, but cash flow management remains a challenge with negative free cash flow. Overall, the company is on a positive trajectory, but attention to debt and cash flow is crucial.Income Statement
CVS Bay Area Inc. has demonstrated a strong recovery in its income statement metrics. The company achieved a significant revenue growth rate of 4.03% from 2024 to 2025. Gross profit margin improved to 44.67%, and net profit margin increased to 14.36%, indicating enhanced profitability. The EBIT margin is at 5.39%, and EBITDA margin at 18.06%, reflecting operational efficiency. However, the company faced challenges in previous years with negative net income, which has been successfully turned around.85
Very Positive
Balance Sheet
The balance sheet shows a stable financial position with a debt-to-equity ratio of 1.21, indicating moderate leverage. Return on equity improved significantly to 25.65%, showcasing effective use of equity capital. The equity ratio stands at 38.87%, reflecting a solid equity base. Despite the positive trajectory, the company still carries a substantial amount of debt, which could pose risks if not managed carefully.78
Positive
Cash Flow
Cash flow analysis reveals some challenges, with a negative free cash flow of -1.08 billion in 2025. The operating cash flow to net income ratio is 0.37, indicating that cash generation from operations is not fully supporting net income. However, the company has shown resilience by improving its operating cash flow over the years. Continued focus on cash flow management is essential to sustain growth.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.90B | 7.82B | 7.52B | 6.93B | 7.21B | 7.32B |
| Gross Profit | 3.56B | 3.49B | 3.28B | 2.73B | 2.28B | 1.97B |
| EBITDA | 1.34B | 1.41B | 660.34M | 195.64M | -618.08M | -999.78M |
| Net Income | 1.01B | 1.12B | 697.62M | -13.53M | -831.52M | -1.16B |
Balance Sheet | ||||||
| Total Assets | 11.79B | 11.27B | 10.28B | 8.68B | 9.41B | 10.51B |
| Cash, Cash Equivalents and Short-Term Investments | 1.93B | 1.78B | 1.89B | 1.77B | 1.73B | 1.94B |
| Total Debt | 5.85B | 5.29B | 5.32B | 4.48B | 4.85B | 4.88B |
| Total Liabilities | 7.43B | 6.89B | 6.92B | 5.94B | 6.57B | 6.79B |
| Stockholders Equity | 4.36B | 4.38B | 3.36B | 2.74B | 2.83B | 3.72B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -1.08B | -644.17M | -201.00M | -425.39M | -577.34M |
| Operating Cash Flow | 0.00 | 410.52M | 481.89M | -172.53M | -351.39M | 120.76M |
| Investing Cash Flow | 0.00 | -384.36M | -1.08B | 654.76M | 232.76M | -341.04M |
| Financing Cash Flow | 0.00 | -129.65M | 710.97M | -442.98M | -84.74M | 550.89M |
CVS Bay Area Inc. Technical Analysis
Negative
548.00
Price Trends
592.15
Negative
578.74
Negative
556.64
Positive
Market Momentum
-9.78
Negative
39.50
Neutral
72.49
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2687, the sentiment is Negative. The current price of 548 is below the 20-day moving average (MA) of 568.95, below the 50-day MA of 592.15, and below the 200-day MA of 556.64, indicating a neutral trend. The MACD of -9.78 indicates Negative momentum. The RSI at 39.50 is Neutral, neither overbought nor oversold. The STOCH value of 72.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2687.
CVS Bay Area Inc. Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | ¥2.76B | 11.45 | ― | 4.11% | 2.93% | -81.08% | |
| ― | ¥4.11B | 8.36 | ― | 4.07% | 3.49% | 16.08% | |
| ― | ¥4.05B | 27.84 | ― | 1.56% | 0.42% | 13.11% | |
| ― | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
| ― | ¥3.95B | 58.19 | ― | 0.71% | 5.74% | 14.35% | |
| ― | ¥2.45B | -51.09 | ― | ― | ― | ― |
* Consumer Defensive Sector Average
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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.