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Watts Co., Ltd. (JP:2735)
:2735
Japanese Market
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Watts Co., Ltd. (2735) Price & Analysis

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2735 Stock Chart & Stats

¥639.00
-¥4.00(-0.62%)
At close: 4:00 PM EST
¥639.00
-¥4.00(-0.62%)

Bulls Say, Bears Say

Bulls Say
Stable Gross MarginA gross margin near 38% across multiple years indicates that Watts has maintained relatively consistent merchandise economics despite its low-price positioning. This provides a durable base for covering store operating costs and supports resilience if revenue growth remains modest.
Conservative Balance SheetLow leverage and a stable equity ratio give Watts financial flexibility to continue operating through weaker demand and to fund necessary business activity without relying heavily on additional borrowing. This strengthens balance-sheet resilience over the next several quarters.
Everyday-Needs Retail ModelWatts is focused on consumables, kitchen and cleaning supplies, sundries, and other everyday goods, serving value-conscious consumers through physical stores. This broad essential-goods assortment gives the business an established, repeat-use retail proposition rather than dependence on a single product category.
Bears Say
Negative Recent Revenue GrowthRecent revenue contraction signals that Watts is not currently expanding its sales base, creating pressure on store productivity and the ability to absorb fixed operating costs. If sustained, weak top-line performance could limit earnings growth and reduce the benefits of its stable gross margin.
Thinning ProfitabilityA net margin of only 1.4% leaves limited room for execution errors, cost inflation, or weaker store performance. The concurrent decline in EBIT and EBITDA margins suggests operating efficiency is under pressure, making future profit recovery dependent on improved economics rather than sales alone.
Negative Free Cash FlowNegative operating and free cash flow indicate that reported earnings are not currently converting into cash, weakening internal funding capacity. Persistent cash shortfalls could constrain store investment and growth initiatives while increasing reliance on the conservative balance sheet to support operations.

2735 FAQ

What was Watts Co., Ltd.’s price range in the past 12 months?
Watts Co., Ltd. lowest stock price was ¥591.00 and its highest was ¥748.00 in the past 12 months.
    What is Watts Co., Ltd.’s market cap?
    Watts Co., Ltd.’s market cap is ¥9.29B.
      When is Watts Co., Ltd.’s upcoming earnings report date?
      Watts Co., Ltd.’s upcoming earnings report date is Oct 09, 2026 which is in 16 days.
        How were Watts Co., Ltd.’s earnings last quarter?
        Watts Co., Ltd. released its earnings results on Jul 09, 2026. The company reported ¥23.59 earnings per share for the quarter.
          Is Watts Co., Ltd. overvalued?
          According to Wall Street analysts Watts Co., Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium
            Does Watts Co., Ltd. pay dividends?
            Watts Co., Ltd. pays a Notavailable dividend of ¥15.5 which represents an annual dividend yield of 2.78%. See more information on Watts Co., Ltd. dividends here
              What is Watts Co., Ltd.’s EPS estimate?
              Watts Co., Ltd.’s EPS estimate for its next earnings report is not yet available.
              How many shares outstanding does Watts Co., Ltd. have?
              Watts Co., Ltd. has 13,458,800 shares outstanding.
                What happened to Watts Co., Ltd.’s price movement after its last earnings report?
                Watts Co., Ltd. reported an EPS of ¥23.59 in its last earnings report. Following the earnings report the stock price went up 1.417%.
                  Which hedge fund is a major shareholder of Watts Co., Ltd.?
                  Currently, no hedge funds are holding shares in JP:2735
                  What is the TipRanks Smart Score and how is it calculated?
                  Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

                    Company Description

                    Watts Co., Ltd.

                    Watts Co., Ltd. and its subsidiaries engage in the wholesale and retail of daily essentials and household goods, serving customers both within Japan and internationally. The company also extends its operations to include grocery retail and a broader selection of lifestyle and general merchandise. Among its diverse retail formats, Watts is well-known for its 100-Yen shops. It further operates specific brand stores such as 'Buona vita' for groceries, 'Tokino: ne' for time-themed general goods, and 'KOMONOYA' and 'KOMONOKAEN' which are uniform shops. Established in 1995, Watts Co., Ltd. is headquartered in Osaka, Japan.

                    Watts Co., Ltd. (2735) Earnings & Revenues

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