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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
Conservative LeverageA low debt-to-equity ratio (0.26) indicates conservative leverage, preserving financial flexibility. This reduces refinancing and solvency risk, allowing the company to withstand short-term shocks, fund working capital needs, or selectively invest without stressing the capital structure over the next several months.
Stable Gross MarginsConsistent gross margin (~38%) shows durable cost control and purchasing/pricing discipline across product assortments. That structural margin stability supports core profitability even when operating expenses fluctuate, enabling the business to sustain unit economics and margin recovery efforts over a medium-term horizon.
Defensive, Value-oriented Retail ModelA focus on low-priced daily necessities positions the company in a defensive segment with steady, necessity-driven demand. Value retailing typically yields consistent foot traffic and turnover, helping stabilize revenues and inventory flow and supporting cash sales and resilience across economic cycles over coming months.
Bears Say
Negative Free Cash FlowNegative free cash flow and falling operating cash generation constrain the company's ability to reinvest, pay dividends, or build liquidity. Persisting FCF deficits may force external financing, limit strategic flexibility, and raise solvency concerns if not reversed over the medium term.
Compressed Net ProfitabilityA net margin near 1.4% provides a thin buffer against cost inflation, sales softness, or markdowns. Low bottom-line profitability reduces retained earnings and the capacity to self-fund growth or absorb shocks, making earnings more sensitive to modest revenue or expense swings over the next several months.
Declining Return On EquityA slipping ROE (6.7%) signals weakening capital efficiency and lower returns on shareholder equity. If persistent, slower ROE may reflect competitive pressure, margin erosion, or asset underperformance, reducing the company's ability to generate attractive long-term shareholder value without operational improvements.

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 ¥694.00 in the past 12 months.
    What is Watts Co., Ltd.’s market cap?
    Watts Co., Ltd.’s market cap is ¥8.73B.
      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 63 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, beating the consensus estimate of N/A by ¥23.59.
          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 Semiannually dividend of ¥12.5 which represents an annual dividend yield of 2.95%. 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, beating expectations of N/A. 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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