Watts Co., Ltd. stock analysis
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Watts Co., Ltd. (2735) Stock Price & Analysis
2735 Stock Chart & Stats
- Day’s Range
- JPY 711.00 - JPY 748.00
- 52-Week Range
- JPY 591.00 - JPY 785.00
- Previous Close
- JPY 759.00
- Volume
- N/A
- Average Volume (3M)
- 54.35K
- Market Cap
- JPY 9.26B
- Enterprise Value
- JPY 5.71B
- Total Cash (Recent Filing)
- JPY 4.84B
- Total Debt (Recent Filing)
- JPY 2.15B
- Price to Earnings (P/E)
- 8.7
- Beta
- 0.22
- Next Earnings
- Jan 08, 2027 (Est.)
- EPS Estimate
- N/A
- Next Dividend Ex-Date
- Feb 25, 2027
- Dividend Yield
- 2.79%
Bulls Say, Bears Say
Bulls Say
Conservative Balance Sheet
Very low leverage reduces refinancing and interest-burden risk, while the larger equity base provides a stronger cushion against operating setbacks. This financial flexibility can support store investment or absorb volatility without relying heavily on additional borrowing.
Improving Revenue And Profitability
Steady revenue expansion and recovery in net margin indicate the core store network is improving rather than contracting. Stable gross-profit economics give management a base to retain earnings and fund operations, although the scale of improvement remains moderate.
Stable Gross Margin
A stable gross margin near 38–39% suggests the merchandise mix and value proposition have maintained broad gross-profit economics. Combined with improved profitability, this supports a more durable earnings foundation than a recovery driven only by one-time margin changes.
Bears Say
Thin Operating Margins
Thin operating and net margins leave limited room for adverse changes in labor, rent, logistics, procurement, or other store costs. Even with stable gross margins, modest cost pressure could therefore produce a disproportionate effect on earnings and returns.
Uneven Cash Generation
Large swings in operating cash flow and free cash flow make internally generated funding less predictable than reported earnings. Although 2026 recovered, recurring working-capital or investment swings could periodically constrain liquidity and complicate store expansion or shareholder distributions.
Exposure To Retail Cost Pressures
The low-price variety-store model depends on maintaining traffic and inventory turnover while controlling procurement, logistics, rent, labor, and utility costs. Because pricing is value-oriented, passing higher operating costs to customers may be difficult, keeping profitability vulnerable.
2735 FAQ
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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.
- Sector
- Consumerdefensive
- Industry
- Discount Stores
- CEO
- Fumio Hiraoka
- Employees
- 418
- Website
- www.watts-jp.com
- Address
- Sumitomo Life Insurance OBP Plaza Bldg, Osaka, OS, 540-0001, JP
Watts Co., Ltd. (2735) Earnings & Revenues
Technical Analysis
Overall Consensus
| Indicator | Bullish | Neutral | Bearish |
|---|---|---|---|
| Overall Consensus | 7 | 5 | 10 |
| Technical Analysis | 3 | 5 | 2 |
| Moving Averages | 4 | 0 | 8 |

