Carchs Holdings Co., Ltd. (7602) AI Stock Analysis

• Market Cap: ¥2.73B
• Dividend Yield: 1.51%
• Average Volume (3M): 227.12K
• Price to Earnings (P/E): 138.3
• Beta (1Y): 0.47
• Revenue Growth: 8.82%
• EPS Growth: N/A
• Country: JP
• Employees: 211
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Auto - Dealerships
• EPS (TTM): 0.95
• Shares Outstanding: 24,106,009
• 10 Day Avg. Volume: 543,990
• 30 Day Avg. Volume: 227,116
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Carchs Holdings has mixed financial performance with recent improvements in revenue and profitability but faces operational challenges and liquidity issues. Technical indicators show a bearish trend with no strong momentum. The high P/E ratio suggests overvaluation, partially offset by a modest dividend yield. Overall, the stock requires careful consideration due to operational and valuation concerns.

Carchs Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

Carchs Holdings Co., Ltd. is a Japanese company primarily engaged in the automotive retail industry. It operates through its subsidiaries to provide a range of services related to the buying and selling of used cars. The company focuses on offering high-quality pre-owned vehicles and ensures customer satisfaction through comprehensive inspections and quality assurance. With a strong presence in the domestic market, Carchs Holdings utilizes its extensive network of dealerships to cater to a diverse customer base.

How the Company Makes Money

Carchs Holdings Co., Ltd. generates revenue primarily through the sale of used vehicles. The company purchases pre-owned cars and resells them to consumers at its dealerships, leveraging its expertise in vehicle assessment to ensure competitive pricing and quality. Additionally, the company may engage in ancillary services such as vehicle maintenance and financing options, which contribute to its revenue streams. Strategic partnerships with financial institutions and automotive service providers further enhance its ability to offer comprehensive solutions to customers and maintain a steady flow of income.

Carchs Holdings Co., Ltd. Financial Statement Overview

Summary

Carchs Holdings showcases a mixed financial performance. Revenue and profitability metrics have improved, but operational challenges and potential liquidity issues remain. The balance sheet is a strength, with strong equity and low leverage. Cash flow management needs attention, especially in maintaining positive operational cash flows.

Income Statement

The company has shown a modest revenue growth trajectory. The TTM revenue shows a decent increase from the previous period, and the gross profit margin is relatively stable. However, negative EBIT in the TTM period indicates challenges in managing operational costs. The net profit margin has improved significantly from a negative to a positive figure, reflecting better cost management or one-time gains.

Balance Sheet

The company's balance sheet reveals a strong equity position with a consistent equity ratio over 60%. The debt-to-equity ratio remains low, indicating conservative leverage. However, the decrease in cash and cash equivalents over the periods could pose liquidity concerns. The ROE has improved to a positive trajectory, suggesting enhanced profitability relative to equity.

Cash Flow

The cash flow statement shows fluctuations in operating cash flow, with the TTM period operating cash flow at zero, indicating potential cash generation issues. The absence of free cash flow in the TTM period raises concerns about cash sustainability. However, previous periods exhibit positive free cash flow, suggesting some resilience in cash generation capabilities.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
19.07B	19.06B	18.38B	16.03B	15.97B
	Gross Profit
3.15B	2.69B	3.36B	3.50B	3.36B
	EBIT
98.73M	-499.14M	201.46M	236.94M	57.00M
	EBITDA
243.28M	-373.04M	-157.84M	330.50M	115.00M
	Net Income Common Stockholders
73.10M	-514.87M	-293.30M	157.63M	156.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.32B	1.73B	2.20B	2.83B	3.44B
	Total Assets
7.26B	6.73B	7.63B	7.65B	6.95B
	Total Debt
401.38M	629.86M	655.78M	86.05M	199.20M
	Net Debt
-1.92B	-1.10B	-1.54B	-2.74B	-2.64B
	Total Liabilities
2.22B	1.82B	2.18B	1.88B	1.35B
	Stockholders Equity
4.81B	4.73B	5.28B	5.61B	5.45B
Cash Flow		Free Cash Flow
781.69M	-411.34M	-1.27B	-482.43M	754.00M
	Operating Cash Flow
875.09M	-311.25M	-1.05B	-319.63M	762.00M
	Investing Cash Flow
-67.93M	499.87M	-99.63M	-181.97M	-88.00M
	Financing Cash Flow
-228.62M	-59.67M	515.01M	-112.06M	19.00M

Carchs Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 132.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7602, the sentiment is Negative. The current price of 132 is above the 20-day moving average (MA) of 131.00, below the 50-day MA of 136.66, and below the 200-day MA of 145.24, indicating a neutral trend. The MACD of -0.86 indicates Negative momentum. The RSI at 46.06 is Neutral, neither overbought nor oversold. The STOCH value of 37.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7602.

Carchs Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7270	79 Outperform	¥1.93T	4.83	15.47%	4.32%	6.27%	19.66%
7261	73 Outperform	$549.87B	4.14	7.58%	6.49%	5.40%	-35.16%
7220	67 Neutral	¥166.58B	24.81		1.97%	2.31%	-23.23%
8136	64 Neutral	¥1.40T	38.06	42.78%	0.87%	41.66%	106.19%
Sector *	61 Neutral	$6.58B	11.77	3.05%	3.99%	2.61%	-21.52%
7602	56 Neutral	¥2.73B	138.34		1.51%	8.82%	―
8304	42 Neutral	$270.56B	―	-4.60%	3.64%	1.12%	6.36%