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Carchs Holdings Co., Ltd. (JP:7602)
:7602
Japanese Market
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Carchs Holdings Co., Ltd. (7602) AI Stock Analysis

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JP:7602

Carchs Holdings Co., Ltd.

(7602)

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Neutral 57 (OpenAI - Gpt-5.6Sol)
Rating:57Neutral
Price Target:
¥189.00
▲(2.16% Upside)
Action:Reiterated
Date:09/10/26
The score is primarily held back by weak and inconsistent cash flow and thin/volatile profitability despite strong recent revenue growth and a stable, low-leverage balance sheet. Technicals are supportive (price above major averages with positive MACD) but look stretched (RSI near 70), while valuation is neutral with a modest P/E and minimal dividend support.
Positive Factors
Low leverage and solid equity base
Manageable leverage and a substantial equity base provide financial flexibility for a dealership business exposed to uneven earnings. Lower debt burden can reduce funding pressure and preserve capacity to manage weaker periods or support operating needs over the next several quarters.
Negative Factors
Persistently weak cash generation
Repeatedly negative operating and free cash flow indicates that reported earnings have not consistently converted into usable cash. This weakens confidence in earnings quality, increases dependence on liquidity management, and may restrict internally funded investment during weaker operating periods.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage and solid equity base
Manageable leverage and a substantial equity base provide financial flexibility for a dealership business exposed to uneven earnings. Lower debt burden can reduce funding pressure and preserve capacity to manage weaker periods or support operating needs over the next several quarters.
Read all positive factors

Carchs Holdings Co., Ltd. (7602) vs. iShares MSCI Japan ETF (EWJ)

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

Company Description
Ledax Co., Ltd. operates as a holding company, overseeing its various subsidiaries primarily involved in the automotive sector. These subsidiaries specialize in the procurement, sale, and logistics of automobiles. The firm was established on Decem...
How the Company Makes Money
Carchs Holdings makes money primarily through its operating subsidiaries by generating revenue from (1) vehicle sales (new and used), where revenue is recognized from the sale of automobiles to retail customers; and (2) after-sales services, inclu...

Carchs Holdings Co., Ltd. Financial Statement Overview

Summary
Balance sheet strength (low debt-to-equity and solid equity base) supports stability, but overall performance is constrained by volatile profitability (loss-to-profit swing), declining gross margin (~22% to ~15%), and persistently weak cash conversion with negative operating/free cash flow in most years.
Income Statement
52
Neutral
Balance Sheet
70
Positive
Cash Flow
34
Negative
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue20.30B19.85B20.03B19.07B19.06B18.38B
Gross Profit3.02B3.00B2.90B3.15B2.69B3.36B
EBITDA18.72M-4.82M-1.49M243.28M-373.04M-157.84M
Net Income211.59M170.21M-187.40M73.10M-514.87M-293.30M
Balance Sheet
Total Assets7.00B7.13B7.07B7.26B6.73B7.63B
Cash, Cash Equivalents and Short-Term Investments1.95B2.15B1.66B2.32B1.73B2.20B
Total Debt647.60M650.86M686.88M429.74M629.86M683.28M
Total Liabilities2.15B2.08B2.21B2.22B1.82B2.18B
Stockholders Equity4.58B4.78B4.61B4.81B4.73B5.28B
Cash Flow
Free Cash Flow0.00-248.45M-873.13M781.69M-411.34M-1.27B
Operating Cash Flow0.00-241.42M-861.24M875.09M-311.25M-1.05B
Investing Cash Flow0.00771.13M16.78M-67.93M499.87M-99.63M
Financing Cash Flow0.00-31.81M91.08M-228.62M-59.67M515.01M

Carchs Holdings Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price185.00
Price Trends
50DMA
166.88
Positive
100DMA
166.80
Positive
200DMA
180.51
Positive
Market Momentum
MACD
3.70
Negative
RSI
75.41
Negative
STOCH
70.43
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7602, the sentiment is Positive. The current price of 185 is above the 20-day moving average (MA) of 169.35, above the 50-day MA of 166.88, and above the 200-day MA of 180.51, indicating a bullish trend. The MACD of 3.70 indicates Negative momentum. The RSI at 75.41 is Negative, neither overbought nor oversold. The STOCH value of 70.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7602.

Carchs Holdings Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥883.46B20.9621.34%3.02%11.30%12.09%
72
Outperform
¥21.08B12.472.38%6.93%11.18%
69
Neutral
¥62.24B10.574.67%13.60%12.08%
62
Neutral
¥122.40B9.713.53%14.34%-4.02%
58
Neutral
¥228.82B13.201.72%23.06%160.29%
57
Neutral
¥3.79B21.101.08%3.64%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7602
Carchs Holdings Co., Ltd.
191.00
56.93
42.46%
JP:4732
USS Co
1,905.50
156.38
8.94%
JP:3186
Nextage Co., Ltd.
2,939.00
699.42
31.23%
JP:5589
AUTOSERVER CO.,LTD
2,830.00
376.37
15.34%
JP:7593
VT Holdings Co., Ltd.
512.00
36.53
7.68%
JP:7599
IDOM Inc.
1,214.00
249.55
25.87%
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.Date of analysis: Sep 10, 2026