Watts Co Ltd
Watts Co Ltd operates in the retail sector, primarily functioning as a discount store, generating revenue through the sale of a broad range of consumer goods.
Business. Watts Co Ltd (2735.T) is a Japanese discount retailer headquartered in Japan and primarily listed on the Tokyo Stock Exchange. The company operates within the Consumer Cyclicals sector, specifically focusing on the discount store industry. It generates revenue through the sale of products to consumers. Specific details regarding operating segments or geographic breakdowns are not provided in the available data.
Analyst recommendations
1 analysts · consensus BuyAt a glance
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- Macro
- Rate decisionBank of England rate decision (press conf.)2026-08-06 · GB
- Rate decisionReserve Bank of Australia rate decision (press conf.)2026-08-12 · AU
- Rate decisionNorges Bank rate decision (press conf.)2026-08-20 · NO
- Rate decisionSveriges Riksbank rate decision (press conf.)2026-09-03 · SE
- Rate decisionBank of Canada rate decision (press conf.)2026-09-09 · CA
- Rate decisionEuropean Central Bank rate decision (press conf.)2026-09-10 · EU
- Macro & political
- ElectionSE Swedish Election2026-09-14 · SE
- ElectionUS U.S. Midterms2026-11-03 · US
- ElectionFR French Legislative2027-06-01 · FR
Pre-earnings brief
Signals & dispatch
Composite-score breakdown
Synthesis
Watts Co Ltd (2735.T) is a Japanese discount retailer headquartered in Japan and primarily listed on the Tokyo Stock Exchange. The company operates within the Consumer Cyclicals sector, specifically focusing on the discount store industry. It generates revenue through the sale of products to consumers. Specific details regarding operating segments or geographic breakdowns are not provided in the available data.
Watts Co Ltd maintains a strong liquidity position, with cash and equivalents amounting to ¥6.65 billion, which is a significant portion of its total assets of ¥27.18 billion. The company's liquidity ratio of 0.65 indicates that it is trading at a discount to its book value, suggesting potential undervaluation. The current ratio of 1.88 further supports the company's ability to meet its short-term obligations.
In terms of profitability, Watts Co Ltd's return on equity (ROE) of 2.62% and return on assets (ROA) of 1.19% are below the industry average for discount stores, indicating that the company is not generating returns as efficiently as its peers. The operating income of ¥411.55 million and net income of ¥324.35 million reflect a modest profit margin, which is consistent with the competitive nature of the retail sector.
The company's revenue is primarily concentrated in its domestic market, with no significant international operations disclosed. This concentration may expose the company to regional economic fluctuations and regulatory changes. The lack of geographic diversification could be a risk factor, especially in a volatile economic environment.
Looking at the growth trajectory, Watts Co Ltd is expected to see a positive change in revenue, with the current fiscal year showing a stable performance. The company's market price of ¥607 is below the mean price target of ¥850 set by analysts, suggesting potential for growth. However, the company's growth is constrained by its current market conditions and the competitive landscape.
The risk assessment for Watts Co Ltd indicates a low level of liquidity and dilution risk. The company's debt-to-equity ratio of 0.26 suggests a conservative capital structure, which is favorable for long-term stability. There are no immediate filing-based liquidity or dilution flags, indicating that the company is managing its financial obligations effectively.
Recent events and filings do not show any significant changes in the company's operations or financial strategy. The company's financial health remains stable, with no major risks identified in the latest reports. The absence of dilution potential and the conservative capital structure support the company's current valuation and risk profile.
- Watts Co Ltd has a strong liquidity position with significant cash reserves.
- The company's profitability metrics are below industry averages, indicating inefficiencies in generating returns.
- Revenue is concentrated in the domestic market, which may increase exposure to regional economic risks.
- The company's market price is below analyst price targets, suggesting potential for growth.
- The company maintains a conservative capital structure with low debt-to-equity ratio.
- **margin_outlook_rationale**: The company's margin outlook is stable, driven by its conservative capital structure and strong liquidity position.
- **rd_outlook_rationale**: There is no significant information provided on research and development activities or their future outlook.
Bull / Bear case
Generated · model-assistedAnalysts project 40.3% upside to a consensus target price of 850 JPY, rating the stock a strong buy.
Revenue grew at a 5.0% CAGR over four years, reaching 61.6 billion JPY in fiscal 2025.
Operating income increased 11.3% year-over-year to 1.36 billion JPY in fiscal 2025, showing margin expansion.
The company maintains low dilution, liquidity, and credit risk flags, indicating a stable financial profile.
Net income declined 3.7% year-over-year to 871 million JPY in fiscal 2025, reflecting bottom-line pressure.
Long-term debt rose to 3.34 billion JPY in fiscal 2025, up from 1.13 billion JPY in fiscal 2021.
In focus — financials by report
Revenue ¥15.92B, +2,9% YoY; Operating income +7,0% YoY.
- ▍Revenue ¥15.92B, +2,9% YoY
- ▍Operating income +7,0% YoY
- ▍Net income −12,9% YoY
- ▍Net margin 1.9%
Revenue ¥15.35B, +2,4% YoY; Operating income −1,8% YoY.
- ▍Revenue ¥15.35B, +2,4% YoY
- ▍Operating income −1,8% YoY
- ▍Net income +1,6% YoY
- ▍Net margin 1.3%
Revenue ¥15.57B, −0,6% YoY; Operating income +146,6% YoY.
- ▍Revenue ¥15.57B, −0,6% YoY
- ▍Operating income +146,6% YoY
- ▍Net income +93,4% YoY
- ▍Net margin 1.8%
Revenue ¥15.55B, +1,3% YoY; Operating income −52,8% YoY.
- ▍Revenue ¥15.55B, +1,3% YoY
- ▍Operating income −52,8% YoY
- ▍Net income −82,8% YoY
- ▍Net margin 0.4%
Revenue ¥15.47B; Operating income ¥532.1M.
- ▍Revenue ¥15.47B
- ▍Operating income ¥532.1M
- ▍Net margin 2.2%
Revenue ¥15.00B; Operating income ¥259.3M.
- ▍Revenue ¥15.00B
- ▍Operating income ¥259.3M
- ▍Net margin 1.3%
Revenue ¥15.65B; Operating income ¥151.7M.
- ▍Revenue ¥15.65B
- ▍Operating income ¥151.7M
- ▍Net margin 0.9%
Revenue ¥15.35B; Operating income ¥411.6M.
- ▍Revenue ¥15.35B
- ▍Operating income ¥411.6M
- ▍Net margin 2.1%
Revenue ¥61.58B, +0,5% YoY; Operating income +11,3% YoY.
- ▍Revenue ¥61.58B, +0,5% YoY
- ▍Operating income +11,3% YoY
- ▍Net income −3,7% YoY
- ▍Free cash flow −55,3% YoY
- ▍Net margin 1.4%
Revenue ¥61.26B, +3,3% YoY; Operating income +297,6% YoY.
- ▍Revenue ¥61.26B, +3,3% YoY
- ▍Operating income +297,6% YoY
- ▍Net income +260,8% YoY
- ▍Free cash flow +375,6% YoY
- ▍Net margin 1.5%
Revenue ¥59.31B, +1,6% YoY; Operating income −62,7% YoY.
- ▍Revenue ¥59.31B, +1,6% YoY
- ▍Operating income −62,7% YoY
- ▍Net income −67,9% YoY
- ▍Free cash flow −66,9% YoY
- ▍Net margin 0.4%
Revenue ¥58.35B, +15,1% YoY; Operating income −50,4% YoY.
- ▍Revenue ¥58.35B, +15,1% YoY
- ▍Operating income −50,4% YoY
- ▍Net income −19,1% YoY
- ▍Free cash flow +37,5% YoY
- ▍Net margin 1.3%
Valuation TTM
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Predictor forecast
| Metric | Our forecast | Guidance | Consensus |
|---|---|---|---|
| EPS | —no estimate | —no estimate | 67,80 |
| Revenue | —no estimate | —no estimate | 63,0B JPY |
| Operating income | —no estimate | —no estimate | —no estimate |
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consensus EPS · 26-week trendSell-side observations
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Risk factors
- No immediate filing-based liquidity or dilution flags were detected.
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- Watts Co Ltd Market data — financials · 2026-05-26
- Watts Co Ltd Market data — analyst estimates · 2026-05-26