Financials ARCS Company Limited

Equities

9948

JP3968600001

Food Retail & Distribution

Market Closed - Japan Exchange Other stock markets 02:00:00 2024-07-03 am EDT			5-day change	1st Jan Change
2,882 ^JPY	-0.14%		-1.20%	+3.59%

May. 31	Indian asset recast firms misused by 'tainted' promoters, cenbank deputy says	RE
May. 29	Some Indian asset recast firms circumventing rules, says RBI deputy	RE

Valuation

Fiscal Period: February	2020	2021	2022	2023	2024	2025	2026	2027
Capitalization ¹	97,596	123,971	122,554	121,367	167,170	155,572	-	-
Enterprise Value (EV) ¹	76,121	82,728	82,090	76,237	118,593	155,572	155,572	155,572
P/E ratio	14.2 x	9.56 x	11.9 x	12.2 x	14.5 x	13.1 x	12.7 x	12.5 x
Yield	2.89%	2.51%	2.62%	2.68%	2.2%	2.43%	2.53%	2.63%
Capitalization / Revenue	0.19 x	0.22 x	0.21 x	0.21 x	0.28 x	0.25 x	0.25 x	0.24 x
EV / Revenue	0.19 x	0.22 x	0.21 x	0.21 x	0.28 x	0.25 x	0.25 x	0.24 x
EV / EBITDA	5.07 x	4.76 x	5.02 x	5.13 x	6.26 x	5.72 x	5.52 x	5.42 x
EV / FCF	16.8 x	5.29 x	12.5 x	13.2 x	12.5 x	11.2 x	10.7 x	-
FCF Yield	5.95%	18.9%	8.02%	7.6%	8.02%	8.93%	9.32%	-
Price to Book	0.68 x	0.79 x	0.75 x	0.71 x	0.94 x	-	-	-
Nbr of stocks (in thousands)	56,479	56,479	56,321	55,981	54,013	53,981	-	-
Reference price ²	1,728	2,195	2,176	2,168	3,095	2,886	2,886	2,886
Announcement Date	4/17/20	4/13/21	4/14/22	4/14/23	4/15/24	-	-	-

¹JPY in Million²JPY

Estimates

Income Statement Evolution (Annual data)

Fiscal Period: February	2020	2021	2022	2023	2024	2025	2026	2027
Net sales ¹	519,218	556,946	577,568	566,209	591,557	612,150	627,250	644,050
EBITDA ¹	19,246	26,062	24,430	23,657	26,705	27,200	28,200	28,700
EBIT ¹	12,119	17,748	15,562	14,835	16,831	17,550	18,250	18,600
Operating Margin	2.33%	3.19%	2.69%	2.62%	2.85%	2.87%	2.91%	2.89%
Earnings before Tax (EBT) ¹	12,240	19,155	16,746	15,495	17,449	18,100	19,100	19,600
Net income ¹	6,870	12,967	10,304	9,947	11,766	11,900	12,250	12,500
Net margin	1.32%	2.33%	1.78%	1.76%	1.99%	1.94%	1.95%	1.94%
EPS ²	121.6	229.6	182.5	177.5	214.0	220.4	227.0	231.6
Free Cash Flow ¹	5,809	23,420	9,830	9,221	13,405	13,900	14,500	-
FCF margin	1.12%	4.21%	1.7%	1.63%	2.27%	2.27%	2.31%	-
FCF Conversion (EBITDA)	30.18%	89.86%	40.24%	38.98%	50.2%	51.1%	51.42%	-
FCF Conversion (Net income)	84.56%	180.61%	95.4%	92.7%	113.93%	116.81%	118.37%	-
Dividend per Share ²	50.00	55.00	57.00	58.00	68.00	70.00	73.00	76.00
Announcement Date	4/17/20	4/13/21	4/14/22	4/14/23	4/15/24	-	-	-

¹JPY in Million²JPY

Estimates

Income Statement Evolution (Quarterly data)

Fiscal Period: February	2021 S1	2022 S1	2022 Q3	2022 Q4	2023 Q1	2023 Q2	2023 S1	2023 Q3	2023 Q4	2024 Q1	2024 Q2	2024 S1	2024 Q3	2024 Q4	2025 Q1	2025 Q2	2025 S1	2025 Q3	2025 Q4
Net sales ¹	282,148	291,250	138,431	147,887	138,297	142,952	281,249	137,531	147,429	142,900	149,301	292,201	144,209	155,147	148,616	154,689	303,305	148,380	160,316
EBITDA	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
EBIT ¹	10,394	8,373	2,775	4,414	3,845	3,564	7,409	2,868	4,558	3,982	3,953	7,935	3,159	5,737	4,113	4,119	8,232	3,206	5,962
Operating Margin	3.68%	2.87%	2%	2.98%	2.78%	2.49%	2.63%	2.09%	3.09%	2.79%	2.65%	2.72%	2.19%	3.7%	2.77%	2.66%	2.71%	2.16%	3.72%
Earnings before Tax (EBT)	11,266	9,304	3,177	-	4,254	-	8,240	3,404	-	4,453	-	8,790	3,521	-	-	-	-	-	-
Net income	7,619	5,989	2,070	2,245	2,872	2,647	5,519	2,247	2,181	3,008	2,791	5,799	2,108	-	-	-	-	-	-
Net margin	2.7%	2.06%	1.5%	1.52%	2.08%	1.85%	1.96%	1.63%	1.48%	2.1%	1.87%	1.98%	1.46%	-	-	-	-	-	-
EPS	134.9	106.0	36.64	-	51.06	-	98.35	40.14	-	53.81	-	104.3	38.75	-	-	-	-	-	-
Dividend per Share	25.00	27.00	-	-	-	-	28.00	-	-	-	-	29.00	-	-	-	-	-	-	-
Announcement Date	10/13/20	10/14/21	1/6/22	4/14/22	7/5/22	10/14/22	10/14/22	1/6/23	4/14/23	7/4/23	10/16/23	10/16/23	1/9/24	4/15/24	-	-	-	-	-

¹JPY in Million

Estimates

Balance Sheet Analysis

Fiscal Period: February	2020	2021	2022	2023	2024	2025	2026	2027
Net Debt	-	-	-	-	-	-	-	-
Net Cash position	21,475	41,243	40,464	45,130	48,577	-	-	-
Leverage (Debt/EBITDA)	-	-	-	-	-	-	-	-
Free Cash Flow ¹	5,809	23,420	9,830	9,221	13,405	13,900	14,500	-
ROE (net income / shareholders' equity)	4.7%	8.6%	6.4%	5.9%	6.7%	6.4%	-	-
ROA (Net income/ Total Assets)	5.99%	5.37%	6.8%	6.27%	6.82%	-	-	-
Assets ¹	114,744	241,682	151,546	158,539	172,648	-	-	-
Book Value Per Share	2,558	2,787	2,910	3,067	3,294	-	-	-
Cash Flow per Share	247.0	375.0	337.0	333.0	392.0	-	-	-
Capex ¹	9,923	4,579	5,851	8,000	9,854	9,500	9,500	-
Capex / Sales	1.91%	0.82%	1.01%	1.41%	1.67%	1.55%	1.51%	-
Announcement Date	4/17/20	4/13/21	4/14/22	4/14/23	4/15/24	-	-	-

¹JPY in Million

Estimates

EPS & Dividend

Year-on-year evolution of the PER

Year-on-year evolution of the Yield

Change in Enterprise Value/EBITDA

Ratings for ARCS Company Limited

Trading Rating

Investor Rating

ESG Refinitiv

More Ratings

Analysts' Consensus

Sell

Buy

Mean consensus

HOLD

Number of Analysts

Last Close Price

2,886 JPY

Average target price

3,000 JPY

Spread / Average Target

+3.95%

Consensus

EPS Revisions

Estimates Revisions

Quarterly earnings - Rate of surprise

Company calendar

Sector Supermarkets & Convenience Stores

	1st Jan change	Capi.
ARCS COMPANY LIMITED	+3.59%	965M
AVENUE SUPERMARTS LIMITED	+17.40%	37.22B
FOMENTO ECONÓMICO MEXICANO, S.A.B. DE C.V.	-11.57%	34.44B
SEVEN & I HOLDINGS CO., LTD.	+5.95%	31.71B
SM INVESTMENTS CORPORATION	-5.05%	17.21B
COLES GROUP LIMITED	+5.71%	15.04B
CASEY'S GENERAL STORES, INC.	+35.05%	13.88B
JERÓNIMO MARTINS, SGPS, S.A.	-17.10%	12.79B
ICA GRUPPEN	-.--%	11.82B
CARREFOUR	-17.27%	9.83B

Supermarkets & Convenience Stores