Financials ARCS Company Limited

Equities

9948

JP3968600001

Food Retail & Distribution

Market Closed - Japan Exchange Other stock markets 02:00:00 2024-04-26 am EDT			5-day change	1st Jan Change
3,130 ^JPY	+0.16%		-2.49%	+12.51%

Apr. 16	Arc's Attributable Profit Climbs 18% in Fiscal 2024	MT
Apr. 16	ARCS Company Limited Provides Consolidated and Non-Consolidated Earnings Guidance for the Six Months Ending August 31, 2024 and Fiscal Year Ending February 28, 2025	CI

Valuation

Fiscal Period: February	2019	2020	2021	2022	2023	2024	2025	2026
Capitalization ¹	149,020	97,596	123,971	122,554	121,367	169,060	-	-
Enterprise Value (EV) ¹	125,200	76,121	82,728	82,090	76,237	167,170	169,060	169,060
P/E ratio	14.1 x	14.2 x	9.56 x	11.9 x	12.2 x	14.5 x	15.9 x	15.2 x
Yield	1.93%	2.89%	2.51%	2.62%	2.68%	2.2%	2.24%	2.12%
Capitalization / Revenue	0.29 x	0.19 x	0.22 x	0.21 x	0.21 x	0.28 x	0.28 x	0.27 x
EV / Revenue	0.29 x	0.19 x	0.22 x	0.21 x	0.21 x	0.28 x	0.28 x	0.27 x
EV / EBITDA	6.98 x	5.07 x	4.76 x	5.02 x	5.13 x	6.66 x	6.57 x	-
EV / FCF	-80.7 x	16.8 x	5.29 x	12.5 x	13.2 x	13.9 x	12.2 x	11.7 x
FCF Yield	-1.24%	5.95%	18.9%	8.02%	7.6%	7.22%	8.22%	8.58%
Price to Book	1.01 x	0.68 x	0.79 x	0.75 x	0.71 x	0.94 x	0.94 x	-
Nbr of stocks (in thousands)	57,648	56,479	56,479	56,321	55,981	54,013	-	-
Reference price ²	2,585	1,728	2,195	2,176	2,168	3,130	3,130	3,130
Announcement Date	4/11/19	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	2019	2020	2021	2022	2023	2024	2025	2026
Net sales ¹	512,246	519,218	556,946	577,568	566,209	591,557	607,400	622,800
EBITDA ¹	21,340	19,246	26,062	24,430	23,657	25,390	25,740	-
EBIT ¹	14,821	12,119	17,748	15,562	14,835	16,831	16,100	16,900
Operating Margin	2.89%	2.33%	3.19%	2.69%	2.62%	2.85%	2.65%	2.71%
Earnings before Tax (EBT) ¹	14,428	12,240	19,155	16,746	15,495	17,449	16,800	18,000
Net income ¹	10,168	6,870	12,967	10,304	9,947	11,766	10,650	11,100
Net margin	1.98%	1.32%	2.33%	1.78%	1.76%	1.99%	1.75%	1.78%
EPS ²	183.9	121.6	229.6	182.5	177.5	214.0	197.2	205.6
Free Cash Flow ¹	-1,847	5,809	23,420	9,830	9,221	12,200	13,900	14,500
FCF margin	-0.36%	1.12%	4.21%	1.7%	1.63%	2.06%	2.29%	2.33%
FCF Conversion (EBITDA)	-	30.18%	89.86%	40.24%	38.98%	48.05%	54%	-
FCF Conversion (Net income)	-	84.56%	180.61%	95.4%	92.7%	117.31%	130.52%	130.63%
Dividend per Share ²	50.00	50.00	55.00	57.00	58.00	68.00	70.00	66.50
Announcement Date	4/11/19	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	2020 S1	2021 S1	2022 Q2	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	256,673	282,148	148,635	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	147,902	153,066	300,967	148,535	159,998
EBITDA	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
EBIT ¹	5,973	10,394	4,117	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	3,932	3,713	7,645	3,471	5,185
Operating Margin	2.33%	3.68%	2.77%	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%	2.66%	2.43%	2.54%	2.34%	3.24%
Earnings before Tax (EBT)	6,841	11,266	-	9,304	3,177	-	4,254	-	8,240	3,404	-	4,453	-	8,790	3,521	-	-	-	-	-	-
Net income	4,508	7,619	3,106	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	1.76%	2.7%	2.09%	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	79.70	134.9	-	106.0	36.64	-	51.06	-	98.35	40.14	-	53.81	-	104.3	38.75	-	-	-	-	-	-
Dividend per Share	25.00	25.00	-	27.00	-	-	-	-	28.00	-	-	-	-	29.00	-	-	-	-	-	-	-
Announcement Date	10/11/19	10/13/20	10/14/21	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	2019	2020	2021	2022	2023	2024	2025	2026
Net Debt	-	-	-	-	-	-	-	-
Net Cash position	23,820	21,475	41,243	40,464	45,130	-	-	-
Leverage (Debt/EBITDA)	-	-	-	-	-	-	-	-
Free Cash Flow ¹	-1,847	5,809	23,420	9,830	9,221	12,200	13,900	14,500
ROE (net income / shareholders' equity)	7.2%	4.7%	8.6%	6.4%	5.9%	6.7%	5.9%	6%
ROA (Net income/ Total Assets)	7.49%	5.99%	5.37%	6.8%	6.27%	6.82%	6.4%	-
Assets ¹	135,739	114,744	241,682	151,546	158,539	172,648	166,406	-
Book Value Per Share ²	2,558	2,558	2,787	2,910	3,067	3,294	3,342	-
Cash Flow per Share	299.0	247.0	375.0	337.0	333.0	392.0	-	-
Capex ¹	6,337	9,923	4,579	5,851	8,000	10,900	9,500	9,500
Capex / Sales	1.24%	1.91%	0.82%	1.01%	1.41%	1.84%	1.56%	1.53%
Announcement Date	4/11/19	4/17/20	4/13/21	4/14/22	4/14/23	4/15/24	-	-

¹JPY in Million²JPY

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

3,130 JPY

Average target price

2,850 JPY

Spread / Average Target

-8.95%

Consensus

EPS Revisions

Estimates Revisions

Quarterly earnings - Rate of surprise

Company calendar

Sector Supermarkets & Convenience Stores

	1st Jan change	Capi.
ARCS COMPANY LIMITED	+12.51%	1.07B
FOMENTO ECONÓMICO MEXICANO, S.A.B. DE C.V.	-7.21%	38.45B
AVENUE SUPERMARTS LIMITED	+11.52%	35.53B
SEVEN & I HOLDINGS CO., LTD.	+9.36%	33.86B
SM INVESTMENTS CORPORATION	+9.52%	20.2B
COLES GROUP LIMITED	+1.92%	14.29B
JERÓNIMO MARTINS, SGPS, S.A.	-17.40%	12.77B
CASEY'S GENERAL STORES, INC.	+16.48%	11.85B
ICA GRUPPEN	-.--%	11.82B
CARREFOUR	-3.89%	11.75B

Supermarkets & Convenience Stores