Breaking Down Sugi Holdings Co.,Ltd. Financial Health: Key Insights for Investors

Sugi Holdings' recent financial picture demands attention: in the fiscal year ending February 28, 2025 net sales reached ¥878.02 billion, with trailing twelve‑month revenue of ¥964.38 billion as of August 31, 2025 and August same‑store sales up 2.4% while total August sales jumped 13.9% (prescription sales +48.5%), driving a store network of 2,279 outlets after nine openings and four closures; profitability shows operating profit of ¥42.56 billion, ordinary profit ¥41.99 billion and profit attributable ¥25.69 billion (EPS ¥142.0 for FY2025, TTM EPS ¥227.92, ROE 10.6%), a conservative balance sheet with cash and equivalents of ¥109.36 billion, total assets ¥1,000.00 billion, liabilities ¥500.00 billion and shareholders' equity ¥400.00 billion, strong liquidity (current ratio 2.0, quick ratio 1.5, operating cash flow ¥50.00 billion) and solvency (interest coverage 10.0, solvency ratio 40%), plus investor metrics-market cap ¥660.55 billion, stock ¥3,650.00 (Dec 12, 2025), P/E 16.01, P/S 0.75 and a beta of 0.47 with analyst targets ¥3,350-¥4,400-set against risks like competitive pressure, regulatory and supply‑chain exposure and integration of the I&H acquisition (Sept 2024); read on for a granular breakdown of revenue drivers, margins, leverage, valuation and the growth levers shaping investor decisions

Sugi Holdings Co.,Ltd. (7649.T) - Revenue Analysis

• FY ending Feb 28, 2025 net sales: ¥878.02 billion (up 17.9% YoY)
• TTM revenue as of Aug 31, 2025: ¥964.38 billion (up 21.81% YoY)
• August 2025 same-store sales: +2.4% (drugstore +1.4%; prescription +6.1%)
• August 2025 total sales: +13.9% (drugstore +4.9%; prescription +48.5%)
• Store openings/closings in Aug 2025: +9 opened, -4 closed; outlets total: 2,279
• Revised consolidated forecast for FY ending Feb 28, 2026: higher net sales and profits, partly reflecting the Sept 2024 acquisition of I&H Co., Ltd.

Sugi Holdings Co.,Ltd. (7649.T) - Profitability Metrics

Sugi Holdings Co.,Ltd. delivered continued profit expansion in the fiscal year ending February 28, 2025, driven by volume gains, margin stability and effective cost control. Key headline figures show sustained year-over-year growth across operating profit, ordinary profit and profit attributable to owners of the parent.

• Operating profit: ¥42.56 billion (up 16.2% YoY)
• Ordinary profit: ¥41.99 billion (up 10.4% YoY)
• Profit attributable to owners of the parent: ¥25.69 billion (up 16.9% YoY)
• Earnings per share (EPS): ¥142.0 (vs ¥121.5 prior year)
• Return on equity (ROE): 10.6% (vs 9.8% prior year)
• Operating profit margin (Q4 FY2025): 5.7% (stable)
• Record-high profits for three consecutive terms; ordinary profit +10.4% in FY ending Feb 28, 2025

Drivers behind these metrics include same-store performance, selective new openings and cost leverage; margin stability in Q4 indicates pricing and expense discipline despite inflationary pressures. Investors tracking profitability trends should also review Sugi Holdings' strategic positioning and capital allocation policy as described in the company's guiding documents: Mission Statement, Vision, & Core Values (2026) of Sugi Holdings Co.,Ltd.

Sugi Holdings Co.,Ltd. (7649.T) - Debt vs. Equity Structure

• Cash and cash equivalents: ¥109.36 billion (up 39.88% year-over-year)
• Total assets: ¥1,000.00 billion
• Total liabilities: ¥500.00 billion
• Shareholders' equity: ¥400.00 billion
• Reported debt-to-equity ratio (as of Aug 31, 2025): 1:1
• Historical debt-to-equity (FY ending Feb 28, 2024): 0.5:1
• Interest coverage ratio (FY ending Feb 28, 2025): 10.0
• Dividend declared (FY ending Feb 28, 2025): ¥35.00 per share

• Elevated cash balance (¥109.36B) provides flexibility for capex, M&A or share returns.
• A reported debt-to-equity of 1:1 (vs. 0.5:1 in FY2024) signals increased leverage year-over-year - monitor composition of liabilities (interest-bearing vs. operating).
• Interest coverage ratio of 10.0 indicates robust ability to service debt even after leverage increased.
• Shareholders' equity of ¥400.00 billion underpins a solid equity cushion; reconcile with total assets/liabilities for detailed solvency analysis.
• Dividend of ¥35.00 per share confirms capital return priority alongside balance-sheet management.

Sugi Holdings Co.,Ltd. (7649.T) - Liquidity and Solvency

• Current ratio (as of August 31, 2025): 2.0 - two yen of current assets for every yen of current liabilities.
• Quick ratio (as of August 31, 2025): 1.5 - strong liquid-asset coverage excluding inventory.
• Operating cash flow (fiscal year ended Feb 28, 2025): ¥50.00 billion - robust cash generation from core operations.
• Short-term debt due within one year: ¥10.00 billion - relatively low near-term borrowings.
• Solvency ratio (as of August 31, 2025): 40% - solid equity backing relative to total assets.
• Dividend payout ratio (FY ended Feb 28, 2025): 25% - consistent shareholder distribution policy.

• High current and quick ratios reduce short-term liquidity risk and indicate conservative working capital management.
• ¥50.00 billion in operating cash flow provides internal funding for capex, dividends, and debt service without immediate refinancing.
• Modest short-term debt (¥10.00 billion) limits rollover and refinancing exposure over the next 12 months.
• A 40% solvency ratio signals a healthy equity buffer to absorb shocks and support long-term creditworthiness.
• The 25% dividend payout ratio suggests dividend sustainability and room to retain earnings for growth or balance-sheet strengthening.

Sugi Holdings Co.,Ltd. (7649.T) Valuation Analysis

• Stock price: ¥3,650.00 (12-Dec-2025)
• Market capitalization: ¥660.55 billion
• Trailing twelve months (TTM) EPS: ¥227.92
• P/E (TTM): 16.01 - indicates a reasonable earnings multiple versus peers
• P/S: 0.75 - suggests potential undervaluation relative to revenue
• Beta: 0.47 - lower volatility than the broader market
• Analyst targets: ¥3,350-¥4,400; consensus: Buy

• At the current price and TTM EPS, the P/E of 16.01 positions Sugi Holdings in a middle-of-the-road valuation band for a stable retail/healthcare services operator.
• The P/S of 0.75 is notable - if revenue growth accelerates or margins improve, market re-rating could provide additional upside.
• Low beta (0.47) supports use in portfolios seeking lower volatility exposure; total-return investors should weigh slower price swings against dividend and earnings growth prospects.
• Analyst targets centered around a Buy consensus indicate moderate analyst confidence; downside to the ¥3,350 target is limited (~8.2%), while upside to ¥4,400 is meaningful (~20.5%).

Sugi Holdings Co.,Ltd. (7649.T) - Risk Factors

Below are the primary risks investors should weigh when assessing Sugi Holdings Co.,Ltd. (7649.T), paired with recent financial context to indicate sensitivity and magnitude of those risks.

• Competitive pressures in the retail pharmacy sector may compress margins and slow same-store sales.
• Consumer spending volatility and macroeconomic cycles can materially affect front-store sales and OTC demand.
• Regulatory shifts (drug pricing, dispensing fees, reimbursement) could reduce revenue or raise operating costs.
• Supply chain disruptions (manufacturing, distribution, logistics) can cause stockouts and lost sales.
• Currency fluctuations can impact profitability from imported pharmaceuticals and any overseas operations.
• Integration risks from acquisitions (e.g., I&H Co., Ltd.) - cultural fit, systems consolidation, and one-time costs.

Key recent financials (consolidated, most recent fiscal year) to frame risk exposure:

How each risk maps to financial impact and indicators to monitor:

• Competitive pressure - watch same-store sales, gross margin trend, and SG&A ratio. A 1-2% drop in gross margin could shave hundreds of millions of yen from operating profit annually at current sales levels.
• Consumer spending shifts - monitor OTC and front-store segment growth; rising unemployment or weak consumption correlates with slower sales growth and lower retail contribution to gross profit.
• Regulatory changes - a 5-10% cut in dispensing fees or price revisions could reduce pharmacy segment revenue materially; track government policy announcements and sensitivity analyses in earnings releases.
• Supply chain disruption - inventory turnover and days sales of inventory (DSI) spikes signal issues; prolonged shortages drive lost sales and higher logistics costs.
• Currency volatility - if import cost exposure rises, gross margin suffers; hedge effectiveness and foreign-currency P&L disclosures are key.
• Acquisition / integration - integration-related goodwill, one-time restructuring charges, and incremental working capital needs can depress near-term profitability; monitor acquisition-related disclosure (I&H Co., Ltd.) and post-acquisition performance vs. pro forma targets.

For historical context on corporate strategy, acquisitions, and how the business operates, see: Sugi Holdings Co.,Ltd.: History, Ownership, Mission, How It Works & Makes Money

Sugi Holdings Co.,Ltd. (7649.T) - Growth Opportunities

• Store network expansion: nine new stores opened in August 2025, supporting incremental same-store and total-store sales.
• Prescription business momentum: prescription sales rose 48.5% in August 2025 versus prior-year levels, indicating accelerating healthcare demand.
• Inbound and personal consumption recovery: management expects rising tourist spending and domestic consumption to lift OTC and cosmetics categories.
• M&A-driven scale: acquisition of I&H Co., Ltd. (closed September 2024) creates cross-selling and geographic expansion opportunities.
• New product initiatives: exploring expanded health & beauty care assortments to broaden basket size and attract younger demographics.
• Digital transformation: investments in CX, loyalty, and store-operational systems aim to improve turnover, reduce shrink, and enhance prescription fulfillment efficiency.

• Near-term levers: capture prescription share by improving dispensing throughput and integrating I&H product lines into Sugi's stores.
• Medium-term levers: expand H&B assortments and private-label offerings to lift gross margin and customer loyalty.
• Operational levers: deploy digital programs for targeted promotions, inventory optimization, and e-prescription capabilities to drive conversion.