Research

Yakuodo: Tohoku drugstore chain borrows to fund its push into Kanto

YAKUODO HOLDINGS Co., Ltd. (7679) · Initiated coverage 2026-10-22 · Beluuga AI Research Team · Independent research

Not investment advice or a solicitation. See Important disclosures below.

Business overview

  • Yakuodo Holdings is a pure holding company formed in September 2019 through a sole share transfer by Yakuodo Co., Ltd., which was founded as a single drugstore in Iwate Prefecture in 1978. The group has two consolidated subsidiaries: Yakuodo Co., Ltd., which runs the drugstores and accounts for more than nine-tenths of consolidated sales, and Medica Co., Ltd., a marketing subsidiary.
  • The chain sells pharmaceuticals, cosmetics, food, alcohol and household goods to consumers. It operated 456 drugstores at the end of February 2026, including four with a dispensing pharmacy and one stand-alone dispensing pharmacy, and 468 at the end of August 2026.
  • The company reports a single drugstore business and does not disclose segments. Instead it breaks sales into four departments (Health, Beauty, Home and Food), and Food is the largest of the four. It also breaks sales out by region: Tohoku and, from the year to February 2026, Kanto.
  • The fiscal year ends in February. The group employed 1,094 full-time staff and an average of 2,917 temporary staff on an eight-hour-day basis in the year to February 2026, and its labor union is affiliated with UA Zensen.

Investment case

  1. The company has stated a numeric expansion target. The medium-term plan drawn up in April 2025 calls for a cumulative 450 new store openings by the year to February 2030, with continued openings in Tohoku and Kanto as the stated growth pillar.
  2. Expansion is under way. The company opened 54 drugstores in the year to February 2026, including its first stores in Tochigi and Ibaraki prefectures, and 13 more in the first half of the year to February 2027. The half-year earnings release shows Kanto sales rising sharply year on year, although from a small base (see Performance & Balance).
  3. Sales in all four departments grew in both the year to February 2026 and the first half of the year to February 2027. The half-year earnings release states that results were broadly in line with plan and that the full-year forecast announced on April 6, 2026 is unchanged.
  4. The company is reorganizing its logistics. A rebuilt low-temperature logistics center began operating in March 2026, and the company states that it is improving quality and lowering costs. The food and non-food distribution centers are scheduled to be integrated in 2027.

Bear case

  1. Profits are falling while sales grow. Operating profit, ordinary profit and net income declined in the year to February 2026 and again in the first half of the year to February 2027, as selling, general and administrative expenses rose faster than gross profit (see Performance & Balance).
  2. Store openings are being funded largely with debt. Long-term borrowings rose substantially in the year to February 2026 and again in the first half of the year to February 2027, and interest expense in the first half was several times the prior-year level. Equity made up a smaller share of total assets at end-August 2026 than at end-February 2026 (see Performance & Balance).
  3. In the year to February 2026, operating cash flow was reduced by a large increase in inventory tied to new stores and fell well short of capital spending, and new borrowing covered the gap.
  4. The company describes the drugstore industry as one with intensifying competitor openings and price competition, cost-conscious consumers, rising labor and logistics costs, and accelerating consolidation led by large chains through M&A.

Catalysts

  • Full-year results for the year to February 2027, measured against the April 6, 2026 forecast. The forecast calls for higher sales and a year-end dividend slightly above the prior year's.
  • The integration of the food and non-food distribution centers scheduled for 2027, and further progress toward the 450-store opening target for the year to February 2030.
  • The direction of borrowing and interest costs in the third-quarter and full-year releases as the pace of Kanto openings continues.

Key risks

  • Regulation: the sale of medicines, food and alcohol requires prefectural and other government permits. Further deregulation of medicine sales could lower barriers for other retailers, and stores larger than 1,000 square meters require notification and review under the Large-Scale Retail Store Location Act.
  • Growth depends on new stores. The company states that legal restrictions, competitor openings or economic changes could prevent openings from proceeding as planned, and it says it may need to record impairment losses on individual stores if profitability falls sharply.
  • Staffing: the company identifies securing pharmacists and registered sellers of medicines as a risk, and it trains registered sellers in-house. It also cites customer data leaks and earthquakes, typhoons or other natural disasters in its operating area.
  • Concentrated leadership: the 1978 co-founders have served as representative directors, and one co-founder appears among the major shareholders, alongside TK Corporation as the largest holder (see Shareholders). The half-year earnings release dated October 5, 2026 names as representative director and president the person listed as a managing director in the annual securities report, which indicates a change in the top executive role.

Trading liquidity

Median daily trading value US$0.46mn
Average daily volume 45,038 shares

2025-10-02 to 2026-10-21 (250 trading days). Trading value is daily closing price × daily volume on the Tokyo Stock Exchange.

Assumptions

  • Financial figures on this page come from beluuga.ai's daily data set; trading liquidity is measured over the period shown. We do not use consensus estimates.
  • The annual securities report filed in May 2026 describes the board as it stood before the May 22, 2026 shareholders' meeting: ten directors, five of them independent, and a company with an audit and supervisory committee since May 2023. Management titles had changed by the October 2026 earnings release, so the governance description may not reflect the current board in full.
  • The half-year earnings release is not subject to review by the independent auditor.
  • Qualitative statements are taken from the annual securities report for the year to February 2026 and the second-quarter (interim) earnings release for the year to February 2027.

This is independent research. No company paid for or reviewed it. We do not publish ratings, price targets or buy/sell views. Figures on the other slides of this page come from beluuga.ai's daily data set.

Important disclosures

No offer or solicitation. This material is provided for information purposes only. It is not an offer to sell, or a solicitation of an offer to buy, any security or other financial instrument in the United States or in any other jurisdiction, and it is not a recommendation to buy, sell or hold any security. It is not directed at, and may not be relied on by, any person in any jurisdiction where its publication or availability would be contrary to law or regulation.

Not investment advice. This material is general and impersonal. It does not take into account the investment objectives, financial situation or particular needs of any reader, and it is not tailored to any person. It is published to all readers on the same terms and on a regular basis, and no reader receives advice on the merits of any security for their own account. Readers should make their own independent decisions and consult their own legal, tax, accounting and investment advisers before making any investment.

Regulatory status. Beluuga AI, Inc. is not registered with the U.S. Securities and Exchange Commission (SEC) or any state securities authority as an investment adviser under the Investment Advisers Act of 1940, is not registered as a broker-dealer under the Securities Exchange Act of 1934, and is not a member of the Financial Industry Regulatory Authority (FINRA). It is not registered as a Financial Instruments Business Operator under Japan's Financial Instruments and Exchange Act. This material is not a research report prepared by a FINRA member firm and is not subject to FINRA Rule 2241, Regulation Analyst Certification (Regulation AC) or the other U.S. rules that govern broker-dealer research. The SEC, FINRA and the Financial Services Agency of Japan have not reviewed, approved or passed on the merits or accuracy of this material.

European Union and European Economic Area. Beluuga AI, Inc. is not authorised or supervised by any national competent authority in the European Union or the European Economic Area, including under the Markets in Financial Instruments Directive (MiFID II). This material is not investment advice, a personal recommendation or investment research within the meaning of MiFID II, and it is not a prospectus or other offering document under the Prospectus Regulation (EU) 2017/1129. It has not been prepared in accordance with the requirements of Regulation (EU) No 596/2014 (the Market Abuse Regulation) for investment recommendations and is not intended to be relied on as one.

United Kingdom. Beluuga AI, Inc. is not authorised or regulated by the Financial Conduct Authority (FCA). This material has not been approved by an authorised person for the purposes of section 21 of the Financial Services and Markets Act 2000 and is not intended as an invitation or inducement to engage in investment activity.

Singapore. Beluuga AI, Inc. does not hold a capital markets services licence under the Securities and Futures Act 2001 or a financial adviser's licence under the Financial Advisers Act 2001, and is not regulated by the Monetary Authority of Singapore (MAS). This material is not an offer or invitation for subscription or purchase of securities, has not been registered as a prospectus with the MAS, and is not advice on investment products within the meaning of the Financial Advisers Act 2001.

Other jurisdictions. Beluuga AI, Inc. is not licensed or registered to provide investment advice or dealing services in any jurisdiction. Readers are responsible for complying with the laws and regulations that apply to them where they are located.

Securities of Japanese issuers. The securities discussed are issued by companies incorporated in Japan and listed on the Tokyo Stock Exchange. They may not be registered under the U.S. Securities Act of 1933, and the issuers may not be subject to the periodic reporting requirements of the Securities Exchange Act of 1934. Information about these issuers may be less extensive than information about U.S. issuers, and their financial statements are prepared under Japanese GAAP, IFRS or U.S. GAAP as each issuer elects. U.S. persons may face restrictions, tax consequences and practical limits on buying, holding or selling these securities. Investments in non-U.S. securities involve risks that include currency movements, lower trading liquidity, and differences in market practice, corporate governance and legal protection.

Currency. Amounts shown in US$ are converted from Japanese yen at a mid-market rate for convenience only. They are not the amounts an investor would receive, and changes in exchange rates may cause the value of a yen-denominated investment to fall in US$ terms even if its value in yen does not.

Sources, accuracy and forward-looking statements. This material is based on the issuers' public disclosure documents and on market data, and it was prepared with the assistance of AI tools and reviewed by the Beluuga AI Research Team. We believe the sources to be reliable but do not guarantee that the information is accurate, complete or current, and the material may contain errors. Statements about the future, including catalysts and risks, are assumptions and are not guarantees; actual results may differ materially. Past performance is not a guide to future performance. The material speaks only as of its date, and we have no obligation to update it. Where the issuer's original disclosure is in Japanese, the Japanese original prevails over any English description given here.

Interests. Beluuga AI, Inc., its affiliates, and their officers and employees may hold, buy or sell securities of the companies discussed, and may provide services to those companies or to other parties with interests in them. Where a company paid for the research, this is stated at the top of this page and above.

Limitation of liability. To the fullest extent permitted by law, neither Beluuga AI, Inc. nor its affiliates accept any liability for any loss arising from the use of this material or its contents. This material may not be reproduced or redistributed, in whole or in part, without our prior written consent, except through the share functions on this page.

Overview
Retail Trade

YAKUODO HOLDINGS Co.,Ltd.

Yakuodo Holdings is a holding company that manages its group companies engaged in drugstore retail operations primarily in Japan. The group operates drugstores selling pharmaceuticals, cosmetics, food products, and daily necessities, targeting local communities with a focus on health, beauty, and everyday living needs. The company positions itself on customer trust and accessibility, serving as a regional drugstore chain committed to the well-being of local residents.

Market Cap
¥29.4B
US$187M
EV
¥54.9B
US$349M
Stock¥1,509▼-0.20%
US$1 = ¥157.05 (2026-10-22)
LTM EV/EBITDA
6.1
x
LTM EV/EBIT
10.8
x
LTM PER
7.9
x
LTM PBR
0.7
x
Stock vs TOPIX (1Y, base=100)vs TOPIX ▼-51.2%pt
100
Oct 22, 25 – Oct 22, 26StockTOPIX
MC → EV Bridge
29.4BUS$187MMarket Cap44.4BUS$283M+ Debt18.8BUS$120M− Cash0.11BUS$0.70M− Inv. Sec.54.9BUS$349MEV
AI Briefing
Generating insights…
Performance & Balance
Revenue 5Y (¥B)
120US$766M'22/2129US$820M'23/2142US$906M'24/2152US$968M'25/2164US$1.04B'26/2
EBITDA 5Y (¥B)
6.63US$42.2M'22/27.46US$47.5M'23/28.03US$51.1M'24/28.43US$53.7M'25/28.75US$55.7M'26/2
Net Income 5Y (¥B)
2.96US$18.9M'22/23.24US$20.6M'23/23.83US$24.4M'24/24.28US$27.2M'25/24.03US$25.6M'26/2
Capital Structure
49%
51%
EquityD/E 1.06xDebt
Liquidity vs Debt 5Y (¥B)▼ Net Debt
CashInv. Sec.Debt
4.41US$28.1M15.6US$99.4M'22/25.46US$34.8M15.7US$100M'23/25.07US$32.3M13.6US$86.6M'24/27.27US$46.3M18.2US$116M'25/210.1US$64.5M34.6US$220M'26/2
Shareholders
Top 10 hold 67.0%
1
TK Corporation Co., Ltd.
38.99%
2
The Master Trust Bank of Japan, Ltd. (Trust Account)
6.43%
3
NORTHERN TRUST CO.(AVFC) RE FIDELITY FUNDS (Standing Proxy: The Hongkong and Shanghai Banking Corporation Limited, Tokyo Branch)
5.62%
4
YAKUODO HOLDINGS Co.,Ltd. Employee Stock Ownership Association
3.22%
5
INTERACTIVE BROKERS LLC (Standing Proxy: Interactive Brokers Securities Japan Inc.)
3.06%
6
Custody Bank of Japan, Ltd. (Trust Account)
2.59%
7
BNP PARIBAS LUXEMBOURG/2S/JASDEC/FIM/LUXEMBOURG FUNDS/UCITS ASSETS (Standing Proxy: The Hongkong and Shanghai Banking Corporation Limited, Tokyo Branch)
2.13%
8
Kiyoko SAIGO
2.05%
9
STATE STREET BANK AND TRUST COMPANY 505019 (Standing Proxy: Mizuho Bank, Ltd.)
1.48%
10
STATE STREET BANK AND TRUST COMPANY 505044 (Standing Proxy: Mizuho Bank, Ltd.)
1.40%
Management
9 officers
Koichi SAIGO
Representative Director, President
Jun 2007 Joined Kao Corporation Apr 2012 Joined Yakuodo Co., Ltd. Nov 2012 General Manager, Sales Planning Department, Yakuodo Co., Ltd. Mar 2013 General Manager, Merchandising Department, Yakuodo Co., Ltd. Mar 2016 General Manager, Management Planning Office, Yakuodo Co., Ltd. Mar 2019 Executive Officer, General Manager, Business Strategy Headquarters, Yakuodo Co., Ltd. Sep 2019 General Manager, Business Strategy Department, the Company Mar 2020 General Manager, Management Strategy Department, the Company May 2020 Director, Managing Executive Officer, General Manager, Management Strategy Headquarters, Yakuodo Co., Ltd. May 2021 Managing Director, General Manager, Management Strategy Department, the Company Mar 2022 Managing Director, the Company Mar 2022 Director, Managing Executive Officer, General Manager, Sales Headquarters, Yakuodo Co., Ltd. Mar 2024 Representative Director, President and Executive Officer, Yakuodo Co., Ltd. (current) May 2026 Representative Director, President, the Company (current)
1978-11-23
Yasuhiro SAIGO
Director and Vice President, General Manager, Corporate Planning Department
Apr 2014 Joined Syslab Co., Ltd. Apr 2020 Joined Yakuodo Co., Ltd. Nov 2021 General Manager, DX Promotion Department, Yakuodo Co., Ltd. Mar 2022 Director, Executive Officer, General Manager, Administration Headquarters, Yakuodo Co., Ltd. Mar 2022 General Manager, Administration Department and General Manager, DX Strategy Department, the Company Mar 2024 Director, Vice President and Executive Officer, Yakuodo Co., Ltd. (current) Apr 2024 General Manager, Corporate Planning Department, the Company May 2026 Director and Vice President, General Manager, Corporate Planning Department, the Company (current)
1988-10-18
Yasuhiro OGASAWARA
Managing Director, General Manager, Compliance Division
Feb 1988 Joined Aiwa Iwate Co., Ltd. Mar 2005 Joined Yakuodo Co., Ltd. Jul 2010 General Manager, Finance Department, Yakuodo Co., Ltd. May 2014 Director, General Manager, Finance Department, Yakuodo Co., Ltd. May 2016 Managing Director, in charge of Administration and General Manager, Finance Department, Yakuodo Co., Ltd. Mar 2019 Director, Managing Executive Officer, General Manager, Administration Headquarters, Yakuodo Co., Ltd. Sep 2019 Managing Director, General Manager, Administration Department, the Company Mar 2022 Managing Director, General Manager, Management Strategy Department, the Company Mar 2022 Director, Managing Executive Officer, General Manager, Management Strategy Headquarters, Yakuodo Co., Ltd. Mar 2023 Director, Managing Executive Officer, Yakuodo Co., Ltd. Apr 2024 Managing Director, General Manager, Compliance Division, the Company (current) May 2024 Audit & Supervisory Board Member, Yakuodo Co., Ltd. (current)
1964-11-29
Atsushi SAKAMOTO
Director, Audit and Supervisory Committee Member
Apr 1985 Joined Tohoku Melcom Business Hiragane Co., Ltd. Sep 1997 Joined Yakuodo Co., Ltd. Mar 2003 General Manager, Business Systems Department, Yakuodo Co., Ltd. Mar 2014 General Manager, Management Planning Office, Yakuodo Co., Ltd. Mar 2016 General Manager, Internal Audit Office, Yakuodo Co., Ltd. May 2016 Alternate Audit & Supervisory Board Member, Yakuodo Co., Ltd. May 2017 Audit & Supervisory Board Member, Yakuodo Co., Ltd. Sep 2019 Full-time Audit & Supervisory Board Member, the Company May 2023 Director, Audit and Supervisory Committee Member, the Company (current)
1962-10-18
Koichi OHARA
Director
Apr 1985 Joined Nikko Securities Co., Ltd. (currently SMBC Nikko Securities Inc.) Mar 2011 Executive Officer, Head of East Japan Corporate Division, Nikko Cordial Securities Inc. Apr 2016 Managing Director, Nikko System Solutions Inc. Apr 2018 Representative Director, President, Nikko Business Systems Inc. May 2021 Director, the Company (current) Jun 2022 Special Adviser, Active Network Co., Ltd. (current)
1961-05-20
Takefumi SAITO
Director
Apr 1995 Joined Tohmatsu & Co. (currently Deloitte Touche Tohmatsu LLC) Jul 1999 Registered as Certified Public Accountant Apr 2001 Seconded to Fuji Bank, Ltd. (currently Mizuho Bank, Ltd.) Jul 2012 Partner, Deloitte Touche Tohmatsu LLC Sep 2021 Established Set the Direction Co., Ltd., Representative Director (current) Nov 2021 Opened Takefumi Saito CPA Office, Principal (current) Jun 2023 Outside Director, Cube System Inc. (current) May 2024 Director, the Company (current)
1971-12-03
Hideki KAMATA
Director, Audit and Supervisory Committee Member
Apr 1978 Joined IBC Iwate Broadcasting Co., Ltd. Jun 2011 Representative Director, President, IBC Iwate Broadcasting Co., Ltd. Jun 2014 Outside Audit & Supervisory Board Member, Iwate Nippo Co., Ltd. (current) May 2015 Audit & Supervisory Board Member, Yakuodo Co., Ltd. Sep 2019 Audit & Supervisory Board Member, the Company Jun 2022 Representative Director, Chairman, IBC Iwate Broadcasting Co., Ltd. (current) May 2023 Director, Audit and Supervisory Committee Member, the Company (current)
1953-12-11
Keiji KATANO
Director, Audit and Supervisory Committee Member
Apr 1984 Joined Alps Electric Co., Ltd. May 2003 Established Icams Lab Co., Ltd., Representative Director Mar 2016 Established TOLIMS Co., Ltd., Representative Director May 2021 Director, the Company Jan 2022 Representative Director, Chairman, TOLIMS Co., Ltd. (current) May 2023 Director, Audit and Supervisory Committee Member, the Company (current) Dec 2023 Representative Director, Chairman, Icams Lab Co., Ltd. May 2024 Representative Director, T-Mentors Co., Ltd. (current) Dec 2025 Representative Director, BtoR General Incorporated Association (current) Dec 2025 Representative Director, President, Icams Lab Co., Ltd. (current)
1961-08-17
Nozomi TAKIURA
Director, Audit and Supervisory Committee Member
Jan 2016 Registered as Attorney-at-Law Jan 2016 Joined Attorney Corporation A.I. Step Oct 2023 Opened Kaiunbashi Law Office (current) May 2024 Director, Audit and Supervisory Committee Member, the Company (current)
1987-11-26
Large Shareholding Reports
FMR Investment Management (UK) Limited
2026-09-24
6.47%→5.13%
FMR Investment Management (UK) Limited
2026-07-23
6.47%
FMR LLC
2026-06-17
9.19%→10.00%
Correction filing (name/detail fix only) — ratio carried over from the original filing
Fidelity Management & Research Company LLC
2026-06-17
5.33%→6.52%
Fidelity Management & Research Company LLC
2026-06-17
4.55%→5.33%
Fidelity Management & Research Company LLC
2026-06-17
6.52%→6.81%
Fidelity Management & Research Company LLC
2026-06-17
8.16%→8.19%
Fidelity Management & Research Company LLC
2026-06-17
8.19%→8.19%
FMR LLC
2026-06-17
—
FMR LLC
2026-06-17
—
FMR LLC
2026-06-17
—
FMR LLC
2026-06-17
—
Fidelity Management & Research Company LLC
2026-06-17
6.81%→8.16%
FMR LLC
2026-06-09
—
Fidelity Management & Research Company LLC
2026-06-09
4.55%
FMR LLC
2026-03-23
10.00%→10.00%
FMR LLC
2026-03-06
9.19%→10.00%
Sumitomo Mitsui DS Asset Management Company, Limited
2025-11-10
4.97%→4.04%
Disclosures
No disclosures
Primary Source Filings
EDINET
2026-10-09
Semi-Annual Securities Report
Period: Mar 2026 – Feb 2027
TDnet
2026-10-05
Q2 Earnings Flash
FY ending Feb 2027
EDINET
2026-09-24
Large Shareholding Report
EDINET
2026-07-23
Large Shareholding Report
TDnet
2026-07-06
Q1 Earnings Flash
FY ending Feb 2027
EDINETAmended
2026-06-17
Change Report
EDINETAmended
2026-06-17
Change Report
EDINET
2026-06-17
Large Shareholding Report
EDINET
2026-06-17
Large Shareholding Report
EDINET
2026-06-17
Large Shareholding Report
EDINET
2026-06-17
Large Shareholding Report
EDINET
2026-06-17
Large Shareholding Report
EDINETAmended
2026-06-17
Change Report
EDINET
2026-06-17
Large Shareholding Report
EDINETAmended
2026-06-17
Change Report
EDINETAmended
2026-06-17
Change Report
EDINETAmended
2026-06-09
Change Report
EDINET
2026-06-09
Large Shareholding Report
EDINET
2026-05-21
Annual Securities Report
Period: Mar 2025 – Feb 2026
EDINET
2026-03-23
Large Shareholding Report
EDINET
2026-03-06
Large Shareholding Report
TDnet
2026-01-06
Q3 Earnings Flash
FY ending Feb 2026
EDINET
2025-11-10
Large Shareholding Report
EDINET
2025-10-10
Semi-Annual Securities Report
Period: Mar 2025 – Feb 2026
TDnet
2025-07-04
Q1 Earnings Flash
FY ending Feb 2026
EDINET
2025-05-27
Annual Securities Report
Period: Mar 2024 – Feb 2025
TDnet
2025-01-07
Q3 Earnings Flash
FY ending Feb 2025
EDINET
2024-10-11
Semi-Annual Securities Report
Period: Mar 2024 – Feb 2025
EDINET
2024-07-12
Quarterly Securities Report
Period: Mar 2024 – May 2024
TDnet
2024-07-05
Q1 Earnings Flash
FY ending Feb 2025
Ask AI
I have this company's financials, ownership, and management on hand. Ask me anything from an M&A perspective.
End of Preview

Try the full product

Free demo (no time limit, up to 10 companies). Explore Comps, DCF, LBO, WACC on every screen. Excel export is on the paid plan.

Free Demo (No Time Limit, 10 Companies) →