Care Twentyone Corporation (2373) AI Stock Analysis

• Market Cap: ¥5.71B
• Dividend Yield: 4.07%
• Average Volume (3M): 53.50K
• Price to Earnings (P/E): 14.9
• Beta (1Y): 0.23
• Revenue Growth: 6.08%
• EPS Growth: 38.00%
• Country: JP
• Employees: 6,153
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 11.68
• Shares Outstanding: 14,844,000
• 10 Day Avg. Volume: 130,370
• 30 Day Avg. Volume: 53,500
• PEG Ratio: 0.44
• Price to Book (P/B): 1.46
• Price to Sales (P/S): 0.13
• P/FCF Ratio: 3.18
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: ¥438.00 ▲(5.04% Upside)

The overall stock score for Care Twentyone Corporation is driven primarily by its financial performance and valuation. While the company shows steady revenue growth, challenges with profitability and high leverage are notable concerns. The technical analysis indicates a bearish trend, which negatively impacts the score. However, the reasonable P/E ratio and attractive dividend yield provide some positive offset.

Positive Factors

Revenue Growth

Steady revenue growth indicates strong demand for services and effective market penetration, supporting long-term business sustainability.

Cash Flow Improvement

Improved cash flow enhances financial flexibility, allowing for reinvestment in growth opportunities and debt reduction, strengthening the balance sheet.

Industry Position

A strong position in the growing eldercare market provides a competitive advantage and potential for sustained revenue streams as the population ages.

Negative Factors

High Leverage

Significant leverage can lead to financial strain, limiting the company's ability to invest in growth and increasing vulnerability to economic downturns.

Profitability Challenges

Low profitability margins indicate challenges in cost management and pricing power, which could hinder long-term earnings growth and shareholder returns.

Volatile Free Cash Flow

Volatile free cash flow can impact the company's ability to consistently fund operations and growth initiatives, posing a risk to financial stability.

Care Twentyone Corporation Business Overview & Revenue Model

Company Description

Care Twentyone Corporation (2373) is a prominent player in the healthcare sector, specializing in providing comprehensive nursing care and wellness services. The company operates primarily in the eldercare market, offering a range of services that include residential care facilities, home healthcare, and rehabilitation services. With a focus on enhancing the quality of life for seniors, Care Twentyone Corporation integrates modern medical practices with compassionate care, ensuring that their clients receive personalized support tailored to their individual needs.

How the Company Makes Money

Care Twentyone Corporation generates revenue through multiple streams, primarily from its residential care facilities and home healthcare services. The company charges clients for accommodations, medical care, and support services, which can be billed on a monthly or per-service basis. Additionally, Care Twentyone may partner with insurance providers and government programs to facilitate coverage for their services, enhancing accessibility for clients. Significant partnerships with healthcare networks and local agencies also contribute to their earnings by providing referrals and expanding their service reach. Furthermore, the company may engage in wellness programs and rehabilitation services that are billed separately, adding to its overall revenue.

Care Twentyone Corporation Financial Statement Overview

Summary

Care Twentyone Corporation demonstrates steady revenue growth and operational stability, but faces challenges with profitability and high leverage. The cash flow position is improving, yet historical volatility in free cash flow growth indicates potential risks. Overall, the company needs to focus on enhancing profitability and managing leverage to strengthen its financial position.

Income Statement

Care Twentyone Corporation has shown consistent revenue growth over the years, with a 2.33% increase in the latest period. However, the net profit margin remains low at 0.80%, indicating challenges in converting revenue into profit. The gross profit margin is stable at 22.05%, but the EBIT and EBITDA margins are relatively low, suggesting potential inefficiencies in operations.

Balance Sheet

The company has a high debt-to-equity ratio of 4.19, indicating significant leverage, which could pose financial risks. Return on equity is modest at 8.69%, showing moderate efficiency in generating returns from shareholders' equity. The equity ratio is not explicitly calculated, but the high leverage suggests a lower proportion of equity in the capital structure.

Cash Flow

Operating cash flow has improved, with a strong operating cash flow to net income ratio of 5.65. Free cash flow is positive, but the free cash flow to net income ratio is slightly below 1, indicating that not all net income is translating into free cash flow. The company has shown improvement in free cash flow growth, but historical fluctuations suggest potential volatility.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	47.71B	48.16B	45.40B	41.10B	38.40B	36.36B
Gross Profit	10.72B	10.62B	9.66B	9.01B	9.27B	8.73B
EBITDA	2.43B	2.54B	2.20B	2.33B	3.12B	3.53B
Net Income	604.99M	384.18M	278.42M	6.16M	630.49M	937.08M
Balance Sheet
Total Assets	31.33B	31.03B	31.67B	31.82B	36.38B	37.60B
Cash, Cash Equivalents and Short-Term Investments	3.84B	4.17B	3.08B	2.61B	1.88B	2.83B
Total Debt	19.41B	18.55B	19.49B	18.34B	22.51B	22.96B
Total Liabilities	26.98B	26.54B	26.94B	26.30B	29.90B	30.83B
Stockholders Equity	4.28B	4.42B	4.71B	5.50B	6.46B	6.77B
Cash Flow
Free Cash Flow	0.00	2.02B	-502.44M	479.68M	184.12M	1.42B
Operating Cash Flow	0.00	2.17B	709.85M	2.14B	1.11B	2.61B
Investing Cash Flow	0.00	139.26M	-1.02B	-2.60B	-1.39B	-1.38B
Financing Cash Flow	0.00	-1.20B	782.01M	1.20B	-679.93M	-1.33B

Care Twentyone Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 417.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2373, the sentiment is Neutral. The current price of 417 is below the 20-day moving average (MA) of 421.95, below the 50-day MA of 441.84, and below the 200-day MA of 420.99, indicating a neutral trend. The MACD of -5.12 indicates Negative momentum. The RSI at 44.74 is Neutral, neither overbought nor oversold. The STOCH value of 43.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2373.

Care Twentyone Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2425	75 Outperform	¥3.06B	11.65	―	2.56%	-3.06%	-38.56%
7091	75 Outperform	¥5.04B	11.37	―	―	16.12%	107.25%
2435	72 Outperform	¥2.42B	5.68	―	4.76%	1.84%	92.34%
7129	68 Neutral	¥3.28B	9.75	―	2.64%	4.69%	103.59%
2373	60 Neutral	¥5.71B	14.90	―	4.07%	6.08%	38.00%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
9229	47 Neutral	¥13.38B	-4.59	―	―	10.09%	-340.83%