Care Twentyone Corporation (2373) AI Stock Analysis

• Market Cap: ¥6.10B
• Dividend Yield: 3.75%
• Average Volume (3M): 13.64K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.13
• Revenue Growth: 7.60%
• EPS Growth: N/A
• Country: JP
• Employees: 6,153
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 19.30
• Shares Outstanding: 14,844,000
• 10 Day Avg. Volume: 14,850
• 30 Day Avg. Volume: 13,636
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥440.00
• Price Target Upside: -2.87% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 63 Neutral
• Price Target: ¥440.00 ▼(-2.87% Downside)

The stock's valuation is its strongest aspect, with a low P/E ratio and high dividend yield suggesting potential undervaluation. However, financial performance is a concern due to profitability and cash flow issues, and technical indicators show mixed signals.

Care Twentyone Corporation Business Overview & Revenue Model

Company Description

Care Twentyone Corporation provides nursing care services in Japan. The company offers home-visit care, paid nursing home, dementia group home, home care support, small-scale multi-functional home care, day service, childcare services, and rents welfare equipment, as well as home renovation business. It operates support projects for people with disabilities; visiting nursing, medical support, and acupuncture visiting massage business; and nursing care qualification acquisition, human resources introduction/dispatch, and life support business. In addition, the company develops land for real estate owners; operates dining facilities and meal delivery services; and employment support for people with disabilities. The company was incorporated in 1993 and is headquartered in Osaka, Japan.

How the Company Makes Money

Care Twentyone Corporation generates revenue through a variety of streams, primarily from fees charged for its elderly care services. This includes income from nursing home facilities, where they charge residents or their families for accommodation, medical care, and personal support services. Additionally, the company earns money through its home care services, where they provide in-home assistance and healthcare support. These services are often paid for out-of-pocket by clients, or through government programs and private insurance plans. Strategic partnerships with healthcare providers and insurance companies also play a significant role in broadening their service offerings and increasing their market reach, thereby contributing to their revenue growth.

Care Twentyone Corporation Financial Statement Overview

Summary

The company shows steady revenue growth but struggles with profitability due to high operational costs and negative EBIT. High leverage and declining cash flow pose financial risks.

Income Statement

The income statement shows a modest revenue growth of 10.45% in the latest year, indicating a steady growth trajectory. However, the company is struggling with profitability, as evidenced by a negative EBIT and declining net income. Gross profit margin remains stable, but net profit margin is low due to high operational costs, impacting overall profitability. The negative EBIT margin suggests operational inefficiencies.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, indicating significant leverage which poses financial risk. Although the equity ratio is relatively low, the company maintains a reasonable return on equity (ROE), suggesting that it uses its equity efficiently despite the high debt level. The company's high liabilities relative to its equity may constrain its financial flexibility.

Cash Flow

Cash flow analysis shows volatility with a significant decline in free cash flow in the latest year. The free cash flow to net income ratio is concerning, highlighting potential liquidity issues. Operating cash flow is positive but has decreased significantly, indicating challenges in converting revenue into cash. This trend may affect the company's ability to fund operations and growth without relying on external financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	46.33B	45.40B	41.10B	38.40B	36.36B	33.98B
Gross Profit	10.00B	9.66B	9.01B	9.27B	8.73B	7.67B
EBITDA	2.10B	2.20B	2.33B	3.12B	3.53B	3.11B
Net Income	438.52M	278.42M	6.16M	630.49M	937.08M	704.64M
Balance Sheet
Total Assets	31.32B	31.67B	31.82B	36.38B	37.60B	36.20B
Cash, Cash Equivalents and Short-Term Investments	3.30B	3.08B	2.61B	1.88B	2.83B	2.94B
Total Debt	19.81B	19.49B	18.34B	22.51B	22.96B	24.07B
Total Liabilities	26.83B	26.94B	26.30B	29.90B	30.83B	31.12B
Stockholders Equity	4.46B	4.71B	5.50B	6.46B	6.77B	5.07B
Cash Flow
Free Cash Flow	0.00	-502.44M	479.68M	184.12M	1.42B	2.14B
Operating Cash Flow	0.00	709.85M	2.14B	1.11B	2.61B	2.88B
Investing Cash Flow	0.00	-1.02B	-2.60B	-1.39B	-1.38B	-1.11B
Financing Cash Flow	0.00	782.01M	1.20B	-679.93M	-1.33B	-77.19M

Care Twentyone Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 453.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2373, the sentiment is Positive. The current price of 453 is above the 20-day moving average (MA) of 429.65, above the 50-day MA of 423.32, and above the 200-day MA of 391.66, indicating a bullish trend. The MACD of 9.53 indicates Negative momentum. The RSI at 67.49 is Neutral, neither overbought nor oversold. The STOCH value of 84.73 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	77 Outperform	¥3.08B	9.56	12.79%	2.47%	-0.34%	-21.06%
7129	75 Outperform	¥3.28B	11.26	7.90%	2.56%	4.76%	134.83%
7091	70 Outperform	¥4.25B	10.36	17.81%	―	15.78%	120.80%
2435	67 Neutral	¥2.41B	5.13	25.07%	4.65%	2.45%	205.19%
2373	63 Neutral	¥6.10B	10.11	―	3.75%	7.60%	―
9229	47 Neutral	¥23.00B	-11.95	-10.74%	―	20.41%	-251.04%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%