Care Twentyone Corporation (2373) AI Stock Analysis

• Market Cap: ¥6.20B
• Dividend Yield: 3.84%
• Average Volume (3M): 53.50K
• Price to Earnings (P/E): 10.3
• Beta (1Y): 0.12
• 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: 130,370
• 30 Day Avg. Volume: 53,500
• PEG Ratio: <0.01
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 0.12
• P/FCF Ratio: -11.09
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: ¥479.00 ▲(8.13% Upside)

The overall stock score of 58 reflects moderate financial performance with steady revenue growth but challenges in profitability and cash flow management. Technical analysis indicates mixed signals with short-term bearish momentum but potential for a rebound. The stock's valuation is attractive due to a low P/E ratio and a solid dividend yield, which provides a cushion for investors.

Positive Factors

Revenue Growth

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

Market Position

Being a prominent player in eldercare positions the company well to capitalize on the aging population trend, ensuring sustained demand for its services.

Business Model Strength

Diverse revenue streams from care facilities and healthcare services provide resilience against market fluctuations, enhancing financial stability.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, potentially impacting the company's ability to invest in growth and weather economic downturns.

Profitability Challenges

Ongoing profitability issues, such as negative EBIT, suggest operational inefficiencies that could hinder long-term financial performance and shareholder returns.

Cash Flow Volatility

Volatile cash flow and declining free cash flow raise concerns about liquidity and the ability to fund operations, potentially leading to reliance on external financing.

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 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 exhibits moderate financial health with steady revenue growth but faces challenges in profitability and cash flow management. High leverage remains a concern, potentially impacting future financial flexibility. The company needs to focus on improving operational efficiency and cash generation to enhance financial stability and shareholder value.

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	47.06B	45.40B	41.10B	38.40B	36.36B	33.98B
Gross Profit	10.35B	9.66B	9.01B	9.27B	8.73B	7.67B
EBITDA	2.21B	2.20B	2.33B	3.12B	3.53B	3.11B
Net Income	714.39M	278.42M	6.16M	630.49M	937.08M	704.64M
Balance Sheet
Total Assets	31.23B	31.67B	31.82B	36.38B	37.60B	36.20B
Cash, Cash Equivalents and Short-Term Investments	3.61B	3.08B	2.61B	1.88B	2.83B	2.94B
Total Debt	20.29B	19.49B	18.34B	22.51B	22.96B	24.07B
Total Liabilities	27.15B	26.94B	26.30B	29.90B	30.83B	31.12B
Stockholders Equity	4.04B	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: Negative
• Last Price: 443.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2373, the sentiment is Negative. The current price of 443 is below the 20-day moving average (MA) of 452.65, below the 50-day MA of 476.02, and above the 200-day MA of 414.95, indicating a neutral trend. The MACD of -8.10 indicates Positive momentum. The RSI at 41.64 is Neutral, neither overbought nor oversold. The STOCH value of 5.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥3.04B	11.58	―	2.52%	-3.06%	-38.56%
7091	75 Outperform	¥4.56B	10.31	―	―	16.12%	107.25%
2435	72 Outperform	¥2.54B	5.40	―	4.78%	1.84%	92.34%
7129	68 Neutral	¥3.17B	9.43	―	2.65%	4.69%	103.59%
2373	58 Neutral	¥6.20B	10.29	―	3.84%	7.60%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
9229	47 Neutral	¥17.19B	-8.93	―	―	10.09%	-340.83%