Nippon Care Supply Co., Ltd. (2393) AI Stock Analysis

• Market Cap: ¥35.88B
• Dividend Yield: 3.01%
• Average Volume (3M): 4.19K
• Price to Earnings (P/E): 17.5
• Beta (1Y): 0.29
• Revenue Growth: 9.62%
• EPS Growth: 23.26%
• Country: JP
• Employees: 1,334
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): 37.47
• Shares Outstanding: 16,237,694
• 10 Day Avg. Volume: 2,560
• 30 Day Avg. Volume: 4,193
• PEG Ratio: 1.29
• Price to Book (P/B): 1.79
• Price to Sales (P/S): 0.98
• P/FCF Ratio: 58.26
• 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: 72 Outperform
• Price Target: ¥2,717.00 ▲(16.61% Upside)

Nippon Care Supply Co., Ltd. shows strong financial performance with robust revenue growth and profitability, supported by efficient operations. The technical analysis indicates a strong upward trend, although caution is advised due to overbought signals. The valuation is fair, with a reasonable P/E ratio and a decent dividend yield. Overall, the stock is well-positioned, but investors should monitor for potential pullbacks due to technical indicators.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective product demand, essential for long-term business sustainability.

Cash Flow Improvement

Improved cash flow enhances financial flexibility, allowing the company to invest in growth opportunities and manage obligations effectively.

Profitability

Strong profitability through effective cost management supports sustainable operations and competitive positioning in the market.

Negative Factors

Rising Leverage

Increased leverage can strain financial resources, potentially impacting the company's ability to invest in growth and manage economic downturns.

Limited Market Expansion

Dependence on a specific market segment may limit growth opportunities, especially if market conditions or regulations change unfavorably.

Equity Ratio Concerns

While the equity ratio is currently healthy, rising leverage could erode this stability, impacting long-term financial health.

Nippon Care Supply Co., Ltd. Business Overview & Revenue Model

Company Description

Nippon Care Supply Co., Ltd. (2393) is a Japanese company specializing in the supply of care products and equipment, focusing on the healthcare and elderly care sectors. The company offers a wide range of products, including medical supplies, assistive devices, and hygiene products, aimed at enhancing the quality of care for individuals with varying health needs. With a commitment to supporting the growing elderly population in Japan, Nippon Care Supply also provides services that facilitate healthcare delivery and improve patient outcomes.

How the Company Makes Money

Nippon Care Supply generates revenue primarily through the sale of medical and care-related products to hospitals, nursing homes, and home care providers. The company's revenue model is based on the direct sale of its products, which includes a diverse portfolio of medical supplies and equipment tailored for elderly and disabled care. Key revenue streams include bulk sales to institutional clients, partnerships with healthcare providers, and potential collaborations with government-funded health initiatives. Additionally, the company may benefit from long-term contracts or agreements with healthcare institutions, ensuring a steady income stream. Seasonal demand for specific products, along with the increasing aging population in Japan, also contributes to its financial performance.

Nippon Care Supply Co., Ltd. Financial Statement Overview

Summary

Nippon Care Supply Co., Ltd. demonstrates strong revenue growth and profitability, supported by efficient operations and cost management. The balance sheet is stable with a healthy equity ratio, though increasing leverage could pose a potential risk. Cash flow has improved significantly, contributing to a positive financial outlook.

Income Statement

Nippon Care Supply Co., Ltd. shows strong revenue growth with a consistent increase over the past years, highlighted by a 12% growth in the latest year. The company maintains a solid gross profit margin around 35.3%, indicating effective cost management. Net profit margin stands at 5.6%, reflecting stable profitability. EBIT and EBITDA margins are healthy at 7.7% and 29.6%, respectively, showcasing operational efficiency.

Balance Sheet

The company has maintained a strong equity position with an equity ratio of 65.5%, reflecting financial stability. However, the debt-to-equity ratio increased to 12.9% from 8.2% previously, indicating a rise in leverage. Return on Equity remains robust at 10.2%, demonstrating efficient use of equity capital despite the higher leverage.

Cash Flow

The cash flow situation has improved with a positive free cash flow of 538.7 million JPY, a significant turnaround from the previous negative figures. The operating cash flow to net income ratio is 0.8, showing good cash generation relative to profits. The free cash flow growth rate is positive, indicating improved cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	32.82B	32.01B	28.59B	25.89B	23.30B	21.02B
Gross Profit	11.65B	11.29B	10.25B	9.47B	8.82B	8.26B
EBITDA	9.93B	9.48B	8.38B	7.81B	7.73B	7.30B
Net Income	1.91B	1.79B	1.58B	1.51B	1.68B	1.73B
Balance Sheet
Total Assets	27.03B	26.71B	25.40B	23.17B	21.32B	20.22B
Cash, Cash Equivalents and Short-Term Investments	798.73M	740.61M	711.88M	1.49B	1.75B	1.68B
Total Debt	2.76B	2.26B	1.36B	610.00M	59.72M	20.00M
Total Liabilities	10.20B	9.19B	8.85B	7.08B	5.81B	5.62B
Stockholders Equity	16.82B	17.51B	16.54B	16.07B	15.50B	14.60B
Cash Flow
Free Cash Flow	0.00	538.71M	-438.56M	-905.70M	-754.64M	1.34B
Operating Cash Flow	0.00	1.39B	339.18M	-7.10M	53.25M	1.80B
Investing Cash Flow	0.00	-1.17B	-775.78M	132.78M	741.98M	-1.04B
Financing Cash Flow	0.00	-189.88M	-343.30M	-381.96M	-724.64M	-694.76M

Nippon Care Supply Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2330.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2393, the sentiment is Neutral. The current price of 2330 is below the 20-day moving average (MA) of 2352.45, above the 50-day MA of 2315.50, and above the 200-day MA of 2127.23, indicating a neutral trend. The MACD of 5.54 indicates Positive momentum. The RSI at 47.65 is Neutral, neither overbought nor oversold. The STOCH value of 28.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2393.

Nippon Care Supply Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9763	81 Outperform	¥12.90B	8.36	―	3.57%	6.66%	13.62%
4345	74 Outperform	¥41.72B	17.08	―	2.60%	5.57%	27.50%
2393	72 Outperform	¥35.88B	17.52	―	3.01%	9.62%	23.26%
7081	72 Outperform	¥14.63B	7.12	―	3.03%	5.72%	60.38%
8596	68 Neutral	¥31.18B	8.57	―	4.66%	-13.01%	9.74%
5834	64 Neutral	¥44.67B	7.65	―	3.90%	0.17%	58.30%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%