Care Service Co., Ltd. (2425) AI Stock Analysis

• Market Cap: ¥3.02B
• Dividend Yield: 2.51%
• Average Volume (3M): 2.78K
• Price to Earnings (P/E): 8.1
• Beta (1Y): 0.47
• Revenue Growth: 2.33%
• EPS Growth: -0.96%
• Country: JP
• Employees: 1,073
• Sector: Healthcare
• Sector Strength: 41
• Industry: Medical - Care Facilities
• EPS (TTM): 40.57
• Shares Outstanding: 4,200,000
• 10 Day Avg. Volume: 1,680
• 30 Day Avg. Volume: 2,776
• PEG Ratio: 4.20
• Price to Book (P/B): 1.03
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• Rating: 72 Outperform
• Price Target: ¥885.00 ▲(11.18%Upside)

The overall stock score of 72.3 reflects Care Service Co., Ltd.'s strong financial performance and attractive valuation. Solid revenue growth and profitability, along with a low P/E ratio, make the stock appealing. However, mixed technical indicators suggest caution in the short term.

Care Service Co., Ltd. Business Overview & Revenue Model

Company Description

Care Service Co., Ltd. (2425) is a prominent player in the Japanese service industry, specializing in providing comprehensive nursing care and welfare services. The company offers a wide range of services including home visit care, day service centers, and group homes designed to cater to the needs of the elderly. With a strong focus on improving the quality of life for its clients, Care Service Co., Ltd. is dedicated to delivering high-quality, personalized care solutions.

How the Company Makes Money

Care Service Co., Ltd. generates revenue primarily through its extensive range of elder care services. The company earns income by charging fees for services such as home visits, day care services, and residential care facilities. These services are often funded through a combination of private pay and government subsidies, as Japan's social welfare system provides financial support for elder care. Additionally, Care Service Co., Ltd. may engage in partnerships with local governments and other healthcare providers to expand its service offerings and reach more clients, further contributing to its revenue streams.

Care Service Co., Ltd. Financial Statement Overview

Summary

Care Service Co., Ltd. showcases strong financial health with solid revenue growth, stable gross profit margins, and consistent profitability. The balance sheet is robust with low leverage, and cash flows indicate efficient cash generation and conversion, supporting reinvestment and shareholder returns.

Income Statement

The company has demonstrated solid revenue growth, with a steady increase in total revenue over the years. The gross profit margin has been stable, indicating efficient cost management. Net profit margin and EBIT margin show consistent profitability, although slight fluctuations can be observed. Overall, the income statement reflects a strong financial performance with sustained growth and profitability.

Balance Sheet

The balance sheet indicates a healthy financial position with a low debt-to-equity ratio, suggesting minimal leverage and a stable financial structure. The equity ratio is strong, reflecting a significant portion of assets financed by equity. Return on equity has shown an upward trend, indicating effective use of shareholders' equity to generate profits. The company's assets and equity have consistently increased, supporting its growth trajectory.

Cash Flow

The cash flow statement shows a positive trend in operating cash flow, indicating strong cash generation from core operations. Free cash flow growth has been stable, supporting potential reinvestments and shareholder returns. The operating cash flow to net income ratio is strong, signifying efficient cash conversion. However, fluctuations in capital expenditures and investing cash flows should be monitored.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
9.86B	9.86B	9.64B	9.24B	8.97B	8.69B
	Gross Profit
1.31B	1.32B	1.27B	1.25B	1.17B	1.14B
	EBIT
527.73M	520.97M	518.27M	431.11M	306.24M	304.88M
	EBITDA
608.85M	707.16M	696.96M	663.77M	479.03M	471.13M
	Net Income Common Stockholders
366.31M	374.02M	377.66M	323.78M	192.17M	190.78M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.65B	1.84B	1.52B	1.20B	930.35M	969.08M
	Total Assets
3.98B	4.12B	3.86B	3.51B	3.24B	3.22B
	Total Debt
0.00	67.31M	98.59M	149.99M	227.26M	354.54M
	Net Debt
-1.65B	-1.78B	-1.42B	-1.05B	-703.09M	-614.54M
	Total Liabilities
1.18B	1.20B	1.21B	1.19B	1.22B	1.36B
	Stockholders Equity
2.80B	2.92B	2.64B	2.32B	2.02B	1.86B
Cash Flow		Free Cash Flow
0.00	493.58M	443.28M	403.48M	168.15M	306.21M
	Operating Cash Flow
0.00	588.98M	546.10M	443.20M	338.12M	340.83M
	Investing Cash Flow
0.00	-143.38M	-102.13M	-36.08M	-184.42M	-48.94M
	Financing Cash Flow
0.00	-91.93M	-119.97M	-151.87M	-191.60M	-274.76M

Care Service Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 796.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2425, the sentiment is Positive. The current price of 796 is above the 20-day moving average (MA) of 792.70, above the 50-day MA of 793.66, and below the 200-day MA of 824.47, indicating a neutral trend. The MACD of -1.35 indicates Negative momentum. The RSI at 51.62 is Neutral, neither overbought nor oversold. The STOCH value of 53.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2425.

Care Service Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9214	80 Outperform	¥1.97B	11.89		―	27.30%	34.86%
9220	76 Outperform	¥2.52B	6.58		3.30%	5.85%	-22.29%
7129	75 Outperform	¥3.05B	9.58		2.77%	4.85%	4759.88%
2425	72 Outperform	¥3.02B	8.08		2.51%	2.33%	-0.96%
2435	69 Neutral	¥2.41B	6.95		4.76%	3.03%	70.93%
7037	64 Neutral	¥2.36B	―		1.79%	10.80%	-559.06%
Sector *	54 Neutral	$5.37B	3.35	-45.10%	2.79%	16.77%	-0.01%