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

• Market Cap: ¥3.07B
• Dividend Yield: 2.47%
• Average Volume (3M): 3.91K
• Price to Earnings (P/E): 9.6
• Beta (1Y): 0.45
• Revenue Growth: -0.34%
• EPS Growth: -21.06%
• Country: JP
• Employees: 1,073
• Sector: Healthcare
• Sector Strength: 51
• Industry: Medical - Care Facilities
• EPS (TTM): 0.30
• Shares Outstanding: 4,200,000
• 10 Day Avg. Volume: 2,400
• 30 Day Avg. Volume: 3,906
• 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: ¥911.00
• Price Target Upside: 12.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 77 Outperform
• Price Target: ¥911.00 ▲(12.47% Upside)

Care Service Co., Ltd. scores well due to its strong financial performance and attractive valuation. The company's solid revenue growth, profitability, and low leverage provide a stable foundation. While technical indicators are neutral, the stock's low P/E ratio and reasonable dividend yield enhance its investment appeal.

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

Company Description

Care Service Co., Ltd. (2425) is a Japanese company specializing in providing comprehensive nursing care and support services. The company operates within the healthcare sector, offering a range of services designed to support the aging population and individuals requiring assistance with daily living activities. Care Service Co., Ltd. primarily focuses on delivering home-based care, day care services, and other related support services to enhance the quality of life for its clients.

How the Company Makes Money

Care Service Co., Ltd. generates revenue through its various service offerings aimed at the elderly and those in need of care. The company earns money by providing home care services, where caregivers are dispatched to assist clients with daily tasks, medical care, and personal needs. Additionally, the company operates day care facilities where clients can receive supervised care and engage in social and recreational activities. Revenue is also derived from ancillary services such as rental and sales of care equipment, and partnerships with local governments and healthcare institutions which may provide subsidies or contracts for care services. The company's ability to maintain high service standards and foster strong relationships with governmental bodies and healthcare providers plays a critical role in its revenue generation.

Care Service Co., Ltd. Financial Statement Overview

Summary

Care Service Co., Ltd. exhibits a robust financial performance with consistent revenue growth and profitability. The company maintains a strong balance sheet with low leverage and efficient equity utilization, supported by healthy cash flows. These factors highlight its financial stability and potential for future growth.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.86B	9.86B	9.64B	9.24B	8.97B	8.69B
Gross Profit	1.32B	1.32B	1.27B	1.25B	1.17B	1.14B
EBITDA	719.18M	707.16M	696.96M	663.77M	479.03M	471.13M
Net Income	373.52M	374.02M	377.66M	323.78M	192.17M	190.78M
Balance Sheet
Total Assets	4.12B	4.12B	3.86B	3.51B	3.24B	3.22B
Cash, Cash Equivalents and Short-Term Investments	1.84B	1.84B	1.52B	1.20B	930.35M	969.08M
Total Debt	67.31M	67.31M	98.59M	149.99M	227.26M	354.54M
Total Liabilities	1.20B	1.20B	1.21B	1.19B	1.22B	1.36B
Stockholders Equity	2.92B	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	553.89M	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: 810.00
• 50DMA: Positive
• 100DMA: Positive
• 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 810 is above the 20-day moving average (MA) of 798.75, above the 50-day MA of 804.50, and below the 200-day MA of 817.46, indicating a neutral trend. The MACD of 1.53 indicates Negative momentum. The RSI at 56.57 is Neutral, neither overbought nor oversold. The STOCH value of 67.46 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	¥2.26B	15.11		―	32.45%	58.25%
9220	78 Outperform	¥2.89B	7.13		2.82%	5.37%	-9.33%
2425	77 Outperform	¥3.07B	9.55		2.47%	-0.34%	-21.06%
7129	75 Outperform	¥3.20B	10.96		2.62%	4.76%	134.83%
2435	75 Outperform	¥2.56B	5.44		4.35%	2.45%	205.19%
7037	55 Neutral	¥2.68B	―		1.59%	11.52%	-645.05%
Sector *	51 Neutral	$7.93B	-0.32	-43.43%	2.21%	22.30%	-1.88%