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

• Market Cap: ¥3.03B
• Dividend Yield: 2.56%
• Average Volume (3M): 3.29K
• Price to Earnings (P/E): 13.1
• Beta (1Y): 0.44
• Revenue Growth: -3.06%
• EPS Growth: -38.56%
• Country: JP
• Employees: 1,073
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 7.32
• Shares Outstanding: 4,200,000
• 10 Day Avg. Volume: 2,410
• 30 Day Avg. Volume: 3,293
• PEG Ratio: -10.59
• Price to Book (P/B): 1.08
• Price to Sales (P/S): 0.32
• P/FCF Ratio: 6.89
• 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: 75 Outperform
• Price Target: ¥914.00 ▲(15.55% Upside)

Care Service Co., Ltd. scores well due to its strong financial performance, characterized by consistent growth and a solid balance sheet. The valuation is attractive, with a low P/E ratio and reasonable dividend yield. Technical analysis presents a neutral outlook, with no strong momentum signals. The absence of earnings call and corporate events data does not impact the score.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage enhances financial stability and provides flexibility for future growth initiatives.

Cash Generation Ability

Strong cash generation from operations supports reinvestment opportunities and potential shareholder returns, indicating robust financial health.

Stable Profitability

Consistent profitability with stable margins reflects effective cost management and a resilient business model, supporting long-term growth.

Negative Factors

Revenue Growth Decline

A decline in revenue growth may indicate challenges in market expansion or competitive pressures, potentially impacting future earnings.

EPS Growth Decline

A significant decline in EPS growth suggests potential issues in operational efficiency or market conditions, affecting investor confidence.

Fluctuating Capital Expenditures

Fluctuating capital expenditures can impact cash flow stability and may indicate challenges in investment strategy or project execution.

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

Company Description

Care Service Co.,Ltd., together with its subsidiaries, provides in-home care support and day services in Japan and internationally. It provides visiting bath, home visit care, home visit nursing care, elderly facility, clean, and angel care services, as well as small scale and multifunctional in-home care services. The company also engages in the rental and sale of assistive equipment. In addition, it provides nursing care seminars, human resources and staffing agency, and worker dispatching services, as well as operates a care workers training school. The company was founded in 1970 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Care Service Co., Ltd. generates revenue primarily through service fees charged for its healthcare and elderly care offerings. Key revenue streams include payment for home care services, nursing services, and specialized rehabilitation programs. The company may also benefit from partnerships with hospitals, insurance companies, and government health programs that subsidize care costs for eligible individuals. Additionally, Care Service Co., Ltd. could earn revenue from training programs for caregivers, as well as from the sale of healthcare-related products, contributing to its overall earnings.

Care Service Co., Ltd. Financial Statement Overview

Summary

Care Service Co., Ltd. demonstrates strong financial performance with consistent revenue growth, stable profitability, and a robust balance sheet. The company maintains low leverage and efficient equity utilization, highlighting financial stability and supporting future growth initiatives.

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	9.72B	9.86B	9.64B	9.24B	8.97B	8.69B
Gross Profit	1.22B	1.32B	1.27B	1.25B	1.17B	1.14B
EBITDA	621.43M	707.16M	696.96M	663.77M	479.03M	471.13M
Net Income	321.52M	374.02M	377.66M	323.78M	192.17M	190.78M
Balance Sheet
Total Assets	4.09B	4.12B	3.86B	3.51B	3.24B	3.22B
Cash, Cash Equivalents and Short-Term Investments	1.86B	1.84B	1.52B	1.20B	930.35M	969.08M
Total Debt	31.34M	97.31M	129.59M	149.99M	227.26M	354.54M
Total Liabilities	1.24B	1.20B	1.21B	1.19B	1.22B	1.36B
Stockholders Equity	2.85B	2.92B	2.64B	2.32B	2.02B	1.86B
Cash Flow
Free Cash Flow	0.00	457.00M	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: Negative
• Last Price: 791.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 791 is below the 20-day moving average (MA) of 800.65, below the 50-day MA of 798.00, and below the 200-day MA of 801.23, indicating a bearish trend. The MACD of -2.39 indicates Positive momentum. The RSI at 45.61 is Neutral, neither overbought nor oversold. The STOCH value of 40.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
9220	81 Outperform	¥2.97B	6.19	―	2.82%	4.82%	9.78%
2374	75 Outperform	¥30.30B	17.66	―	2.48%	3.88%	0.31%
2425	75 Outperform	¥3.03B	13.10	―	2.56%	-3.06%	-38.56%
6062	72 Outperform	¥46.17B	13.97	―	2.63%	0.30%	-31.28%
2373	60 Neutral	¥6.04B	15.79	―	4.07%	6.08%	38.00%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
7362	49 Neutral	¥1.23B	15.03	―	―	2.81%	-42.50%