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

• Market Cap: ¥3.03B
• Dividend Yield: 2.5%
• Average Volume (3M): 1.30K
• Price to Earnings (P/E): 8.1
• Beta (1Y): 0.46
• Revenue Growth: 2.33%
• EPS Growth: -0.96%
• Country: JP
• Employees: 1,073
• Sector: Healthcare
• Sector Strength: 39
• Industry: Medical - Care Facilities
• EPS (TTM): 40.57
• Shares Outstanding: 4,200,000
• 10 Day Avg. Volume: 870
• 30 Day Avg. Volume: 1,303
• PEG Ratio: 0.13
• Price to Book (P/B): 1.26
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.23
• 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: 80 Outperform
• Price Target: ¥919.00 ▲(14.59%Upside)

Care Service Co., Ltd. demonstrates strong financial performance and attractive valuation, making it an appealing investment in the Medical - Care Facilities industry. The technical indicators show stability with potential for upside, although they are less influential than the company's solid financials and valuation.

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. demonstrates solid financial performance with consistent revenue growth, stable profitability, and a strong balance sheet. The low debt-to-equity ratio and efficient use of equity highlight financial stability, while steady cash flow supports 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	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
EBITDA	608.85M	707.16M	696.96M	663.77M	479.03M	471.13M
Net Income	366.31M	374.02M	377.66M	323.78M	192.17M	190.78M
Balance Sheet
Total Assets	3.98B	4.12B	3.86B	3.51B	3.24B	3.22B
Cash, Cash Equivalents and Short-Term Investments	1.65B	1.84B	1.52B	1.20B	930.35M	969.08M
Total Debt	0.00	67.31M	98.59M	149.99M	227.26M	354.54M
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: 802.00
• 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 802 is above the 20-day moving average (MA) of 798.80, above the 50-day MA of 796.44, and below the 200-day MA of 821.16, indicating a neutral trend. The MACD of 1.84 indicates Negative momentum. The RSI at 53.20 is Neutral, neither overbought nor oversold. The STOCH value of 70.60 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
2425	80 Outperform	¥3.03B	8.10		2.50%	2.33%	-0.96%
9214	80 Outperform	¥1.95B	11.76		―	27.30%	34.86%
9220	76 Outperform	¥2.66B	6.95		3.82%	5.85%	-22.29%
7129	75 Outperform	¥3.10B	9.73		3.08%	4.85%	4751.70%
2435	66 Neutral	¥2.36B	5.31		2.84%	3.03%	118.71%
7037	64 Neutral	¥2.36B	―		1.80%	10.80%	-559.06%
Sector *	52 Neutral	$7.45B	0.30	-61.93%	2.28%	16.62%	1.04%