Care Service Co., Ltd. (JP:2425)
:2425
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Care Service Co., Ltd.
(2425)
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Rating:51Neutral
Price Target:
¥737.00
▼(-6.83% Downside)
Action:Downgraded
Date:05/16/26
The score is held back primarily by the 2026 operating and cash flow deterioration (revenue decline, sharp margin compression, and negative free cash flow). Technicals also show a bearish trend with weak momentum. Offsetting factors include a very conservative balance sheet and a ~3% dividend yield, but valuation remains less attractive given the recent profitability reset.
Positive Factors
Conservative balance sheet
Very low leverage and materially improving debt metrics give the company durable financial flexibility. A conservative balance sheet reduces refinancing and solvency risk, supports capital allocation through downturns, and underpins long-term investment or dividend stability.
Negative Factors
2026 revenue and margin deterioration
A material revenue decline coupled with a sharp EBIT margin drop signals a structural earnings reset rather than a minor fluctuation. Lower scale and compressed operating profitability reduce reinvestment capacity, jeopardize sustained service quality and margin recovery absent clear remediation.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Very low leverage and materially improving debt metrics give the company durable financial flexibility. A conservative balance sheet reduces refinancing and solvency risk, supports capital allocation through downturns, and underpins long-term investment or dividend stability.
Read all positive factors
Care Service Co., Ltd. (2425) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥2.78B
Dividend Yield2.56%
Average Volume (3M)3.29K
Price to Earnings (P/E)24.8
Beta (1Y)0.41
Revenue Growth-6.54%
EPS Growth-69.23%
CountryJP
Employees1,073
SectorHealthcare
Sector Strength45
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)N/A
Shares Outstanding4,200,000
10 Day Avg. Volume2,410
30 Day Avg. Volume3,293
Financial Highlights & Ratios
PEG Ratio-0.36
Price to Book (P/B)0.97
Price to Sales (P/S)0.31
P/FCF Ratio-1.05K
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 servic...
How the Company Makes Money
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Care Service Co., Ltd. Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
82
Very Positive
Cash Flow
40
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.72B | 9.22B | 9.86B | 9.64B | 9.24B | 8.97B |
| Gross Profit | 1.22B | 917.05M | 1.32B | 1.27B | 1.25B | 1.17B |
| EBITDA | 578.98M | 299.80M | 675.34M | 675.65M | 587.26M | 455.17M |
| Net Income | 321.70M | 115.09M | 374.02M | 377.66M | 323.78M | 192.17M |
Balance Sheet | ||||||
| Total Assets | 4.09B | 3.87B | 4.12B | 3.86B | 3.51B | 3.24B |
| Cash, Cash Equivalents and Short-Term Investments | 1.87B | 1.67B | 1.84B | 1.52B | 1.20B | 930.35M |
| Total Debt | 31.34M | 36.94M | 67.31M | 98.59M | 149.99M | 227.26M |
| Total Liabilities | 1.24B | 912.07M | 1.20B | 1.21B | 1.19B | 1.22B |
| Stockholders Equity | 2.85B | 2.95B | 2.92B | 2.64B | 2.32B | 2.02B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -2.73M | 458.49M | 457.03M | 404.56M | 174.65M |
| Operating Cash Flow | 0.00 | 122.42M | 553.89M | 546.10M | 443.20M | 338.12M |
| Investing Cash Flow | 0.00 | -176.79M | -143.38M | -102.13M | -36.08M | -184.42M |
| Financing Cash Flow | 0.00 | -106.11M | -91.93M | -119.97M | -151.87M | -191.60M |
Care Service Co., Ltd. Technical Analysis
Negative
791.00
Price Trends
764.35
Negative
769.64
Negative
776.60
Negative
Market Momentum
-4.78
Negative
42.61
Neutral
56.67
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 above the 20-day moving average (MA) of 753.32, above the 50-day MA of 764.35, and above the 200-day MA of 776.60, indicating a bearish trend. The MACD of -4.78 indicates Negative momentum. The RSI at 42.61 is Neutral, neither overbought nor oversold. The STOCH value of 56.67 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | ¥40.86B | 11.51 | ― | 2.63% | 3.49% | -14.24% | |
72 Outperform | ¥3.01B | 4.69 | ― | 2.82% | 5.16% | 19.94% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | ¥2.78B | 24.82 | ― | 2.56% | -6.54% | -69.23% | |
51 Neutral | ¥5.56B | 23.20 | ― | 4.07% | 4.75% | 20.56% | |
49 Neutral | ¥1.26B | 43.32 | ― | ― | 9.08% | 30.71% |
* Healthcare Sector Average
JP:2425
Care Service Co., Ltd.
733.00
-38.83
-5.03%
JP:2373
Care Twentyone Corporation
413.00
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Charm Care Corporation
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6.87%
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Terminalcare Support Institute, Inc.
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5.38%
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FB CARE SERVICE CO.,LTD.
1,236.00
278.87
29.14%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.