Cedar. Co.,Ltd (2435) AI Stock Analysis

• Market Cap: ¥2.47B
• Dividend Yield: 4.76%
• Average Volume (3M): 141.26K
• Price to Earnings (P/E): 2.7
• Beta (1Y): 0.65
• Revenue Growth: 1.84%
• EPS Growth: 92.34%
• Country: JP
• Employees: 1,332
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 19.77
• Shares Outstanding: 11,476,000
• 10 Day Avg. Volume: 352,360
• 30 Day Avg. Volume: 141,263
• PEG Ratio: 0.05
• Price to Book (P/B): 1.78
• Price to Sales (P/S): 0.15
• P/FCF Ratio: 8.98
• 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: 57 Neutral
• Price Target: ¥229.00 ▲(7.51% Upside)
• Action: Reiterated Date: 11/01/25
• Date: Action: Reiterated 11/01/25

Cedar Co., Ltd's overall stock score of 57 reflects a cautious outlook driven primarily by mixed financial performance, with high leverage and declining Free Cash Flow posing significant risks despite steady revenue growth. A strong valuation score, supported by a low P/E ratio and high dividend yield, provides a positive offset. Technical indicators suggest stability with mild bullish momentum, but do not significantly lift the score. The focus remains on addressing debt and cash flow challenges to improve long-term prospects.

Positive Factors

Revenue Growth

Consistent revenue growth reflects strong market demand and effective sales strategies, supporting long-term business expansion and stability.

Profitability Improvement

Improved profitability indicates better cost management and operational efficiency, enhancing the company's financial health and shareholder value.

Cash Flow Management

Strong cash flow management ensures liquidity and financial flexibility, enabling the company to invest in growth opportunities and weather economic fluctuations.

Negative Factors

High Leverage

High leverage can increase financial risk, potentially impacting the company's ability to finance operations and invest in growth without incurring high interest costs.

Low Equity Ratio

A low equity ratio indicates a reliance on debt, which can limit financial flexibility and increase vulnerability to interest rate changes and economic downturns.

EBITDA Margin

Suboptimal EBITDA margins highlight potential inefficiencies, suggesting the need for operational improvements to enhance profitability and competitive positioning.

Cedar. Co.,Ltd Business Overview & Revenue Model

Company Description

CEDAR.Co.,Ltd. provides nursing care and rehabilitation services in Japan. It offers day care, resident life care, home-visit nursing care, home help, home care support, group home, and short-term residency care services. CEDAR.Co.,Ltd. was incorporated in 1981 and is headquartered in Kitakyushu, Japan.

How the Company Makes Money

Cedar Co., Ltd generates revenue primarily through the sale of its electronic components and solutions. The company's revenue model is centered around both direct sales to manufacturers and distributors in various sectors, including automotive and consumer electronics, as well as through long-term contracts with major clients. Key revenue streams include the production of semiconductors, circuit boards, and custom electronic solutions, which are sold at competitive prices, allowing the company to maintain healthy profit margins. Additionally, Cedar Co., Ltd benefits from strategic partnerships with technology firms and industry leaders, enabling access to broader markets and collaborative projects that enhance its product offerings. The company also invests in research and development to innovate new products, which helps to attract new customers and retain existing ones, further contributing to its financial success.

Cedar. Co.,Ltd Financial Statement Overview

Summary

Cedar Co., Ltd's financial performance is mixed. The income statement shows moderate revenue growth of 3.0% and improved profitability with a Net Profit Margin of 2.0% in 2025, but margins are still low for the industry. The balance sheet raises concerns with a high Debt-to-Equity Ratio of 10.4, indicating significant leverage risks. Cash flow is weak, with a sharp -70.4% drop in Free Cash Flow to 295 million in 2025, despite solid operating cash conversion. Overall, high debt and declining cash flow temper the steady revenue growth.

Income Statement

Cedar Co., Ltd shows moderate performance in its income statement. Revenue growth from 2024 to 2025 was 3.0%, indicating steady but not exceptional growth. Gross Profit Margin improved slightly to 12.8% in 2025, while Net Profit Margin increased to 2.0% from 1.2% in 2024, reflecting better profitability. EBIT Margin at 5.0% and EBITDA Margin at 9.3% in 2025 suggest decent operational efficiency. However, margins remain relatively low for the industry, indicating room for cost optimization.

Balance Sheet

The balance sheet reflects significant concerns with high leverage. The Debt-to-Equity Ratio stands at 10.4 in 2025, down slightly from 14.0 in 2024, but still indicating heavy reliance on debt. Equity Ratio is low at 7.0% in 2025, suggesting limited financial stability. Return on Equity improved to 25.1% in 2025 from 18.7% in 2024, showing better utilization of equity, but the high debt levels pose a risk to long-term solvency.

Cash Flow

Cash flow performance is mixed. Free Cash Flow dropped significantly to 295 million in 2025 from 995 million in 2024, reflecting a growth rate of -70.4%, which raises concerns about cash generation. Operating Cash Flow to Net Income Ratio is strong at 2.2 in 2025, indicating good cash conversion from earnings. However, Free Cash Flow to Net Income Ratio at 0.8 suggests limited cash available after capital expenditures, pointing to potential challenges in funding growth or reducing debt.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	17.89B	17.83B	17.30B	16.44B	15.75B	15.61B
Gross Profit	2.19B	2.34B	2.21B	1.59B	1.55B	2.07B
EBITDA	1.72B	1.66B	1.45B	831.00M	728.00M	1.47B
Net Income	374.00M	444.00M	203.00M	-276.00M	-319.00M	387.00M
Balance Sheet
Total Assets	20.42B	20.00B	20.33B	20.25B	20.46B	19.56B
Cash, Cash Equivalents and Short-Term Investments	1.80B	1.48B	1.64B	1.03B	796.00M	825.00M
Total Debt	14.26B	14.47B	15.22B	15.63B	15.84B	14.76B
Total Liabilities	18.93B	18.50B	19.23B	19.35B	19.30B	17.95B
Stockholders Equity	1.47B	1.49B	1.08B	891.00M	1.16B	1.61B
Cash Flow
Free Cash Flow	0.00	295.00M	995.00M	394.00M	-984.00M	-876.00M
Operating Cash Flow	0.00	777.00M	1.47B	797.00M	513.00M	1.14B
Investing Cash Flow	0.00	-142.00M	-446.00M	-358.00M	-1.47B	-2.06B
Financing Cash Flow	0.00	-791.00M	-418.00M	-207.00M	928.00M	881.00M

Cedar. Co.,Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 213.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2435, the sentiment is Positive. The current price of 213 is below the 20-day moving average (MA) of 221.70, below the 50-day MA of 218.86, and below the 200-day MA of 218.00, indicating a neutral trend. The MACD of 2.15 indicates Positive momentum. The RSI at 47.88 is Neutral, neither overbought nor oversold. The STOCH value of 18.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2435.

Cedar. Co.,Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9220	81 Outperform	¥2.88B	4.69	―	2.82%	4.82%	9.78%
2425	74 Outperform	¥2.98B	27.02	―	2.56%	-3.06%	-38.56%
2435	57 Neutral	¥2.47B	2.69	―	4.76%	1.84%	92.34%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
7362	49 Neutral	¥1.24B	14.80	―	―	2.81%	-42.50%
2373	48 Neutral	¥5.72B	23.20	―	4.07%	6.08%	38.00%