Pharmarise Holdings Corp. (2796) AI Stock Analysis

• Market Cap: ¥5.69B
• Dividend Yield: 2.89%
• Average Volume (3M): 14.80K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.33
• Revenue Growth: 11.85%
• EPS Growth: -315.15%
• Country: JP
• Employees: 1,848
• Sector: Healthcare
• Sector Strength: 53
• Industry: Medical - Pharmaceuticals
• EPS (TTM): -71.02
• Shares Outstanding: 12,060,381
• 10 Day Avg. Volume: 5,230
• 30 Day Avg. Volume: 14,800
• PEG Ratio: -0.66
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.90
• 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: 62 Neutral
• Price Target: ¥517.00 ▲(6.60%Upside)

Pharmarise Holdings Corp. demonstrates strength in revenue growth and cash flow management, crucial for the pharmaceutical sector. Despite positive market momentum, the company faces challenges with profitability and valuation, highlighted by a negative P/E ratio and recent net losses. The high dividend yield offers some mitigation, but overall, the stock scores moderately due to these mixed factors.

Pharmarise Holdings Corp. Business Overview & Revenue Model

Company Description

Pharmarise Holdings Corp. (2796) is a Japan-based company primarily engaged in the operation of pharmacies and drug stores. The company offers a wide range of pharmaceutical products, including prescription medications, over-the-counter drugs, and health-related goods. Pharmarise Holdings also provides pharmaceutical management services and consulting services to other pharmacies, focusing on improving operational efficiencies and compliance with regulations.

How the Company Makes Money

Pharmarise Holdings Corp. generates revenue through multiple streams, primarily from the sale of pharmaceutical products in its network of pharmacies and drug stores. A significant portion of its income comes from dispensing prescription medications, which involves both selling medications and providing pharmacy services such as consultations and medication management. Additionally, the company earns revenue from its consulting services offered to other pharmacies, which include operational management advice and regulatory compliance assistance. Partnerships with healthcare providers and suppliers also play a crucial role in ensuring a steady supply of products and maintaining competitive pricing, which contributes to its profitability.

Pharmarise Holdings Corp. Financial Statement Overview

Summary

Pharmarise Holdings Corp. shows resilience in revenue growth and cash flow management, which are essential in the pharmaceutical industry. However, the recent net loss and increased leverage highlight potential areas for improvement in profitability and risk management. The balance between growth and financial stability will be crucial for future performance.

Income Statement

Pharmarise Holdings Corp. shows steady revenue growth with a 4.68% increase from 2023 to 2024 but has faced challenges in profitability, evidenced by a negative net income margin due to a net loss in the latest period. The gross profit margin has remained stable at around 15.5% over the last two years. However, the decline in EBIT and EBITDA margins indicates operational inefficiencies.

Balance Sheet

The company's debt-to-equity ratio of 1.73 reflects moderate leverage, which is typical for the industry, but the increase in total debt poses a risk. The equity ratio is 24.97%, showing a reasonable level of equity financing. Return on equity has decreased significantly due to the net loss, indicating a challenge in generating returns for shareholders.

Cash Flow

Despite a challenging income statement, Pharmarise Holdings maintains strong cash flow, with a 5.91% growth in free cash flow and a robust operating cash flow to net income ratio due to the significant cash generated relative to the net income. The company demonstrates effective cash management, offsetting some income statement weaknesses.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
58.06B	54.47B	52.03B	51.61B	52.32B	51.03B
	Gross Profit
8.14B	8.45B	8.13B	8.12B	8.07B	7.44B
	EBIT
305.00M	916.00M	1.44B	1.52B	1.25B	1.03B
	EBITDA
1.60B	1.38B	2.66B	2.83B	2.59B	2.26B
	Net Income Common Stockholders
-739.00M	-351.00M	333.00M	447.00M	426.00M	577.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.52B	7.15B	4.74B	3.99B	4.60B	4.47B
	Total Assets
30.46B	29.49B	23.42B	23.75B	24.72B	25.21B
	Total Debt
13.78B	12.75B	9.14B	9.91B	10.70B	11.23B
	Net Debt
6.25B	5.60B	4.40B	5.92B	6.09B	6.76B
	Total Liabilities
23.30B	22.05B	16.43B	17.05B	18.39B	19.26B
	Stockholders Equity
7.09B	7.36B	6.88B	6.61B	6.22B	5.91B
Cash Flow		Free Cash Flow
349.50M	2.10B	1.98B	247.00M	1.39B	1.11B
	Operating Cash Flow
427.00M	2.71B	2.52B	713.00M	1.95B	1.57B
	Investing Cash Flow
-1.29B	-3.12B	-703.00M	-292.00M	-1.08B	-734.00M
	Financing Cash Flow
1.95B	2.77B	-1.07B	-1.03B	-728.00M	-766.00M

Pharmarise Holdings Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 485.00
• 50DMA: Positive
• 100DMA: Positive
• 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:2796, the sentiment is Positive. The current price of 485 is above the 20-day moving average (MA) of 481.02, above the 50-day MA of 473.16, and below the 200-day MA of 527.36, indicating a neutral trend. The MACD of 2.54 indicates Positive momentum. The RSI at 58.80 is Neutral, neither overbought nor oversold. The STOCH value of 50.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2796.

Pharmarise Holdings Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7679	80 Outperform	¥44.42B	10.31		1.28%	6.83%	11.76%
3417	80 Outperform	¥14.30B	5.36		2.51%	4.42%	20.59%
4350	76 Outperform	¥13.79B	10.58		2.63%	6.09%	-30.07%
3544	64 Neutral	¥12.46B	17.92		1.11%	5.37%	93.95%
2796	62 Neutral	¥5.69B	―		2.89%	11.85%	-315.15%
8095	62 Neutral	¥18.72B	8.67		3.88%	11.92%	-237.35%
Sector *	54 Neutral	$5.34B	3.36	-45.10%	3.39%	16.81%	-0.03%

Pharmarise Holdings Corp. Corporate Events

Pharmarise Holdings Reports Increased Sales but Faces Profit Challenges

Pharmarise Holdings Corporation reported a significant increase in net sales for the first nine months of the fiscal year ending May 31, 2025, with a 14.5% year-on-year growth. However, the company faced challenges with a substantial decline in operating profit and a net loss attributable to the owners, indicating potential operational difficulties. The financial results reflect a complex market environment, and the company has made changes in accounting policies and added a new company to its consolidation scope, which may impact future performance.