Welcia Holdings Co., Ltd. (3141) AI Stock Analysis

• Market Cap: ¥594.52B
• Dividend Yield: 1.25%
• Average Volume (3M): 432.73K
• Price to Earnings (P/E): 30.9
• Beta (1Y): 0.16
• Revenue Growth: 7.79%
• EPS Growth: -13.09%
• Country: JP
• Employees: 15,286
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Pharmaceuticals
• EPS (TTM): N/A
• Shares Outstanding: 209,822,860
• 10 Day Avg. Volume: 526,470
• 30 Day Avg. Volume: 432,733
• PEG Ratio: -0.71
• Price to Book (P/B): 1.85
• Price to Sales (P/S): 0.36
• P/FCF Ratio: 12.33
• 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: ¥3,212.00
• Price Target Upside: 12.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: ¥3,212.00 ▲(12.31% Upside)

Welcia Holdings' strong financial performance, characterized by robust revenue growth and stable financial health, is the primary driver of its stock score. The technical analysis indicates a strong upward trend, though the stock is currently overbought. Valuation concerns due to a high P/E ratio slightly offset these positives.

Welcia Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

Welcia Holdings Co., Ltd., together with its subsidiaries, operates a chain of drug stores with dispensing pharmacies in Japan. Its stores primarily sell OTC, healthcare/nursing care, baby, and health food products, as well as dispensing, cosmetics, household goods, food, and other products. The company also offers counseling, late-night, and long-term care services, as well as home-visit bathing and nursing care support services. In addition, it rents and sells welfare equipment; and provides housing services for elderly people. As of February 28, 2022, the company operated 2,468 stores. Welcia Holdings Co., Ltd. was incorporated in 2008 and is headquartered in Tokyo, Japan. Welcia Holdings Co., Ltd. is a subsidiary of Aeon Co., Ltd.

How the Company Makes Money

Welcia Holdings Co., Ltd. generates revenue primarily through the sale of pharmaceuticals and health-related products in its extensive network of drugstores across Japan. The company capitalizes on a diverse product range, including over-the-counter and prescription medications, cosmetics, and everyday consumer goods. Key revenue streams include retail sales from its physical store locations and, increasingly, from its online platforms. Additionally, Welcia benefits from strategic partnerships with healthcare providers and suppliers, which help to enhance its product offerings and service quality, driving customer loyalty and repeat business.

Welcia Holdings Co., Ltd. Financial Statement Overview

Summary

Welcia Holdings exhibits strong revenue growth and maintains healthy margins despite a decline in net income. The balance sheet is stable with controlled leverage, and the company demonstrates strong cash flow generation capabilities. While there are some challenges in profitability and cash flow growth, the company's financial health remains robust.

Income Statement

Welcia Holdings demonstrated a consistent increase in total revenue over the past years, with a notable revenue growth rate of 5.57% from 2024 to 2025. Despite the decline in net income, the company maintained a healthy gross profit margin of 28.36% and an EBITDA margin of 4.15% in 2025. However, the net profit margin decreased to 1.16%, indicating pressure on profitability despite revenue growth.

Balance Sheet

The company's balance sheet reflects a stable equity position with a debt-to-equity ratio of 0.33 in 2025, showcasing controlled leverage. The equity ratio stands at 42.87%, indicating a solid financial structure. Return on Equity (ROE) was 6.02%, reflecting a decline but still signifying profitability. Overall, the balance sheet is robust with moderate risk from debt.

Cash Flow

Welcia Holdings reported a positive free cash flow to net income ratio of 2.49, indicating strong cash generation relative to net income. The operating cash flow to net income ratio was 3.20, showcasing efficient operations. However, the free cash flow growth rate saw a decline, suggesting potential challenges in maintaining cash flow stability.

Breakdown	TTM	Dec 2025	Dec 2023	Dec 2022	Dec 2021	Dec 2021
Income Statement
Total Revenue	1.31T	1.29T	1.22T	1.14T	949.65B	1.03T
Gross Profit	392.18B	364.42B	370.11B	349.25B	296.05B	320.94B
EBITDA	55.13B	53.31B	65.45B	68.86B	58.71B	61.98B
Net Income	18.23B	14.96B	26.45B	27.03B	28.00B	26.45B
Balance Sheet
Total Assets	640.15B	579.99B	551.86B	537.36B	435.69B	463.05B
Cash, Cash Equivalents and Short-Term Investments	81.97B	35.01B	30.53B	32.85B	51.92B	23.40B
Total Debt	76.65B	81.25B	82.70B	86.07B	47.55B	62.51B
Total Liabilities	382.82B	325.50B	307.50B	304.98B	255.34B	255.16B
Stockholders Equity	251.42B	248.62B	237.71B	225.91B	179.72B	201.78B
Cash Flow
Free Cash Flow	-29.23B	37.23B	28.17B	40.49B	31.93B	-3.92B
Operating Cash Flow	-23.59B	47.84B	46.53B	60.30B	46.40B	16.23B
Investing Cash Flow	-18.75B	-22.74B	-22.03B	-36.07B	-16.15B	-37.09B
Financing Cash Flow	-5.47B	-20.77B	-26.81B	-14.85B	-16.97B	-7.28B

Welcia Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2860.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3141, the sentiment is Positive. The current price of 2860 is above the 20-day moving average (MA) of 2741.10, above the 50-day MA of 2705.61, and above the 200-day MA of 2429.30, indicating a bullish trend. The MACD of 32.94 indicates Negative momentum. The RSI at 63.82 is Neutral, neither overbought nor oversold. The STOCH value of 80.54 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3141.

Welcia Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3391	78 Outperform	$610.46B	27.92	4.93%	11.78%	4.63%	-47.30%
3148	78 Outperform	¥202.93B	12.76	―	2.12%	7.55%	16.01%
3141	72 Outperform	¥594.52B	30.89	―	1.25%	7.79%	-13.09%
9989	69 Neutral	¥483.24B	15.39	12.18%	3.11%	6.64%	6.38%
7649	63 Neutral	$665.13B	15.37	15.71%	0.99%	21.81%	67.76%
3549	63 Neutral	¥395.58B	21.95	―	0.37%	15.81%	27.05%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Welcia Holdings Co., Ltd. Corporate Events

Welcia Holdings Updates Financial Reporting for Q1 FY2026

Welcia Holdings Co., Ltd. announced corrections to its Financial Results Briefing and Supplementary Materials for the first quarter of the fiscal year ending February 2026. The corrections pertain to the number of employees and sales per unit, reflecting the company’s commitment to transparency and accuracy in its financial reporting.

The most recent analyst rating on (JP:3141) stock is a Hold with a Yen1950.00 price target. To see the full list of analyst forecasts on Welcia Holdings Co., Ltd. stock, see the JP:3141 Stock Forecast page.

Welcia Holdings Reports Q1 FY2026 Financial Results

Welcia Holdings Co., Ltd. has released its financial results for the first quarter of the fiscal year ending February 2026. The company has outlined its achievements, initiatives, and financial performance, including sales growth and store operations. The announcement reflects Welcia’s strategic focus on expanding its market presence and enhancing its service offerings, which could impact its industry positioning and stakeholder interests.

The most recent analyst rating on (JP:3141) stock is a Hold with a Yen1950.00 price target. To see the full list of analyst forecasts on Welcia Holdings Co., Ltd. stock, see the JP:3141 Stock Forecast page.

Welcia Holdings Reports Strong Q1 2025 Results Amid Upcoming Merger

Welcia Holdings Co., Ltd. reported a significant increase in its financial performance for the three months ending May 31, 2025, with net sales rising by 9.7% and net income attributable to owners of the parent increasing by 116% compared to the previous year. The company plans to integrate its operations with TSURUHA Holdings Inc. and will be delisted on November 27, 2025, which could have significant implications for its market positioning and stakeholders.

The most recent analyst rating on (JP:3141) stock is a Hold with a Yen1950.00 price target. To see the full list of analyst forecasts on Welcia Holdings Co., Ltd. stock, see the JP:3141 Stock Forecast page.

Welcia Holdings Expands Business Scope with Articles Amendment

Welcia Holdings Co., Ltd. announced a proposal to amend its Articles of Incorporation to accommodate the diversification of its business activities. The amendments include expanding its business purposes to cover welfare services for persons with disabilities, in-home nursing, health guidance, and transportation services, reflecting the company’s strategic shift towards broader healthcare and support services.

The most recent analyst rating on (JP:3141) stock is a Hold with a Yen1800.00 price target. To see the full list of analyst forecasts on Welcia Holdings Co., Ltd. stock, see the JP:3141 Stock Forecast page.

Welcia Holdings Affirms Independence Amid AEON’s Control

Welcia Holdings Co., Ltd. announced details regarding its controlling shareholder, AEON Co., Ltd., which owns a significant portion of its voting rights. Despite this, Welcia maintains operational independence and emphasizes protecting the interests of its shareholders by appointing a majority of independent directors. The company has outlined its transactions with AEON, including consumption deposits and royalty payments, ensuring terms are fairly determined.

The most recent analyst rating on (JP:3141) stock is a Hold with a Yen1950.00 price target. To see the full list of analyst forecasts on Welcia Holdings Co., Ltd. stock, see the JP:3141 Stock Forecast page.