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

• Market Cap: ¥599.22B
• Dividend Yield: 1.25%
• Average Volume (3M): 459.97K
• Price to Earnings (P/E): 32.6
• Beta (1Y): 0.11
• Revenue Growth: 7.43%
• EPS Growth: -24.81%
• Country: JP
• Employees: 15,286
• Sector: Healthcare
• Sector Strength: 53
• Industry: Medical - Pharmaceuticals
• EPS (TTM): 42.98
• Shares Outstanding: 209,822,860
• 10 Day Avg. Volume: 768,420
• 30 Day Avg. Volume: 459,970
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥2,804.00
• Price Target Upside: -2.94% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 72 Outperform
• Price Target: ¥3,212.00 ▲(11.18% 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 challenges in profitability and cash flow growth, the overall financial health is 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 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.29T	1.29T	1.22T	1.14T	1.03T	949.65B
Gross Profit	381.86B	364.42B	370.11B	349.25B	320.94B	296.05B
EBITDA	51.77B	53.31B	65.45B	68.86B	61.98B	58.71B
Net Income	14.96B	14.96B	26.45B	27.03B	26.45B	28.00B
Balance Sheet
Total Assets	579.99B	579.99B	551.86B	537.36B	463.05B	435.69B
Cash, Cash Equivalents and Short-Term Investments	35.01B	35.01B	30.53B	32.85B	23.40B	51.92B
Total Debt	81.25B	81.25B	82.70B	86.07B	62.51B	47.55B
Total Liabilities	325.50B	325.50B	307.50B	304.98B	255.16B	255.34B
Stockholders Equity	248.62B	248.62B	237.71B	225.91B	201.78B	179.72B
Cash Flow
Free Cash Flow	-29.23B	37.23B	28.17B	40.49B	-3.92B	31.93B
Operating Cash Flow	-23.59B	47.84B	46.53B	60.30B	16.23B	46.40B
Investing Cash Flow	-18.75B	-22.74B	-22.03B	-36.07B	-37.09B	-16.15B
Financing Cash Flow	-5.47B	-20.77B	-26.81B	-14.85B	-7.28B	-16.97B

Welcia Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2889.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 2889 is above the 20-day moving average (MA) of 2637.45, above the 50-day MA of 2588.96, and above the 200-day MA of 2310.82, indicating a bullish trend. The MACD of 62.48 indicates Negative momentum. The RSI at 76.07 is Negative, neither overbought nor oversold. The STOCH value of 85.07 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
3141	72 Outperform	¥599.22B	32.64		1.25%	7.43%	-24.81%
Sector *	51 Neutral	$7.95B	-0.40	-41.67%	2.21%	22.29%	-1.85%
SDGCF	―	$3.68B	17.43	12.18%	2.81%	―	―
SGIPF	―	$4.81B	16.48	16.26%	1.43%	―	―
TSUSF	―	$4.20B	18.71	4.93%	3.39%	―	―
3148	78 Outperform	¥217.47B	14.17		1.98%	8.23%	12.71%
3549	64 Neutral	¥407.77B	22.12		0.35%	14.79%	35.84%

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.