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Welcia Holdings Co., Ltd. (JP:3141)
:3141
Japanese Market

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

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JP

Welcia Holdings Co., Ltd.

(3141)

Rating:74Outperform
Price Target:
Welcia Holdings has a strong financial foundation with robust revenue growth and stable leverage. The technical analysis indicates upward momentum, but caution is advised due to overbought indicators. However, the high P/E ratio suggests the stock may be overvalued, limiting its upside potential. Overall, the stock is positioned well for stability but may face challenges in achieving significant price appreciation in the near term.

Welcia Holdings Co., Ltd. (3141) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionWelcia 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 MoneyWelcia Holdings Co., Ltd. generates revenue primarily through its extensive network of drugstores across Japan. The company earns income by selling a diverse range of products such as pharmaceuticals, health and beauty items, daily essentials, and food products. Prescription medications and healthcare products represent a significant portion of their sales. Additionally, Welcia may benefit from strategic partnerships with pharmaceutical companies, enabling them to offer exclusive or specialized products. The company also focuses on enhancing customer loyalty through membership programs and personalized services, which contribute to repeat business and steady revenue streams.

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
83
Very Positive
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
78
Positive
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
80
Positive
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.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue1.26T1.29T1.22T1.14T1.03T949.65B
Gross Profit378.68B364.42B370.11B349.25B320.94B296.05B
EBITDA56.37B53.31B65.45B68.86B61.98B59.95B
Net Income20.85B14.96B26.45B27.03B26.45B28.00B
Balance Sheet
Total Assets632.02B579.99B551.86B537.36B463.05B435.69B
Cash, Cash Equivalents and Short-Term Investments71.63B35.01B30.53B32.85B23.40B51.92B
Total Debt82.80B81.25B82.70B86.07B62.51B47.55B
Total Liabilities378.50B325.50B307.50B304.98B255.16B255.34B
Stockholders Equity247.29B248.62B237.71B225.91B201.78B179.72B
Cash Flow
Free Cash Flow0.0037.23B28.17B40.49B-3.92B31.93B
Operating Cash Flow0.0047.84B46.53B60.30B16.23B46.40B
Investing Cash Flow0.00-22.74B-22.03B-36.07B-37.09B-16.15B
Financing Cash Flow0.00-20.77B-26.81B-14.85B-7.28B-16.97B

Welcia Holdings Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price2513.50
Price Trends
50DMA
2520.35
Negative
100DMA
2379.11
Positive
200DMA
2178.51
Positive
Market Momentum
MACD
2.55
Positive
RSI
46.37
Neutral
STOCH
13.35
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3141, the sentiment is Neutral. The current price of 2513.5 is below the 20-day moving average (MA) of 2540.55, below the 50-day MA of 2520.35, and above the 200-day MA of 2178.51, indicating a neutral trend. The MACD of 2.55 indicates Positive momentum. The RSI at 46.37 is Neutral, neither overbought nor oversold. The STOCH value of 13.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3141.

Welcia Holdings Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
¥525.92B34.92
1.43%5.56%-43.50%
51
Neutral
$7.55B0.30-61.90%2.27%17.11%1.58%
$3.66B18.1311.61%0.02%
$4.34B24.4610.45%1.22%
$3.80B18.714.93%0.04%
78
Outperform
¥201.35B14.48
311.25%8.98%0.10%
78
Outperform
¥384.86B20.16
0.38%13.86%98.99%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3141
Welcia Holdings Co., Ltd.
2,514.00
573.14
29.53%
SDGCF
Sundrug Co
31.20
7.47
31.48%
SGIPF
Sugi Holdings Co
22.80
9.27
68.51%
TSUSF
TSURUHA Holdings
55.00
0.31
0.57%
JP:3148
Create SD Holdings Co., Ltd.
3,165.00
-334.63
-9.56%
JP:3549
KUSURI NO AOKI HOLDINGS CO.,LTD.
3,664.00
770.47
26.63%

Welcia Holdings Co., Ltd. Corporate Events

Welcia Holdings Expands Business Scope with Articles Amendment
Jun 25, 2025

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
May 28, 2025

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.

Welcia Holdings Announces Corrections to Financial Supplementary Materials
May 14, 2025

Welcia Holdings Co., Ltd. announced corrections to previously disclosed supplementary materials for the fiscal year ended February 2025 and the third quarter of the fiscal year ending February 2025. These corrections pertain to management indexes, the number of stores, store space, and sales per unit. The updated materials have been made available on the company’s website, reflecting the company’s commitment to transparency and accuracy in its financial reporting, which is crucial for maintaining stakeholder trust and ensuring informed decision-making.

The most recent analyst rating on (JP:3141) stock is a Hold with a Yen2300.00 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 Announces Leadership Change to Adapt to Market Dynamics
Apr 18, 2025

Welcia Holdings Co., Ltd. announced a significant change in its leadership, with the resignation of Representative Director, Chairman, and CEO Takamitsu Ikeno, effective after the upcoming shareholders’ meeting. This move is part of the company’s strategy to adapt to complex market changes by transitioning to a management structure led by younger leaders, with Hideaki Kirisawa becoming the sole representative director.

Welcia Holdings Sets Vision for 2030 Amidst FY2025 Financial Results
Apr 14, 2025

Welcia Holdings Co., Ltd. announced its financial results for the fiscal year ended February 2025, highlighting its strategic vision to become the community’s top health station by 2030. The briefing included details on financial achievements, store operations, and future earnings forecasts, indicating a focus on expanding its market presence and enhancing service offerings.

Welcia and Tsuruha Announce Business Integration Through Share Exchange
Apr 14, 2025

Welcia Holdings Co., Ltd. and Tsuruha Holdings Inc. have entered into a share exchange agreement as part of a business integration plan, making Tsuruha the parent company and Welcia a subsidiary. This integration aims to address challenges in the drugstore industry, such as drug price reductions and rising costs, while promoting equal access to health services and enhancing their market position.

Welcia Holdings Announces Major Shareholder Shift
Apr 11, 2025

Welcia Holdings Co., Ltd. is set to undergo a significant change in its corporate structure with a planned share exchange with Tsuruha Holdings Inc., making Tsuruha the new parent company and largest major shareholder. This strategic move, effective December 1, 2025, will see AEON Co., Ltd. cease to be the largest shareholder, although it plans to maintain its parent company status through a tender offer to retain a 50.9% voting rights ratio in Tsuruha Holdings.

Welcia Holdings Co., Ltd. Enters Capital and Business Alliance with AEON and Tsuruha
Apr 11, 2025

Welcia Holdings Co., Ltd., along with AEON Co., Ltd. and Tsuruha Holdings Inc., has entered into a definitive agreement for a capital and business alliance. This alliance aims to address regional disparities in medical and health services in Japan, particularly in rural areas, by leveraging economies of scale and combining store networks, expertise, and logistics systems. The integration seeks to meet the growing demand for comprehensive drugstore services, including medical and nursing care, by developing new business categories and opening new stores.

Welcia Holdings Reports ¥13.1 Billion Extraordinary Loss
Apr 11, 2025

Welcia Holdings Co., Ltd. announced it will record an extraordinary loss of ¥13.1 billion for the fiscal year ended February 28, 2025, due to an impairment loss from noncurrent assets at some subsidiary-operated stores. This decision reflects a decline in profitability from a challenging business environment, impacting the company’s financial results as disclosed in their consolidated financial statements.

Welcia Holdings Reports Fiscal Year 2025 Results and Upcoming Integration with TSURUHA
Apr 11, 2025

Welcia Holdings Co., Ltd. reported its consolidated financial results for the fiscal year ended February 28, 2025, showing a 5.6% increase in net sales to 1,285,005 million yen. However, the company experienced a decline in operating and ordinary income by 15.8% and 14.5%, respectively, with net income attributable to owners of the parent falling by 43.5%. The company plans to integrate with TSURUHA Holdings Inc. and delist on November 27, 2025, which may significantly impact its market positioning and operations.

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.Date of analysis: May 01, 2025