Vital KSK Holdings, Inc. (3151) AI Stock Analysis

• Market Cap: ¥67.04B
• Dividend Yield: 4.22%
• Average Volume (3M): 121.33K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.44
• Revenue Growth: 2.23%
• EPS Growth: 72.07%
• Country: JP
• Employees: 3,705
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Distribution
• EPS (TTM): 19.01
• Shares Outstanding: 51,902,977
• 10 Day Avg. Volume: 69,970
• 30 Day Avg. Volume: 121,326
• PEG Ratio: 0.29
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 0.10
• P/FCF Ratio: -5.83
• 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: 67 Neutral
• Price Target: ¥1,615.00 ▲(17.88% Upside)
• Action: Downgraded Date: 10/30/25
• Date: Action: Downgraded 10/30/25

Vital KSK Holdings, Inc. scores well on valuation due to its low P/E ratio and high dividend yield, indicating potential undervaluation. However, technical analysis shows bearish momentum, and financial performance highlights operational and cash flow inefficiencies that need improvement. These factors collectively result in a moderate overall stock score.

Positive Factors

Low leverage

A debt-to-equity ratio of 0.08 signals minimal leverage, giving the company durable financial flexibility to fund operations, withstand industry downturns, and pursue strategic investments or M&A without large near-term refinancing risk. This supports long-term stability.

Stable equity base

An equity ratio of 35.36% and a described strong equity position indicate a solid capital structure that can absorb shocks and support creditworthiness. This structural strength reduces solvency risk and underpins sustained access to suppliers and lenders over months to years.

Consistent revenue growth and improving net margin

Modest but positive revenue growth combined with an improving net margin to 1.22% points to ongoing demand and incremental progress on profitability. Over a multi-month horizon this trend supports reinvestment potential and indicates the business can grow top line while slowly improving bottom-line conversion.

Negative Factors

Negative operating cash flow

Persistent negative operating and free cash flow, with an operating cash flow to net income ratio of -1.10, shows the company struggles to convert earnings into cash. This structural cash inefficiency constrains capex, dividends, and debt servicing, increasing reliance on external funding over time.

Low operating efficiency

An EBIT margin under 1% highlights weak operating leverage and limited ability to absorb cost inflation or invest in growth initiatives. Low operating profitability is a durable headwind that compresses free cash flow and limits competitive reinvestment capacity unless structural cost or pricing improvements occur.

Declining EPS growth

A negative EPS growth rate near -6% indicates per-share earnings have fallen, reflecting either margin pressure, share count changes, or shortfalls in converting revenue to profit. Continued EPS decline would weaken shareholder returns and reduce internal funding for strategic initiatives over a multi-month horizon.

Vital KSK Holdings, Inc. Business Overview & Revenue Model

Company Description

Vital KSK Holdings, Inc. engages in the wholesale of pharmaceutical products in Japan. The company is involved in the wholesale of veterinary drugs; agricultural chemicals, agricultural materials, etc.; and medical and nursing care equipment. It also engages in the pharmacy and nursing care businesses; transportation business; insurance agent and real estate management businesses; parking business; mail-order business of health-related products; and pharmacy dispensing business. In addition, the company offers medical management consulting services; and manufactures OTC drugs. The company was founded in 2009 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Vital KSK Holdings, Inc. generates revenue through several key streams, which include direct sales of its health products, subscription services for wellness programs, and partnerships with healthcare institutions. The company's direct-to-consumer sales model allows it to reach a wide customer base via online platforms and retail channels. Additionally, recurring revenue is generated from subscription services that offer personalized health plans and ongoing support. Strategic partnerships with healthcare providers and organizations further enhance the company's market presence, enabling it to tap into larger consumer segments and secure contracts for supplying medical devices and supplements, contributing significantly to its overall earnings.

Vital KSK Holdings, Inc. Financial Statement Overview

Summary

Vital KSK Holdings, Inc. shows steady revenue growth and a strong equity position, indicating stability and potential for future growth. However, operational and cash flow inefficiencies present challenges that need addressing to enhance profitability and liquidity.

Income Statement

Vital KSK Holdings, Inc. displays a steady revenue growth rate with a 2.18% increase from the previous year. The gross profit margin stands at 8.20%, which is relatively stable over the years. The net profit margin improved to 1.22%, indicating better profitability. However, the EBIT margin is 0.95%, showing limited operating efficiency. Overall, the company is on a positive growth trajectory but needs to enhance operational efficiency.

Balance Sheet

The company maintains a strong equity base with a debt-to-equity ratio of 0.08, indicating low leverage. The return on equity (ROE) is 6.90%, reflecting moderate returns to shareholders. With an equity ratio of 35.36%, Vital KSK Holdings has a stable financial structure. Despite the solid foundation, greater returns and asset utilization could augment shareholder value.

Cash Flow

Vital KSK Holdings faces challenges with its cash flow, marked by negative operating cash flow. The free cash flow is also negative, affecting liquidity. The operating cash flow to net income ratio is -1.10, indicating inefficiencies in converting income to cash. Improvement in cash management and operational efficiencies are vital for better financial health.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	602.28B	600.37B	587.48B	579.77B	577.25B	537.06B
Gross Profit	49.38B	49.22B	48.30B	44.96B	43.98B	38.22B
EBITDA	10.79B	14.56B	12.16B	11.56B	10.87B	5.72B
Net Income	6.96B	7.31B	5.84B	4.83B	4.77B	1.17B
Balance Sheet
Total Assets	305.27B	299.43B	317.26B	297.32B	313.03B	311.40B
Cash, Cash Equivalents and Short-Term Investments	24.39B	23.10B	34.71B	19.03B	26.97B	29.78B
Total Debt	6.51B	8.59B	9.11B	10.25B	11.85B	16.80B
Total Liabilities	199.57B	192.12B	211.32B	197.15B	212.99B	207.49B
Stockholders Equity	104.29B	105.91B	104.66B	98.98B	98.96B	102.94B
Cash Flow
Free Cash Flow	0.00	-10.59B	18.47B	-9.60B	3.35B	-5.23B
Operating Cash Flow	0.00	-8.02B	23.57B	-3.00B	7.49B	-1.39B
Investing Cash Flow	0.00	3.52B	-1.82B	-1.04B	-2.01B	549.00M
Financing Cash Flow	0.00	-6.54B	-5.77B	-4.08B	-8.49B	-2.52B

Vital KSK Holdings, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1370.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3151, the sentiment is Positive. The current price of 1370 is below the 20-day moving average (MA) of 1403.20, below the 50-day MA of 1410.30, and above the 200-day MA of 1286.20, indicating a bullish trend. The MACD of 6.50 indicates Negative momentum. The RSI at 68.57 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3151.

Vital KSK Holdings, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6062	72 Outperform	¥47.48B	14.37	―	2.63%	0.30%	-31.28%
2689	71 Outperform	¥13.20B	10.42	―	3.90%	3.64%	-4.70%
9265	70 Outperform	¥9.62B	22.73	―	1.87%	2.65%	8.83%
3151	67 Neutral	¥67.04B	10.68	―	4.22%	2.23%	72.07%
3417	63 Neutral	¥18.63B	7.57	―	1.83%	4.30%	52.38%
7071	62 Neutral	¥51.32B	14.99	―	0.91%	15.77%	-50.57%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Vital KSK Holdings, Inc. Corporate Events

Vital KSK Boosts Shareholder Perks to Reward Long-Term Investors

Vital KSK Holdings has approved an enhancement to its shareholder benefits program, aiming to make its shares more attractive and to encourage longer-term ownership. The revamped program introduces higher-value QUO card rewards scaled to both shareholding size and holding period, alongside existing options for gift items or donations.

Under the new structure, shareholders holding between 100 and 3,000 shares will receive QUO cards of increasing value depending on tenure, while investors with 3,000 shares or more gain access to the highest tier of combined gift items or charitable donations plus larger QUO cards. The changes will take effect for shareholders recorded as of March 31, 2026 and are intended to deepen investor engagement with the group’s business and support a more stable shareholder base.

The most recent analyst rating on (JP:3151) stock is a Hold with a Yen1553.00 price target. To see the full list of analyst forecasts on Vital KSK Holdings, Inc. stock, see the JP:3151 Stock Forecast page.

Vital KSK Holdings Lifts Dividend as Nine-Month Profit Slips but Keeps Full-Year Outlook

Vital KSK Holdings posted consolidated net sales of ¥464.6 billion for the nine months to December 31, 2025, up 0.8% year on year, while core operating profit reached ¥4.0 billion, but ordinary profit fell 42.3% to ¥3.1 billion and profit attributable to owners of parent declined 8.8% to ¥5.9 billion. Despite the profit drop and a lower equity ratio of 31.9% amid a larger balance sheet, the company maintained its full-year forecast, expects modest 0.6% sales growth and a 1.2% rise in full-year profit, and plans to raise annual dividends to ¥68 per share, signaling a continued commitment to shareholder returns.

Total assets rose to ¥344.4 billion and net assets to ¥111.4 billion, reflecting business expansion even as profitability weakened in the latest period. The company kept its previously announced guidance unchanged, projecting full-year net sales of ¥604.0 billion, ordinary profit of ¥7.7 billion and basic earnings per share of ¥153.07, suggesting management sees current headwinds as manageable while supporting investors with a higher interim and year-end dividend.

The most recent analyst rating on (JP:3151) stock is a Hold with a Yen1532.00 price target. To see the full list of analyst forecasts on Vital KSK Holdings, Inc. stock, see the JP:3151 Stock Forecast page.