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

• Market Cap: ¥64.48B
• Dividend Yield: 4.22%
• Average Volume (3M): 121.33K
• Price to Earnings (P/E): 10.0
• Beta (1Y): 0.43
• 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: ¥1,515.00 ▲(10.58% 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 / strong equity base

Very low debt (D/E 0.08) and a solid equity ratio give the company durable financial flexibility. Over the next 2–6 months this supports funding for working capital, selective investment or M&A without stressing liquidity, and reduces refinancing risk in stressed markets.

Steady revenue growth and improving net margin

Consistent top-line growth with an improving net margin signals structural demand and modest progress on profitability. Sustainable revenue expansion and rising net margin provide a base for reinvestment into the distribution network and gradual margin improvement.

Defensive sector positioning and operating scale

Operating in medical distribution gives recurring demand tied to healthcare needs rather than cyclical end-markets. Scale (3,700+ employees) supports logistics, supplier relationships and market coverage, reinforcing competitive positioning over months ahead.

Negative Factors

Negative operating and free cash flow

Negative operating and free cash flow indicate the company struggles to convert accounting profits into cash. This is a durable constraint on funding dividends, capex and working capital without tapping external financing, eroding financial resilience if not corrected.

Limited operating efficiency (low EBIT margin)

A sub-1% EBIT margin points to thin operating economics in distribution and limited pricing power or cost control. Sustaining growth while meaningfully improving returns will require structural cost or pricing improvements; otherwise margins remain vulnerable to shocks.

Declining EPS growth

Negative EPS growth signals pressure on shareholder earnings generation. Over the medium term this can constrain dividend sustainability and reduce internal funding for improvement initiatives unless profitability trends reverse through better margins or cash conversion.

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 1398.55, below the 50-day MA of 1404.86, and above the 200-day MA of 1284.41, indicating a bullish trend. The MACD of -0.27 indicates Negative momentum. The RSI at 61.35 is Neutral, neither overbought nor oversold. The STOCH value of 64.09 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	¥45.91B	13.82	―	2.63%	0.30%	-31.28%
2689	71 Outperform	¥13.24B	10.40	―	3.90%	3.64%	-4.70%
9265	70 Outperform	¥9.33B	21.49	―	1.87%	2.65%	8.83%
3151	67 Neutral	¥64.48B	10.02	―	4.22%	2.23%	72.07%
3417	63 Neutral	¥18.36B	7.52	―	1.83%	4.30%	52.38%
7071	62 Neutral	¥46.99B	14.53	―	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 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.