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

• Market Cap: ¥59.35B
• Dividend Yield: 4.35%
• Average Volume (3M): 121.33K
• Price to Earnings (P/E): 6.5
• 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): 88.48
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: ¥1,340.00 ▲(1.59% Upside)

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

Revenue Growth

Consistent revenue growth indicates the company's ability to expand its market presence and sustain its business operations over time.

Strong Equity Position

A strong equity position with low leverage enhances financial stability and provides a solid foundation for future growth.

Market Position

Diverse operations across health sectors strengthen market position and reduce dependency on a single revenue stream, supporting long-term resilience.

Negative Factors

Cash Flow Challenges

Negative operating cash flow indicates inefficiencies in cash management, which can impact liquidity and limit investment in growth opportunities.

Operational Inefficiencies

Low operating efficiency suggests potential cost management issues, which could hinder profitability and long-term competitiveness.

Cash Conversion Inefficiency

Inefficient cash conversion can strain financial resources, affecting the company's ability to fund operations and invest in growth initiatives.

Vital KSK Holdings, Inc. Business Overview & Revenue Model

Company Description

Vital KSK Holdings, Inc. (3151) is a diversified company focused on health and wellness sectors, primarily engaged in the development and distribution of innovative health products and services. The company operates in multiple sectors including dietary supplements, medical devices, and wellness solutions, targeting both consumers and healthcare providers. With an emphasis on research and development, Vital KSK Holdings aims to enhance the quality of life through effective and scientifically-backed health solutions.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: 1319.00
• 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 1319 is above the 20-day moving average (MA) of 1296.30, above the 50-day MA of 1284.38, and above the 200-day MA of 1234.47, indicating a bullish trend. The MACD of 9.94 indicates Negative momentum. The RSI at 60.55 is Neutral, neither overbought nor oversold. The STOCH value of 67.15 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
9265	76 Outperform	¥8.25B	15.00	―	1.85%	2.65%	8.83%
2689	71 Outperform	¥12.31B	8.39	―	3.95%	3.64%	-4.70%
3183	70 Outperform	¥37.21B	16.84	―	3.99%	6.63%	11.04%
3151	67 Neutral	¥59.35B	6.46	―	4.35%	2.23%	72.07%
3593	59 Neutral	¥123.97B	221.38	0.78%	1.30%	-2.06%	-79.17%
4552	58 Neutral	¥92.32B	-39.05	―	2.65%	7.15%	-454.41%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Vital KSK Holdings, Inc. Corporate Events

Vital KSK Holdings Advances PAH Treatment to Phase II Trials

Vital KSK Holdings, Inc. has announced that its subsidiary, MEDLEAP PHARMA COMPANY LIMITED, is initiating a Phase II clinical trial in Japan for Ferric Maltol, a new drug candidate for treating Pulmonary Arterial Hypertension (PAH). This advancement marks a significant step in the clinical development program, moving from preclinical to Phase II trials, and aligns with both European and Japanese guidelines recommending iron supplementation for PAH patients with iron deficiency anemia.

Vital KSK Holdings Reports Significant Income Gains from Strategic Investments

Vital KSK Holdings, Inc. announced a significant recording of non-operating income and extraordinary income following the sale of shares in CareNet, Inc. This financial maneuver, resulting in gains exceeding initial expectations, reflects the company’s strategic investment decisions and impacts its financial outlook for the fiscal year 2025. The adjustments in expected gains from investment securities highlight the company’s proactive approach in responding to market opportunities, potentially enhancing its financial stability and shareholder value.

Vital KSK Holdings Revises FY 2025 Financial Forecasts

Vital KSK Holdings, Inc. has revised its financial forecasts for Fiscal Year 2025, anticipating a decrease in net sales and operating profit due to lower sales in its core pharmaceutical wholesale business and increased research and development expenses. However, the company expects a significant increase in ordinary income from non-operating income, driven by investment returns from the MIJ Healthcare No. 1 Investment Limited Partnership.

Vital KSK Holdings Reports Q2 Financial Results with Increased Profits

Vital KSK Holdings, Inc. reported its consolidated financial results for the second quarter of the fiscal year ending March 31, 2026, showing a slight increase in net sales by 1.1% compared to the previous year. Despite a decline in operating profit by 42.9%, the company experienced a significant rise in ordinary profit by 38.6% and profit attributable to owners of the parent by 105.2%. The company also announced an increase in interim dividends, reflecting a positive outlook for stakeholders.

Vital KSK Holdings Establishes New Pharma Subsidiary

Vital KSK Holdings, Inc. has announced the establishment of a new subsidiary, MedLeap Pharma Company Limited, which will focus on pharmaceutical research and development. The subsidiary is fully owned by Vital KSK Holdings and will be led by Yuichi Kobayashi, an executive officer of the parent company. The impact of this new subsidiary on the company’s financial results for the fiscal year ending March 2026 is expected to be minimal.