Nihon Chouzai Co (3341) AI Stock Analysis

• Market Cap: $113.63B
• Dividend Yield: 0.64%
• Average Volume (3M): 118.79K
• Price to Earnings (P/E): 52.6
• Beta (1Y): 0.72
• Revenue Growth: 6.77%
• EPS Growth: 28.06%
• Country: JP
• Employees: 5,864
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Pharmaceuticals
• EPS (TTM): 23.86
• Shares Outstanding: 31,048,000
• 10 Day Avg. Volume: 117,010
• 30 Day Avg. Volume: 118,790
• 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: 1.01
• Enterprise Value/Revenue: 0.32
• Enterprise Value/Gross Profit: 2.01
• Enterprise Value/Ebitda: 8.95
• 1Y Price Target: $3,832.48
• Price Target Upside: -1.98% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 63 Neutral
• Price Target: ¥3,834.00 ▼(-1.94% Downside)

The stock's overall score is driven primarily by strong technical indicators and decent financial performance, though high valuation presents a concern. Strong revenue growth and solid balance sheet are offset by declining profit margins and weak cash flow management. The stock's high P/E ratio and low dividend yield further impact its attractiveness.

Nihon Chouzai Co Business Overview & Revenue Model

Company Description

Nihon Chouzai Co., Ltd. is a leading Japanese company primarily engaged in the pharmaceutical sector. It operates through three main segments: the Dispensing Pharmacy business, the Pharmaceutical Manufacturing and Sales business, and the Medical Professional Staffing and Placement business. The company manages a network of dispensing pharmacies across Japan, focusing on providing high-quality pharmaceutical services and products to its customers. Additionally, Nihon Chouzai is involved in the production and distribution of generic drugs, as well as offering staffing services for healthcare professionals.

How the Company Makes Money

Nihon Chouzai Co., Ltd. generates revenue through its diversified operations in the pharmaceutical industry. The core source of income is its Dispensing Pharmacy segment, which involves operating a network of pharmacies that dispense prescription medications and provide pharmaceutical care to patients. Revenue is driven by the volume of prescriptions filled and the sale of pharmaceutical products. The Pharmaceutical Manufacturing and Sales segment contributes to revenue through the production and sale of generic drugs, which are marketed to pharmacies, hospitals, and other healthcare facilities. The Medical Professional Staffing and Placement segment generates income by providing recruitment and staffing services for healthcare professionals, matching qualified candidates with medical institutions. Key factors influencing the company's earnings include the demand for pharmaceutical products and services, the regulatory environment, and strategic partnerships with healthcare providers and institutions.

Nihon Chouzai Co Financial Statement Overview

Summary

Nihon Chouzai Co displays a mixed financial performance with strong revenue growth of 5.93% but declining profitability margins. The balance sheet remains solid with manageable debt levels and strong equity. However, cash flow management poses a challenge with a notable decline in free cash flow, necessitating improvements in operational efficiency.

Income Statement

The income statement reflects moderate performance with some areas of concern. Gross profit margin and EBIT margin have decreased slightly over the past year, indicating pressure on profitability. Net profit margin has also decreased, but the company shows a strong revenue growth rate of 5.93% over the past year, suggesting healthy top-line growth. However, the decline in EBITDA margin suggests rising operational costs.

Balance Sheet

The balance sheet shows a strong equity position and moderate leverage. The debt-to-equity ratio is reasonable, indicating manageable debt levels. Return on equity has decreased, reflecting reduced profitability relative to equity. However, the equity ratio is strong, highlighting a stable capital structure.

Cash Flow

The cash flow statement shows challenges in maintaining free cash flow, with a decline from the previous year. The operating cash flow to net income ratio is robust, indicating good cash generation from operations. However, free cash flow to net income ratio has weakened, suggesting higher capital expenditures that could strain liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	360.51B	360.51B	340.31B	313.32B	299.39B	278.95B
Gross Profit	57.37B	57.37B	57.24B	53.64B	52.42B	49.37B
EBITDA	12.86B	12.97B	14.65B	16.93B	15.05B	15.13B
Net Income	1.39B	1.39B	2.55B	4.46B	3.71B	3.54B
Balance Sheet
Total Assets	197.10B	197.10B	195.09B	185.30B	178.75B	186.26B
Cash, Cash Equivalents and Short-Term Investments	27.46B	27.46B	26.03B	23.77B	25.54B	32.89B
Total Debt	58.27B	58.27B	54.92B	58.13B	56.17B	72.33B
Total Liabilities	138.00B	138.00B	136.74B	128.81B	125.88B	136.39B
Stockholders Equity	59.10B	59.10B	58.35B	56.48B	52.88B	49.87B
Cash Flow
Free Cash Flow	0.00	2.45B	10.02B	-223.00M	11.70B	4.68B
Operating Cash Flow	0.00	8.82B	20.42B	7.53B	19.41B	11.21B
Investing Cash Flow	0.00	-9.92B	-13.73B	-10.02B	-9.31B	-7.77B
Financing Cash Flow	0.00	2.53B	-4.43B	713.00M	-17.45B	-2.81B

Nihon Chouzai Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3910.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3341, the sentiment is Positive. The current price of 3910 is below the 20-day moving average (MA) of 3919.00, above the 50-day MA of 3705.50, and above the 200-day MA of 2460.54, indicating a neutral trend. The MACD of 48.19 indicates Positive momentum. The RSI at 60.26 is Neutral, neither overbought nor oversold. The STOCH value of 52.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3341.

Nihon Chouzai Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3391	78 Outperform	589.97B	27.00	7.73%	16.62%	4.63%	-47.30%
3148	78 Outperform	211.47B	13.78	0.00%	2.05%	8.23%	12.71%
3141	72 Outperform	574.60B	31.30	6.02%	1.31%	7.43%	-24.81%
9989	69 Neutral	530.95B	16.91	11.40%	2.87%	6.64%	6.38%
3549	64 Neutral	417.23B	22.63	12.20%	0.35%	14.79%	35.84%
3341	63 Neutral	$113.63B	52.61	3.89%	0.64%	6.77%	28.06%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Nihon Chouzai Co Corporate Events

Nihon Chouzai Reports Strong Q1 Performance Amid Dividend Revision

Nihon Chouzai Co., Ltd. reported a significant improvement in its financial performance for the first quarter of the fiscal year ending March 31, 2026, with net sales increasing by 8.9% year-on-year to 94,155 million yen. The company also saw a substantial rise in EBITDA by 89.9%, reflecting a strong operational performance. However, the company announced a revision in its dividend forecast, indicating no dividends for the fiscal year, which may impact shareholder returns.

Nihon Chouzai Revises Dividend Forecast and Abolishes Shareholder Benefits Amid Tender Offer

Nihon Chouzai Co., Ltd. announced a revision of its dividend forecast for the fiscal year ending March 2026, deciding not to pay any interim or year-end dividends. This decision aligns with the company’s support for a tender offer by AP86 Co., Ltd., which aims to take the company private and delist its shares. Additionally, the company will abolish its shareholder benefits program following the successful completion of the tender offer, marking a significant shift in its shareholder engagement strategy.

Nihon Chouzai Supports Tender Offer by AP86 Co., Ltd.

Nihon Chouzai Co., Ltd. announced its Board of Directors’ decision to support a tender offer by AP86 Co., Ltd. for its common shares, with the intention of making Nihon Chouzai a wholly-owned subsidiary of AP86. This move is expected to lead to the delisting of Nihon Chouzai’s shares, impacting its market presence and shareholder dynamics. The tender offer is part of a strategic acquisition plan by AP86, backed by AP Fund and LYFE Capital, which aims to enhance corporate value through experienced investment management.

AP86 Co., Ltd. Initiates Tender Offer for Nihon Chouzai Shares

AP86 Co., Ltd. has announced a tender offer to acquire shares of Nihon Chouzai Co., Ltd., aiming to gain control and manage its business affairs. This acquisition will involve equity investments from AP Fund and LYFE Capital, with potential implications for Nihon Chouzai’s market positioning and stakeholder interests.

Nihon Chouzai Reinforces Minority Shareholder Protections Amidst Strong Control

Nihon Chouzai Co., Ltd. has detailed its controlling shareholders, Yosuke Mitsuhara and Hiroshi Mitsuhara, who collectively hold 62.23% of voting rights. The company emphasizes its commitment to protecting minority shareholders by ensuring that related party transactions are reviewed and approved by the Board of Directors, with legal checks in place to safeguard common interests.

Nihon Chouzai Announces Corrections to Financial Results

Nihon Chouzai Co., Ltd. announced corrections to its consolidated financial results for the fiscal year ending March 31, 2025, due to errors found during the preparation of their Annual Securities Report. These corrections primarily affect segment-related financial data, including net sales, segment profit, and asset adjustments, which are crucial for stakeholders to assess the company’s financial health and operational efficiency.

Nihon Chouzai Announces Leadership Change for Strategic Growth

Nihon Chouzai Co., Ltd. has announced a change in its representative directors to strengthen its management and increase corporate value. Kazunori Ogi will take over as President and Representative Director, succeeding Naoto Kasai. This leadership change is part of the company’s strategy for medium- to long-term growth and continued contribution to the healthcare sector in Japan.

Nihon Chouzai Revises Financial Results and Forecasts

Nihon Chouzai Co., Ltd. announced corrections to its previously released consolidated financial results for the fiscal year ended March 31, 2025, and its operations forecast for the fiscal year ending March 31, 2026. The corrections involve adjustments to the EBITDA figures, impacting the company’s financial projections and potentially affecting stakeholder expectations.