Nihon Chouzai Co (3341) AI Stock Analysis

• Market Cap: ¥113.77B
• Dividend Yield: 0.32%
• Average Volume (3M): 112.78K
• Price to Earnings (P/E): 46.1
• Beta (1Y): 0.70
• Revenue Growth: 7.72%
• EPS Growth: 233.86%
• Country: JP
• Employees: 5,864
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Pharmaceuticals
• EPS (TTM): 13.20
• Shares Outstanding: 31,048,000
• 10 Day Avg. Volume: 47,590
• 30 Day Avg. Volume: 112,780
• PEG Ratio: -0.70
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 0.12
• P/FCF Ratio: 18.19
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• 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. engages in the management of health insurance dispensing chain pharmacies in Japan. The company also manufactures and sells generic drugs to medical institutions and other pharmacies. In addition, it offers temporary staffing services for pharmacist; and employment services for physicians and registered sales personnel, and other healthcare professionals. Further, the company provides studies and research services for pharmaceutical companies and organizations; information and consulting services for industries associated with pharmaceuticals and healthcare; and other services. As of March 31, 2022, it had 697 stores. The company was incorporated in 1980 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Nihon Chouzai generates revenue through several key streams. The primary source of income comes from its pharmacy operations, which include retail pharmacies that dispense medications and offer healthcare services to patients. Additionally, the company earns revenue from the production and sale of generic pharmaceuticals, which have gained traction in the Japanese market due to rising healthcare costs. Partnerships with healthcare providers and hospitals enhance its service offerings, allowing for integrated care solutions that can lead to increased patient volume and loyalty. Furthermore, Nihon Chouzai benefits from government policies aimed at promoting generic drug utilization, which supports its market position and contributes to its overall earnings.

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	368.23B	360.51B	340.31B	313.32B	299.39B	278.95B
Gross Profit	59.11B	57.37B	57.24B	53.64B	52.42B	49.37B
EBITDA	14.21B	12.97B	14.65B	16.93B	15.05B	15.13B
Net Income	2.24B	1.39B	2.55B	4.46B	3.71B	3.54B
Balance Sheet
Total Assets	208.49B	197.10B	195.09B	185.30B	178.75B	186.26B
Cash, Cash Equivalents and Short-Term Investments	31.40B	27.46B	26.03B	23.77B	25.54B	32.89B
Total Debt	50.72B	58.27B	54.92B	58.13B	56.17B	72.33B
Total Liabilities	149.06B	138.00B	136.74B	128.81B	125.88B	136.39B
Stockholders Equity	59.43B	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: Neutral
• Last Price: 3910.00
• 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:3341, the sentiment is Neutral. The current price of 3910 is above the 20-day moving average (MA) of 3909.75, above the 50-day MA of 3907.70, and above the 200-day MA of 3232.08, indicating a bullish trend. The MACD of 3.53 indicates Negative momentum. The RSI at 49.87 is Neutral, neither overbought nor oversold. The STOCH value of 61.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3341.

Nihon Chouzai Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3148	78 Outperform	¥209.89B	13.19	―	2.34%	7.55%	16.01%
3141	72 Outperform	¥646.79B	33.60	―	1.14%	7.79%	-13.09%
9989	69 Neutral	¥501.95B	15.82	11.50%	3.01%	6.32%	8.19%
3391	67 Neutral	¥1.26T	31.14	―	1.75%	―	―
3549	67 Neutral	¥349.19B	21.30	―	0.41%	15.81%	27.05%
3341	63 Neutral	¥113.77B	46.15	4.20%	0.32%	7.72%	233.86%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Nihon Chouzai Co Corporate Events

Nihon Chouzai Announces Share Consolidation and Delisting

Nihon Chouzai Co., Ltd. has announced the approval of share consolidation and amendments to its Articles of Incorporation following an extraordinary general meeting. This move will result in the company’s shares being delisted from the Tokyo Stock Exchange by December 19, 2025, significantly impacting shareholders as shares will no longer be tradable on the exchange.

Nihon Chouzai Reports Extraordinary Loss and Revises Forecast Amid Delisting Plans

Nihon Chouzai Co., Ltd. announced an extraordinary loss of ¥2,267 million due to advisory fees related to a tender offer by AP86 Co., Ltd. Despite this, the company exceeded its earnings forecast for the first half of the fiscal year, driven by higher-than-expected prescription prices and effective cost control. The company has revised its full-year forecast due to its scheduled delisting in December 2025, following an extraordinary general meeting decision.

Nihon Chouzai Reports Strong Financial Growth Amid Upcoming Delisting

Nihon Chouzai Co., Ltd. reported a significant increase in its financial performance for the first half of the fiscal year ending March 31, 2026, with net sales rising by 9.1% and operating profit surging by 887.4% compared to the previous year. However, the company is scheduled to be delisted from the Tokyo Stock Exchange on December 19, 2025, following a series of corporate restructuring procedures, which will impact its future financial disclosures and market presence.

Nihon Chouzai Announces Retirement of Treasury Shares

Nihon Chouzai Co., Ltd. has announced its decision to retire 1,125,909 of its treasury shares, constituting 3.626% of its total issued shares, pending shareholder approval at an upcoming Extraordinary General Meeting. This move is part of a broader strategy involving share consolidation and amendments to the company’s articles of incorporation, aiming to optimize its capital structure and enhance shareholder value.

Nihon Chouzai Announces Share Consolidation and Delisting Plans

Nihon Chouzai Co., Ltd. has announced plans to convene an extraordinary general meeting of shareholders to discuss a share consolidation and amendments to the Articles of Incorporation, which will result in the delisting of its shares from the Tokyo Stock Exchange. This move is part of a broader strategy involving a tender offer by AP86 Co., Ltd. aimed at acquiring all company shares and making Nihon Chouzai a wholly-owned subsidiary, ultimately impacting its market presence and shareholder structure.

Nihon Chouzai Announces Major Shareholder Changes Following Tender Offer

Nihon Chouzai Co., Ltd. has announced the completion of a tender offer by AP86 Co., Ltd. for its common shares, which will lead to significant changes in its shareholder structure. As a result of the tender offer, AP86 Co., Ltd. will become the new parent company and the largest shareholder, while previous major shareholders, including Mr. Yosuke Mitsuhara and Mr. Hiroshi Mitsuhara, will cease to hold significant shares. This shift is expected to impact the company’s governance and control, marking a new phase in its corporate structure.