Nihon Chouzai Co (3341) AI Stock Analysis

• Market Cap: $97.98B
• Dividend Yield: 0.74%
• Average Volume (3M): 124.09K
• Price to Earnings (P/E): 72.6
• Beta (1Y): 0.75
• Revenue Growth: 5.94%
• EPS Growth: -45.43%
• Country: JP
• Employees: 5,864
• Sector: Healthcare
• Sector Strength: 42
• Industry: Medical - Pharmaceuticals
• EPS (TTM): 25.89
• Shares Outstanding: 31,048,000
• 10 Day Avg. Volume: 152,530
• 30 Day Avg. Volume: 124,090
• PEG Ratio: 0.21
• Price to Book (P/B): 1.62
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: $3,520.05
• Price Target Upside: 4.92% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 62 Neutral
• Price Target: ¥3,821.00 ▲(13.89%Upside)

The overall stock score is driven primarily by strong technical momentum, which is the most positive aspect of the stock currently. However, the high valuation and low dividend yield present risks, making the stock potentially overvalued. Mixed financial performance, with strong revenue growth but declining profitability margins, further tempers the score.

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 shows strong revenue growth but faces declining profitability margins. The balance sheet is stable with manageable debt, but cash flow management is challenged by a decline in free cash flow.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	360.51B	340.31B	313.32B	299.39B	278.95B
Gross Profit	57.37B	57.24B	53.64B	52.42B	49.37B
EBITDA	12.97B	14.65B	16.93B	15.05B	15.13B
Net Income	1.39B	2.55B	4.46B	3.71B	3.54B
Balance Sheet
Total Assets	197.10B	195.09B	185.30B	178.75B	186.26B
Cash, Cash Equivalents and Short-Term Investments	27.46B	26.03B	23.77B	25.54B	32.89B
Total Debt	58.27B	54.92B	58.13B	56.17B	72.33B
Total Liabilities	138.00B	136.74B	128.81B	125.88B	136.39B
Stockholders Equity	59.10B	58.35B	56.48B	52.88B	49.87B
Cash Flow
Free Cash Flow	2.45B	10.02B	-223.00M	11.70B	4.68B
Operating Cash Flow	8.82B	20.42B	7.53B	19.41B	11.21B
Investing Cash Flow	-9.92B	-13.73B	-10.02B	-9.31B	-7.77B
Financing Cash Flow	2.53B	-4.43B	713.00M	-17.45B	-2.81B

Nihon Chouzai Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3355.00
• 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 Positive. The current price of 3355 is above the 20-day moving average (MA) of 3226.25, above the 50-day MA of 3207.20, and above the 200-day MA of 2020.75, indicating a bullish trend. The MACD of 73.70 indicates Negative momentum. The RSI at 56.43 is Neutral, neither overbought nor oversold. The STOCH value of 53.00 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
3148	78 Outperform	¥216.21B	14.08		1.99%	8.98%	0.10%
3549	76 Outperform	¥419.33B	22.75		0.35%	14.79%	35.84%
9989	75 Outperform	$519.26B	16.89	11.61%	2.94%	6.66%	5.56%
3141	74 Outperform	¥533.37B	29.06		1.43%	7.43%	-24.81%
3391	71 Outperform	$545.10B	24.97	4.93%	2.39%	4.63%	-47.30%
Sector *	65 Neutral	¥355.15B	11.37	-2.99%	2.48%	11.76%	-10.12%
3341	62 Neutral	$97.98B	72.63	2.35%	0.74%	5.94%	-45.43%

Nihon Chouzai Co Corporate Events

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.

Nihon Chouzai Reports Fiscal Year 2025 Financial Results with Plans for Recovery

Nihon Chouzai Co., Ltd. reported its consolidated financial results for the fiscal year ended March 31, 2025, showing a 5.9% increase in net sales to 360,512 million yen. However, the company experienced declines in EBITDA, operating profit, and ordinary profit, with a significant drop in profit attributable to owners of the parent by 45.5%. Despite these challenges, the company maintained its dividend per share at 25 yen, reflecting a commitment to shareholder returns. The financial outlook for the next fiscal year anticipates modest growth in net sales and a substantial increase in profit attributable to owners of the parent by 151.6%, indicating a potential recovery and strategic adjustments to improve profitability.

Nihon Chouzai Reports Extraordinary Losses and Earnings Shortfall for FY 2025

Nihon Chouzai Co., Ltd. announced significant extraordinary losses for the fiscal year ending March 31, 2025, due to impairment losses in its Dispensing Pharmacy Business, totaling 4,132 million yen. The company also reported a shortfall in its consolidated earnings compared to its forecast, attributed to lower prescription volumes and manufacturing issues at its Kawauchi Plant, impacting sales and profitability.