CE Holdings Co., Ltd. (4320) AI Stock Analysis

• Market Cap: ¥18.79B
• Dividend Yield: 4.99%
• Average Volume (3M): 84.19K
• Price to Earnings (P/E): 11.3
• Beta (1Y): 0.78
• Revenue Growth: 8.77%
• EPS Growth: 1078.88%
• Country: JP
• Employees: 606
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 56.48
• Shares Outstanding: 17,039,400
• 10 Day Avg. Volume: 92,620
• 30 Day Avg. Volume: 84,186
• PEG Ratio: <0.01
• Price to Book (P/B): 1.46
• Price to Sales (P/S): 0.76
• P/FCF Ratio: 13.31
• 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: 74 Outperform
• Price Target: ¥1,251.00 ▲(19.37% Upside)

CE Holdings Co., Ltd. scores well due to its strong financial performance and attractive valuation. The company's improved profitability and cash flow metrics, along with a reasonable P/E ratio and high dividend yield, are significant strengths. However, mixed technical indicators and negative revenue growth present potential risks.

Positive Factors

Strong free cash flow generation

A near-60% increase in free cash flow and an FCF-to-net-income ratio around 91% indicate durable cash conversion. This strengthens the company’s ability to fund capex, pay dividends, reduce leverage, and reinvest in product development without relying on external financing over the medium term.

Low and falling leverage

A materially reduced debt-to-equity ratio demonstrates deliberate deleveraging and improves financial flexibility. Lower leverage reduces interest burden and refinancing risk, giving management scope to pursue strategic investments or withstand sector cyclicality over the next several quarters.

Marked margin and profitability improvement

A large jump in net margin and improved operating margins signal enhanced cost structure or higher-value service mix. If sustained, these margin gains translate to stronger free cash flow and higher returns on capital, supporting durable shareholder returns and reinvestment capacity.

Negative Factors

Reported negative revenue growth

Negative revenue growth undermines the sustainability of recent margin gains: margins expanded despite top-line weakness, which may be achieved via one-off cost cuts. Without revenue recovery, long-term profit and cash generation could decline, limiting reinvestment and growth options.

Inconsistent revenue reporting across fields

Conflicting indicators on revenue momentum complicate forecasting and reduce confidence in trend assessment. For durable fundamental analysis, consistent top-line data are critical; discrepancies increase model risk and make it harder to judge whether margin improvements are sustainable or cyclical.

Limited disclosure and visible catalysts

A lack of recent earnings-call detail and corporate events reduces forward-looking transparency and limits management’s opportunity to communicate strategy or new growth initiatives. Over 2–6 months this can hinder investor visibility into execution and delay recognition of structural strategy shifts.

CE Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

CE Holdings Co., Ltd., through its subsidiaries, develops and sells electronic medical record systems and medical information systems in Japan. The company provides MI RA Is (Miraize), an electronic medical record system for medical institutions. The company was formerly known as CEI Corporation and changed its name to CE Holdings Co., Ltd. in April 2013. CE Holdings Co., Ltd. was incorporated in 1996 and is based in Sapporo, Japan.

How the Company Makes Money

CE Holdings generates revenue through multiple streams, including rental income from its real estate properties, capital gains from property sales, and returns on investments in technology startups. The company also earns revenue from the distribution of consumer goods, partnering with manufacturers to bring products to market. Significant partnerships with tech firms and real estate developers enhance its investment portfolio, allowing for diversification and risk management. Additionally, CE Holdings capitalizes on market trends to make strategic acquisitions, further boosting its earnings potential.

CE Holdings Co., Ltd. Financial Statement Overview

Summary

CE Holdings Co., Ltd. exhibits strong financial health with improved profitability and cash flow metrics. The company has effectively managed its leverage, enhancing shareholder returns. However, the negative revenue growth rate is a potential risk that needs to be addressed to sustain long-term growth.

Income Statement

CE Holdings Co., Ltd. has shown a strong improvement in profitability with a significant increase in net profit margin from 0.85% in 2024 to 9.84% in 2025. The EBIT and EBITDA margins have also improved, indicating better operational efficiency. However, the revenue growth rate has been negative, which could be a concern if it continues.

Balance Sheet

The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.18 in 2025, down from 0.35 in 2024, indicating reduced leverage. Return on equity has improved significantly to 18.76%, showcasing better profitability for shareholders. The equity ratio remains stable, reflecting a solid capital structure.

Cash Flow

CE Holdings Co., Ltd. has demonstrated strong cash flow management with a substantial increase in free cash flow growth of 59.63% in 2025. The operating cash flow to net income ratio is healthy, and the free cash flow to net income ratio is robust at 90.98%, indicating efficient cash conversion.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	15.96B	15.83B	14.55B	13.63B	13.70B	12.28B
Gross Profit	3.76B	3.54B	3.37B	3.69B	3.16B	2.65B
EBITDA	2.24B	2.86B	1.24B	1.71B	1.44B	1.36B
Net Income	945.86M	1.56B	123.42M	687.53M	588.00M	632.93M
Balance Sheet
Total Assets	12.29B	12.75B	11.25B	11.24B	10.91B	9.46B
Cash, Cash Equivalents and Short-Term Investments	5.38B	5.03B	3.83B	3.14B	3.96B	2.87B
Total Debt	1.60B	1.47B	2.16B	1.42B	1.89B	1.37B
Total Liabilities	4.51B	3.90B	4.65B	4.66B	4.82B	3.98B
Stockholders Equity	7.27B	8.30B	6.10B	6.08B	5.63B	5.07B
Cash Flow
Free Cash Flow	569.00M	908.29M	89.90M	-46.35M	45.64M	613.91M
Operating Cash Flow	629.00M	998.32M	752.30M	795.82M	1.55B	1.00B
Investing Cash Flow	-237.00M	381.37M	-630.41M	-861.72M	-763.83M	-109.39M
Financing Cash Flow	-340.00M	-146.62M	566.46M	-754.51M	306.64M	-838.45M

CE Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1048.00
• 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:4320, the sentiment is Positive. The current price of 1048 is below the 20-day moving average (MA) of 1069.15, above the 50-day MA of 1047.74, and above the 200-day MA of 800.18, indicating a bullish trend. The MACD of 13.72 indicates Negative momentum. The RSI at 61.05 is Neutral, neither overbought nor oversold. The STOCH value of 61.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4320.

CE Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3939	76 Outperform	¥23.38B	21.05	―	1.39%	9.85%	20.83%
4320	74 Outperform	¥18.79B	11.30	―	4.99%	8.77%	1078.88%
3671	67 Neutral	¥8.20B	12.05	―	8.09%	32.95%	45.22%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
3902	49 Neutral	¥65.87B	-152.73	―	0.39%	6.17%	-8918.66%
3628	40 Underperform	¥6.52B	-2.42	―	―	-4.07%	-88.89%