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

• Market Cap: ¥21.36B
• Dividend Yield: 4.99%
• Average Volume (3M): 84.19K
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.84
• Revenue Growth: 8.77%
• EPS Growth: 1078.88%
• Country: JP
• Employees: 606
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 22.60
• 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: 77 Outperform
• Price Target: ¥1,469.00 ▲(40.17% Upside)
• Action: Reiterated Date: 02/11/26
• Date: Action: Reiterated 02/11/26

The score is driven mainly by stronger profitability, robust cash flow conversion, and a conservative balance sheet, complemented by attractive valuation (low P/E and high dividend yield). Technicals are supportive overall but tempered by overbought momentum signals that raise near-term pullback risk.

Positive Factors

Free Cash Flow Conversion

Very strong FCF growth and ~91% FCF-to-net-income conversion supports durable financial flexibility. High conversion enables sustained dividends, organic reinvestment, and debt reduction without depending on volatile revenue, strengthening resilience across business cycles.

Conservative Leverage

Material reduction in leverage to a low D/E gives long-term stability and optionality. Conservative capital structure lowers refinancing and interest risk, enabling capital allocation for M&A, R&D, or shareholder returns while preserving balance sheet strength.

Improved Profitability

Substantial margin and ROE improvement indicate meaningful operational efficiency gains or higher-value mix. Sustained higher margins drive cash generation, improve return on invested capital, and provide a buffer against revenue softness while funding strategic investments.

Negative Factors

Negative Revenue Trend Risk

Declining top-line undermines the sustainability of improved margins and cash flow if persistent. Structural revenue weakness can reflect market share loss, pricing pressure, or product demand decline, which would erode long-term growth potential and operating leverage.

Earnings Volatility

Extremely large EPS growth suggests lumpy earnings or base-year distortions rather than steady operational improvement. Such volatility complicates forecasting, weakens confidence in recurring profitability, and raises the risk that cash generation may prove less durable.

Limited Forward Visibility

Absence of guidance and limited corporate event activity reduces transparency on management’s plans and near-term catalysts. For investors, weaker forward disclosure makes it harder to assess sustainability of improvements and to anticipate capital allocation or strategic moves.

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

Profitability and cash generation improved materially (net margin up to 9.84% and strong free cash flow growth of 59.63% with ~91% FCF-to-net-income conversion). Leverage is conservative (debt-to-equity 0.18) and ROE rose to 18.76%, but negative revenue growth is a key risk.

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	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	15.83B	14.55B	13.63B	13.70B	12.28B
Gross Profit	3.54B	3.37B	3.69B	3.16B	2.65B
EBITDA	2.86B	1.24B	1.71B	1.44B	1.36B
Net Income	1.56B	123.42M	687.53M	588.00M	632.93M
Balance Sheet
Total Assets	12.75B	11.25B	11.24B	10.91B	9.46B
Cash, Cash Equivalents and Short-Term Investments	5.03B	3.83B	3.14B	3.96B	2.87B
Total Debt	1.47B	2.16B	1.42B	1.89B	1.37B
Total Liabilities	3.90B	4.65B	4.66B	4.82B	3.98B
Stockholders Equity	8.30B	6.10B	6.08B	5.63B	5.07B
Cash Flow
Free Cash Flow	908.29M	89.90M	-46.35M	45.64M	613.91M
Operating Cash Flow	998.32M	752.30M	795.82M	1.55B	1.00B
Investing Cash Flow	381.37M	-630.41M	-861.72M	-763.83M	-109.39M
Financing Cash Flow	-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: Negative
• STOCH: Negative

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 1234.55, below the 50-day MA of 1131.34, and above the 200-day MA of 864.69, indicating a bullish trend. The MACD of 45.28 indicates Negative momentum. The RSI at 71.53 is Negative, neither overbought nor oversold. The STOCH value of 82.60 is Negative, 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
4320	77 Outperform	¥21.36B	12.35	―	4.99%	8.77%	1078.88%
2413	70 Outperform	¥1.13T	23.50	12.15%	1.01%	33.50%	17.26%
3902	63 Neutral	¥65.51B	226.94	―	0.39%	6.17%	-8918.66%
4483	63 Neutral	¥266.64B	39.51	―	0.43%	20.55%	48.62%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
4480	51 Neutral	¥61.08B	60.86	8.79%	―	31.95%	-40.95%

CE Holdings Co., Ltd. Corporate Events

CE Holdings posts sharp Q1 profit jump but guides for lower full-year earnings and dividends

CE Holdings Co., Ltd. reported strong results for the three months ended December 31, 2025, with net sales up 33.2% year on year to ¥5.06 billion and operating profit jumping 68.0% to ¥655 million. Ordinary profit climbed 68.4% to ¥667 million, profit attributable to owners of parent surged 87.3% to ¥376 million, and earnings per share improved to ¥22.60, though the equity ratio slipped to 63.3% from 65.2% as total assets and net assets both declined slightly.

The company maintained a conservative shareholder return stance, having paid a ¥52.00 annual dividend in the previous fiscal year while forecasting a reduced total dividend of ¥24.00 for the year ending September 30, 2026, with no interim payout. Despite the strong first-quarter performance, CE Holdings projects flat net sales for the first half and a 5.3% full-year sales decline, alongside a 44.2% drop in full-year profit attributable to owners of parent, signaling expectations of earnings pressure ahead even as operating and ordinary profit are forecast to grow modestly, which may temper investor sentiment.

The most recent analyst rating on (JP:4320) stock is a Buy with a Yen1430.00 price target. To see the full list of analyst forecasts on CE Holdings Co., Ltd. stock, see the JP:4320 Stock Forecast page.