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

• Market Cap: ¥13.91B
• Dividend Yield: 2.18%
• Average Volume (3M): 104.37K
• Price to Earnings (P/E): 13.2
• Beta (1Y): 0.70
• Revenue Growth: 7.79%
• EPS Growth: 38592.95%
• Country: JP
• Employees: 606
• Sector: Healthcare
• Sector Strength: 51
• Industry: Medical - Healthcare Information Services
• EPS (TTM): -4.11
• Shares Outstanding: 17,039,400
• 10 Day Avg. Volume: 91,030
• 30 Day Avg. Volume: 104,373
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥791.00
• Price Target Upside: -4.35% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: ¥791.00 ▼(-4.35% Downside)

The overall stock score of CE Holdings Co., Ltd. is primarily driven by strong technical analysis, reflecting positive momentum in the market. Financial performance shows stable growth with strong operational efficiency, though profitability and cash flow consistency need enhancement. The valuation reflects a slightly high P/E ratio, balanced by a decent dividend yield, suggesting a mixed long-term outlook.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand for CE Holdings' healthcare IT solutions, supporting long-term business expansion.

Operational Efficiency

Strong operational efficiency through robust margins suggests effective cost management and scalability, enhancing profitability potential.

Balance Sheet Health

A strong balance sheet with low leverage provides financial stability and flexibility, supporting sustainable growth and risk management.

Negative Factors

Profitability Challenges

Low net profit margins indicate challenges in converting revenue into profit, which may impact long-term profitability and shareholder returns.

Cash Flow Inconsistency

Inconsistent cash flow generation can hinder investment in growth opportunities and affect financial stability over time.

Return on Equity

Low ROE suggests inefficient use of equity capital, potentially limiting the company's ability to generate attractive returns for investors.

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

Company Description

CE Holdings Co., Ltd. (4320) is a Japanese company that operates in the healthcare and information technology sectors. The company provides a range of IT solutions and services, focusing on healthcare-related applications. Its core offerings include electronic medical records systems, healthcare information systems, and other IT solutions designed to enhance the efficiency and quality of healthcare services.

How the Company Makes Money

CE Holdings Co., Ltd. generates revenue primarily through the development and sale of its healthcare IT solutions. The company earns money by providing electronic medical records systems and other healthcare information systems to hospitals, clinics, and other healthcare institutions. These systems help healthcare providers manage patient data more efficiently and improve the delivery of medical services. Additionally, CE Holdings may engage in service contracts for system maintenance, upgrades, and support, ensuring a recurring revenue stream. Partnerships with healthcare providers and collaborations with other technology firms could also play a role in expanding its market reach and enhancing its offerings.

CE Holdings Co., Ltd. Financial Statement Overview

Summary

CE Holdings Co., Ltd. demonstrates strong revenue growth and operational efficiency, particularly in EBIT and EBITDA margins. The balance sheet is robust with low leverage and high equity ratios, but profitability and return on equity require improvement. Cash flow performance is inconsistent, necessitating focus on enhancing cash generation. Overall, the financial footing is stable with opportunities to boost returns.

Income Statement

The company has demonstrated consistent revenue growth over the years, with a notable increase from 2020 to 2024. The TTM revenue of 15,180 million yen marks a healthy growth from the previous period. Gross profit margin stands at 23.0% for TTM, indicating efficient cost management. However, the net profit margin is relatively low at 1.8% for TTM, suggesting room for improvement in profitability. EBIT and EBITDA margins are robust at 8.9% and 11.4% respectively, showcasing strong operational performance.

Balance Sheet

The company's balance sheet is stable with a favorable equity position. The debt-to-equity ratio is a conservative 0.33, reflecting prudent financial leverage. ROE for TTM is low at 4.6%, indicating modest returns on equity. The equity ratio is strong at 54.6%, highlighting solid capitalization and low reliance on debt. Overall, the company maintains a healthy balance sheet with good liquidity and low financial risk.

Cash Flow

Cash flow metrics show mixed results. While there is no reported free cash flow for the TTM, historical data indicate fluctuations. Operating cash flow was positive in prior years, but the recent absence of data limits comprehensive analysis. The free cash flow to net income ratio was modest in previous periods, suggesting potential efficiency improvements in cash flow generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.68B	14.55B	13.63B	13.70B	12.28B	10.60B
Gross Profit	3.77B	3.37B	3.69B	3.16B	2.65B	2.02B
EBITDA	1.99B	1.24B	1.71B	1.44B	1.36B	732.22M
Net Income	458.13M	123.42M	687.53M	588.00M	632.93M	121.45M
Balance Sheet
Total Assets	12.68B	11.25B	11.24B	10.91B	9.46B	8.86B
Cash, Cash Equivalents and Short-Term Investments	3.85B	3.83B	3.14B	3.96B	2.87B	2.81B
Total Debt	1.80B	2.16B	1.42B	1.89B	1.37B	2.10B
Total Liabilities	5.28B	4.65B	4.66B	4.82B	3.98B	4.02B
Stockholders Equity	6.90B	6.10B	6.08B	5.63B	5.07B	4.50B
Cash Flow
Free Cash Flow	569.00M	89.90M	-46.35M	45.64M	613.91M	567.46M
Operating Cash Flow	629.00M	752.30M	795.82M	1.55B	1.00B	912.58M
Investing Cash Flow	-237.00M	-630.41M	-861.72M	-763.83M	-109.39M	-68.24M
Financing Cash Flow	-340.00M	566.46M	-754.51M	306.64M	-838.45M	573.79M

CE Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 827.00
• 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 827 is above the 20-day moving average (MA) of 753.75, above the 50-day MA of 722.38, and above the 200-day MA of 637.84, indicating a bullish trend. The MACD of 22.29 indicates Negative momentum. The RSI at 74.16 is Negative, neither overbought nor oversold. The STOCH value of 96.30 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
3671	85 Outperform	¥9.04B	13.96		8.02%	26.12%	38.78%
4320	73 Outperform	¥13.91B	13.22		2.18%	7.79%	38592.95%
3939	72 Outperform	¥23.95B	23.55		1.28%	13.39%	12.00%
6095	72 Outperform	¥15.32B	10.15		0.65%	-17.86%	133.08%
Sector *	51 Neutral	$8.02B	-0.31	-43.38%	2.24%	22.31%	-2.14%
3902	43 Neutral	¥22.11B	4,465.71		1.15%	-0.58%	-260.22%
3628	40 Neutral	¥6.60B	―		―	-2.60%	-103.03%

CE Holdings Co., Ltd. Corporate Events

CE Holdings Reports Strong Financial Growth for H1 2025

CE Holdings Co., Ltd. reported a significant increase in its financial performance for the six months ending March 31, 2025, with net sales rising by 14% and operating profit by 66% compared to the previous year. The company also forecasts continued growth for the full fiscal year, indicating a strong market position and positive outlook for stakeholders.