Kusurinomadoguchi, Inc. (5592) AI Stock Analysis

• Market Cap: ¥33.22B
• Dividend Yield: 1.03%
• Average Volume (3M): 73.92K
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.67
• Revenue Growth: 16.86%
• EPS Growth: 241.49%
• Country: JP
• Employees: 505
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 110.53
• Shares Outstanding: 11,357,482
• 10 Day Avg. Volume: 72,500
• 30 Day Avg. Volume: 73,916
• PEG Ratio: 0.10
• Price to Book (P/B): 2.65
• Price to Sales (P/S): 2.00
• P/FCF Ratio: -4.17
• 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: 66 Neutral
• Price Target: ¥2,745.00 ▲(3.16% Upside)

The stock's overall score is driven by strong financial performance and attractive valuation. However, technical analysis indicates bearish momentum, which poses a significant risk. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market presence and effective business strategies, supporting long-term financial stability.

Profitability

High and improving profit margins reflect efficient operations and pricing power, contributing to sustainable profitability.

Balance Sheet Strength

A strong balance sheet with low leverage enhances financial stability and flexibility, supporting long-term growth initiatives.

Negative Factors

Cash Flow Challenges

Negative free cash flow suggests liquidity pressures and challenges in converting income into cash, potentially impacting future operations.

Liquidity Concerns

Reduced cash reserves may limit the company's ability to respond to financial needs, affecting operational resilience.

Dependency on Revenue Growth

Reliance on continuous revenue growth for profits may expose the company to risks if market conditions change or growth decelerates.

Kusurinomadoguchi, Inc. Business Overview & Revenue Model

Company Description

Kusurinomadoguchi, Inc. provides solutions for pharmacies and medical care in Japan. The company offers EPARK drug counter, a pharmacy/drugstore search and reservation site; matching site to buy and sell dead stock medicines at dispensing pharmacies; site for medicine counter telephone medical treatment; Health Tech Navi, an electronic medication history system; Care Daisy system to link recording systems and ICT devices; solution for purchasing pharmaceuticals; and system that allows for centralized management of outpatient reception, outpatient reservations, and online medical treatment. It also provides Pharmacy Support, a customer management system for repeat patients in the pharmacy industry; system specialized for dispensing pharmacies; matching service that connects nursing care facilities and pharmacies; solution from the purchase of pharmaceuticals to the purchase of immovable inventory; Online consultation by hospital support; online medication guidance; support solution to pharmacies; EPARK medicine notebook, a medication notebook that allows to make dispensing reservations and manage family medicines; and a system that allows patients to select the pharmacy they want to visit. The company was founded in 2004 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Kusurinomadoguchi generates revenue primarily through the sale of pharmaceutical products in its retail outlets. Key revenue streams include the dispensing of prescription medications, which are reimbursed by health insurance plans, as well as sales of over-the-counter products and health supplements directly to consumers. Additionally, the company earns income from providing pharmacy consulting services and may have partnerships with healthcare providers and insurance companies to improve service delivery and expand its market reach. Factors contributing to its earnings include the growing demand for health services, an aging population in Japan, and a strategic approach to expanding its pharmacy network and product offerings.

Kusurinomadoguchi, Inc. Financial Statement Overview

Summary

Kusurinomadoguchi, Inc. shows strong revenue and profitability growth with efficient operations. The balance sheet is robust with low leverage and high equity ratios, indicating financial stability. However, significant cash flow challenges raise concerns about liquidity, necessitating careful cash management.

Income Statement

The company has demonstrated strong revenue growth with a 28.4% increase from the previous year. Gross profit margin is healthy at 57.8%, and net profit margin has improved significantly to 18.2%, indicating enhanced profitability. EBIT and EBITDA margins are solid at 17.5% and 26.5% respectively, showcasing efficient operations. However, the high dependency on revenue growth for profit sustainability could pose risks if growth slows.

Balance Sheet

The balance sheet reflects a strong equity base with an equity ratio of 69.5%, and a very low debt-to-equity ratio of 0.008, highlighting low financial leverage. ROE is robust at 24.1%, indicating effective utilization of equity. Nonetheless, a significant drop in cash and short-term investments could impact liquidity.

Cash Flow

The cash flow position raises concerns with a significant negative free cash flow of -¥5.37 billion, indicating potential cash management issues. The operating cash flow to net income ratio is negative, suggesting challenges in converting income into cash flow. The free cash flow to net income ratio being negative also highlights cash flow inefficiencies. Despite strong operating cash flows in previous years, recent performance indicates potential liquidity pressures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	11.48B	11.20B	8.72B	7.42B	6.49B
Gross Profit	6.62B	6.48B	4.93B	4.07B	3.37B
EBITDA	3.26B	2.97B	2.35B	1.68B	1.51B
Net Income	2.18B	2.03B	870.92M	391.45M	515.61M
Balance Sheet
Total Assets	11.87B	12.16B	23.07B	12.22B	11.02B
Cash, Cash Equivalents and Short-Term Investments	1.89B	2.15B	14.59B	5.95B	5.02B
Total Debt	56.01M	72.47M	5.41B	137.49M	149.56M
Total Liabilities	3.25B	3.64B	16.65B	9.43B	8.06B
Stockholders Equity	8.55B	8.45B	6.37B	2.70B	2.45B
Cash Flow
Free Cash Flow	0.00	-5.37B	999.21M	1.57B	2.58B
Operating Cash Flow	0.00	-5.33B	2.63B	3.10B	3.66B
Investing Cash Flow	0.00	-1.80B	-1.79B	-1.54B	-541.10M
Financing Cash Flow	0.00	-5.36B	7.81B	-635.39M	-564.83M

Kusurinomadoguchi, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2661.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5592, the sentiment is Positive. The current price of 2661 is above the 20-day moving average (MA) of 2640.05, below the 50-day MA of 2776.30, and below the 200-day MA of 3011.10, indicating a neutral trend. The MACD of 15.21 indicates Negative momentum. The RSI at 63.78 is Neutral, neither overbought nor oversold. The STOCH value of 80.19 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5592.

Kusurinomadoguchi, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3939	76 Outperform	¥23.95B	21.56	―	1.39%	9.85%	20.83%
5592	66 Neutral	¥33.22B	10.48	―	1.03%	16.86%	241.49%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
3902	49 Neutral	¥65.83B	-152.64	―	0.39%	6.17%	-8918.66%
6034	45 Neutral	¥3.56B	-20.40	―	―	1.51%	-13.66%
4263	43 Neutral	¥15.27B	-59.54	―	―	39.30%	32.06%