Kusurinomadoguchi, Inc. (5592) AI Stock Analysis

• Market Cap: ¥30.66B
• Dividend Yield: 1.03%
• Average Volume (3M): 73.92K
• Price to Earnings (P/E): 11.6
• Beta (1Y): 0.72
• Revenue Growth: 16.86%
• EPS Growth: 241.49%
• Country: JP
• Employees: 505
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 44.36
• Shares Outstanding: 11,360,482
• 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: ¥3,088.00 ▲(16.05% Upside)
• Action: Reiterated Date: 12/03/25
• Date: Action: Reiterated 12/03/25

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

High profit margins

Sustained high gross and operating margins point to strong pricing power and an efficient cost base in its retail pharmacy model. These margins support durable internal cash generation potential, reinvestment capacity, and resilience to moderate demand or input-cost shocks over the medium term.

Robust equity base and minimal leverage

Very low financial leverage and a high equity ratio give the firm considerable financial flexibility to fund strategic investments, weather downturns, and maintain creditor confidence. A high ROE indicates effective equity use, supporting sustainable shareholder returns if earnings persist.

Strong revenue growth

Material top-line growth suggests successful market penetration and demand for pharmacy and consulting services, aided by structural drivers like Japan's aging population. Durable revenue expansion underpins scale benefits and margin sustainability if the company maintains execution.

Negative Factors

Significant negative free cash flow

Large negative free cash flow signals the business is consuming cash despite accounting profits, constraining the company’s ability to self-fund capex, dividends, or strategic M&A. Over 2–6 months this increases reliance on financing and raises medium‑term liquidity risk.

Weak cash conversion from earnings

Earnings are not translating into operating cash, suggesting working-capital strain, timing mismatches, or one-time accounting gains. Persistent poor cash conversion undermines earnings quality and can force operational adjustments or external financing to sustain growth.

Drop in cash and short-term investments

A meaningful decline in liquid reserves reduces the firm’s buffer against shocks despite low debt. This tightens short-term flexibility for inventory funding, store rollout, or unforeseen costs, and may necessitate precautionary measures that could slow strategic initiatives.

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 and a robust balance sheet. 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022
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: Neutral

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 2629.80, below the 50-day MA of 2682.96, and below the 200-day MA of 3114.38, indicating a neutral trend. The MACD of -6.86 indicates Negative momentum. The RSI at 52.44 is Neutral, neither overbought nor oversold. The STOCH value of 47.17 is Neutral, 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
5592	66 Neutral	¥30.66B	11.64	―	1.03%	16.86%	241.49%
3902	63 Neutral	¥65.48B	226.81	―	0.39%	6.17%	-8918.66%
4483	63 Neutral	¥273.19B	39.51	―	0.43%	20.55%	48.62%
4263	56 Neutral	¥18.81B	-72.81	―	―	39.30%	32.06%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
4480	51 Neutral	¥64.95B	64.70	8.79%	―	31.95%	-40.95%
4438	45 Neutral	¥3.02B	-5.60	―	―	16.19%	-4.42%