Japan Animal Referral Medical Center Co., Ltd. (6039) AI Stock Analysis

• Market Cap: ¥13.24B
• Dividend Yield: 0.79%
• Average Volume (3M): 38.98K
• Price to Earnings (P/E): 21.0
• Beta (1Y): 0.46
• Revenue Growth: 20.38%
• EPS Growth: 48.50%
• Country: JP
• Employees: 256
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Personal Products & Services
• EPS (TTM): 69.75
• Shares Outstanding: 2,878,200
• 10 Day Avg. Volume: 23,360
• 30 Day Avg. Volume: 38,983
• PEG Ratio: 0.20
• Price to Book (P/B): 1.61
• Price to Sales (P/S): 1.27
• P/FCF Ratio: 15.99
• 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: ¥4,478.00
• Price Target Upside: -4.42% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: ¥4,478.00 ▼(-4.42% Downside)

The overall stock score is driven primarily by strong financial performance, characterized by robust revenue and profit growth, effective cost management, and solid cash generation. Technical analysis indicates strong upward momentum but warns of overbought conditions, suggesting potential volatility. Valuation metrics show the stock is fairly valued with a reasonable P/E ratio and modest dividend yield.

Japan Animal Referral Medical Center Co., Ltd. Business Overview & Revenue Model

Company Description

Japan Animal Referral Medical Center Co., Ltd. owns and operates medical centers for animals in Japan. Its veterinary hospital provides advanced medical care service for dogs and cats. The company's medical center comprises cardiology, respiratory, urology, gastroenterology, oncology, neurology, orthopedics, ophthalmology, radiology and imaging, and anesthesiology departments. It also provides professional training services, such as clinical training and treatment; and conducts research and development projects, including genetic testing, immunotherapy, and regenerative medicine. Japan Animal Referral Medical Center Co., Ltd. was incorporated in 2005 and is headquartered in Kawasaki, Japan.

How the Company Makes Money

The company generates revenue primarily through the provision of specialized veterinary medical services. This includes fees for consultations, diagnostic testing, surgeries, and other advanced treatments provided at their referral medical centers. By operating on a referral basis, they receive a steady stream of clients from general veterinary practitioners who seek specialized care for complex cases. Additionally, Japan Animal Referral Medical Center Co., Ltd. may engage in partnerships with veterinary product suppliers or participate in research endeavors, although specific details on such partnerships contributing to revenue are not available. The company relies on its reputation for expertise and quality care to maintain and expand its client base, which directly impacts its financial performance.

Japan Animal Referral Medical Center Co., Ltd. Financial Statement Overview

Summary

Japan Animal Referral Medical Center Co., Ltd. presents a strong financial position with notable revenue and profit growth, effective cost management, and solid cash generation. The company's leverage is moderate, with an opportunity to further strengthen its balance sheet by reducing debt reliance. The robust return on equity and improving cash flows suggest a positive outlook.

Income Statement

The company has demonstrated strong revenue growth with an increase from 4.27 billion to 5.28 billion yen (23.6% growth). Gross profit margin stands at 34.7%, indicating efficient cost management. Net profit margin has improved to 9.9%, reflecting effective control over expenses. Both EBIT and EBITDA margins are solid at 13.7% and 25.0%, respectively, showing strong operational performance.

Balance Sheet

The balance sheet shows a healthy equity ratio of 47.4%, signifying a stable financial structure. The debt-to-equity ratio is at 0.84, which is manageable yet indicates a reliance on debt financing. Return on equity is robust at 12.6%, indicating efficient use of equity to generate profits.

Cash Flow

Operating cash flow has increased significantly to 1.37 billion yen, with a strong operating cash flow to net income ratio of 2.63, highlighting effective cash generation relative to earnings. Free cash flow has improved from a negative position to 418.7 million yen, demonstrating improved cash management and capital expenditure control.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.50B	5.28B	4.27B	3.87B	2.98B	2.85B
Gross Profit	1.97B	1.83B	1.46B	1.44B	1.11B	994.66M
EBITDA	1.40B	1.32B	977.87M	967.61M	688.80M	649.81M
Net Income	598.27M	520.98M	337.22M	380.66M	286.94M	285.19M
Balance Sheet
Total Assets	9.09B	8.75B	8.77B	8.58B	7.11B	5.84B
Cash, Cash Equivalents and Short-Term Investments	1.22B	1.11B	1.34B	1.92B	1.07B	1.21B
Total Debt	3.86B	3.48B	3.86B	3.98B	3.92B	3.07B
Total Liabilities	4.86B	4.61B	4.96B	4.87B	4.60B	3.51B
Stockholders Equity	4.23B	4.15B	3.81B	3.71B	2.51B	2.34B
Cash Flow
Free Cash Flow	0.00	418.70M	-155.41M	68.98M	-44.36M	438.89M
Operating Cash Flow	0.00	1.37B	899.78M	810.92M	557.57M	504.39M
Investing Cash Flow	0.00	-994.38M	-985.86M	-784.07M	-1.43B	-69.57M
Financing Cash Flow	0.00	-608.03M	-392.32M	820.59M	722.09M	-469.43M

Japan Animal Referral Medical Center Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4685.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6039, the sentiment is Neutral. The current price of 4685 is below the 20-day moving average (MA) of 4826.50, above the 50-day MA of 3870.24, and above the 200-day MA of 2806.85, indicating a neutral trend. The MACD of 254.83 indicates Positive momentum. The RSI at 54.58 is Neutral, neither overbought nor oversold. The STOCH value of 52.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6039.

Japan Animal Referral Medical Center Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7523	81 Outperform	¥16.13B	13.97	8.27%	2.54%	-1.20%	-8.71%
9262	75 Outperform	¥9.46B	13.41	10.08%	1.90%	10.06%	4.96%
6039	74 Outperform	¥13.24B	21.02	―	0.79%	20.38%	48.50%
7358	72 Outperform	¥13.68B	15.02	9.12%	2.85%	7.89%	-12.90%
2438	64 Neutral	¥6.56B	-24.40	―	1.79%	0.84%	-256.50%
7074	41 Neutral	¥2.35B	-10.83	―	―	-22.38%	77.19%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Japan Animal Referral Medical Center Co., Ltd. Corporate Events

Japan Animal Referral Medical Center Reports Strong Financial Growth in Q1 2025

Japan Animal Referral Medical Center Co., Ltd. reported a significant increase in its financial performance for the three months ended June 30, 2025, with net sales rising by 17.8% and profits showing substantial year-on-year growth. This positive financial outcome highlights the company’s strong market positioning and operational efficiency, indicating a promising outlook for stakeholders.

JARMeC Reports Strong Financial Growth and Increased Dividends

Japan Animal Referral Medical Center Co., Ltd. reported a significant increase in its consolidated financial results for the year ended March 31, 2025, with net sales rising by 23.6% and profit attributable to owners of the parent increasing by 54.5%. The company also announced an increase in annual dividends per share, reflecting its strong financial performance and commitment to returning value to shareholders.