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

• Market Cap: ¥13.31B
• Dividend Yield: 0.77%
• Average Volume (3M): 24.65K
• Price to Earnings (P/E): 20.3
• Beta (1Y): 0.49
• Revenue Growth: 18.22%
• EPS Growth: 47.81%
• Country: JP
• Employees: 256
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Personal Products & Services
• EPS (TTM): 90.13
• Shares Outstanding: 2,878,200
• 10 Day Avg. Volume: 16,500
• 30 Day Avg. Volume: 24,646
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ¥6,221.00 ▲(9.14% Upside)

The overall stock score is driven by strong financial performance and bullish technical indicators. However, the relatively high P/E ratio suggests potential overvaluation, which tempers the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for specialized veterinary services, enhancing the company's market position and financial stability.

Cash Generation

Strong cash generation supports ongoing operations and strategic investments, ensuring long-term business sustainability and growth potential.

Profit Margins

Improved profit margins demonstrate efficient cost management and pricing power, contributing to enhanced profitability and competitive advantage.

Negative Factors

Debt Levels

Reliance on debt financing could limit financial flexibility and increase risk, especially if interest rates rise or cash flows fluctuate.

Equity Ratio

While the equity ratio is stable, maintaining it will require careful management of debt and equity to avoid potential financial strain.

Leverage

Moderate leverage, while currently manageable, could pose risks if not monitored, impacting future borrowing capacity and growth initiatives.

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

Company Description

Japan Animal Referral Medical Center Co., Ltd. (6039) is a leading provider of specialized veterinary medical services in Japan. The company focuses on delivering high-quality healthcare for companion animals through its network of referral hospitals, which offer advanced diagnostic and treatment options. Their core services include emergency care, surgery, internal medicine, oncology, and specialty consultations, catering to the growing demand for expert veterinary care in the region.

How the Company Makes Money

The company generates revenue primarily through the provision of specialized veterinary services, including consultations, diagnostic testing, surgical procedures, and hospitalizations. Key revenue streams come from referral fees paid by primary care veterinarians for specialized services, as well as direct payments from pet owners seeking advanced medical care for their animals. Additionally, Japan Animal Referral Medical Center may engage in partnerships with pet health insurance providers, which can facilitate reimbursements and attract more clients. The company's focus on high-quality, specialized care enables it to charge premium prices, contributing significantly to its earnings.

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

Summary

The company exhibits strong financial performance with significant revenue growth, solid profit margins, and improved cash flow. The balance sheet is stable, though there is room to reduce debt reliance.

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	676.97M	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: Positive
• Last Price: 5700.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 5700 is above the 20-day moving average (MA) of 5282.50, above the 50-day MA of 4941.60, and above the 200-day MA of 3344.29, indicating a bullish trend. The MACD of 318.42 indicates Negative momentum. The RSI at 60.87 is Neutral, neither overbought nor oversold. The STOCH value of 67.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
6039	75 Outperform	¥13.31B	20.35	―	0.77%	18.22%	47.81%
9262	75 Outperform	¥9.36B	13.27	―	1.93%	10.06%	4.96%
7358	74 Outperform	¥14.05B	15.42	―	2.92%	7.95%	13.67%
7523	73 Outperform	¥17.70B	15.33	―	2.12%	1.90%	7.25%
2438	64 Neutral	¥6.14B	―	―	1.88%	0.84%	-256.50%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7074	41 Neutral	¥2.16B	-11.09	―	―	-21.04%	76.41%

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

JARMeC Reports Strong Financial Growth in First Half of 2025

Japan Animal Referral Medical Center Co., Ltd. reported a significant increase in its consolidated financial results for the six months ended September 30, 2025, with net sales rising by 18.1% and operating profit increasing by 68.4% compared to the previous year. The company also forecasts continued growth for the full fiscal year ending March 31, 2026, indicating strong operational performance and a positive outlook for stakeholders.

The most recent analyst rating on (JP:6039) stock is a Buy with a Yen4478.00 price target. To see the full list of analyst forecasts on Japan Animal Referral Medical Center Co., Ltd. stock, see the JP:6039 Stock Forecast page.

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.