Charm Care Corporation (6062) AI Stock Analysis

• Market Cap: ¥44.45B
• Dividend Yield: 2.63%
• Average Volume (3M): 214.82K
• Price to Earnings (P/E): 11.6
• Beta (1Y): 0.89
• Revenue Growth: 0.30%
• EPS Growth: -31.28%
• Country: JP
• Employees: 2,025
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): N/A
• Shares Outstanding: 32,712,000
• 10 Day Avg. Volume: 198,970
• 30 Day Avg. Volume: 214,816
• PEG Ratio: -0.46
• Price to Book (P/B): 2.05
• Price to Sales (P/S): 0.91
• P/FCF Ratio: -43.92
• 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: ¥1,640.00
• Price Target Upside: 29.13% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥1,485.00 ▲(16.93% Upside)
• Action: Upgraded Date: 11/12/25
• Date: Action: Upgraded 11/12/25

Charm Care Corporation's stock is supported by strong technical indicators and a favorable valuation, suggesting potential upside. However, mixed financial performance, particularly declining revenue growth and negative free cash flow, pose risks. Investors should weigh these factors when considering the stock.

Positive Factors

Balance Sheet Strength

Moderate leverage (debt/equity ~0.65) and a healthy equity ratio provide a durable capital base, reducing solvency risk and preserving borrowing capacity. Strong ROE indicates management deploys equity efficiently, supporting long-term stability and funding for network maintenance or selective growth.

Operational Margins

Sustained EBIT/EBITDA margins show core care operations retain efficiency and pricing power versus peers. This operational resilience supports cash generation and margin recovery potential when revenue trends stabilize, enabling investment in care quality and incremental margin expansion over several quarters.

Operating Cash Generation

A positive operating cash flow to net income ratio indicates the underlying business converts earnings into cash, supporting working capital and debt service. Even with negative free cash flow, positive operating cash flow implies core operations generate liquidity that can be directed to capex or refinancing needs.

Negative Factors

Declining Revenue Growth

A multi-percent drop in revenue growth undermines top-line momentum and can erode scale advantages in a care facility business. Sustained revenue declines compress utilization and pricing leverage, making it harder to sustain margins, cover fixed costs, and fund necessary reinvestment in facilities or staff.

Negative Free Cash Flow

Material negative free cash flow constrains the firm's ability to invest, reduce debt, or return capital. Reliance on external financing to cover capex or operations raises refinancing and interest risk, weakening financial flexibility and increasing vulnerability to adverse operating shocks over the medium term.

Rising Total Debt

An upward trend in total debt, even with moderate current leverage, increases fixed obligations and interest exposure. If revenue or cash generation remains pressured, higher debt amplifies liquidity risk and restricts strategic options such as acquisitions, capex, or dividend policy over the next several quarters.

Charm Care Corporation Business Overview & Revenue Model

Company Description

Charm Care Corporation engages in nursing care business. It operates pay nursing homes with approximately 4,191 rooms in the Tokyo metropolitan and Kinki areas. The company was formerly known as Fuji Clinic Laboratory and changed its name to Charm Care Corporation in December 2007. Charm Care Corporation was incorporated in 1984 and is headquartered in Osaka, Japan.

How the Company Makes Money

Charm Care Corporation generates revenue through multiple streams, primarily from the sale of medical devices and equipment to hospitals and healthcare providers. Additionally, the company offers subscription-based services for its integrated healthcare software solutions, which provide ongoing support and updates. Key revenue streams include direct sales, long-term contracts with healthcare institutions, and partnerships with technology firms that enhance their product offerings. Significant collaborations with healthcare providers and technology companies further boost their market presence and contribute to sustainable earnings.

Charm Care Corporation Financial Statement Overview

Summary

Charm Care Corporation shows mixed financial performance. While operational efficiency and a stable balance sheet are positives, declining revenue growth and negative free cash flow are significant concerns. Addressing these issues is crucial for long-term sustainability.

Income Statement

Charm Care Corporation's income statement shows a decline in revenue growth rate by 5.32% in the latest year, indicating potential challenges in maintaining sales momentum. Gross profit margin and net profit margin have decreased compared to previous years, suggesting pressure on profitability. However, the company maintains a reasonable EBIT and EBITDA margin, reflecting operational efficiency.

Balance Sheet

The balance sheet reveals a stable financial structure with a debt-to-equity ratio of 0.65, indicating moderate leverage. Return on equity remains strong, showcasing effective use of equity capital. The equity ratio is healthy, suggesting a solid capital base. However, the increase in total debt over the years could pose a risk if not managed carefully.

Cash Flow

Cash flow analysis indicates a significant decline in free cash flow growth, with a negative free cash flow in the latest year. The operating cash flow to net income ratio is positive, but the free cash flow to net income ratio is concerning, highlighting potential liquidity challenges. The company needs to improve cash generation to support future growth.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	46.67B	47.83B	37.89B	29.07B	22.98B
Gross Profit	7.24B	8.31B	6.84B	4.65B	3.95B
EBITDA	5.69B	6.31B	5.78B	5.38B	2.85B
Net Income	2.94B	4.28B	3.21B	2.95B	1.54B
Balance Sheet
Total Assets	52.41B	47.34B	43.30B	37.36B	28.60B
Cash, Cash Equivalents and Short-Term Investments	15.42B	12.64B	6.81B	6.94B	5.94B
Total Debt	13.45B	10.88B	13.16B	10.88B	8.31B
Total Liabilities	31.73B	28.63B	28.17B	24.90B	17.47B
Stockholders Equity	20.68B	18.71B	15.13B	12.46B	11.13B
Cash Flow
Free Cash Flow	-964.00M	6.51B	-1.62B	1.34B	124.00M
Operating Cash Flow	3.73B	10.53B	496.00M	3.95B	2.56B
Investing Cash Flow	-8.51B	-1.67B	-2.24B	-2.86B	-3.70B
Financing Cash Flow	1.28B	-3.04B	1.62B	-87.92M	1.47B

Charm Care Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1270.00
• 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:6062, the sentiment is Neutral. The current price of 1270 is below the 20-day moving average (MA) of 1392.00, below the 50-day MA of 1336.32, and above the 200-day MA of 1219.66, indicating a neutral trend. The MACD of 17.72 indicates Positive momentum. The RSI at 44.54 is Neutral, neither overbought nor oversold. The STOCH value of 26.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6062.

Charm Care Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2374	75 Outperform	¥30.28B	16.98	―	2.48%	3.88%	0.31%
2425	75 Outperform	¥3.02B	27.02	―	2.56%	-3.06%	-38.56%
6062	72 Outperform	¥44.45B	11.61	―	2.63%	0.30%	-31.28%
7071	62 Neutral	¥47.58B	10.69	―	0.91%	15.77%	-50.57%
2373	60 Neutral	¥5.69B	16.77	―	4.07%	6.08%	38.00%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
7061	45 Neutral	¥6.99B	33.86	―	1.41%	18.03%	-11.68%

Charm Care Corporation Corporate Events

Charm Care to Absorb Wholly Owned Subsidiary in Streamlining Merger

Charm Care Corporation will merge its wholly owned subsidiary CM Care Co., Ltd. through an absorption-type merger effective July 1, 2026, dissolving CM Care and consolidating its operations into the parent. The move is designed to streamline overlapping administrative functions, enhance the efficiency of managing fee-based elderly care homes, and better utilize management resources, with the company expecting only a minimal impact on its consolidated financial results.

The merger will not involve any new share issuance or merger consideration, as CM Care is already 100% owned by Charm Care. Corporate attributes such as the parent’s name, headquarters location, capital, business scope, and fiscal year will remain unchanged after the transaction, signaling that the initiative is primarily an internal reorganization to improve group-wide operational efficiency rather than a strategic shift in business direction.

The most recent analyst rating on (JP:6062) stock is a Buy with a Yen1555.00 price target. To see the full list of analyst forecasts on Charm Care Corporation stock, see the JP:6062 Stock Forecast page.

Charm Care Outlines Q2 FY2026 Results and Strategic Outlook

Charm Care Corporation has released its financial results for the second quarter of the fiscal year ending June 30, 2026, outlining its recent performance. The disclosure is accompanied by updates on its medium-term management plan, current corporate topics, and reference materials on its business domains, profit structure, and the operating environment of the long-term care industry, indicating a strategic focus on transparency and future positioning for stakeholders.

The most recent analyst rating on (JP:6062) stock is a Buy with a Yen1504.00 price target. To see the full list of analyst forecasts on Charm Care Corporation stock, see the JP:6062 Stock Forecast page.

Charm Care Launches First Interim Dividend, Adds 20th-Anniversary Payout

Charm Care Corporation has approved its first-ever interim dividend for the fiscal year ending June 2026, setting a payout of ¥20 per share as of the December 31, 2025 record date, funded from retained earnings. This interim dividend consists of a ¥17 ordinary dividend and a ¥3 commemorative component marking the 20th anniversary of its first fee-based care home, and reflects a policy of maintaining a dividend payout ratio of at least 30% and increasing opportunities for shareholder returns. The company keeps its year-end and full-year dividend forecasts unchanged, targeting a total annual dividend of ¥37 per share, up from ¥34 in the previous fiscal year, underscoring its commitment to stable and enhanced shareholder distributions while signaling confidence in its earnings and business outlook.

The most recent analyst rating on (JP:6062) stock is a Buy with a Yen1457.00 price target. To see the full list of analyst forecasts on Charm Care Corporation stock, see the JP:6062 Stock Forecast page.

Charm Care Delivers Double-Digit Profit Growth and Raises Interim Dividend for FY2026 First Half

Charm Care Corporation reported strong consolidated results for the first half of the fiscal year ending June 30, 2026, with net sales rising 11.4% year on year to ¥22.33 billion and profit attributable to owners of parent climbing 29.5% to ¥1.65 billion, supported by a 38.3% jump in operating profit. The company’s financial position also improved, with total assets of ¥53.18 billion and an equity ratio of 40.1%, and it confirmed a higher interim dividend of ¥20 per share, which includes a special 20th anniversary commemorative payout, while maintaining its full-year forecast that calls for modest top-line growth and double-digit increases in operating and ordinary profit for fiscal 2026, underscoring continued earnings momentum in its senior-care business and providing greater returns to shareholders.

The most recent analyst rating on (JP:6062) stock is a Buy with a Yen1457.00 price target. To see the full list of analyst forecasts on Charm Care Corporation stock, see the JP:6062 Stock Forecast page.