Charm Care Corporation (6062) AI Stock Analysis

• Market Cap: ¥40.83B
• Dividend Yield: 2.4%
• Average Volume (3M): 101.73K
• Price to Earnings (P/E): 9.6
• Beta (1Y): 0.91
• Revenue Growth: 7.94%
• EPS Growth: 8.41%
• Country: JP
• Employees: 2,025
• Sector: Healthcare
• Sector Strength: 58
• Industry: Medical - Care Facilities
• EPS (TTM): 16.83
• Shares Outstanding: 32,712,000
• 10 Day Avg. Volume: 132,180
• 30 Day Avg. Volume: 101,730
• PEG Ratio: 0.42
• Price to Book (P/B): 5.23
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.69
• 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

• Rating: 76 Outperform
• Price Target: ¥1,414.00 ▲(12.94%Upside)

The overall stock score of 75.83 reflects Charm Care Corporation's strong financial performance and attractive valuation, offset by liquidity concerns. The company demonstrates robust revenue and net income growth, supported by efficient cost management. However, cash flow issues suggest potential short-term liquidity challenges that need to be addressed to maintain growth.

Charm Care Corporation Business Overview & Revenue Model

Company Description

Charm Care Corporation (6062) is a Japanese company primarily engaged in the healthcare and nursing care sector. The company offers a range of services including the operation of nursing homes and facilities for the elderly. Charm Care Corporation is committed to providing high-quality care services that meet the needs of Japan's aging population, with a focus on enhancing the quality of life for its clients through personalized care and support.

How the Company Makes Money

Charm Care Corporation generates revenue primarily through its operation of nursing homes and elderly care facilities. The company charges residents for the care services provided, which may include accommodation, meals, medical care, and other support services. Additionally, Charm Care Corporation may receive government subsidies or insurance payments as part of Japan's healthcare system, which supports elderly care. The company's revenue is influenced by factors such as occupancy rates, service fees, and the overall demand for elderly care services in Japan's aging society. Strategic partnerships with healthcare providers and continuous improvement in service offerings also play a role in the company's financial performance.

Charm Care Corporation Financial Statement Overview

Summary

Charm Care Corporation exhibits strong growth and profitability, particularly in revenue and net income. The balance sheet is solid with manageable leverage, though increasing debt warrants attention. Cash flow constraints in the latest period indicate a need for improved cash management to sustain growth.

Income Statement

Charm Care Corporation has demonstrated strong revenue and profit growth over recent years. The TTM (Trailing-Twelve-Months) shows a notable increase in total revenue to ¥49.29 billion, a substantial rise from prior years. Gross profit margin stands at approximately 17.83%, while the net profit margin is a solid 8.95%. The EBIT margin is about 11.30%, indicating efficient cost management. Revenue growth is evident, with nearly a 30% increase from 2023 to 2024, showcasing robust business expansion.

Balance Sheet

The balance sheet presents a healthy financial position with a Debt-to-Equity ratio of 0.80, reflecting moderate leverage. Return on Equity is approximately 23.20%, highlighting strong profitability relative to equity. The equity ratio is 35.84%, indicating a balanced capital structure. However, the increase in total debt from prior years should be monitored for potential risks if the trend continues.

Cash Flow

Cash flow analysis shows a decline in free cash flow to -¥4.45 billion in the TTM period, mainly due to negative operating cash flow. This indicates potential short-term liquidity challenges. However, the operating cash flow to net income ratio suggests the company has previously managed to cover net income with operating cash flow in past annual reports, indicating past operational efficiency.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
49.29B	47.83B	37.89B	29.07B	22.98B	19.62B
	Gross Profit
8.77B	8.31B	6.84B	4.65B	3.95B	3.58B
	EBIT
5.57B	5.39B	4.20B	2.31B	2.02B	1.90B
	EBITDA
7.01B	6.31B	5.05B	5.38B	2.85B	2.34B
	Net Income Common Stockholders
4.41B	4.28B	3.21B	2.95B	1.54B	1.21B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.30B	12.64B	6.81B	6.94B	5.94B	5.61B
	Total Assets
53.03B	47.34B	43.30B	37.36B	28.60B	23.98B
	Total Debt
15.18B	10.88B	13.16B	10.88B	8.31B	6.40B
	Net Debt
7.88B	-1.76B	6.35B	3.94B	2.37B	784.35M
	Total Liabilities
34.03B	28.63B	28.17B	24.90B	17.47B	14.16B
	Stockholders Equity
19.01B	18.71B	15.13B	12.46B	11.13B	9.82B
Cash Flow		Free Cash Flow
-4.45B	6.51B	-1.62B	1.34B	124.00M	737.42M
	Operating Cash Flow
-2.00B	10.53B	496.00M	3.95B	2.56B	1.22B
	Investing Cash Flow
-6.35B	-1.67B	-2.24B	-2.86B	-3.70B	-1.16B
	Financing Cash Flow
3.00B	-3.04B	1.62B	-87.92M	1.47B	3.31B

Charm Care Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1252.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 1252 is below the 20-day moving average (MA) of 1256.10, above the 50-day MA of 1245.40, and below the 200-day MA of 1288.92, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 49.10 is Neutral, neither overbought nor oversold. The STOCH value of 40.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6062.

Charm Care Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7133	78 Outperform	¥10.55B	14.34		1.38%	20.50%	62.52%
6062	76 Outperform	¥40.83B	9.60		2.40%	7.94%	8.41%
7071	75 Outperform	¥46.40B	6.64		0.85%	30.50%	3.57%
2374	73 Outperform	¥19.43B	12.88		3.86%	4.15%	-25.66%
6197	67 Neutral	¥40.08B	9.85		4.73%	1.70%	83.73%
6059	64 Neutral	¥5.95B	2.91		3.25%	0.91%	857.08%
Sector *	54 Neutral	$5.37B	3.26	-45.10%	3.30%	16.81%	0.02%

Charm Care Corporation Corporate Events

Charm Care Corporation Reports Nine-Month Financial Results with Strategic Expansion

Charm Care Corporation reported its consolidated financial results for the nine months ending March 31, 2025, showing a slight increase in revenue by 2.5% to 30,313 million yen, while operating profit rose by 1.0%. However, ordinary profit and profit attributable to owners of the parent saw declines of 6.9% and 0.9%, respectively. The company also announced a forecasted increase in annual dividends per share to 34 yen, reflecting a positive outlook despite some financial challenges. The inclusion of CM Care Co., Ltd. in its consolidation scope indicates strategic expansion efforts.