Charm Care Corporation (6062) AI Stock Analysis

• Market Cap: ¥42.10B
• Dividend Yield: 2.6%
• Average Volume (3M): 126.45K
• Price to Earnings (P/E): 9.9
• Beta (1Y): 0.91
• Revenue Growth: 7.94%
• EPS Growth: 8.41%
• Country: JP
• Employees: 2,025
• Sector: Healthcare
• Sector Strength: 40
• Industry: Medical - Care Facilities
• EPS (TTM): 16.83
• Shares Outstanding: 32,712,000
• 10 Day Avg. Volume: 119,710
• 30 Day Avg. Volume: 126,446
• 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: ¥1,414.00
• Price Target Upside: 8.10% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: ¥1,411.00 ▲(7.87%Upside)

Charm Care Corporation's stock is buoyed by strong financial performance and attractive valuation. However, technical indicators suggest caution with potential bearish momentum, and cash flow issues need addressing.

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
EBITDA	7.01B	6.31B	5.05B	5.38B	2.85B	2.34B
Net Income	4.41B	4.28B	3.21B	2.95B	1.54B	1.21B
Balance Sheet
Total Assets	53.03B	47.34B	43.30B	37.36B	28.60B	23.98B
Cash, Cash Equivalents and Short-Term Investments	7.30B	12.64B	6.81B	6.94B	5.94B	5.61B
Total Debt	15.18B	10.88B	13.16B	10.88B	8.31B	6.40B
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: Positive
• Last Price: 1308.00
• 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:6062, the sentiment is Positive. The current price of 1308 is above the 20-day moving average (MA) of 1264.60, above the 50-day MA of 1239.82, and above the 200-day MA of 1245.06, indicating a bullish trend. The MACD of 26.54 indicates Negative momentum. The RSI at 64.70 is Neutral, neither overbought nor oversold. The STOCH value of 64.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	78 Outperform	¥18.85B	12.50		3.98%	4.15%	-25.67%
6062	74 Outperform	¥42.10B	9.90		2.60%	7.94%	8.41%
7071	73 Outperform	¥46.70B	6.68		0.84%	30.50%	3.57%
6197	67 Neutral	¥39.98B	9.83		4.74%	1.70%	83.74%
7133	66 Neutral	¥9.80B	13.31		1.49%	20.50%	62.39%
6059	63 Neutral	¥5.95B	2.91		3.25%	0.91%	856.87%
Sector *	52 Neutral	$7.49B	0.22	-61.87%	2.28%	16.62%	1.08%

Charm Care Corporation Corporate Events

Charm Care Corporation Announces Strategic Organizational Changes

Charm Care Corporation announced organizational changes and personnel transfers effective July 1, 2025, aimed at strengthening its digital transformation efforts and operational efficiency in long-term care settings. Key changes include the establishment of a new Long-Term Care DX Promotion Office, integration of sales divisions for better collaboration, and strategic personnel shifts to enhance business operations and brand promotion.

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.