Charm Care Corporation (6062) AI Stock Analysis

• Market Cap: ¥42.13B
• Dividend Yield: 2.63%
• Average Volume (3M): 214.82K
• Price to Earnings (P/E): 13.8
• Beta (1Y): 0.86
• Revenue Growth: 0.30%
• EPS Growth: -31.28%
• Country: JP
• Employees: 2,025
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 36.76
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥1,313.00 ▲(1.63% Upside)

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

Operational Efficiency

Operational efficiency and a stable balance sheet indicate effective management and resource utilization, supporting long-term business sustainability.

Stable Balance Sheet

A stable balance sheet with moderate leverage provides financial flexibility and resilience, crucial for navigating industry challenges and investing in growth.

Strong Return on Equity

Strong return on equity indicates efficient capital use, enhancing shareholder value and supporting the company's ability to reinvest in growth opportunities.

Negative Factors

Declining Revenue Growth

Declining revenue growth suggests challenges in market expansion and sales momentum, potentially impacting future profitability and competitive position.

Negative Free Cash Flow

Negative free cash flow highlights liquidity challenges, limiting the company's ability to fund operations and invest in growth without external financing.

Pressure on Profit Margins

Decreasing profit margins indicate cost pressures or pricing challenges, which could erode profitability and hinder the company's ability to sustain competitive advantage.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	46.67B	46.67B	47.83B	37.89B	29.07B	22.98B
Gross Profit	7.24B	7.24B	8.31B	6.84B	4.65B	3.95B
EBITDA	5.21B	5.69B	6.31B	5.78B	5.38B	2.85B
Net Income	2.94B	2.94B	4.28B	3.21B	2.95B	1.54B
Balance Sheet
Total Assets	52.41B	52.41B	47.34B	43.30B	37.36B	28.60B
Cash, Cash Equivalents and Short-Term Investments	15.42B	15.42B	12.64B	6.81B	6.94B	5.94B
Total Debt	13.45B	13.45B	10.88B	13.16B	10.88B	8.31B
Total Liabilities	31.73B	31.73B	28.63B	28.17B	24.90B	17.47B
Stockholders Equity	20.68B	20.68B	18.71B	15.13B	12.46B	11.13B
Cash Flow
Free Cash Flow	-4.45B	-964.00M	6.51B	-1.62B	1.34B	124.00M
Operating Cash Flow	-2.00B	3.73B	10.53B	496.00M	3.95B	2.56B
Investing Cash Flow	-6.35B	-8.51B	-1.67B	-2.24B	-2.86B	-3.70B
Financing Cash Flow	3.00B	1.28B	-3.04B	1.62B	-87.92M	1.47B

Charm Care Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1292.00
• 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 Positive. The current price of 1292 is above the 20-day moving average (MA) of 1262.95, above the 50-day MA of 1195.12, and above the 200-day MA of 1206.66, indicating a bullish trend. The MACD of 17.66 indicates Positive momentum. The RSI at 61.04 is Neutral, neither overbought nor oversold. The STOCH value of 70.92 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
6197	76 Outperform	¥77.69B	17.25	―	2.47%	1.86%	1370.48%
2374	75 Outperform	¥30.23B	17.11	―	2.48%	3.88%	0.31%
6062	72 Outperform	¥42.13B	13.81	―	2.63%	0.30%	-31.28%
6059	69 Neutral	¥7.13B	3.35	―	2.71%	1.26%	562.09%
7133	64 Neutral	¥8.15B	14.16	―	1.80%	18.58%	-6.30%
7071	62 Neutral	¥43.36B	11.76	―	0.91%	15.77%	-50.57%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Charm Care Corporation Corporate Events

Charm Care Corporation Shifts Focus to Core Long-Term Care Business

Charm Care Corporation announced a strategic shift by discontinuing its Real Estate Business to focus on its core Long-Term Care Business, effective from the first quarter of the fiscal year ending June 2026. This change aims to simplify operations, reduce performance fluctuations, and align with the company’s medium-term management plan, which responds to environmental challenges such as rising construction costs and interest rates.

Charm Care Corporation Reports Strong Q1 Financial Results

Charm Care Corporation reported a strong financial performance for the three months ending September 30, 2025, with significant year-over-year growth in net sales and profits. The company achieved an 11.7% increase in net sales and a 26.5% rise in operating profit compared to the same period last year. This growth reflects the company’s robust market positioning and effective operational strategies, indicating positive implications for stakeholders.

Charm Care Completes Treasury Stock Disposal for Compensation

Charm Care Corporation has completed the payment procedures for the disposal of 13,000 shares of its treasury stock as restricted stock compensation, as resolved in the Board of Directors meeting on September 25, 2025. This strategic move is aimed at aligning the interests of its directors with those of the company, potentially impacting its governance and stakeholder relationships positively.

Charm Care Corporation Announces Disposal of Treasury Stock for Director Compensation

Charm Care Corporation has announced the disposal of 13,000 shares of its treasury stock as part of a restricted stock compensation plan for its directors. This move is aimed at aligning the interests of the directors with those of the shareholders and enhancing the company’s medium- to long-term corporate value. The plan involves a structured agreement that restricts the transfer of shares until certain conditions are met, thereby incentivizing directors to contribute to the company’s sustainable growth.