Elan Corp. (6099) AI Stock Analysis

• Market Cap: ¥46.43B
• Dividend Yield: 1.77%
• Average Volume (3M): 89.05K
• Price to Earnings (P/E): 16.8
• Beta (1Y): 0.62
• Revenue Growth: 16.49%
• EPS Growth: 3.34%
• Country: JP
• Employees: 676
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 12.32
• Shares Outstanding: 60,600,000
• 10 Day Avg. Volume: 77,090
• 30 Day Avg. Volume: 89,046
• PEG Ratio: 0.90
• Price to Book (P/B): 3.03
• Price to Sales (P/S): 0.79
• P/FCF Ratio: 13.76
• 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
• EPS Forecast (FY): 57.9
• Revenue Forecast (FY): ¥61.70B

• Rating: 72 Outperform
• Price Target: ¥798.00 ▲(9.47% Upside)
• Action: Reiterated Date: 02/06/26
• Date: Action: Reiterated 02/06/26

The score is driven primarily by strong financial quality (low leverage, consistent growth, solid returns) and supportive valuation (moderate P/E with a meaningful dividend). These positives are partially offset by mixed technical signals, with longer-term trend indicators still weak despite improving near-term momentum.

Positive Factors

Conservative balance sheet / low leverage

Very low debt-to-equity (~0.05 in 2025) and expanding equity provide durable financial flexibility. This reduces refinancing and solvency risk, supports capital allocation for dividends or reinvestment, and better insulates the company from cyclic stress over the next several quarters.

Consistent revenue growth

Multi-year revenue growth indicates sustained demand and market traction. Even with a deceleration to mid-single digits in 2025, the track record of growth supports predictable top-line scaling, easing investment planning and underpinning medium-term revenue stability.

Strong cash generation and healthy returns

Sizable operating and free cash flows with FCF covering a large share of earnings and ROE near 19% point to efficient capital use and internal funding capacity. Persistent cash generation supports dividends, capex, and strategic reinvestment without reliance on debt.

Negative Factors

Margin compression

Trend of declining operating and net margins versus earlier years suggests rising cost pressure or adverse mix. If structural, this can erode long-term earnings power and free cash flow margins, limiting the company's ability to expand margins even with steady revenues.

Volatile cash conversion / FCF decline

Year-to-year swings in operating cash relative to net income and a recent FCF decline reduce predictability of internal funding. Persistent volatility can complicate capital allocation, stress liquidity planning in downturns, and raise the bar for sustained dividend or buyback programs.

Slowing revenue growth pace

A deceleration from earlier higher growth rates to mid-single digits may reflect market saturation, tougher comps, or weaker incremental demand. Slower top-line expansion makes margin improvement and EPS growth harder to achieve, requiring operational gains to sustain returns.

Elan Corp. Business Overview & Revenue Model

Company Description

Elan Corporation engages in the nursing and medical-care business. It provides services for rental with laundry service of clothes, towels, diapers, and other daily necessities to persons admitted to hospital patients and nursing home residents. The company was incorporated in 1995 and is headquartered in Matsumoto, Japan.

How the Company Makes Money

Elan Corp. Financial Statement Overview

Summary

Strong overall fundamentals supported by consistent revenue growth, healthy profitability, and a very conservative balance sheet with minimal leverage. Score is tempered by modest margin compression and some year-to-year volatility in cash conversion/free cash flow.

Income Statement

Revenue has grown consistently over the last several years, with 2025 showing solid mid‑single‑digit growth after stronger growth in prior years. Profitability remains healthy (2025 net margin ~5% and operating margin ~7.7%), but margins have drifted down versus 2021–2023 levels, suggesting some cost pressure or mix shift. Overall: strong scale-up with stable profits, slightly offset by modest margin compression.

Balance Sheet

The balance sheet is conservatively positioned with very low leverage (debt-to-equity ~0.05 in 2025, and essentially debt-free in earlier years). Equity has steadily expanded alongside asset growth, supporting financial flexibility. Returns on equity are strong (~19% in 2025, above ~18–25% historically), though slightly below peak years—still indicative of efficient capital use with limited balance-sheet risk.

Cash Flow

Cash generation is a clear positive: 2025 operating cash flow (~¥4.29B) and free cash flow (~¥3.18B) are sizable, and free cash flow remains a strong share of earnings (free cash flow to net income ~0.74 in 2025). The main weakness is volatility in cash conversion year-to-year (operating cash flow relative to net income is not consistently high and dipped in 2023), and free cash flow declined in 2025 versus 2024, despite higher earnings.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	51.51B	55.45B	47.51B	41.43B	36.26B	31.64B
Gross Profit	11.11B	11.87B	10.72B	9.75B	9.03B	7.88B
EBITDA	4.87B	5.59B	4.49B	3.85B	3.53B	2.92B
Net Income	2.40B	2.77B	2.35B	2.52B	2.08B	1.91B
Balance Sheet
Total Assets	23.13B	26.23B	21.61B	18.99B	16.07B	13.95B
Cash, Cash Equivalents and Short-Term Investments	5.62B	6.85B	6.85B	5.49B	6.04B	5.63B
Total Debt	791.30M	765.20M	76.62M	0.00	0.00	0.00
Total Liabilities	10.08B	11.55B	9.10B	8.18B	7.08B	6.46B
Stockholders Equity	12.86B	14.44B	12.50B	10.81B	8.99B	7.48B
Cash Flow
Free Cash Flow	0.00	3.18B	3.62B	1.59B	1.23B	2.03B
Operating Cash Flow	0.00	4.29B	4.50B	1.78B	1.58B	2.11B
Investing Cash Flow	0.00	-3.39B	-2.23B	-1.66B	-624.51M	-357.68M
Financing Cash Flow	0.00	-906.86M	-849.53M	-667.09M	-552.96M	-614.15M

Elan Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 729.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6099, the sentiment is Positive. The current price of 729 is above the 20-day moving average (MA) of 723.05, above the 50-day MA of 710.41, and below the 200-day MA of 760.56, indicating a bullish trend. The MACD of 17.04 indicates Negative momentum. The RSI at 68.43 is Neutral, neither overbought nor oversold. The STOCH value of 85.15 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6099.

Elan Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2374	75 Outperform	¥30.33B	17.64	―	2.48%	3.88%	0.31%
2425	75 Outperform	¥3.02B	13.13	―	2.56%	-3.06%	-38.56%
6099	72 Outperform	¥46.43B	16.80	20.29%	1.77%	16.49%	3.34%
6062	72 Outperform	¥46.37B	14.37	―	2.63%	0.30%	-31.28%
2373	60 Neutral	¥5.79B	15.40	―	4.07%	6.08%	38.00%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
7061	45 Neutral	¥7.45B	27.36	―	1.41%	18.03%	-11.68%

Elan Corp. Corporate Events

Elan Restores Prime Market Compliance by Lifting Tradable Share Ratio

ELAN reported that as of December 31, 2025 it now satisfies every TSE Prime Market continued listing requirement, largely by boosting its tradable share ratio above the 35% threshold through reclassifying shares once held by former CEO Hideharu Sakurai and his spouse. Management plans to keep cultivating investor relations, broaden the shareholder base, and enhance disclosure to sustain tradable liquidity and reinforce long-term corporate value.

The most recent analyst rating on (JP:6099) stock is a Hold with a Yen763.00 price target. To see the full list of analyst forecasts on Elan Corp. stock, see the JP:6099 Stock Forecast page.

Elan Lifts Year-End Dividend to ¥15 Per Share

Elan’s board approved a year-end dividend of ¥15 per share for the fiscal year ended December 31, 2025, matching prior guidance and raising the total payout to ¥908 million, up from ¥787 million for the previous year. The decision aligns with management’s capital allocation policy emphasizing stable shareholder returns while balancing internal reserves and future funding needs, and will be presented for approval at the March 2026 shareholders’ meeting.

The most recent analyst rating on (JP:6099) stock is a Hold with a Yen763.00 price target. To see the full list of analyst forecasts on Elan Corp. stock, see the JP:6099 Stock Forecast page.

Elan Posts Double-Digit Growth and Raises Dividend on Expanded Patient Services

Elan’s 2025 consolidated revenue rose 16.7% to ¥55.4 billion and operating profit climbed 19.5% to ¥4.27 billion, underpinned by higher patient-support service adoption, while net income grew 17.5% to ¥2.77 billion and cash flow from operations stayed robust at ¥4.29 billion despite heavier investment spending. Management lifted the annual dividend to ¥15 per share and projects 2026 revenue of ¥60.8 billion and profit attributable to owners of ¥3.2 billion, signaling confidence in continued growth following the addition of TMC Vietnam Trading and Service to the consolidation scope.

The most recent analyst rating on (JP:6099) stock is a Hold with a Yen763.00 price target. To see the full list of analyst forecasts on Elan Corp. stock, see the JP:6099 Stock Forecast page.

Elan Corporation Announces Leadership and Departmental Restructuring

Elan Corporation has announced a series of executive and departmental personnel changes effective January 1, 2026, aimed at streamlining its operations and reinforcing its leadership structure. The realignment includes changes in responsibilities for key executives and department heads, reflecting a strategic effort to optimize internal roles and strengthen the company’s operational efficiency.

Elan Corp. Reports Strong Financial Growth and Expansion

Elan Corp. reported a notable increase in its financial performance for the nine months ended September 30, 2025, with net sales rising by 16.9% and net profit attributable to owners increasing by 10.4% compared to the previous year. The company also announced the inclusion of a new subsidiary, TMC VIET NAM TRADING AND SERVICE JOINT STOCK COMPANY, indicating strategic expansion efforts.