PHC Holdings Corp. (6523) AI Stock Analysis

• Market Cap: ¥137.37B
• Dividend Yield: 3.73%
• Average Volume (3M): 164.09K
• Price to Earnings (P/E): 23.5
• Beta (1Y): 0.52
• Revenue Growth: 0.04%
• EPS Growth: N/A
• Country: JP
• Employees: 9,245
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 14.13
• Shares Outstanding: 126,721,820
• 10 Day Avg. Volume: 194,380
• 30 Day Avg. Volume: 164,093
• PEG Ratio: -0.07
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 0.36
• P/FCF Ratio: 4.25
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ¥1,285.00 ▲(15.56% Upside)

PHC Holdings Corp. scores well due to strong technical indicators and a reasonable valuation, supported by a healthy dividend yield. However, financial performance is moderated by high leverage and profitability challenges, which slightly dampen the overall score.

Positive Factors

Diversified medical product portfolio

PHC's broad product mix across diagnostics, medical instruments and healthcare IT supports durable demand diversification. This reduces exposure to single-product cycles, enables cross-selling to hospitals and clinics, and stabilizes revenue versus niche peers over quarters.

R&D partnerships and emerging market focus

Ongoing R&D collaborations and explicit expansion into emerging markets strengthen long-term innovation and addressable market. Partnerships accelerate product development and licensing, while emerging-market expansion offers structural revenue growth as healthcare infrastructure investments rise.

Strong revenue growth with healthy gross margins

Robust TTM revenue growth combined with a ~46% gross margin indicates persistent product demand and pricing power. This margin profile supports reinvestment in R&D and capex and underpins sustainable cash generation, even if operating profitability needs improvement.

Negative Factors

High financial leverage

Significant leverage raises interest and refinancing risk, reducing financial flexibility for capex or M&A. In a cyclical healthcare investment environment, high debt can constrain strategic moves, increase cost of capital, and amplify downside in weaker revenue periods.

Low net profitability

A low net margin versus a healthy gross margin suggests elevated operating or non-operating costs that erode shareholder returns. Persistently slim net margins limit retained earnings and cushion against shocks, and reduce internal funding for growth initiatives over time.

Weaker free cash flow dynamics

Declining FCF and a very low operating-cash-flow to net-income ratio signal earnings quality and conversion issues. This constrains long-term investment, dividend sustainability and forces reliance on debt or equity to fund expansion, exacerbating leverage concerns.

PHC Holdings Corp. Business Overview & Revenue Model

Company Description

PHC Holdings Corporation, through its subsidiaries, develops, manufactures, and sells medical devices, healthcare technology solutions, and life science products. The company offers blood glucose monitoring systems and other testing/analysis devices, as well as data linkage solutions; anatomical pathology solutions, such as instruments, microscope slides, and dyeing reagents; and equipment and services for various sample preservation and cell culture in the life sciences field. It also provides healthcare IT products in the field of medical information systems for clinics and healthcare insurance pharmacies. In addition, the company engages in clinical testing, diagnostic reagents, and drug development support businesses. The company was formerly known as Panasonic Healthcare Holdings Co., Ltd. and changed its name to PHC Holdings Corporation in April 2018. The company was founded in 2014 and is headquartered in Tokyo, Japan.

How the Company Makes Money

PHC Holdings Corp. generates revenue through multiple key streams, primarily from the sale of medical devices and diagnostic products. The company offers a range of products including blood glucose monitoring systems, automated clinical analyzers, and other medical supplies that cater to hospitals, clinics, and healthcare providers. Additionally, PHC Holdings engages in research and development partnerships with other healthcare organizations, which not only enhances its product offerings but also contributes to revenue through collaborative projects and licensing agreements. The company's strategic focus on expanding its presence in emerging markets and investing in cutting-edge technology further drives its earnings, allowing it to tap into new customer segments and increase market share.

PHC Holdings Corp. Financial Statement Overview

Summary

PHC Holdings Corp. demonstrates solid revenue growth and operational efficiency, but faces challenges with profitability and high leverage. The balance sheet reflects significant debt, which could impact financial stability. Cash flow generation is adequate, though recent declines in free cash flow warrant attention. Overall, the company is performing well but should focus on improving profitability and managing debt levels.

Income Statement

PHC Holdings Corp. shows a strong revenue growth rate of 23.4% in the TTM, indicating robust sales performance. The gross profit margin is healthy at 46.3%, although there is a slight decline from previous periods. Net profit margin is modest at 3.1%, reflecting some profitability challenges. EBIT and EBITDA margins are stable, suggesting efficient operational management.

Balance Sheet

The company's debt-to-equity ratio is high at 1.82, indicating significant leverage, which could pose financial risks. Return on equity is moderate at 8.2%, showing reasonable returns for shareholders. The equity ratio is relatively low, suggesting a higher reliance on debt financing.

Cash Flow

Operating cash flow is strong, but free cash flow has decreased by 5.3% in the TTM, which could impact future investments. The operating cash flow to net income ratio is low at 0.12, indicating potential cash flow constraints. However, the free cash flow to net income ratio is healthy at 0.76, showing good cash generation relative to profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	361.11B	361.59B	353.90B	356.43B	340.45B	306.07B
Gross Profit	164.59B	166.22B	157.97B	169.13B	165.24B	143.65B
EBITDA	52.16B	52.33B	30.15B	36.76B	37.56B	62.29B
Net Income	5.83B	10.48B	-12.89B	-3.22B	-8.46B	16.91B
Balance Sheet
Total Assets	525.82B	532.48B	564.33B	561.57B	591.32B	569.02B
Cash, Cash Equivalents and Short-Term Investments	36.85B	39.59B	51.82B	63.25B	97.63B	63.96B
Total Debt	247.69B	255.26B	285.05B	292.62B	307.94B	321.55B
Total Liabilities	379.78B	391.31B	425.16B	422.74B	455.26B	461.46B
Stockholders Equity	146.66B	141.64B	139.51B	138.01B	135.37B	107.02B
Cash Flow
Free Cash Flow	30.17B	30.33B	26.67B	9.86B	39.32B	35.70B
Operating Cash Flow	40.26B	41.94B	41.30B	21.38B	51.05B	47.85B
Investing Cash Flow	-7.73B	-8.47B	-21.07B	-17.52B	-12.52B	-16.31B
Financing Cash Flow	-35.71B	-39.07B	-39.14B	-40.83B	-7.01B	-20.39B

PHC Holdings Corp. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1112.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6523, the sentiment is Neutral. The current price of 1112 is below the 20-day moving average (MA) of 1146.55, above the 50-day MA of 1100.62, and above the 200-day MA of 990.02, indicating a neutral trend. The MACD of -3.79 indicates Positive momentum. The RSI at 38.53 is Neutral, neither overbought nor oversold. The STOCH value of 15.79 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6523.

PHC Holdings Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6678	78 Outperform	¥18.97B	15.65	―	3.02%	-4.36%	-14.92%
6823	69 Neutral	¥33.77B	11.33	―	2.93%	6.72%	20.01%
6523	68 Neutral	¥137.37B	23.49	4.32%	3.73%	0.04%	―
6849	68 Neutral	¥285.97B	15.45	―	1.92%	4.31%	96.31%
4549	66 Neutral	¥78.86B	20.58	―	2.31%	4.36%	79.43%
7600	58 Neutral	¥12.80B	-12.14	―	3.12%	3.59%	-163.08%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%