PHC Holdings Corp. (6523) AI Stock Analysis

• Market Cap: ¥137.37B
• Dividend Yield: 3.87%
• Average Volume (3M): 164.09K
• Price to Earnings (P/E): 23.5
• Beta (1Y): 0.50
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ¥1,164.00 ▲(7.38% 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

Revenue Growth

The robust revenue growth rate of 23.4% indicates strong sales performance, suggesting effective market penetration and product demand.

Operational Efficiency

Stable EBIT and EBITDA margins reflect effective cost management and operational efficiency, supporting long-term profitability.

Product and Market Expansion

Expansion into emerging markets and investment in technology can drive future growth by accessing new customer segments and enhancing product offerings.

Negative Factors

High Leverage

High leverage poses financial risks and may limit the company's ability to invest in growth opportunities or weather economic downturns.

Profitability Challenges

A modest net profit margin suggests difficulties in converting revenue into profit, which could impact long-term financial health.

Decline in Free Cash Flow

A decrease in free cash flow may constrain the company's ability to fund new projects, pay down debt, or return capital to shareholders.

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. faces challenges with declining revenue and profitability pressures, as evidenced by the negative revenue growth and low net profit margin. The balance sheet shows high leverage, which could be a risk factor, but the company maintains a moderate return on equity. Cash flow generation is improving, providing some financial flexibility. The company needs to focus on revenue growth and debt management to enhance its financial health.

Income Statement

PHC Holdings Corp. has shown a decline in revenue with a negative growth rate of -36.8% in the TTM period, indicating significant challenges in maintaining sales momentum. The gross profit margin stands at 45.97%, which is relatively healthy, but the net profit margin is low at 2.90%, reflecting limited profitability. The EBIT and EBITDA margins are moderate at 6.68% and 14.39%, respectively, suggesting some operational efficiency but room for improvement.

Balance Sheet

The company's debt-to-equity ratio is high at 1.80, indicating a significant reliance on debt financing, which could pose financial risks. Return on equity is modest at 7.45%, showing moderate efficiency in generating returns from equity. The equity ratio is approximately 26.54%, suggesting a balanced but slightly leveraged capital structure.

Cash Flow

PHC Holdings Corp. has demonstrated a positive free cash flow growth rate of 5.07% in the TTM period, indicating improved cash generation. The operating cash flow to net income ratio is 0.30, and the free cash flow to net income ratio is 0.72, reflecting a reasonable conversion of income into cash flow, though there is room for strengthening cash flow efficiency.

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: Positive
• Last Price: 1084.00
• 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:6523, the sentiment is Positive. The current price of 1084 is above the 20-day moving average (MA) of 1030.60, above the 50-day MA of 1020.66, and above the 200-day MA of 968.81, indicating a bullish trend. The MACD of 21.89 indicates Negative momentum. The RSI at 64.17 is Neutral, neither overbought nor oversold. The STOCH value of 92.52 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	74 Outperform	¥18.93B	15.61	―	3.06%	-4.36%	-14.92%
6823	69 Neutral	¥31.75B	10.19	―	2.99%	6.72%	20.01%
6523	68 Neutral	¥137.37B	23.49	4.32%	3.87%	0.04%	―
6849	68 Neutral	¥268.69B	14.52	―	1.99%	4.31%	96.31%
4549	66 Neutral	¥81.99B	21.24	―	2.25%	4.36%	79.43%
7600	58 Neutral	¥12.61B	-14.29	―	3.13%	3.59%	-163.08%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%