Japan Hospice Holdings Inc. (7061) AI Stock Analysis

• Market Cap: ¥8.74B
• Dividend Yield: 1.45%
• Average Volume (3M): 56.35K
• Price to Earnings (P/E): 15.8
• Beta (1Y): 1.06
• Revenue Growth: 21.97%
• EPS Growth: -20.94%
• Country: JP
• Employees: 1,094
• Sector: Healthcare
• Sector Strength: 39
• Industry: Medical - Care Facilities
• EPS (TTM): 6.59
• Shares Outstanding: 8,428,100
• 10 Day Avg. Volume: 64,200
• 30 Day Avg. Volume: 56,346
• PEG Ratio: 1.56
• Price to Book (P/B): 3.78
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• Rating: 63 Neutral
• Price Target: ¥1,145.00 ▲(10.41%Upside)

The stock's strong financial performance is offset by high leverage and negative free cash flow, while bearish technical indicators suggest potential short-term risks. Valuation appears fair, but the modest dividend yield might not attract income-focused investors. Addressing leverage and cash flow concerns is essential for future growth.

Japan Hospice Holdings Inc. Business Overview & Revenue Model

Company Description

Japan Hospice Holdings Inc. is a healthcare company based in Japan, specializing in providing hospice and palliative care services. The company focuses on improving the quality of life for patients with life-limiting illnesses, offering comprehensive support that includes medical, emotional, and spiritual care. Japan Hospice Holdings Inc. operates through a network of facilities and home-care services, catering to the needs of patients and their families across various regions.

How the Company Makes Money

Japan Hospice Holdings Inc. generates revenue primarily through offering hospice and palliative care services. The company's key revenue streams include payments from public health insurance, private insurance, and direct payments from patients for services rendered. The company may also collaborate with government healthcare programs and private healthcare providers to ensure a wide reach and accessibility of their services. Through these partnerships and its network of facilities, Japan Hospice Holdings Inc. positions itself as a vital player in the end-of-life care sector, ensuring sustained revenue flow.

Japan Hospice Holdings Inc. Financial Statement Overview

Summary

Japan Hospice Holdings Inc. demonstrates robust revenue growth and stable profitability, supported by effective operational management. However, high leverage and negative free cash flow are areas of concern that the company needs to address to ensure long-term financial sustainability. The balance between growth investments and financial stability will be crucial for future performance.

Income Statement

Japan Hospice Holdings Inc. has shown strong revenue growth with a significant increase from ¥4.19 billion in 2019 to ¥12.12 billion in 2024, indicating a robust upward trajectory. Gross profit margins have been stable around 17-18%, and despite some fluctuations, the net profit margin has shown improvement, currently at 5.3% in 2024 from lower levels in previous years. EBIT and EBITDA margins remain healthy, suggesting effective cost management and operational efficiency.

Balance Sheet

The company exhibits a high debt-to-equity ratio of 3.83 in 2024, which poses a leverage risk, although the company has been consistently growing its equity base, which reflects positively on shareholder value. The return on equity has been decent, standing at around 18.6% in 2024, indicating effective use of equity to generate profits. The equity ratio is moderate, suggesting a balanced asset financing strategy despite high leverage.

Cash Flow

While operating cash flow has been positive, the company faced negative free cash flow in recent years due to substantial capital expenditures, leading to free cash flow challenges. The operating cash flow to net income ratio shows that the company has managed to convert a good portion of its income into cash, but the free cash flow to net income ratio is negative, pointing to a need for better cash flow management.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.12B	9.87B	7.89B	6.02B	4.92B
Gross Profit	2.11B	1.92B	1.58B	1.12B	860.20M
EBITDA	1.82B	1.79B	1.40B	852.01M	532.54M
Net Income	639.58M	681.88M	454.73M	240.80M	107.06M
Balance Sheet
Total Assets	18.31B	15.16B	11.45B	9.15B	6.30B
Cash, Cash Equivalents and Short-Term Investments	1.53B	1.88B	1.51B	1.04B	959.46M
Total Debt	13.19B	10.89B	8.09B	6.67B	4.37B
Total Liabilities	14.86B	12.47B	9.41B	7.61B	5.04B
Stockholders Equity	3.45B	2.69B	2.01B	1.54B	1.26B
Cash Flow
Free Cash Flow	-2.27B	-865.26M	340.76M	-1.45B	-258.12M
Operating Cash Flow	835.74M	1.13B	873.83M	467.10M	236.19M
Investing Cash Flow	-2.79B	-1.01B	48.27M	-1.98B	-541.74M
Financing Cash Flow	1.60B	256.45M	-448.16M	1.59B	437.31M

Japan Hospice Holdings Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1037.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7061, the sentiment is Negative. The current price of 1037 is below the 20-day moving average (MA) of 1161.00, below the 50-day MA of 1226.36, and below the 200-day MA of 1387.92, indicating a bearish trend. The MACD of -54.42 indicates Positive momentum. The RSI at 25.13 is Positive, neither overbought nor oversold. The STOCH value of 3.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7061.

Japan Hospice Holdings Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2425	79 Outperform	¥3.03B	8.10		2.49%	2.33%	-0.96%
2374	78 Outperform	¥18.95B	12.56		3.96%	4.15%	-25.67%
7129	75 Outperform	¥3.09B	9.70		3.08%	4.85%	4751.70%
2435	66 Neutral	¥2.37B	5.33		2.84%	3.03%	118.71%
7133	66 Neutral	¥10.01B	13.60		1.45%	20.50%	62.39%
7061	63 Neutral	¥8.74B	15.79		1.45%	21.97%	-20.94%
Sector *	46 Neutral	C$194.71M	-4.33	-8.58%	2.64%	13.66%	-0.73%