Japan Hospice Holdings Inc. (7061) AI Stock Analysis

• Market Cap: ¥11.42B
• Dividend Yield: 1.08%
• Average Volume (3M): 47.89K
• Price to Earnings (P/E): 21.2
• Beta (1Y): 1.16
• Revenue Growth: 18.03%
• EPS Growth: -11.68%
• Country: JP
• Employees: 1,094
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 22.44
• Shares Outstanding: 8,428,100
• 10 Day Avg. Volume: 91,680
• 30 Day Avg. Volume: 47,890
• PEG Ratio: -2.18
• Price to Book (P/B): 3.31
• Price to Sales (P/S): 0.94
• P/FCF Ratio: -5.03
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Neutral
• Price Target: ¥1,485.00 ▲(6.99% Upside)

The overall stock score is primarily driven by strong financial performance, characterized by robust revenue growth and stable profitability. However, high leverage and negative free cash flow pose risks. Technical analysis indicates neutral to slightly bullish momentum, while valuation metrics suggest moderate attractiveness.

Japan Hospice Holdings Inc. Business Overview & Revenue Model

Company Description

Japan Hospice Holdings Inc. engages in hospice housing and home care businesses in Japan. The company offers care services at hospice housing for patients with terminal cancer and intractable diseases; and home-visit nursing services. It also provides home care services, which supports medical care, including physical care and life support, as well as offers day and nursing multi-function home care services. The company was founded in 2017 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Japan Hospice Holdings generates revenue primarily through the provision of hospice and palliative care services, which are reimbursed by government health insurance programs in Japan. The company earns income from both inpatient services provided in their hospice facilities and outpatient services delivered at patients' homes. Key revenue streams include service fees for patient care, consultation fees, and additional support services such as counseling for families. The company may also engage in partnerships with healthcare providers and local governments to expand its service offerings and reach, thereby enhancing its earnings potential. Additionally, Japan Hospice Holdings may benefit from increasing demand for hospice care due to Japan's aging population, which is a significant factor contributing to its revenue growth.

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.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.13B	12.12B	9.87B	7.89B	6.02B	4.92B
Gross Profit	1.97B	2.11B	1.92B	1.58B	1.12B	860.20M
EBITDA	1.76B	1.82B	1.79B	1.40B	852.01M	532.54M
Net Income	529.62M	639.58M	681.88M	454.73M	240.80M	107.06M
Balance Sheet
Total Assets	17.98B	18.31B	15.16B	11.45B	9.15B	6.30B
Cash, Cash Equivalents and Short-Term Investments	1.40B	1.53B	1.88B	1.51B	1.04B	959.46M
Total Debt	12.91B	13.19B	10.89B	8.09B	6.67B	4.37B
Total Liabilities	14.47B	14.86B	12.47B	9.41B	7.61B	5.04B
Stockholders Equity	3.52B	3.45B	2.69B	2.01B	1.54B	1.26B
Cash Flow
Free Cash Flow	0.00	-2.27B	-865.26M	340.76M	-1.45B	-258.12M
Operating Cash Flow	0.00	835.74M	1.13B	873.83M	467.10M	236.19M
Investing Cash Flow	0.00	-2.79B	-1.01B	48.27M	-1.98B	-541.74M
Financing Cash Flow	0.00	1.60B	256.45M	-448.16M	1.59B	437.31M

Japan Hospice Holdings Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1388.00
• 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:7061, the sentiment is Positive. The current price of 1388 is above the 20-day moving average (MA) of 1356.95, above the 50-day MA of 1345.88, and above the 200-day MA of 1326.33, indicating a bullish trend. The MACD of 3.55 indicates Negative momentum. The RSI at 54.78 is Neutral, neither overbought nor oversold. The STOCH value of 87.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
2374	75 Outperform	¥20.65B	11.80	―	2.47%	3.88%	0.31%
2425	75 Outperform	¥3.03B	11.54	―	2.53%	-3.06%	-38.56%
7133	74 Outperform	¥9.13B	12.98	―	1.58%	18.58%	-6.30%
2435	72 Outperform	¥2.54B	5.40	―	4.52%	2.45%	205.19%
7061	70 Neutral	¥11.42B	21.15	―	1.08%	18.03%	-11.68%
7129	68 Neutral	¥3.14B	9.35	―	2.67%	4.69%	103.59%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%