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Japan Hospice Holdings Inc. (JP:7061)
:7061
Japanese Market
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Japan Hospice Holdings Inc. (7061) AI Stock Analysis

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JP:7061

Japan Hospice Holdings Inc.

(7061)

Rating:63Neutral
Price Target:
¥1,145.00
▲(9.78%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. (7061) vs. iShares MSCI Japan ETF (EWJ)

Japan Hospice Holdings Inc. Business Overview & Revenue Model

Company DescriptionJapan Hospice Holdings Inc. (7061) is a Japanese company that specializes in providing hospice and palliative care services. The company operates a network of hospice facilities and offers end-of-life care to patients with terminal illnesses. Its services are designed to improve the quality of life for patients and support their families during challenging times. Japan Hospice Holdings Inc. is committed to delivering compassionate care and ensuring comfort for its patients.
How the Company Makes MoneyJapan Hospice Holdings Inc. generates revenue primarily through the provision of hospice and palliative care services. Its key revenue streams include payments from healthcare insurance providers, government healthcare programs, and out-of-pocket payments from patients or their families. The company may also engage in partnerships with healthcare facilities and organizations to expand its service offerings and reach more patients. Additionally, Japan Hospice Holdings Inc. may receive grants or funding from government or non-profit organizations dedicated to supporting end-of-life care services.

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
85
Very Positive
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
70
Positive
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
60
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue12.12B9.87B7.89B6.02B4.92B
Gross Profit2.11B1.92B1.58B1.12B860.20M
EBITDA1.82B1.79B1.40B852.01M532.54M
Net Income639.58M681.88M454.73M240.80M107.06M
Balance Sheet
Total Assets18.31B15.16B11.45B9.15B6.30B
Cash, Cash Equivalents and Short-Term Investments1.53B1.88B1.51B1.04B959.46M
Total Debt13.19B10.89B8.09B6.67B4.37B
Total Liabilities14.86B12.47B9.41B7.61B5.04B
Stockholders Equity3.45B2.69B2.01B1.54B1.26B
Cash Flow
Free Cash Flow-2.27B-865.26M340.76M-1.45B-258.12M
Operating Cash Flow835.74M1.13B873.83M467.10M236.19M
Investing Cash Flow-2.79B-1.01B48.27M-1.98B-541.74M
Financing Cash Flow1.60B256.45M-448.16M1.59B437.31M

Japan Hospice Holdings Inc. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1043.00
Price Trends
50DMA
1133.84
Negative
100DMA
1319.78
Negative
200DMA
1360.07
Negative
Market Momentum
MACD
-38.49
Negative
RSI
40.51
Neutral
STOCH
61.60
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7061, the sentiment is Neutral. The current price of 1043 is above the 20-day moving average (MA) of 1040.50, below the 50-day MA of 1133.84, and below the 200-day MA of 1360.07, indicating a neutral trend. The MACD of -38.49 indicates Negative momentum. The RSI at 40.51 is Neutral, neither overbought nor oversold. The STOCH value of 61.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7061.

Japan Hospice Holdings Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
¥3.11B8.32
2.44%2.33%-0.96%
78
Outperform
¥19.45B12.90
3.86%4.15%-25.67%
75
Outperform
¥3.14B9.86
2.67%4.85%4751.70%
72
Outperform
¥10.98B14.92
1.33%20.50%62.39%
68
Neutral
¥2.40B5.41
2.80%3.03%118.71%
63
Neutral
¥8.79B15.88
1.44%21.97%-20.94%
52
Neutral
$7.59B0.18-63.14%2.16%16.34%0.64%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7061
Japan Hospice Holdings Inc.
1,044.00
-406.08
-28.00%
JP:2374
Saint-Care Holding Corp.
776.00
-81.82
-9.54%
JP:2425
Care Service Co., Ltd.
814.00
-79.23
-8.87%
JP:2435
Cedar. Co.,Ltd
212.00
10.30
5.11%
JP:7129
Miahelsa Holdings Corporation
1,123.00
-75.32
-6.29%
JP:7133
HYUGA PRIMARY CARE Co.,Ltd.
1,509.00
-76.22
-4.81%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 02, 2025