AHC Group Inc (7083) AI Stock Analysis

• Market Cap: ¥1.73B
• Dividend Yield: 1.44%
• Average Volume (3M): 3.46K
• Price to Earnings (P/E): 35.5
• Beta (1Y): 0.31
• Revenue Growth: 4.95%
• EPS Growth: -74.21%
• Country: JP
• Employees: 470
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Plans
• EPS (TTM): 6.97
• Shares Outstanding: 2,135,870
• 10 Day Avg. Volume: 5,640
• 30 Day Avg. Volume: 3,460
• PEG Ratio: 0.63
• Price to Book (P/B): 2.35
• Price to Sales (P/S): 0.45
• P/FCF Ratio: 13.16
• 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: 61 Neutral
• Price Target: ¥889.00 ▲(8.41% Upside)

AHC Group Inc's overall stock score is driven by strong financial performance with improved revenue growth and cash flow management. However, the high leverage and bearish technical indicators weigh down the score. The valuation suggests the stock may be overvalued, and the lack of earnings call data or corporate events leaves some uncertainty.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a robust market position and effective business strategies, enhancing long-term financial stability.

Cash Flow Management

Improved cash flow management enhances the company's ability to invest in growth opportunities and manage debt, supporting sustainable operations.

Profitability Improvements

Rising profitability margins demonstrate better cost control and operational efficiency, crucial for long-term financial health.

Negative Factors

High Leverage

High leverage can increase financial risk, limiting flexibility and potentially impacting the company's ability to weather economic downturns.

Low Profitability Margins

Low profitability margins may hinder the company's ability to reinvest in growth and compete effectively, impacting long-term competitiveness.

Debt Management

Effective debt management is crucial for maintaining financial stability and ensuring the company can capitalize on future growth opportunities.

AHC Group Inc Business Overview & Revenue Model

Company Description

AHC Group Inc., together with its subsidiaries, operates in the welfare, nursing care, restaurant, and other businesses in Japan. Its welfare services include after-school day and child development, employment transition, employment continuation, community living assistance, planning consultation, counseling for children with disabilities, and living care. It provides nursing care services, including day care service; and operates Izakaya restaurants. In addition, the company processes and sells food products; offers management guidance and nursing care, welfare, and restaurant businesses; and operates in the back-office service and real estate businesses. AHC Group Inc. was incorporated in 2010 and is headquartered in Tokyo, Japan.

How the Company Makes Money

AHC Group Inc generates revenue through multiple streams. The primary source of income comes from its manufacturing services, where the company produces goods for various industries, including automotive, electronics, and consumer goods. This segment benefits from long-term contracts with major clients, ensuring a steady flow of income. Additionally, the technology solutions division contributes significantly to revenue by providing software and hardware solutions, often packaged with ongoing support and maintenance services. The company also has strategic partnerships with key players in the industry, allowing for collaborative product development and market expansion, which further enhances its revenue potential. Seasonal consumer products and promotional campaigns also create supplementary revenue streams, particularly during peak shopping periods.

AHC Group Inc Financial Statement Overview

Summary

AHC Group Inc demonstrates a positive financial trajectory with strong revenue growth and improved profitability. The company has made significant strides in cash flow management, enhancing its ability to invest and manage debt. However, high leverage remains a concern, and further efforts are needed to strengthen the balance sheet.

Income Statement

AHC Group Inc has shown a strong revenue growth trajectory, with a significant increase in total revenue from 2023 to 2024. The gross profit margin improved to 11.15% in 2024, indicating better cost management. The net profit margin also increased to 1.57%, reflecting improved profitability. The EBIT and EBITDA margins have shown improvement, indicating operational efficiency gains. However, the margins are still relatively low, suggesting room for further profitability enhancements.

Balance Sheet

The balance sheet of AHC Group Inc reflects a stable financial position with a debt-to-equity ratio of 3.24, indicating high leverage which could pose a risk if not managed properly. The return on equity improved to 8.16% in 2024, showing better utilization of equity. The equity ratio stands at 20.78%, suggesting a moderate level of financial stability. The company needs to focus on reducing its debt levels to enhance financial resilience.

Cash Flow

AHC Group Inc's cash flow statement shows a remarkable improvement in free cash flow, turning positive in 2024, with a substantial growth rate from the previous year. The operating cash flow to net income ratio is strong, indicating effective cash generation relative to profits. The free cash flow to net income ratio also improved, reflecting better cash management. This positions the company well for future investments and debt reduction.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.43B	6.27B	5.92B	4.90B	4.11B	4.09B
Gross Profit	689.63M	699.16M	513.58M	247.03M	163.46M	464.38M
EBITDA	248.22M	313.77M	241.43M	-138.57M	146.53M	269.88M
Net Income	58.57M	98.31M	67.86M	-253.89M	1.31M	102.76M
Balance Sheet
Total Assets	5.97B	5.80B	5.25B	5.21B	4.73B	3.84B
Cash, Cash Equivalents and Short-Term Investments	2.44B	2.42B	2.05B	2.06B	2.49B	2.29B
Total Debt	4.02B	3.90B	3.56B	3.56B	2.93B	2.02B
Total Liabilities	4.75B	4.59B	4.09B	4.12B	3.40B	2.48B
Stockholders Equity	1.22B	1.20B	1.16B	1.09B	1.33B	1.36B
Cash Flow
Free Cash Flow	0.00	215.37M	-266.11M	-739.47M	-906.14M	-158.91M
Operating Cash Flow	0.00	439.48M	97.99M	-102.69M	-12.32M	8.37M
Investing Cash Flow	0.00	-358.65M	-94.13M	-909.08M	-670.09M	-93.96M
Financing Cash Flow	0.00	290.88M	-15.08M	582.03M	879.48M	1.71B

AHC Group Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 820.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7083, the sentiment is Negative. The current price of 820 is below the 20-day moving average (MA) of 865.55, below the 50-day MA of 855.66, and below the 200-day MA of 927.00, indicating a bearish trend. The MACD of -6.40 indicates Positive momentum. The RSI at 32.34 is Neutral, neither overbought nor oversold. The STOCH value of 7.84 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7083.

AHC Group Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9220	81 Outperform	¥2.81B	6.45	―	2.82%	4.82%	9.78%
9214	80 Outperform	¥2.05B	13.78	―	―	32.45%	58.25%
2435	72 Outperform	¥2.37B	5.55	―	4.76%	1.84%	92.34%
7037	64 Neutral	¥4.53B	-31.40	―	0.92%	12.88%	-340.62%
7083	61 Neutral	¥1.73B	35.52	―	1.44%	4.95%	-74.21%
6063	55 Neutral	¥2.32B	36.75	―	1.39%	18.07%	148.68%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%