AHC Group Inc (7083) AI Stock Analysis

• Market Cap: ¥2.03B
• Dividend Yield: 1.05%
• Average Volume (3M): 3.25K
• Price to Earnings (P/E): 33.4
• Beta (1Y): 0.27
• Revenue Growth: 4.38%
• EPS Growth: -67.73%
• Country: JP
• Employees: 470
• Sector: Healthcare
• Sector Strength: 44
• Industry: Medical - Healthcare Plans
• EPS (TTM): 8.63
• Shares Outstanding: 2,135,870
• 10 Day Avg. Volume: 3,020
• 30 Day Avg. Volume: 3,250
• PEG Ratio: -2.44
• Price to Book (P/B): 1.69
• 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: ¥1,051.00
• Price Target Upside: 9.37% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 67 Neutral
• Price Target: ¥1,040.00 ▲(8.22%Upside)

AHC Group Inc's stock score is influenced primarily by its strong financial improvements and moderate technical indicators. The company's solid cash flow generation and profitability gains are significant strengths. However, high leverage and a relatively high P/E ratio are notable risks, impacting the overall valuation.

AHC Group Inc Business Overview & Revenue Model

Company Description

AHC Group Inc (7083) is a Japanese company engaged primarily in the healthcare and medical sectors. The company specializes in providing a wide range of products and services, including medical equipment, pharmaceuticals, and health-related goods. AHC Group Inc is committed to enhancing the quality of life and ensuring optimal health outcomes through its innovative offerings, which are designed to meet the diverse needs of healthcare providers and patients.

How the Company Makes Money

AHC Group Inc generates revenue through the sale of its medical equipment and pharmaceuticals, which constitute its primary revenue streams. The company collaborates with hospitals, clinics, and other healthcare facilities to supply essential medical products. Additionally, AHC Group Inc may engage in partnerships with other firms in the healthcare sector to expand its product offerings and reach. The company also benefits from ongoing research and development efforts that lead to new product innovations, helping to drive sales and maintain competitive advantage in the healthcare market.

AHC Group Inc Financial Statement Overview

Summary

AHC Group Inc shows a positive financial trajectory with strong improvements in profitability and cash flow. The income statement reflects better cost management and revenue growth, while the cash flow demonstrates substantial liquidity improvements. However, the balance sheet's high leverage is a potential risk.

Income Statement

AHC Group Inc has demonstrated a strong recovery in its income statement metrics. The gross profit margin improved from 8.68% to 11.15% over the last year, reflecting better cost management. Net profit margin also increased from 1.15% to 1.57%, and EBIT margin rose significantly from 0.35% to 2.31%. Revenue growth rate over the past year was 5.97%, indicating a rising top-line trajectory. However, the EBITDA margin showed only a slight improvement from 4.08% to 4.73%, suggesting room for operational efficiency gains.

Balance Sheet

The balance sheet of AHC Group Inc shows a solid equity base with an equity ratio of 20.78%. The debt-to-equity ratio is relatively high at 3.24, which might pose a risk if not managed prudently. Return on equity improved to 8.16%, highlighting better utilization of equity capital. However, the high leverage could be a potential concern if interest rates rise or earnings falter.

Cash Flow

AHC Group Inc experienced a substantial improvement in free cash flow, turning positive this year with a growth rate of 180.94%. The operating cash flow to net income ratio is robust at 4.47, indicating strong cash generation from operations. The free cash flow to net income ratio is also healthy, reflecting effective capital expenditure management. These metrics suggest strong liquidity and cash management practices.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.27B	5.92B	4.90B	4.11B	4.09B
Gross Profit	699.16M	513.58M	247.03M	163.46M	464.38M
EBITDA	313.77M	241.43M	-123.99M	-25.07M	269.88M
Net Income	98.31M	67.86M	-253.89M	1.31M	102.76M
Balance Sheet
Total Assets	5.80B	5.25B	5.21B	4.73B	3.84B
Cash, Cash Equivalents and Short-Term Investments	2.42B	2.05B	2.06B	2.49B	2.29B
Total Debt	3.90B	3.56B	3.56B	2.93B	2.02B
Total Liabilities	4.59B	4.09B	4.12B	3.40B	2.48B
Stockholders Equity	1.20B	1.16B	1.09B	1.33B	1.36B
Cash Flow
Free Cash Flow	215.37M	-266.11M	-739.47M	-906.14M	-158.91M
Operating Cash Flow	439.48M	97.99M	-102.69M	-12.32M	8.37M
Investing Cash Flow	-358.65M	-94.13M	-909.08M	-670.09M	-93.96M
Financing Cash Flow	290.88M	-15.08M	582.03M	879.48M	1.71B

AHC Group Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 961.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 961 is above the 20-day moving average (MA) of 959.85, below the 50-day MA of 973.08, and below the 200-day MA of 1095.33, indicating a bearish trend. The MACD of -2.52 indicates Positive momentum. The RSI at 42.64 is Neutral, neither overbought nor oversold. The STOCH value of 27.88 is Neutral, 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
9214	80 Outperform	¥1.89B	11.84		―	27.30%	34.86%
9220	76 Outperform	¥2.65B	6.93		3.79%	5.85%	-22.29%
7083	67 Neutral	¥2.03B	33.35		1.05%	4.38%	-67.73%
2435	65 Neutral	¥2.37B	5.33		2.84%	3.03%	118.71%
7037	56 Neutral	¥2.29B	―		1.84%	10.80%	-559.06%
Sector *	52 Neutral	$7.47B	-0.04	-63.86%	2.34%	16.17%	0.25%
6063	47 Neutral	¥2.51B	28.04		1.62%	9.28%	―