AHC Group Inc (7083) AI Stock Analysis

• Market Cap: ¥1.86B
• Dividend Yield: 1.14%
• Average Volume (3M): 2.94K
• Price to Earnings (P/E): 38.1
• Beta (1Y): 0.26
• Revenue Growth: 4.95%
• EPS Growth: -74.21%
• Country: JP
• Employees: 470
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Plans
• EPS (TTM): 6.95
• Shares Outstanding: 2,135,870
• 10 Day Avg. Volume: 3,410
• 30 Day Avg. Volume: 2,943
• 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: ¥1,018.00
• Price Target Upside: 13.62% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 63 Neutral
• Price Target: ¥1,018.00 ▲(13.62% Upside)

AHC Group Inc shows a positive financial trajectory with strong revenue growth and improved cash flow management, which are significant strengths. However, the high leverage and low profitability margins are concerns. The technical analysis indicates a bearish trend, and the valuation suggests the stock may be overvalued. These factors contribute to a moderate overall stock score.

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

The company makes money primarily through the provision of healthcare management and consulting services. This includes offering strategic planning, operational improvement, and management solutions to healthcare facilities, such as hospitals and clinics. AHC Group Inc may also generate revenue through partnerships with healthcare providers or organizations, leveraging its expertise to enhance the efficiency and effectiveness of healthcare delivery. Additionally, the company might engage in service agreements or contracts that provide a steady stream of income over time. The company's success is likely influenced by its ability to maintain strong relationships within the healthcare industry and adapt to regulatory changes.

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: 896.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 896 is above the 20-day moving average (MA) of 882.45, below the 50-day MA of 918.28, and below the 200-day MA of 986.98, indicating a bearish trend. The MACD of -9.93 indicates Negative momentum. The RSI at 42.02 is Neutral, neither overbought nor oversold. The STOCH value of 59.03 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	¥2.19B	14.65	―	―	32.45%	58.25%
9220	78 Outperform	¥3.01B	7.43	―	2.76%	5.37%	-9.33%
2435	66 Neutral	¥2.52B	5.37	―	4.44%	2.45%	205.19%
7083	63 Neutral	¥1.86B	38.07	―	1.14%	4.95%	-74.21%
6063	55 Neutral	¥2.50B	34.37	―	1.31%	18.81%	―
7037	55 Neutral	¥4.21B	―	―	1.02%	11.52%	-645.05%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%