Terminalcare Support Institute, Inc. (7362) AI Stock Analysis

• Market Cap: ¥1.26B
• Dividend Yield: N/A
• Average Volume (3M): 1.68K
• Price to Earnings (P/E): 14.8
• Beta (1Y): 0.44
• Revenue Growth: 2.81%
• EPS Growth: -42.50%
• Country: JP
• Employees: 451
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 37.97
• Shares Outstanding: 1,533,100
• 10 Day Avg. Volume: 2,080
• 30 Day Avg. Volume: 1,683
• PEG Ratio: -0.52
• Price to Book (P/B): 0.86
• Price to Sales (P/S): 0.25
• P/FCF Ratio: -1.76
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: ¥812.00 ▲(1.63% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is held back primarily by weakening profitability, rising leverage, and sustained negative free cash flow, which together elevate financial risk. Technical indicators are mildly supportive and valuation appears moderate, but these are not strong enough to offset the financial pressure.

Positive Factors

Consistent Revenue Growth

Sustained top-line growth across 2020–2025 indicates durable demand and expanding service penetration in its care facilities business. Persistent revenue expansion supports scale economics and provides a base for margin recovery and reinvestment even if profitability is pressured.

Positive Net Income

Maintaining positive net income through margin pressure demonstrates the company’s ability to generate accounting profits and continue operations. This underwriting of profitability supports creditor confidence and gives management time to restore margins without immediate solvency risk.

Defensive Operating Profile (Low Beta)

A low beta reflects lower sensitivity to market swings consistent with a medical-care facilities operator. That defensive volatility profile suggests steadier cash flows and planning reliability, which helps long-term debt management and strategic execution in a stable demand sector.

Negative Factors

Rising Leverage

A material increase in leverage over a few years reduces financial flexibility and raises interest and refinancing risk. Higher debt loads magnify the impact of any future operating setbacks and constrain the firm’s ability to invest organically or pursue opportunistic M&A without raising costly external capital.

Sustained Negative Free Cash Flow

Prolonged negative free cash flow erodes liquidity and forces reliance on external funding or asset sales to support operations and capex. Over multiple years this undermines balance-sheet resilience and increases the probability of covenant pressure or restricted strategic choices.

Margin Compression & Earnings Volatility

Shrinking gross and operating margins and swings in earnings weaken internal cash generation and reduce the cushion against cost shocks. Persistent margin deterioration makes earnings less reliable for servicing higher debt and limits capacity to rebuild reserves or fund growth.

Terminalcare Support Institute, Inc. Business Overview & Revenue Model

Company Description

Terminalcare Support Institute Inc. provides home-visit care, preventive care, home-care support, and home-visit nursing services in Japan. It also offers housing for the elderly services. The company was founded in 2010 and is headquartered in Kyoto, Japan.

How the Company Makes Money

Terminalcare Support Institute, Inc. generates revenue through multiple streams, including tuition fees from training and certification programs offered to healthcare professionals, consultation fees for personalized care strategy development, and sales of educational materials and resources related to terminal care. Additionally, the company may partner with healthcare institutions and organizations to provide tailored training solutions, earning revenue through service contracts. Grants and funding from healthcare foundations and government programs aimed at improving palliative care practices also contribute to the company's financial sustainability.

Terminalcare Support Institute, Inc. Financial Statement Overview

Summary

Despite consistent revenue growth, profitability has weakened sharply with margin compression and earnings volatility. Leverage has risen materially (debt-to-equity increasing to ~2.5x by 2025), and cash generation is a major concern with deeply negative free cash flow for three consecutive years (2023–2025).

Income Statement

Revenue has grown consistently from 2020 to 2025 (with a strong step-up in 2022 and continued growth thereafter), but profitability has weakened notably. Gross margin and overall profit margin trended down over time, and 2025 shows very thin operating profit relative to sales versus prior years (a sharp drop from 2024). Net income remains positive, but the margin compression and earnings volatility reduce confidence in current-period earnings quality.

Balance Sheet

The balance sheet is more leveraged over time, with debt rising materially versus equity: debt-to-equity increased from ~1.2x (2022) to ~2.5x (2025). Assets and equity have grown, but the faster build in debt increases financial risk and reduces flexibility if operating performance stays pressured. The trend is the key concern rather than absolute size.

Cash Flow

Cash generation has deteriorated: operating cash flow is modest in 2023–2025 versus profits, and free cash flow is deeply negative for three consecutive years (2023–2025), indicating heavy investment and/or working-capital strain not being funded by internal cash generation. While 2022 showed strong cash flow and positive free cash flow, the subsequent reversal and ongoing cash burn are the primary weakness.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.78B	4.89B	4.71B	4.25B	4.10B	3.40B
Gross Profit	651.77M	626.27M	664.67M	646.76M	685.84M	599.50M
EBITDA	240.34M	205.09M	250.59M	196.83M	262.62M	247.27M
Net Income	86.90M	81.97M	113.77M	126.67M	157.54M	138.03M
Balance Sheet
Total Assets	5.32B	5.81B	4.80B	4.09B	3.05B	2.89B
Cash, Cash Equivalents and Short-Term Investments	887.13M	1.19B	1.13B	1.38B	1.09B	874.72M
Total Debt	3.26B	3.58B	2.81B	2.26B	1.22B	1.43B
Total Liabilities	4.00B	4.39B	3.49B	2.90B	1.96B	1.96B
Stockholders Equity	1.32B	1.41B	1.31B	1.19B	1.08B	927.37M
Cash Flow
Free Cash Flow	0.00	-691.25M	-780.73M	-562.25M	317.64M	-56.66M
Operating Cash Flow	0.00	287.23M	304.51M	238.18M	812.73M	462.19M
Investing Cash Flow	0.00	-1.01B	-1.10B	-836.33M	-510.68M	-523.54M
Financing Cash Flow	0.00	771.09M	545.64M	892.46M	-90.11M	523.02M

Terminalcare Support Institute, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 799.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7362, the sentiment is Positive. The current price of 799 is below the 20-day moving average (MA) of 800.75, below the 50-day MA of 804.40, and below the 200-day MA of 816.98, indicating a bullish trend. The MACD of 2.26 indicates Negative momentum. The RSI at 57.33 is Neutral, neither overbought nor oversold. The STOCH value of 74.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7362.

Terminalcare Support Institute, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9220	81 Outperform	¥2.91B	4.69	―	2.82%	4.82%	9.78%
2425	75 Outperform	¥2.98B	27.02	―	2.56%	-3.06%	-38.56%
2373	60 Neutral	¥5.75B	23.20	―	4.07%	6.08%	38.00%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
7362	49 Neutral	¥1.26B	14.80	―	―	2.81%	-42.50%
7061	45 Neutral	¥6.54B	33.86	―	1.41%	18.03%	-11.68%