Procrea Holdings,Inc. (7384) AI Stock Analysis

• Market Cap: ¥49.34B
• Dividend Yield: 2.88%
• Average Volume (3M): 65.65K
• Price to Earnings (P/E): 66.6
• Beta (1Y): 0.86
• Revenue Growth: 13.20%
• EPS Growth: -84.88%
• Country: JP
• Employees: 2,407
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 18.72
• Shares Outstanding: 28,658,957
• 10 Day Avg. Volume: 60,040
• 30 Day Avg. Volume: 65,650
• PEG Ratio: -0.70
• Price to Book (P/B): 0.31
• Price to Sales (P/S): 0.62
• P/FCF Ratio: 0.23
• 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: 57 Neutral
• Price Target: ¥1,740.00 ▲(2.11% Upside)

The overall stock score is driven by a mixed financial performance with strong cash flow but weak profitability and high leverage. Technical analysis suggests a neutral to slightly positive trend, while valuation indicates the stock may be overvalued. The absence of earnings call and corporate events data limits additional insights.

Positive Factors

Revenue Growth

Procrea Holdings' positive revenue growth indicates a strong demand for its fertility-related products and services, suggesting a solid market position and potential for continued expansion in the biotechnology and pharmaceutical sectors.

Cash Flow Generation

Strong cash flow generation reflects efficient operations and provides the company with the financial flexibility to invest in R&D, pay down debt, or return capital to shareholders, supporting long-term growth and stability.

Innovative Business Model

Procrea Holdings' focus on innovation in reproductive health positions it as a leader in a niche market, enabling it to capture a growing demand for fertility solutions and maintain a competitive edge through cutting-edge products and services.

Negative Factors

High Leverage

High leverage poses risks to financial stability, especially if revenue growth stalls or interest rates rise, potentially limiting the company's ability to invest in growth opportunities and affecting long-term sustainability.

Weak Profitability

Weak profitability indicates challenges in cost management and operational efficiency, which can hinder the company's ability to generate sustainable earnings and affect its competitive position in the long term.

Volatile Cash Generation

Volatility in cash generation can impact the company's ability to consistently fund operations and growth initiatives, potentially affecting its financial health and strategic flexibility over time.

Procrea Holdings,Inc. Business Overview & Revenue Model

Company Description

Procrea Holdings,Inc. operates as a holding company for The Aomori Bank,Ltd. and The Michinoku Bank,Ltd. that provides banking products and services. It offers credit cards, credit guarantees, and credit management and collection services; and engages in consulting, leasing, and real estate management business. The company was incorporated in 2022 and is headquartered in Aomori, Japan.

How the Company Makes Money

Procrea Holdings generates revenue through multiple streams, primarily by offering a range of fertility-related products and services, including advanced reproductive technologies, fertility medications, and diagnostic services. The company also collaborates with healthcare institutions and clinics to provide comprehensive fertility solutions, which involves revenue-sharing agreements. Additionally, Procrea Holdings may benefit from partnerships with pharmaceutical companies for the development and distribution of proprietary medications, further enhancing its revenue potential through licensing deals and royalties. The company's focus on research and development allows it to stay at the forefront of innovation in reproductive health, which can lead to new product launches and increased market share.

Procrea Holdings,Inc. Financial Statement Overview

Summary

The financial performance is mixed. Revenue growth is positive, but profitability metrics are weak, with a negative EBIT margin and low net profit margin. The balance sheet shows high leverage, which poses risks, but cash flow generation is strong, indicating efficient cash conversion.

Income Statement

The income statement reveals mixed performance. Revenue growth is positive at 6.08% in the latest year, indicating a recovery from the previous year's decline. However, profitability metrics such as the net profit margin (2.04%) and EBIT margin (-13.76%) are weak, suggesting challenges in cost management and operational efficiency. The negative EBIT margin is particularly concerning for long-term sustainability.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 3.60, indicating significant leverage, which could pose risks if interest rates rise or if revenue growth stalls. Return on equity is low at 0.78%, reflecting limited profitability relative to shareholder equity. The equity ratio is not directly provided, but the high leverage suggests a low equity buffer.

Cash Flow

Cash flow analysis indicates strong free cash flow generation, with a free cash flow to net income ratio of 0.99, suggesting efficient cash conversion. The operating cash flow to net income ratio of 1.24 is healthy, indicating good cash flow relative to earnings. However, the previous year's negative operating cash flow highlights potential volatility in cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	77.90B	77.67B	70.21B	71.14B
Gross Profit	77.90B	73.77B	69.76B	70.09B
EBITDA	-5.88B	6.69B	6.85B	53.42B
Net Income	1.60B	1.23B	2.82B	48.96B
Balance Sheet
Total Assets	6.21T	6.06T	5.97T	5.97T
Cash, Cash Equivalents and Short-Term Investments	0.00	1.48T	1.21T	1.12T
Total Debt	601.86B	570.66B	426.47B	480.93B
Total Liabilities	6.05T	5.90T	5.81T	5.79T
Stockholders Equity	162.84B	158.30B	167.35B	184.44B
Cash Flow
Free Cash Flow	0.00	213.22B	-24.03B	-510.94B
Operating Cash Flow	0.00	215.26B	-19.79B	-508.45B
Investing Cash Flow	0.00	119.69B	104.33B	72.62B
Financing Cash Flow	0.00	-69.56B	61.18B	-2.87B

Procrea Holdings,Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1704.00
• 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:7384, the sentiment is Positive. The current price of 1704 is below the 20-day moving average (MA) of 1720.95, below the 50-day MA of 1711.84, and above the 200-day MA of 1607.15, indicating a bullish trend. The MACD of 7.68 indicates Negative momentum. The RSI at 52.89 is Neutral, neither overbought nor oversold. The STOCH value of 57.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7384.

Procrea Holdings,Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8387	78 Outperform	¥67.82B	10.50	―	3.21%	8.75%	-12.68%
8541	78 Outperform	¥49.11B	8.46	―	2.49%	-0.97%	27.62%
8344	74 Outperform	¥52.30B	12.20	―	3.04%	-0.24%	95.49%
8362	73 Outperform	¥55.68B	13.80	―	2.57%	7.08%	-46.44%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
7384	57 Neutral	¥49.34B	66.58	―	2.88%	13.20%	-84.88%
8550	56 Neutral	¥58.60B	-2.69	―	2.17%	10.91%	-1225.48%

Procrea Holdings,Inc. Corporate Events

Procrea Holdings Reports Mixed Financial Results for H1 2025

Procrea Holdings, Inc. reported its consolidated financial results for the six months ended September 30, 2025, showing a 13% increase in ordinary income but a decline in ordinary profit and profit attributable to owners compared to the previous year. Despite the decrease in earnings per share, the company maintained a stable equity-to-asset ratio and announced a consistent dividend forecast, indicating a steady financial position and commitment to shareholder returns.

Procrea Holdings Reports Unrealized Losses with No Impact on Financial Forecasts

Procrea Holdings, Inc. announced unrealized losses of 8,271 million yen on securities held by its subsidiary, Aomori Michinoku Bank, for the six months ending September 30, 2025. Despite these losses, the company stated that there would be no impact on its consolidated financial results or dividend forecasts for the fiscal year ending March 31, 2026, indicating stability in its financial outlook.