Procrea Holdings,Inc. (7384) AI Stock Analysis

• Market Cap: ¥76.02B
• Dividend Yield: 2.42%
• Average Volume (3M): 59.77K
• Price to Earnings (P/E): 102.6
• Beta (1Y): 0.90
• 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: 54,130
• 30 Day Avg. Volume: 59,766
• 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: 55 Neutral
• Price Target: ¥2,743.00 ▲(60.97% Upside)

The score is held back primarily by weak profitability and high leverage in the financials, and a very high P/E valuation. These negatives are partially offset by strong price momentum (well above key moving averages with positive MACD) and solid cash-flow conversion.

Positive Factors

Diversified fertility business model

Procrea's mix of assisted-reproduction services, device sales and clinic partnerships creates recurring procedure fees and product revenue. This diversification supports revenue resilience, helps cross-sell, and underpins durable demand as fertility services are typically non-cyclical and service-driven.

Consistent top-line growth

Double-digit reported revenue growth indicates sustained demand and expanding market penetration. Persistent growth over multiple periods provides room to scale fixed-costs, invest in R&D and improve operational leverage, supporting medium-term stability in cash flow and strategic investments.

Strong cash conversion

Near-parity of free cash flow to net income and healthy operating-cash-to-income shows efficient cash conversion from operations. Reliable cash generation supports funding of capex, working capital, dividends or debt servicing without relying solely on external financing, bolstering financial durability.

Negative Factors

High financial leverage

A debt-to-equity ratio this high materially raises refinancing and interest-rate risk and limits flexibility to fund growth or absorb shocks. With elevated leverage, the company faces higher fixed costs and reduced optionality for strategic investments or acquisitions over the medium term.

Weak operating profitability

Very low net margin and negative EBIT margin indicate core operations struggle to cover costs. Persistent negative operating profitability undermines ability to self-fund growth, erodes returns on capital and exacerbates vulnerability to rising input or interest costs in the coming months.

Earnings volatility and decline

A steep EPS decline signals volatile or deteriorating profitability and reduces retained earnings available for reinvestment. This level of earnings compression can strain stakeholder confidence and impede long-term planning, making capital allocation and deleveraging harder.

Procrea Holdings,Inc. Business Overview & Revenue Model

Company Description

Procrea Holdings, Inc. (7384) is a leading company in the biotechnology sector, specializing in reproductive health and fertility solutions. The company focuses on developing and providing innovative products and services that enhance reproductive outcomes, including advanced assisted reproductive technologies, fertility preservation methods, and related medical devices. Procrea Holdings aims to support individuals and families in their journey to parenthood through its comprehensive suite of offerings in reproductive medicine.

How the Company Makes Money

Procrea Holdings generates revenue primarily through the sale of its fertility-related products and services. This includes fees for assisted reproductive technology procedures, such as in-vitro fertilization (IVF) and egg freezing, which are significant revenue streams. The company also earns income from the sale of medical devices and consumables used in reproductive health treatments. Additionally, Procrea Holdings may engage in partnerships with healthcare providers and fertility clinics, which can lead to collaborative ventures and shared revenue opportunities. The company's focus on innovation and research helps it to stay competitive in the market, potentially driving growth through new product introductions and expanded service offerings.

Procrea Holdings,Inc. Financial Statement Overview

Summary

Mixed fundamentals: revenue growth is positive (6.08%) and cash conversion is strong (FCF to net income 0.99; operating cash flow to net income 1.24), but profitability is weak (net margin 2.04%, EBIT margin -13.76%) and leverage is high (debt-to-equity 3.60) with low ROE (0.78%).

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: Negative
• 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 2480.35, below the 50-day MA of 2103.24, and below the 200-day MA of 1709.45, indicating a bullish trend. The MACD of 174.06 indicates Negative momentum. The RSI at 75.37 is Negative, neither overbought nor oversold. The STOCH value of 61.19 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	¥83.65B	12.95	―	3.05%	8.75%	-12.68%
8344	74 Outperform	¥67.89B	13.89	―	2.89%	-0.24%	95.49%
8362	73 Outperform	¥68.24B	16.91	―	2.49%	7.08%	-46.44%
8541	72 Outperform	¥66.34B	10.76	―	2.34%	-0.97%	27.62%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
7384	55 Neutral	¥76.02B	102.58	―	2.42%	13.20%	-84.88%
8550	52 Neutral	¥87.33B	-4.54	―	2.12%	10.91%	-1225.48%

Procrea Holdings,Inc. Corporate Events

Procrea Holdings Reports Large Unrealized Bond Losses, Keeps Earnings Outlook Unchanged

Procrea Holdings said its subsidiary Aomori Michinoku Bank booked unrealized losses of ¥10,389 million on held-to-maturity bonds as of December 31, 2025, a figure that far exceeds the group’s most recent full-year consolidated ordinary profit and profit attributable to owners of parent. Despite the sharp negative swing in the valuation of these securities, the company stated that there will be no change to its previously announced consolidated earnings and dividend forecasts for the fiscal year ending March 31, 2026, indicating management’s view that the impact is contained and does not warrant a revision to current guidance.

The most recent analyst rating on (JP:7384) stock is a Sell with a Yen2499.00 price target. To see the full list of analyst forecasts on Procrea Holdings,Inc. stock, see the JP:7384 Stock Forecast page.

Procrea Holdings to Merge Leasing Subsidiaries and Rebrand Group Units

Procrea Holdings will merge its wholly owned leasing subsidiaries Aogin Lease, Inc. and Michinoku Leasing Co., Ltd. in an absorption-type transaction, with Aogin Lease as the surviving entity to be renamed Aomori Michinoku Lease Co., Ltd. on July 1, 2026. The reorganization, which involves no capital increase, share allocation or cash consideration, is part of the company’s second medium-term management plan and is aimed at strengthening group-wide capabilities by consolidating know-how, information and networks, improving management efficiency, and expanding earning opportunities; the group will also change the trade names of several other consolidated subsidiaries to further unify its brand and operations.

The most recent analyst rating on (JP:7384) stock is a Hold with a Yen1740.00 price target. To see the full list of analyst forecasts on Procrea Holdings,Inc. stock, see the JP:7384 Stock Forecast page.

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.

The most recent analyst rating on (JP:7384) stock is a Hold with a Yen1740.00 price target. To see the full list of analyst forecasts on Procrea Holdings,Inc. stock, see the JP:7384 Stock Forecast page.