Procrea Holdings,Inc. (7384) AI Stock Analysis

• Market Cap: ¥84.68B
• Dividend Yield: 2.42%
• Average Volume (3M): 59.77K
• Price to Earnings (P/E): 1365.7
• Beta (1Y): 0.91
• Revenue Growth: 13.20%
• EPS Growth: -84.88%
• Country: JP
• Employees: 2,407
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 53.04
• 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: 56 Neutral
• Price Target: ¥3,067.00 ▲(79.99% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

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

Positive Factors

Cash conversion strength

Free cash flow roughly equals net income and operating cash flow exceeds net income, indicating reliable cash conversion. Durable cash generation supports capex, R&D, working capital needs and deleveraging options, improving resilience despite weak reported profits.

Positive revenue trend

Consistent top-line growth (positive 6.08% in the latest year) signals recovering demand for fertility services and products. Sustained revenue expansion supports scale economies, product adoption and potential margin improvement if cost structure reforms are implemented.

Diversified revenue streams

Multiple revenue streams across procedures, device sales and clinic partnerships create cross-selling opportunities and reduce reliance on any single income source. Structural diversification supports steadier revenue, resilience to clinical demand shifts and strategic market expansion.

Negative Factors

High leverage

A debt-to-equity of 3.60 indicates significant leverage that raises refinancing and interest-rate risk. Heavy indebtedness constrains strategic flexibility, forces cash allocation to interest and principal, and increases vulnerability if revenue growth slows or margins deteriorate.

Weak operating profitability

Negative EBIT margin and minimal net margin point to operating inefficiencies or elevated costs. Structural profitability weakness undermines the company's ability to self-fund growth, invest in innovation, or build reserves, making margin recovery essential for long-term sustainability.

Low return on equity

ROE of 0.78% signals poor returns on shareholder capital, reflecting limited profitability relative to equity. Coupled with high leverage and weak margins, low ROE suggests capital allocation or pricing issues that could constrain access to new equity financing for expansion.

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/net income 0.99; operating cash flow/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	Mar 2025	Mar 2024	Mar 2023
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: Positive
• RSI: Neutral
• STOCH: Negative

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 2839.95, below the 50-day MA of 2522.76, and below the 200-day MA of 1833.67, indicating a bullish trend. The MACD of 110.26 indicates Positive momentum. The RSI at 68.45 is Neutral, neither overbought nor oversold. The STOCH value of 82.06 is Negative, 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	74 Outperform	¥100.83B	6.00	―	3.05%	8.75%	-12.68%
8541	72 Outperform	¥73.96B	10.46	―	2.34%	-0.97%	27.62%
8362	69 Neutral	¥82.66B	12.07	―	2.49%	7.08%	-46.44%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8344	67 Neutral	¥83.94B	16.93	―	2.89%	-0.24%	95.49%
7384	56 Neutral	¥84.68B	1,365.68	―	2.42%	13.20%	-84.88%
8550	52 Neutral	¥106.23B	-5.53	―	2.12%	10.91%	-1225.48%

Procrea Holdings,Inc. Corporate Events

Procrea Flags Collection Risk on ¥2.15 Billion Loan Exposure but Keeps Earnings Outlook

Procrea Holdings said its banking subsidiary Aomori Michinoku Bank faces a risk of uncollectible or delayed receivables after its counterparty Sassho Bussan Co., Ltd., a Sapporo-based wooden construction firm, was hit with a suspension of bank transactions on February 9, 2026. The exposure totals 2,154 million yen in loans and discounted bills, equivalent to 1.29% of consolidated net assets, though the company reports that unsecured portions are fully covered by allowances and it is maintaining its earnings forecast for the fiscal year ending March 31, 2026.

The bank’s receivables are partly protected by collateral and provisioning, which appears to limit immediate pressure on Procrea Holdings’ balance sheet and capital. By keeping its profit outlook unchanged, management is signaling that the potential loss from Sassho Bussan is manageable within existing reserves, suggesting constrained but not systemic risk for shareholders and other stakeholders.

The most recent analyst rating on (JP:7384) stock is a Sell with a Yen2735.00 price target. To see the full list of analyst forecasts on Procrea Holdings,Inc. stock, see the JP:7384 Stock Forecast page.

Procrea Holdings Posts Higher Revenue but Lower Profit, Affirms Dividend and Strong Full-Year Outlook

Procrea Holdings reported consolidated results for the nine months ended December 31, 2025, with ordinary income rising 9.3% year on year to ¥67.9 billion, while ordinary profit edged down 0.9% to ¥7.5 billion and profit attributable to owners of parent fell 19.8% to ¥4.7 billion, leading to a decline in basic earnings per share to ¥166.97 from ¥207.99. Total assets increased slightly to ¥6.12 trillion and net assets to ¥165.7 billion, improving its equity-to-asset (capital adequacy) ratio to 2.7%, and the company reaffirmed its stable shareholder return policy with an unchanged annual dividend forecast of ¥50 per share and a full-year outlook calling for a sharp rebound in profitability, including a 105.5% year-on-year increase in ordinary profit and 160.7% rise in profit attributable to owners of parent.

The most recent analyst rating on (JP:7384) stock is a Sell with a Yen2630.00 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 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.