CUC Inc. (9158) AI Stock Analysis

• Market Cap: ¥33.42B
• Dividend Yield: N/A
• Average Volume (3M): 144.63K
• Price to Earnings (P/E): 14.1
• Beta (1Y): 0.78
• Revenue Growth: 37.50%
• EPS Growth: -22.93%
• Country: JP
• Employees: 3,743
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 7.10
• Shares Outstanding: 29,990,400
• 10 Day Avg. Volume: 247,070
• 30 Day Avg. Volume: 144,633
• PEG Ratio: 0.94
• Price to Book (P/B): 1.36
• Price to Sales (P/S): 0.85
• P/FCF Ratio: -13.21
• 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: ¥1,237.00
• Price Target Upside: 8.51% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 67 Neutral
• Price Target: ¥1,237.00 ▲(8.51% Upside)

CUC Inc.'s overall stock score is driven primarily by its strong financial performance, particularly in revenue growth and profitability. However, technical indicators suggest a lack of strong momentum, and cash flow challenges pose a risk. The valuation is reasonable, but the absence of a dividend yield may deter some investors. Addressing cash flow issues and improving market momentum could enhance the stock's attractiveness.

CUC Inc. Business Overview & Revenue Model

Company Description

CUC Inc. offers healthcare services in Japan, Asia and internationally. It provides hospital care, dialysis care, visiting nurses, and home hospices services, as well as management support services for healthcare institutions; and healthcare consulting services. The company was founded in 2014 and is based in Minato-Ku, Japan. CUC Inc. operates as a subsidiary of M3 Inc.

How the Company Makes Money

CUC Inc. generates revenue through multiple streams including the sale of software licenses, subscription fees for its cloud-based platforms, and consulting services. The company earns a significant portion of its income from long-term contracts with enterprise clients who rely on its software and services to drive digital transformation. Additionally, CUC Inc. partners with other technology firms to expand its market reach and enhance its product offerings, which contributes to its earnings. The company's focus on innovation and customer-centric solutions helps maintain a steady growth in its revenue.

CUC Inc. Financial Statement Overview

Summary

CUC Inc. shows strong revenue growth and profitability, with improving margins indicating efficient operations. The balance sheet reflects a moderate leverage position, but the high debt level requires careful management. Cash flow challenges persist, particularly with free cash flow, suggesting a need for enhanced cash management strategies. Overall, the company is on a positive trajectory but must address cash flow issues to ensure long-term stability.

Income Statement

CUC Inc. has demonstrated strong revenue growth, with a significant increase from 33.0 billion to 47.0 billion over the last year, representing a growth rate of approximately 42.5%. The gross profit margin has improved to 42.3%, indicating efficient cost management. The net profit margin stands at 6.7%, showing profitability, though there's room for improvement. EBIT and EBITDA margins are 10.1% and 19.2% respectively, reflecting solid operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is 1.47, indicating a moderate level of leverage. The return on equity (ROE) is 10.6%, suggesting decent profitability relative to shareholder equity. The equity ratio is 34.8%, showing a stable capital structure with a good proportion of assets financed by equity. However, the high level of total debt at 43.5 billion poses a risk if not managed carefully.

Cash Flow

CUC Inc. has faced challenges with free cash flow, which is negative at -3.0 billion, although it has improved from the previous year. The operating cash flow to net income ratio is 0.80, indicating that operating cash flow is not fully covering net income, which could be a concern. The free cash flow to net income ratio is negative, highlighting the need for better cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	49.44B	47.04B	33.02B	35.21B	35.31B	16.61B
Gross Profit	22.92B	19.89B	15.92B	13.78B	14.25B	7.55B
EBITDA	8.10B	9.04B	6.23B	4.95B	4.79B	2.46B
Net Income	2.37B	3.13B	2.60B	2.42B	2.71B	1.10B
Balance Sheet
Total Assets	86.17B	85.17B	62.84B	39.75B	34.53B	28.45B
Cash, Cash Equivalents and Short-Term Investments	7.04B	7.53B	8.26B	4.12B	4.36B	3.62B
Total Debt	45.36B	43.54B	26.72B	21.45B	14.90B	18.77B
Total Liabilities	56.07B	54.88B	34.83B	27.83B	24.85B	23.10B
Stockholders Equity	29.54B	29.68B	27.32B	11.70B	9.46B	4.73B
Cash Flow
Free Cash Flow	0.00	-3.04B	-747.00M	-3.23B	5.77B	1.64B
Operating Cash Flow	0.00	2.50B	4.16B	2.36B	6.62B	2.12B
Investing Cash Flow	0.00	4.45B	-14.75B	-6.68B	-1.47B	-2.42B
Financing Cash Flow	0.00	-7.60B	14.37B	3.97B	-4.43B	-591.00M

CUC Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1140.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9158, the sentiment is Negative. The current price of 1140 is below the 20-day moving average (MA) of 1177.55, below the 50-day MA of 1167.40, and below the 200-day MA of 1275.26, indicating a bearish trend. The MACD of 7.47 indicates Positive momentum. The RSI at 45.72 is Neutral, neither overbought nor oversold. The STOCH value of 34.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9158.

CUC Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2374	79 Outperform	¥20.85B	11.91	―	3.60%	4.31%	-9.01%
6197	74 Outperform	¥47.47B	10.86	―	4.19%	1.43%	―
7071	71 Outperform	¥58.69B	16.30	―	0.67%	15.60%	-51.75%
9158	67 Neutral	¥33.42B	14.08	―	―	37.50%	-22.93%
6062	63 Neutral	¥35.48B	12.10	―	3.13%	-2.42%	-31.36%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
9229	47 Neutral	¥20.92B	159.73	―	2.67%	20.41%	-251.04%

CUC Inc. Corporate Events

CUC Inc. Announces Details of 9th Stock Option Issuance

CUC Inc. has announced the details of its 9th issuance of tax-qualified stock options, following a resolution by its Board of Directors. The issuance involves 567 stock option units, with a total of 56,700 common shares. The options are priced at 79,700 yen per unit, and the exercise price is set at 121,900 yen per unit. The stock options are allocated to directors and executive officers of CUC and its subsidiaries.

The most recent analyst rating on (JP:9158) stock is a Hold with a Yen1244.00 price target. To see the full list of analyst forecasts on CUC Inc. stock, see the JP:9158 Stock Forecast page.

CUC Inc. Reports Revenue Growth Amid Profit Decline

CUC Inc. reported a significant increase in revenue by 22.6% for the three months ended June 30, 2025, compared to the same period last year. However, the company experienced a decline in operating profit and net income, with net income attributable to shareholders dropping by 78.4%. This financial performance indicates challenges in maintaining profitability despite increased revenue, which may impact stakeholder confidence and market positioning.

CUC Inc. Secures Syndicated Loan for Strategic Expansion

CUC Inc. has announced the execution of a syndicated loan agreement to secure funds for building hospice facilities in Japan and for strategic investments in its overseas operations. This move is expected to strengthen CUC’s revenue base and enhance its competitiveness, with the financial impact already reflected in the company’s forecast for the fiscal year ending March 31, 2026.

CUC Inc. Affirms Independent Operations Amid Parent Company Ownership

CUC Inc. announced its relationship with its parent company, M3, Inc., which holds 63.45% of its voting rights. Despite this significant ownership, CUC maintains independent business operations with a board of directors that includes independent outside directors to safeguard minority shareholders’ interests. This structure ensures that CUC can operate according to its management policies and strategies, while also thoroughly evaluating any transactions with M3 to prevent conflicts of interest.