CUC Inc. (9158) AI Stock Analysis

• Market Cap: ¥26.76B
• Dividend Yield: N/A
• Average Volume (3M): 143.75K
• Price to Earnings (P/E): 14.9
• Beta (1Y): 0.81
• Revenue Growth: 31.65%
• EPS Growth: -51.36%
• Country: JP
• Employees: 3,743
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 27.98
• Shares Outstanding: 29,990,400
• 10 Day Avg. Volume: 142,970
• 30 Day Avg. Volume: 143,746
• 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: ¥1,050.00
• Price Target Upside: 23.82% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 86.84
• Revenue Forecast (FY): ¥55.38B

• Rating: 68 Neutral
• Price Target: ¥1,089.00 ▲(28.42% Upside)
• Action: Reiterated Date: 02/04/26
• Date: Action: Reiterated 02/04/26

The score is driven primarily by strong financial performance in growth and margins, offset by negative free cash flow and only moderate cash conversion. Technically, the stock shows mixed signals with weak longer-term trend and negative MACD despite neutral RSI and some near-term support. Valuation appears reasonable with a mid-teens P/E, but no dividend data is available to add support.

Positive Factors

Revenue Growth

Revenue growth of ~42.5% reflects strong and durable demand for CUC's care services and expanding market penetration. Sustained top-line expansion increases scale, improves bargaining power with suppliers, and creates capacity to reinvest in facilities and services, supporting multi‑month strategic growth initiatives.

Margin Profile

High gross and solid EBIT/EBITDA margins indicate efficient operations and pricing power within the medical care facilities industry. Sustainable margins enhance earnings resilience through cycles, provide internal funding for maintenance capex and modest expansion, and underpin long‑term profitability even as the company scales.

ROE & Capital Mix

A 10.6% ROE and a 34.8% equity ratio show the company generates reasonable returns on shareholder capital while maintaining a balanced capital mix. This stability supports access to financing, credibility with lenders, and the ability to fund strategic investments without excessive dilution over the medium term.

Negative Factors

Negative Free Cash Flow

Persistent negative free cash flow (-3.0B) is a structural weakness: it constrains the company's ability to self‑fund capex, reduce debt, or return capital. Over several months this may necessitate external financing or slower reinvestment, increasing financial risk if operating cash generation doesn't improve.

Weak Cash Conversion

Operating cash flow covers only ~80% of net income, indicating earnings are not fully translating to cash. This moderate conversion raises liquidity sensitivity to working capital swings, limits internal funding for growth and debt service, and exacerbates the impact of any revenue slowdown on available cash.

Elevated Leverage

A debt-to-equity ratio of 1.47 and 43.5B in total debt create meaningful leverage. Combined with negative FCF and modest cash conversion, this elevates refinancing and interest-rate risk, narrows strategic flexibility, and increases the potential for strain on margins and cash flow if growth moderates.

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 a multi-faceted model that includes subscription-based services, licensing fees for software products, and consulting services. The primary revenue stream comes from recurring subscriptions to its cloud services, which provide businesses with scalable IT infrastructure and support. Additionally, CUC Inc. earns income through the sale of proprietary software licenses, allowing companies to utilize its tools for data management and analytics. Strategic partnerships with other technology firms and service providers enhance its offerings and enable cross-selling opportunities, further contributing to its financial performance.

CUC Inc. Financial Statement Overview

Summary

Strong revenue growth (~42.5% YoY) and improving margins support profitability, but negative free cash flow (-3.0B) and only moderate cash conversion (operating cash flow to net income at 0.80) materially weaken the financial picture. Balance sheet leverage is moderate (debt-to-equity 1.47) with a solid equity ratio (34.8%), though total debt remains a key risk.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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	48.16B	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: 848.00
• 50DMA: Positive
• 100DMA: Negative
• 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 848 is below the 20-day moving average (MA) of 938.65, below the 50-day MA of 894.42, and below the 200-day MA of 1040.04, indicating a neutral trend. The MACD of 17.47 indicates Positive momentum. The RSI at 47.05 is Neutral, neither overbought nor oversold. The STOCH value of 48.71 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	75 Outperform	¥30.28B	17.64	―	2.48%	3.88%	0.31%
6062	72 Outperform	¥44.45B	13.45	―	2.63%	0.30%	-31.28%
9158	68 Neutral	¥26.76B	14.92	―	―	31.65%	-51.36%
6197	68 Neutral	¥94.27B	21.60	―	2.47%	1.86%	1370.48%
7071	62 Neutral	¥47.58B	13.90	―	0.91%	15.77%	-50.57%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
9229	48 Neutral	¥8.73B	-2.82	―	―	10.09%	-340.83%

CUC Inc. Corporate Events

CUC Inc. Grows Revenue but Profit and EPS Decline Sharply in Nine-Month Results

For the nine months ended December 31, 2025, CUC Inc. reported revenue of ¥40.17 billion, up 16.2% year-on-year, but saw a sharp decline in profitability, with operating profit down 30.5% to ¥3.18 billion and net income attributable to shareholders falling 48.3% to ¥1.43 billion, driving basic earnings per share down to ¥48.87. Despite growth in total assets and equity, the company maintained a zero-dividend policy for the current and forecast fiscal year and projected full-year revenue growth of 23.8% to ¥58.25 billion alongside only modest operating profit growth and declining net income, signaling pressure on margins and a cautious return profile for shareholders.

The most recent analyst rating on (JP:9158) stock is a Hold with a Yen906.00 price target. To see the full list of analyst forecasts on CUC Inc. stock, see the JP:9158 Stock Forecast page.