YAMASHITA HEALTH CARE HOLDINGS, INC. (9265) AI Stock Analysis

• Market Cap: ¥9.39B
• Dividend Yield: 1.87%
• Average Volume (3M): 626.00
• Price to Earnings (P/E): 14.8
• Beta (1Y): 0.54
• Revenue Growth: 2.65%
• EPS Growth: 8.83%
• Country: JP
• Employees: 606
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Distribution
• EPS (TTM): N/A
• Shares Outstanding: 2,553,000
• 10 Day Avg. Volume: 310
• 30 Day Avg. Volume: 626
• PEG Ratio: 1.10
• Price to Book (P/B): 0.71
• Price to Sales (P/S): 0.10
• P/FCF Ratio: 18.99
• 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: 70 Outperform
• Price Target: ¥4,055.00 ▲(23.82% Upside)
• Action: Reiterated Date: 12/30/25
• Date: Action: Reiterated 12/30/25

The score is led by strong financial stability (notably zero debt) and improving revenue growth, supported by constructive technical trends (price above key moving averages and positive MACD). Offsetting factors are very thin margins and a recent deterioration in cash conversion, while valuation is reasonable but not especially cheap and the dividend is modest.

Positive Factors

Debt-free balance sheet

A zero-debt balance sheet materially reduces financial risk and preserves strategic optionality. Over a medium-term horizon this permits funding of working capital, selective M&A or capex without leverage, keeps interest cost at zero and strengthens resilience through distribution and reimbursement cycles.

Accelerating revenue growth

Acceleration to roughly 12% revenue growth after mid-single digit trends implies expanding demand or market share in its medical distribution niche. Durable top-line growth supports better fixed-cost absorption, potential operating leverage and gives management scope to invest in scale or services that reinforce the business model.

Consistent positive free cash flow

Sustained positive free cash flow indicates the core distribution operations generate liquidity to fund working capital, modest dividends and reinvestment. Even with recent volatility, persistent FCF underpins capital allocation flexibility and reduces dependence on external financing given the zero-debt position.

Negative Factors

Very thin net margins

A net margin near one percent offers very limited buffer against cost inflation, logistics or pricing pressure. For a distributor this structural low margin makes earnings fragile, constrains internal funding for growth initiatives and increases sensitivity to modest revenue or cost fluctuations over time.

Weakened cash conversion

A drop in cash conversion to about 55% of net income signals deteriorating quality of reported earnings and greater working-capital or capex absorption. If persistent, reduced cash conversion limits reinvestment, dividend sustainability and heightens vulnerability to shocks in a working-capital intensive distribution model.

Inconsistent operating profit (EBIT)

Operating profit volatility and a decline from prior-year EBIT point to structural cost or mix pressures and hinder predictable margin recovery. Inconsistent EBIT reduces visibility for long-term planning, weakens return stability and complicates efforts to convert revenue growth into sustainable earnings improvement.

YAMASHITA HEALTH CARE HOLDINGS, INC. Business Overview & Revenue Model

Company Description

Yamashita Health Care Holdings,Inc. engages in the supply of medical equipment in Japan. The company offers diagnostic imaging devices, such as MRI and CT, endoscopic systems, operating tables, shadowless lights, and surgical equipment comprising electric scalpels, orthopedic implants, various catheters, and disposable medical materials; plans, manufactures, consigns, imports, and sells implants that are embedded in the body in the field of orthopedics; and sells and maintains medical equipment, which include dialysis machines/dialysis consumables, peritoneal dialysis, calculus crushing devices, and stents. It also provides consulting services related to the management of medical and long-term care institutions; and develops reservation solutions for hospitals consisting of search portal sites for hospitals and clinics, online reception, posting agency for customer satisfaction surveys, and network security systems sales. The company was founded in 1926 and is headquartered in Fukuoka City, Japan.

How the Company Makes Money

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YAMASHITA HEALTH CARE HOLDINGS, INC. Financial Statement Overview

Summary

Financial health is supported by a debt-free balance sheet and steadily rising equity. Revenue growth has improved (mid-single digits historically, ~12% most recently), but profitability remains thin (~1% net margin) and EBIT has not consistently expanded. Cash flow stays positive, yet cash conversion weakened sharply in the latest year (FCF ~55% of net income), adding some quality risk.

Income Statement

Revenue growth has been steady over the last three years (about mid-single digits), accelerating to ~12% in the latest annual period. Profitability is modest—gross margin is stable around 13–14%, but net margin remains low at ~1%, typical of distribution but still leaves limited cushion. Earnings have improved versus 2023, yet operating profit has not consistently expanded (EBIT down from 2023 levels), indicating some ongoing cost/price pressure.

Balance Sheet

The balance sheet is a clear strength: total debt is reported at zero across all periods, resulting in no leverage-driven risk and high financial flexibility. Equity has been trending up over time, supporting growth in the asset base. Returns on equity are reasonable in the most recent two years (~7%), though they have been volatile historically (notably weaker in 2023), suggesting profitability can swing with operating conditions.

Cash Flow

Cash generation is positive, with free cash flow consistently positive, but volatility is a key watch-out. After very strong cash flow in 2023, both operating and free cash flow fell sharply in the latest year, and free cash flow covered only ~55% of net income most recently (down from ~91–96% in the prior two years). This points to less efficient cash conversion lately, even though the company remains cash-flow positive.

Breakdown	TTM	May 2024	May 2023	May 2022	May 2021	May 2020
Income Statement
Total Revenue	64.38B	64.49B	61.55B	58.20B	55.15B	70.13B
Gross Profit	8.74B	8.57B	8.50B	8.05B	7.72B	7.51B
EBITDA	1.03B	1.17B	1.09B	840.00M	1.25B	1.25B
Net Income	531.00M	616.00M	580.00M	219.00M	696.00M	678.49M
Balance Sheet
Total Assets	25.20B	27.55B	26.56B	24.57B	24.09B	24.32B
Cash, Cash Equivalents and Short-Term Investments	3.24B	5.70B	5.30B	5.83B	3.98B	3.65B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	16.25B	18.56B	18.00B	16.64B	16.08B	16.74B
Stockholders Equity	8.94B	8.98B	8.54B	7.91B	7.98B	7.58B
Cash Flow
Free Cash Flow	0.00	338.00M	801.00M	2.08B	462.71M	765.29M
Operating Cash Flow	0.00	617.00M	878.00M	2.17B	581.27M	911.53M
Investing Cash Flow	0.00	19.00M	-1.07B	-107.00M	-27.66M	-134.14M
Financing Cash Flow	0.00	-240.00M	-335.00M	-209.00M	-230.00M	-137.81M

YAMASHITA HEALTH CARE HOLDINGS, INC. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3275.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9265, the sentiment is Neutral. The current price of 3275 is below the 20-day moving average (MA) of 3700.25, below the 50-day MA of 3528.00, and above the 200-day MA of 3157.08, indicating a neutral trend. The MACD of 57.98 indicates Positive momentum. The RSI at 51.12 is Neutral, neither overbought nor oversold. The STOCH value of 3.12 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:9265.

YAMASHITA HEALTH CARE HOLDINGS, INC. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3183	74 Outperform	¥41.48B	18.06	―	3.97%	6.63%	11.04%
2689	71 Outperform	¥12.98B	10.68	―	3.90%	3.64%	-4.70%
9265	70 Outperform	¥9.39B	14.83	―	1.87%	2.65%	8.83%
7079	69 Neutral	¥6.48B	9.13	―	3.00%	2.21%	-22.75%
3151	67 Neutral	¥64.07B	17.99	―	4.22%	2.23%	72.07%
2183	52 Neutral	¥7.00B	-2.65	―	5.44%	-15.42%	-879.08%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%