SBC Medical Group Holdings (SBC) AI Stock Analysis

• Market Cap: $434.45M
• Dividend Yield: N/A
• Average Volume (3M): 83.52K
• Price to Earnings (P/E): 13.2
• Beta (1Y): 0.71
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 863
• Sector: Financial
• Sector Strength: 72
• Industry: Consulting Services
• EPS (TTM): 0.02
• Shares Outstanding: 102,705,956
• 10 Day Avg. Volume: 54,027
• 30 Day Avg. Volume: 83,516
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.79
• Enterprise Value/Revenue: 1.82
• Enterprise Value/Gross Profit: 2.38
• Enterprise Value/Ebitda: 5.09
• 1Y Price Target: $5.00
• Price Target Upside: 16.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: $5.00 ▲(16.55% Upside)

SBC Medical Group Holdings scores well due to its strong financial performance and positive corporate events. These factors are partially offset by mixed technical indicators and a moderate valuation. The absence of dividend yield and earnings call data slightly limits the score.

SBC Medical Group Holdings Business Overview & Revenue Model

Company Description

SBC Medical Group Holdings Incorporated provides management services to cosmetic treatment centers in Japan, Vietnam, the United States, and internationally. The company offers advertising and marketing services; staff management services, such as recruitment and training; booking reservations for franchisee clinic customers; assistance with franchisee employee housing rentals and facility rentals; construction and design of franchisee clinics; medical equipment; and medical consumables procurement. It provides IT software solutions; breast augmentation, liposuction, and rejuvenation treatments, including treatment of wrinkles, acne, scars, cellulite, excess fat, discoloration, and signs of aging; laser skin toning and spot removal; eyes double fold surgery; rhinoplasty; treatment of osmidrosis and hyperhidrosis; hair transplants; gynecological formation treatments; laser hair removal; face line surgeries; cosmetical dental procedures; tattoo removal; lasik eye surgery; lateral canthoplasty; brow lift procedures; androgenetic alopecia treatment; and cheek sagging prevention methods. The company was founded in 2000 and is headquartered in Irvine, California.

How the Company Makes Money

SBC Medical Group Holdings generates revenue through multiple streams that include fee-for-service payments from patients for medical consultations and treatments, capitated payment arrangements with health insurance providers, and reimbursement from government programs such as Medicare and Medicaid. Additionally, the company may earn income from ancillary services such as laboratory testing, imaging services, and pharmacy operations. Strategic partnerships with insurance companies and healthcare networks further enhance SBC's revenue potential by expanding its patient base and facilitating cost-effective care delivery.

SBC Medical Group Holdings Financial Statement Overview

Summary

SBC Medical Group Holdings demonstrates strong financial health with consistent revenue growth and robust profitability. A low leverage and high equity ratio provide financial stability, though there's room for improvement in cash conversion efficiency and asset utilization.

Income Statement

SBC Medical Group Holdings demonstrates strong financial performance with consistent revenue growth, evidenced by a 6.1% increase from 2023 to 2024. The company maintains robust profitability, with a gross profit margin of 75.9% and a net profit margin of 22.7% in 2024. EBIT and EBITDA margins are also healthy at 34.2% and 37.6%, respectively, indicating efficient operations and cost management. The upward trajectory in revenue and profitability highlights the company's strong market position and operational efficiency.

Balance Sheet

The balance sheet reflects a solid financial foundation with a low debt-to-equity ratio of 0.06, indicating minimal leverage and financial risk. The equity ratio is strong at 73.3%, showcasing a high level of financial stability and asset backing. Return on equity is impressive at 23.9%, reflecting effective use of shareholder funds to generate profits. The company's strong equity position and low leverage provide a stable financial base, though there is room for improvement in optimizing asset utilization.

Cash Flow

SBC Medical Group Holdings shows a positive cash flow trajectory with a significant turnaround in free cash flow from negative in 2022 to positive in subsequent years. The free cash flow to net income ratio is 0.37 in 2024, indicating a healthy conversion of profits into cash. Operating cash flow to net income ratio stands at 0.44, suggesting moderate efficiency in cash generation from operations. While cash flow metrics are improving, further enhancement in cash conversion efficiency would strengthen the company's liquidity position.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	188.19M	205.42M	193.54M	174.16M
Gross Profit	144.38M	156.05M	137.30M	114.83M
EBITDA	67.42M	77.28M	85.87M	29.64M
Net Income	33.33M	46.61M	39.37M	6.32M
Balance Sheet
Total Assets	315.30M	266.08M	258.81M	225.48M
Cash, Cash Equivalents and Short-Term Investments	152.74M	125.04M	103.02M	53.64M
Total Debt	15.53M	12.21M	22.87M	16.13M
Total Liabilities	70.65M	71.06M	115.00M	117.63M
Stockholders Equity	244.59M	195.11M	142.16M	105.25M
Cash Flow
Free Cash Flow	-11.81M	17.17M	39.44M	-24.99M
Operating Cash Flow	-8.70M	20.58M	50.64M	-47.37K
Investing Cash Flow	14.70M	-10.10M	1.82M	-32.65M
Financing Cash Flow	29.98M	22.97M	6.14M	-7.98M

SBC Medical Group Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4.29
• 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 SBC, the sentiment is Neutral. The current price of 4.29 is below the 20-day moving average (MA) of 4.31, below the 50-day MA of 4.59, and below the 200-day MA of 4.75, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 47.05 is Neutral, neither overbought nor oversold. The STOCH value of 44.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SBC.

SBC Medical Group Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRAI	78 Outperform	$1.26B	23.18	29.05%	0.96%	9.28%	44.19%
SBC	71 Outperform	$434.45M	13.18	26.08%	―	―	―
FC	69 Neutral	$242.72M	25.26	15.47%	―	-0.40%	-40.98%
Sector *	67 Neutral	¥850.21B	13.22	9.24%	2.92%	7.76%	9.30%
RGP	50 Neutral	$156.03M	―	-61.29%	9.84%	-12.87%	-1025.47%
FORR	47 Neutral	$180.72M	―	-44.74%	―	-9.11%	-6082.17%
AERT	47 Neutral	$37.18M	0.71	112.00%	―	-5.47%	-113.35%

SBC Medical Group Holdings Corporate Events

SBC Medical Acquires MB Career Lounge in Japan

On July 17, 2025, SBC Medical Group Holdings announced the acquisition of MB career lounge, a Japanese provider of management support services for medical institutions. This strategic acquisition, which includes JUN CLINIC, aims to diversify SBC Medical’s portfolio, enhance revenue stability, and strengthen its position in the growing aesthetic medicine market in Japan. The integration of JUN CLINIC is expected to accelerate regional expansion and broaden SBC Medical’s customer base, contributing to long-term growth and shareholder value.

SBC Medical Joins Russell 3000 Index June 2025

On June 27, 2025, SBC Medical Group Holdings announced its inclusion in the Russell 3000® Index, effective June 30, 2025, as part of the 2025 Russell indexes reconstitution. This inclusion signifies automatic membership in either the large-cap Russell 1000® Index or the small-cap Russell 2000® Index, enhancing the company’s visibility among investment managers and institutional investors who use these indexes as benchmarks for active investment strategies. This development is expected to positively impact SBC Medical’s market positioning by aligning it with approximately $10.6 trillion in assets benchmarked against the Russell US indexes.

SBC Medical Group Holdings Shareholders Approve Key Proposals

At the Annual Meeting of SBC Medical Group Holdings held on April 21, 2025, shareholders voted on several key proposals. The election of two directors, Ken Edahiro and Mike Sayama, was confirmed, but due to the approval of a proposal to declassify the board, all directors will serve until the 2026 annual meeting. Additionally, the appointment of MaloneBailey, LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025, was ratified. These changes aim to streamline governance by allowing annual elections for directors starting in 2026, potentially impacting the company’s strategic direction and accountability.

SBC Medical Announces Share Repurchase Program

On May 15, 2025, SBC Medical Group Holdings announced a share repurchase program, set to begin on May 20, 2025, with a maximum aggregate amount of $5 million, funded by surplus cash and future free cash flow. Additionally, the company is reviewing the acquisition of all shares of Risenet Co., Ltd., which could impact its consolidated financials. In the first quarter of 2025, SBC Medical reported a 14% decrease in total revenues to $47 million, attributed to the discontinuation of its staffing business and divestitures. However, net income rose by 15% year-over-year to $22 million, demonstrating the company’s strategic focus on expanding its franchise model and adapting to market dynamics.