SBC Medical Group Holdings (SBC) AI Stock Analysis

• Market Cap: $503.55M
• Dividend Yield: N/A
• Average Volume (3M): 136.74K
• Price to Earnings (P/E): 21.7
• Beta (1Y): 0.65
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 863
• Sector: Financial
• Sector Strength: 80
• Industry: Consulting Services
• EPS (TTM): -0.02
• Shares Outstanding: 103,611,250
• 10 Day Avg. Volume: 196,290
• 30 Day Avg. Volume: 136,743
• PEG Ratio: -0.02
• Price to Book (P/B): 2.22
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 32.77
• Enterprise Value/Market Cap: 0.77
• Enterprise Value/Revenue: 0.48
• Enterprise Value/Gross Profit: 2.50
• Enterprise Value/Ebitda: 1.15
• 1Y Price Target: $5.00
• Price Target Upside: -5.12% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 74 Outperform
• Price Target: $5.50 ▲(4.36%Upside)

SBC Medical Group Holdings demonstrates strong financial performance with excellent revenue growth and profitability. The technical indicators suggest positive momentum, though the valuation is average with no dividend yield. Inclusion in the Russell 3000 Index significantly boosts its market visibility and potential investor interest.

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 generates revenue primarily through patient services, including consultations, diagnostic procedures, and treatments provided across its network of clinics and facilities. The company also benefits from partnerships with insurance providers, securing reimbursements for services rendered to insured patients. Additionally, SBC may engage in collaborations with pharmaceutical companies and research institutions to conduct clinical trials or health studies, which can serve as another revenue stream. Other factors contributing to its earnings may include government healthcare programs and private payers, which help maintain a stable cash flow.

SBC Medical Group Holdings Financial Statement Overview

Summary

Strong revenue growth and profitability with impressive margins. The balance sheet shows financial stability with low leverage. However, cash flow management needs improvement, with decreased free cash flow indicating potential reinvestment or operational adjustments.

Income Statement

SBC Medical Group Holdings exhibits strong revenue growth, with a 6.1% increase from 2023 to 2024. The gross profit margin is robust at 76%, and net profit margin improved to 22.7% in 2024, reflecting efficient cost management. EBIT and EBITDA margins are healthy, at 34.2% and 43.4% respectively, indicating strong operational profitability.

Balance Sheet

The company maintains a strong equity position with an equity ratio of 73.3% in 2024, suggesting financial stability. The debt-to-equity ratio is low at 0.06, indicating minimal leverage risk. Return on Equity (ROE) improved to 23.9%, showcasing effective use of equity in generating profit.

Cash Flow

Free cash flow decreased significantly from 2023 to 2024, reflecting potential reinvestment or operational adjustments. Operating cash flow to net income ratio is 0.44, showing moderate cash flow generation relative to income. The free cash flow to net income ratio also decreased to 0.37, suggesting room for improvement in cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	197.94M	205.42M	193.54M	174.16M
Gross Profit	154.26M	156.05M	137.30M	114.83M
EBITDA	83.08M	77.28M	85.87M	29.64M
Net Income	49.36M	46.61M	39.37M	6.32M
Balance Sheet
Total Assets	284.61M	266.08M	258.81M	225.48M
Cash, Cash Equivalents and Short-Term Investments	132.06M	125.04M	103.02M	53.64M
Total Debt	14.10M	12.21M	22.87M	16.13M
Total Liabilities	58.28M	71.06M	115.00M	117.63M
Stockholders Equity	226.45M	195.11M	142.16M	105.25M
Cash Flow
Free Cash Flow	15.37M	17.17M	39.44M	-24.99M
Operating Cash Flow	18.83M	20.58M	50.64M	-47.37K
Investing Cash Flow	-7.69M	-10.10M	1.82M	-32.65M
Financing Cash Flow	22.73M	22.97M	6.14M	-7.98M

SBC Medical Group Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.27
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SBC, the sentiment is Positive. The current price of 5.27 is above the 20-day moving average (MA) of 4.56, above the 50-day MA of 4.15, and above the 200-day MA of 5.21, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 68.79 is Neutral, neither overbought nor oversold. The STOCH value of 80.19 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	76 Outperform	$1.33B	26.35	23.18%	1.00%	8.49%	21.06%
SBC	74 Outperform	$503.55M	21.73	25.71%	―	―	―
FC	70 Outperform	$278.33M	26.33	15.47%	―	-0.40%	-40.98%
Sector *	62 Neutral	AU$10.02B	8.14	11.67%	5.10%	32.88%	39.55%
FORR	52 Neutral	$202.07M	―	-45.64%	―	-9.61%	-18170.36%
RGP	50 Neutral	$195.11M	―	-31.18%	4.75%	-16.27%	-589.83%
AERT	49 Neutral	$51.16M	0.71	112.00%	―	-3.19%	-150.54%

SBC Medical Group Holdings Corporate Events

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.