Care Twentyone Corp

Care Twentyone Corp has a highly leveraged capital structure, with a debt-to-equity ratio of 4.03, indicating a significant reliance on debt financing. The company's liquidity position is constrained, as evidenced by a current ratio of 0.97, which is below 1, suggesting that it may struggle to meet short-term obligations without additional financing. The company's cash and equivalents of ¥1.999 billion are insufficient to cover its long-term debt of ¥19.264 billion, resulting in a negative net cash position.

Profitability metrics are weak, with a return on equity of -4.75% and a return on assets of -0.71%, both significantly below the industry median for healthcare facilities and services. The company reported an operating loss of ¥390.462 million and a net loss of ¥227.044 million, indicating a lack of operational efficiency and cost control. Gross profit of ¥2.228 billion is insufficient to cover operating expenses, further highlighting the company's financial challenges.

The company's revenue is concentrated in a single geographic region, Japan, which exposes it to local economic and regulatory risks. There is no disclosed segmental breakdown, but the company's operations are primarily focused on healthcare services, with no material diversification into other business lines. This lack of diversification increases the company's vulnerability to sector-specific downturns.

The company's growth trajectory is uncertain, with no clear indication of revenue expansion in the near term. The most recent actual revenue of ¥48.158 billion is significantly lower than the reported ¥11.076 billion, suggesting a potential data discrepancy or a shift in reporting periods. Capital expenditures of ¥927.753 million indicate ongoing investment in infrastructure, but the negative operating cash flow of ¥18.596 million suggests that the company is not generating sufficient cash to fund these investments.

The company faces several risk factors, including liquidity constraints and a high debt burden. The risk assessment indicates a medium liquidity risk and a low dilution risk, with no immediate pressure for equity issuance. The company's negative net cash position and high debt-to-equity ratio suggest a need for careful monitoring of its debt servicing capabilities. No recent events or filings have been disclosed that would significantly alter the company's risk profile.

The company's recent financial performance and risk profile suggest a need for strategic restructuring to improve profitability and reduce debt. The lack of disclosed recent events or significant changes in the company's operations indicates a stable but underperforming business model.

Revenue grew 6.1% year-over-year to JPY 48.2 billion in fiscal 2025, demonstrating consistent top-line expansion.

Free cash flow surged 453.5% to JPY 1.3 billion in fiscal 2025, indicating significantly improved cash generation.

Operating income turned positive at JPY 433 million in fiscal 2025, reversing previous years of operating losses.

Net income increased 38.0% year-over-year to JPY 384 million in fiscal 2025, showing bottom-line recovery.

Long-term debt decreased to JPY 18.5 billion in fiscal 2025, reflecting a gradual reduction in leverage.

The debt-to-equity ratio stands at 4.03, placing the company in the bottom quartile of its healthcare cohort.

Return on equity is negative 4.75%, ranking in the bottom quartile compared to the healthcare facilities median.

The company faces high credit risk according to internal risk flag assessments, signaling potential solvency concerns.

Operating margin remains negative at -3.5%, significantly below the 7.1% median for the healthcare facilities cohort.

Cash conversion ratio is 0.08, falling into the bottom quartile relative to the 1.36 cohort median.

Revenue ¥12.19B, +3,2% YoY; Operating income +200,6% YoY.

• ▍Revenue ¥12.19B, +3,2% YoY
• ▍Operating income +200,6% YoY
• ▍Net income +175,5% YoY
• ▍Net margin 0.5%

Revenue ¥12.24B, +3,8% YoY; Operating income +137,2% YoY.

• ▍Revenue ¥12.24B, +3,8% YoY
• ▍Operating income +137,2% YoY
• ▍Net income −58,3% YoY
• ▍Net margin 1.3%

Revenue ¥12.30B, +5,6% YoY; Operating income +97,5% YoY.

• ▍Revenue ¥12.30B, +5,6% YoY
• ▍Operating income +97,5% YoY
• ▍Net income −29,7% YoY
• ▍Net margin 2.1%

Revenue ¥11.81B, +6,6% YoY; Operating income +73,1% YoY.

• ▍Revenue ¥11.81B, +6,6% YoY
• ▍Operating income +73,1% YoY
• ▍Net income +121,5% YoY
• ▍Net margin 0.4%

Revenue ¥11.81B; Operating income ¥74.6M.

• ▍Revenue ¥11.81B
• ▍Operating income ¥74.6M
• ▍Net margin -0.7%

Revenue ¥11.79B; Operating income -¥193.2M.

• ▍Revenue ¥11.79B
• ▍Operating income -¥193.2M
• ▍Net margin 3.2%

Revenue ¥11.66B; Operating income ¥198.5M.

• ▍Revenue ¥11.66B
• ▍Operating income ¥198.5M
• ▍Net margin 3.2%

Revenue ¥11.08B; Operating income -¥390.5M.

• ▍Revenue ¥11.08B
• ▍Operating income -¥390.5M
• ▍Net margin -2.0%

Revenue ¥48.16B, +6,1% YoY; Operating income +169,2% YoY.

• ▍Revenue ¥48.16B, +6,1% YoY
• ▍Operating income +169,2% YoY
• ▍Net income +38,0% YoY
• ▍Free cash flow +453,6% YoY
• ▍Net margin 0.8%

Revenue ¥45.40B, +10,5% YoY; Operating income −25,9% YoY.

• ▍Revenue ¥45.40B, +10,5% YoY
• ▍Operating income −25,9% YoY
• ▍Net income +4 423,5% YoY
• ▍Free cash flow +186,0% YoY
• ▍Net margin 0.6%

Revenue ¥41.10B, +7,0% YoY; Operating income −151,2% YoY.

• ▍Revenue ¥41.10B, +7,0% YoY
• ▍Operating income −151,2% YoY
• ▍Net income −99,0% YoY
• ▍Free cash flow −128,6% YoY
• ▍Net margin 0.0%

Revenue ¥38.40B, +5,6% YoY; Operating income −25,2% YoY.

• ▍Revenue ¥38.40B, +5,6% YoY
• ▍Operating income −25,2% YoY
• ▍Net income −32,7% YoY
• ▍Free cash flow +3,1% YoY
• ▍Net margin 1.6%