Japan Hospice Holdings Inc

Japan Hospice Holdings Inc has a market price of 639 JPY per share, with a market capitalization of 5,399,939,790 JPY. The company's price-to-earnings ratio is 35.52, and its price-to-book ratio is 1.85, indicating a moderate premium over book value. The enterprise value to EBITDA ratio is 54.81, suggesting a high valuation relative to earnings before interest, taxes, depreciation, and amortization. The company's liquidity position is characterized by a current ratio of 1.93, which is above 1, indicating that it can cover its short-term liabilities with its short-term assets.

In terms of profitability, the company's return on equity is 5.2%, and its return on assets is 1.01%, both of which are below the industry median for Healthcare Facilities & Services. The company's operating income margin is 9.83%, and its net income margin is 5.58%, which are also below the industry median. The company's debt-to-equity ratio is 3.69, indicating a high level of leverage, which is a concern given the industry's preference for lower debt levels.

The company's revenue is concentrated in Japan, with no disclosed geographic diversification. The company operates in a single business segment, which is hospice and palliative care services. This lack of diversification increases the company's exposure to local market conditions and regulatory changes.

Looking at the company's growth trajectory, the current fiscal year is expected to see a revenue increase of 11.5% compared to the previous year. The next fiscal year is projected to see a revenue increase of 10.2%. Analysts have estimated a mean EPS of 39.20 JPY for the current fiscal year, compared to the last actual EPS of 33.08 JPY. The company's revenue is expected to grow from 14,168,930,000 JPY to 15,800,000,000 JPY in the current fiscal year.

The company's risk assessment indicates a medium liquidity risk and a low dilution risk. The key flag is that the company's net cash is negative after subtracting total debt, which is a concern for liquidity. The company's debt-to-equity ratio of 3.69 is high, and the company has a significant amount of long-term debt, which could impact its financial flexibility. The company's dilution risk is low, as there is no indication of significant dilution potential in the near term.

Recent events include the company's financial performance and analyst estimates. The company's last actual revenue was 14,168,930,000 JPY, and the mean revenue estimate for the current fiscal year is 15,800,000,000 JPY. The company's last actual EPS was 33.08 JPY, and the mean EPS estimate for the current fiscal year is 39.20 JPY. These figures indicate that the company is expected to outperform its previous performance in terms of both revenue and earnings per share.

Revenue grew at a 23.9% CAGR over four years, demonstrating strong top-line expansion momentum.

Return on equity of 5.2% surpasses the 4.6% median, showing better capital efficiency than peers.

Free cash flow improved by 13.3% year-over-year, suggesting a recovery in cash generation capabilities.

Debt-to-equity ratio of 3.69 sits in the bottom quartile, indicating excessive leverage compared to peers.

The company faces high credit risk, raising concerns about its ability to meet financial obligations.

Free cash flow turned negative at -1.68 billion JPY, highlighting ongoing cash burn issues.

Revenue ¥3.81B, +17,5% YoY; Operating income −56,7% YoY.

• ▍Revenue ¥3.81B, +17,5% YoY
• ▍Operating income −56,7% YoY
• ▍Net income −113,0% YoY
• ▍Net margin -0.7%

Revenue ¥3.67B, +14,9% YoY; Operating income −8,1% YoY.

• ▍Revenue ¥3.67B, +14,9% YoY
• ▍Operating income −8,1% YoY
• ▍Net income −11,2% YoY
• ▍Net margin 5.1%

Revenue ¥3.46B, +16,9% YoY; Operating income −4,1% YoY.

• ▍Revenue ¥3.46B, +16,9% YoY
• ▍Operating income −4,1% YoY
• ▍Net income −16,9% YoY
• ▍Net margin 1.8%

Revenue ¥3.24B, +18,7% YoY; Operating income −72,5% YoY.

• ▍Revenue ¥3.24B, +18,7% YoY
• ▍Operating income −72,5% YoY
• ▍Net income −63,8% YoY
• ▍Net margin 1.7%

Revenue ¥3.24B; Operating income ¥342.4M.

• ▍Revenue ¥3.24B
• ▍Operating income ¥342.4M
• ▍Net margin 6.2%

Revenue ¥3.19B; Operating income ¥446.5M.

• ▍Revenue ¥3.19B
• ▍Operating income ¥446.5M
• ▍Net margin 6.7%

Revenue ¥2.96B; Operating income ¥229.9M.

• ▍Revenue ¥2.96B
• ▍Operating income ¥229.9M
• ▍Net margin 2.5%

Revenue ¥2.73B; Operating income ¥268.0M.

• ▍Revenue ¥2.73B
• ▍Operating income ¥268.0M
• ▍Net margin 5.6%

Revenue ¥14.17B, +16,9% YoY; Operating income −33,7% YoY.

• ▍Revenue ¥14.17B, +16,9% YoY
• ▍Operating income −33,7% YoY
• ▍Net income −56,5% YoY
• ▍Free cash flow +13,3% YoY
• ▍Net margin 2.0%

Revenue ¥12.12B, +22,7% YoY; Operating income +0,2% YoY.

• ▍Revenue ¥12.12B, +22,7% YoY
• ▍Operating income +0,2% YoY
• ▍Net income −6,2% YoY
• ▍Free cash flow −114,2% YoY
• ▍Net margin 5.3%

Revenue ¥9.87B, +25,1% YoY; Operating income +33,6% YoY.

• ▍Revenue ¥9.87B, +25,1% YoY
• ▍Operating income +33,6% YoY
• ▍Net income +50,0% YoY
• ▍Free cash flow −419,4% YoY
• ▍Net margin 6.9%

Revenue ¥7.89B, +31,1% YoY; Operating income +60,6% YoY.

• ▍Revenue ¥7.89B, +31,1% YoY
• ▍Operating income +60,6% YoY
• ▍Net income +88,8% YoY
• ▍Free cash flow +119,6% YoY
• ▍Net margin 5.8%