Nippon Care Supply Co Ltd

Nippon Care Supply maintains a conservative capital structure with a debt-to-equity ratio of 0.19, significantly below the industry median of 0.45, indicating a low reliance on debt financing. The company's liquidity position is constrained, with a current ratio of 0.64, suggesting potential short-term liquidity challenges. Cash and equivalents amount to 638 million JPY, which is insufficient to cover total debt of 3.01 billion JPY, resulting in a net cash deficit.

Profitability metrics show a return on equity (ROE) of 2.2%, well below the industry median of 6.8%, and a return on assets (ROA) of 1.32%, which is also below the median of 3.1%. These figures indicate that the company is underperforming in terms of capital efficiency and asset utilization compared to its peers.

The company's revenue is concentrated in a single geographic market, Japan, with no disclosed international operations. This lack of geographic diversification increases exposure to local economic and regulatory risks. No segment-specific revenue breakdown is available, but the company operates as a single business unit focused on medical equipment and supplies.

Outlook data indicates a projected revenue increase of 12.3% in the current fiscal year and 8.1% in the following year. This growth is driven by rising demand for healthcare services in Japan, particularly in the aging population segment. However, the company's net income growth is expected to lag behind revenue, with a projected 5.4% increase in the current year and 3.2% in the next.

Risk factors include medium liquidity risk due to the current ratio below 1 and a net cash deficit. The company has a low dilution risk, with no recent share issuance and no dilutive securities outstanding. No material risk factors were disclosed in the latest filings, but the company's reliance on a single market and limited liquidity could pose challenges in a downturn.

Recent events include the release of Q4 financial results showing revenue of 34.93 billion JPY, in line with analyst estimates. No major strategic announcements or regulatory changes were reported in the latest filings or transcripts.

Revenue grew 10.7% annually over four years, demonstrating consistent top-line expansion in the medical supplies sector.

Net income surged 26% year-over-year in FY2026, reflecting strong profitability acceleration compared to the prior fiscal year.

Free cash flow increased 17.1% year-over-year, reaching 7.7 billion JPY, supporting robust internal capital generation capabilities.

High credit risk flags potential solvency concerns, despite the company maintaining a relatively low debt-to-equity ratio of 0.19.

Medium liquidity risk suggests potential challenges in meeting short-term obligations, warranting caution regarding cash flow stability.

Long-term debt more than doubled from 610 million JPY in FY2023 to 1.36 billion JPY in FY2024, increasing leverage exposure.

Net margin of 4.5% is modest, leaving limited buffer against potential cost inflation or pricing pressure in the supply chain.

Revenue ¥8.99B, +10,2% YoY; Operating income +11,0% YoY.

• ▍Revenue ¥8.99B, +10,2% YoY
• ▍Operating income +11,0% YoY
• ▍Net income +17,0% YoY
• ▍Net margin 7.1%

Revenue ¥8.85B, +8,3% YoY; Operating income +22,1% YoY.

• ▍Revenue ¥8.85B, +8,3% YoY
• ▍Operating income +22,1% YoY
• ▍Net income +21,9% YoY
• ▍Net margin 6.5%

Revenue ¥8.59B, +7,5% YoY; Operating income +32,9% YoY.

• ▍Revenue ¥8.59B, +7,5% YoY
• ▍Operating income +32,9% YoY
• ▍Net income +35,8% YoY
• ▍Net margin 6.8%

Revenue ¥8.50B, +10,6% YoY; Operating income +35,8% YoY.

• ▍Revenue ¥8.50B, +10,6% YoY
• ▍Operating income +35,8% YoY
• ▍Net income +33,5% YoY
• ▍Net margin 5.5%

Revenue ¥8.16B; Operating income ¥627.1M.

• ▍Revenue ¥8.16B
• ▍Operating income ¥627.1M
• ▍Net margin 6.7%

Revenue ¥8.17B; Operating income ¥693.8M.

• ▍Revenue ¥8.17B
• ▍Operating income ¥693.8M
• ▍Net margin 5.8%

Revenue ¥7.99B; Operating income ¥644.7M.

• ▍Revenue ¥7.99B
• ▍Operating income ¥644.7M
• ▍Net margin 5.4%

Revenue ¥7.69B; Operating income ¥506.8M.

• ▍Revenue ¥7.69B
• ▍Operating income ¥506.8M
• ▍Net margin 4.5%

Revenue ¥34.93B, +9,1% YoY; Operating income +24,9% YoY.

• ▍Revenue ¥34.93B, +9,1% YoY
• ▍Operating income +24,9% YoY
• ▍Net income +26,0% YoY
• ▍Free cash flow +17,1% YoY
• ▍Net margin 6.5%

Revenue ¥32.01B, +11,9% YoY; Operating income +14,9% YoY.

• ▍Revenue ¥32.01B, +11,9% YoY
• ▍Operating income +14,9% YoY
• ▍Net income +13,6% YoY
• ▍Free cash flow +12,3% YoY
• ▍Net margin 5.6%

Revenue ¥28.59B, +10,4% YoY; Operating income +2,3% YoY.

• ▍Revenue ¥28.59B, +10,4% YoY
• ▍Operating income +2,3% YoY
• ▍Net income +4,2% YoY
• ▍Free cash flow +9,3% YoY
• ▍Net margin 5.5%

Revenue ¥25.89B, +11,1% YoY; Operating income −10,2% YoY.

• ▍Revenue ¥25.89B, +11,1% YoY
• ▍Operating income −10,2% YoY
• ▍Net income −9,6% YoY
• ▍Free cash flow −2,4% YoY
• ▍Net margin 5.8%