| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 3082.65 | 16 |
| Intrinsic value (DCF) | 1522.53 | -43 |
| Graham-Dodd Method | 653.20 | -75 |
| Graham Formula | 2261.82 | -15 |
Nippon Care Supply Co., Ltd. (2393.T) is a leading Japanese company specializing in the rental and wholesale of welfare equipment, catering to the growing elderly care market. Headquartered in Minato, Japan, the company provides essential products such as electric beds, wheelchairs, and bathing aids, along with nursing care services, diaper delivery, and meal services for care providers. Operating in the Industrials sector under Rental & Leasing Services, Nippon Care Supply plays a critical role in Japan's aging society, where demand for elderly care solutions is rapidly increasing. With a market capitalization of approximately ¥31.2 billion, the company has established itself as a reliable provider of high-quality care equipment and services. Its diversified offerings and strong market presence position it well to benefit from Japan's demographic trends and government support for elderly care infrastructure.
Nippon Care Supply presents a stable investment opportunity in Japan's growing elderly care sector, supported by demographic tailwinds and consistent demand for welfare equipment. The company's low beta (0.115) suggests lower volatility compared to the broader market, appealing to risk-averse investors. However, its modest operating cash flow (¥339 million) and significant capital expenditures (¥-646 million) indicate potential liquidity constraints. The dividend yield, based on a ¥70 per share payout, may attract income-focused investors, but the company's growth prospects depend on Japan's long-term care policies and competitive dynamics. Investors should weigh the stable revenue stream against the capital-intensive nature of the rental business.
Nippon Care Supply competes in Japan's welfare equipment rental market, leveraging its established distribution network and comprehensive service offerings. Its competitive advantage lies in its integrated approach, combining equipment rental with ancillary services like meal delivery and nursing care, creating stickier customer relationships. The company benefits from Japan's aging population, but its market positioning is challenged by larger healthcare service providers and niche competitors specializing in high-tech care solutions. While its localized operations provide deep market penetration, they also limit geographic diversification. The company's financial stability (net income of ¥1.58 billion) allows for steady reinvestment, but it may lack the scale to compete on pricing with national conglomerates. Its focus on mid-tier care facilities and home care providers differentiates it from competitors targeting premium or institutional markets.