| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 1726.47 | 47 |
| Intrinsic value (DCF) | 897.48 | -23 |
| Graham-Dodd Method | 1605.74 | 37 |
| Graham Formula | 2079.13 | 77 |
FB Care Service Co., Ltd. is a leading provider of nursing care services in Japan, with a growing international presence. Established in 1987 and headquartered in Saku, Japan, the company operates through two key segments: Welfare Equipment and Nursing Care Business. FB Care Service offers a comprehensive range of elderly care solutions, including fee-based nursing homes, group homes, small-scale multi-functional in-home care, day services, home-visit care, and nursing support services. Additionally, the company rents and sells welfare equipment, catering to the needs of an aging population. As Japan faces significant demographic challenges with one of the world's oldest populations, FB Care Service is well-positioned in the healthcare sector to address the increasing demand for high-quality elderly care services. The company's diversified service portfolio and commitment to operational excellence make it a key player in Japan's nursing care industry.
FB Care Service presents a compelling investment opportunity in Japan's growing elderly care sector, supported by strong demographic trends and government policies favoring elderly welfare. The company's revenue of ¥10.36 billion and net income of ¥523.4 million reflect stable financial performance, with a diluted EPS of ¥195.44. Operating cash flow of ¥1.06 billion and a solid cash position of ¥2.36 billion provide financial flexibility, though total debt of ¥3.67 billion warrants monitoring. The company's low beta of 0.267 suggests lower volatility compared to the broader market, appealing to risk-averse investors. However, investors should consider regulatory risks and labor cost pressures inherent in the nursing care industry. The dividend yield, with a dividend per share of ¥33, adds income appeal. Overall, FB Care Service is well-positioned for long-term growth but faces sector-specific operational challenges.
FB Care Service Co., Ltd. competes in Japan's highly fragmented nursing care market, where regional players dominate. The company's competitive advantage lies in its diversified service offerings, spanning both facility-based and in-home care, as well as welfare equipment rental and sales. This integrated model allows FB Care Service to capture multiple revenue streams while meeting diverse customer needs. The company benefits from Japan's rapidly aging population and government support for elderly care services, creating a favorable industry backdrop. However, the nursing care sector faces intense competition, labor shortages, and stringent regulatory requirements, which can pressure margins. FB Care Service's relatively small market cap (¥2.44 billion) may limit its ability to scale as aggressively as larger competitors. The company's international operations provide growth potential but also expose it to geopolitical and operational risks. Its strong cash position and stable cash flows are positive differentiators, but high debt levels could constrain future investments. Overall, FB Care Service's niche focus and operational expertise position it well, but it must navigate industry headwinds to maintain competitiveness.