Nippon Care Supply Co., Ltd. (2393) AI Stock Analysis

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Nippon Care Supply Co., Ltd.

(TSE/TYO:2393)

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Rating:72Outperform

Price Target:JPY 4,740.00▲(18.80% Upside)

Action:reiterated

Date:09/11/26

The overall score is driven primarily by the company's excellent financial performance, characterized by a rock-solid balance sheet, strong cash flow generation, and rebounding profitability. This strength is tempered by a neutral technical outlook, as the stock experiences short-term weakness within a long-term uptrend, and a slightly stretched valuation with a P/E ratio above 28. The combination results in a solid, above-average score.

Positive Factors

Recurring rental-based modelThe rental model creates an installed base of welfare equipment that can generate recurring fees, while delivery, maintenance, replacement, and renewal services deepen customer relationships. Its alignment with care providers and Japan’s long-term care ecosystem supports repeat utilization over the medium term.

Negative Factors

Uneven cash-flow consistencyAlthough cash generation improved materially in 2026, earlier negative free cash flow and weak operating cash flow show that earnings have not translated consistently into cash. This volatility can make internal funding less predictable and may constrain the timing of investment or shareholder returns.

Nippon Care Supply Co., Ltd. (2393) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 62.02B
Dividend Yield: 1.80%
Average Volume (3M): 7,565
Price to Earnings (P/E): 25.4
Beta (1Y): 0.11
Revenue Growth: 9.59%
EPS Growth: 18.42%
Country: Japan
Employees: 1,062
Sector: Industrials
Sector Strength: 63
Industry: Rental & Leasing Services

Nippon Care Supply Co., Ltd. Business Overview & Revenue Model

Company Description

Operating within Japan, Nippon Care Supply Co., Ltd. specializes in both the rental and wholesale distribution of assistive welfare equipment. Their product offerings encompass items such as electric beds, wheelchairs, and various bathing aids. Beyon...

How the Company Makes Money

The company makes money primarily by providing welfare/assistive equipment to end users via care providers under Japan’s long-term care ecosystem, with revenue generated from (1) equipment rental services and related recurring fees, and (2) sales/sup...

Nippon Care Supply Co., Ltd. Financial Statement Overview

Summary

The company demonstrates strong financial health. The income statement shows consistent revenue growth and rebounding profitability, with net income up 26% YoY. The balance sheet is exceptionally robust with minimal leverage (D/E 0.06) and growing equity. Cash flow has surged, with strong cash conversion and positive free cash flow, indicating a well-managed, profitable business.

Income Statement

84Very Positive

Balance Sheet

93Very Positive

Cash Flow

81Very Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	36.63B	34.93B	32.01B	28.59B	25.89B	23.30B
Gross Profit	13.42B	12.79B	11.29B	10.25B	9.47B	8.82B
EBITDA	10.85B	10.43B	9.48B	8.38B	7.83B	7.73B
Net Income	2.44B	2.26B	1.79B	1.58B	1.51B	1.68B
Balance Sheet
Total Assets	28.40B	27.73B	26.72B	25.41B	23.18B	21.33B
Cash, Cash Equivalents and Short-Term Investments	692.64M	692.64M	740.61M	711.88M	1.49B	1.75B
Total Debt	1.06B	1.06B	2.26B	1.36B	610.00M	59.72M
Total Liabilities	9.73B	9.12B	9.20B	8.86B	7.10B	5.82B
Stockholders Equity	18.60B	18.60B	17.51B	16.54B	16.07B	15.50B
Cash Flow
Free Cash Flow	0	2.73B	538.71M	-306.99M	-794.99M	-635.36M
Operating Cash Flow	0	3.23B	1.39B	339.18M	-7.10M	53.25M
Investing Cash Flow	0	-934.47M	-1.17B	-775.78M	132.78M	741.98M
Financing Cash Flow	0	-2.34B	-189.88M	-343.30M	-381.96M	-724.64M

Nippon Care Supply Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price3990.00

Price Trends

50DMA4291.50Negative

100DMA4265.65Negative

200DMA3369.81Positive

Market Momentum

MACD-98.87Positive

RSI34.59Neutral

STOCH15.22Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2393, the sentiment is Negative. The current price of 3990.00 is below the 20-day moving average (MA) of 4224.50, below the 50-day MA of 4291.50, and above the 200-day MA of 3369.81, indicating a neutral trend. The MACD of -98.87 indicates Positive momentum. The RSI at 34.59 is Neutral, neither overbought nor oversold. The STOCH value of 15.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2393.

Nippon Care Supply Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

JP:2393 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:7081	78Outperform	JPY 13.86B	8.59	―	2.91%	1.07%	-22.61%
JP:2393	72Outperform	JPY 61.58B	25.38	―	1.80%	9.59%	18.42%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
JP:5834	61Neutral	JPY 40.10B	5.85	―	4.77%	47.13%	16.70%
JP:8424	57Neutral	JPY 376.90B	10.09	―	3.97%	21.37%	37.39%
JP:8439	57Neutral	JPY 1.33T	15.20	―	3.55%	10.62%	-35.62%

* Industrials Sector Average

Performance Comparison

JP:2393 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:2393	Nippon Care Supply Co., Ltd.	3990.00	1776.72	80.28%
JP:5834	SBI Leasing Services Co.,Ltd.	2515.00	72.86	2.98%
JP:7081	Koyou Rentia Co., Ltd.	1235.00	31.67	2.63%
JP:8424	Fuyo General Lease Co., Ltd.	4161.00	297.71	7.71%
JP:8439	Tokyo Century Corporation	2704.00	859.84	46.63%
JP:372A	Rent Corporation	6180.00	644.83	11.65%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Sep 11, 2026

Nippon Care Supply Co., Ltd. AI Stock Analysis