FALCO HOLDINGS Co., Ltd (4671) AI Stock Analysis

FALCO HOLDINGS Co., Ltd

(TSE/TYO:4671)

Select Model

Rating:75Outperform

Price Target:JPY 3,188.00▲(17.55% Upside)

Action:reiterated

Date:08/17/26

The score is driven primarily by strong financial resilience (notably low leverage and steady positive cash flow) and supported by reasonable valuation with a high dividend yield. Technicals are positive due to an uptrend above key moving averages, but overbought momentum indicators temper the overall rating.

Positive Factors

Low Financial LeverageVery low and improving leverage gives FALCO substantial financial flexibility. The company is less dependent on borrowing, reducing solvency risk and preserving capacity to fund operations, investment, or shareholder returns through changing conditions.

Negative Factors

Margin CompressionAlthough profitability remains positive, lower operating and net margins indicate that earnings power is weaker than at the 2022 peak. Persistent compression could limit profit growth even if revenue continues recovering.

FALCO HOLDINGS Co., Ltd (4671) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 27.04B
Dividend Yield: 4.66%
Average Volume (3M): 17.62K
Price to Earnings (P/E): 13.0
Beta (1Y): 0.52
Revenue Growth: 0.29%
EPS Growth: 10.14%
Country: Japan
Employees: 1,037
Sector: General
Sector Strength: 55
Industry: Medical - Diagnostics & Research

FALCO HOLDINGS Co., Ltd Business Overview & Revenue Model

Company Description

FALCO HOLDINGS Co., Ltd., a medical services enterprise established in 1962 and headquartered in Kyoto, Japan, primarily delivers clinical diagnostic testing and pharmaceutical dispensing solutions. The company serves medical institutions and various...

How the Company Makes Money

FALCO HOLDINGS generates revenue mainly by providing clinical laboratory testing services to healthcare providers. In this model, medical institutions (e.g., clinics and hospitals) send patient specimens to the company’s laboratories for analysis; th...

FALCO HOLDINGS Co., Ltd Financial Statement Overview

Summary

Financials are supported by a very strong, low-leverage balance sheet (debt-to-equity ~0.05 in 2026) and consistently positive operating/free cash flow. The main limiter is earnings quality: revenue only recently re-accelerated and profitability remains below the 2022 peak with mid-single-digit operating/net margins and some free-cash-flow volatility.

Income Statement

64Positive

Balance Sheet

86Very Positive

Cash Flow

68Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	43.65B	43.58B	43.31B	43.01B	46.91B	50.01B
Gross Profit	13.92B	13.81B	13.35B	12.92B	14.64B	17.32B
EBITDA	3.82B	3.56B	3.72B	3.56B	4.75B	6.55B
Net Income	2.08B	2.02B	1.92B	1.67B	2.26B	3.53B
Balance Sheet
Total Assets	37.13B	36.86B	36.02B	36.42B	38.89B	40.26B
Cash, Cash Equivalents and Short-Term Investments	8.68B	9.27B	9.42B	10.06B	12.60B	10.64B
Total Debt	1.02B	1.25B	1.44B	817.00M	2.80B	4.07B
Total Liabilities	11.74B	10.99B	10.76B	10.40B	12.30B	16.77B
Stockholders Equity	25.38B	25.87B	25.25B	26.03B	26.59B	23.48B
Cash Flow
Free Cash Flow	0	1.54B	1.54B	2.19B	708.00M	1.94B
Operating Cash Flow	0	2.88B	2.62B	3.43B	2.09B	4.13B
Investing Cash Flow	0	-2.03B	-1.18B	-1.45B	322.00M	-2.69B
Financing Cash Flow	0	-2.00B	-2.08B	-4.53B	-448.00M	-2.41B

FALCO HOLDINGS Co., Ltd Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:4671 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:4671	75Outperform	JPY 26.66B	13.04	―	4.66%	0.29%	10.14%
JP:4694	72Outperform	JPY 143.41B	18.36	6.22%	3.32%	3.88%	26.78%
JP:4538	64Neutral	JPY 18.48B	8.21	―	4.27%	2.29%	―
JP:2395	63Neutral	JPY 62.70B	11.67	―	3.32%	1.72%	6.07%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:4579	43Neutral	JPY 16.61B	71.28	―	―	20.64%	―
JP:4563	31Underperform	JPY 11.75B	-3.04	-163.39%	―	35.28%	90.12%

* General Sector Average

Performance Comparison

JP:4671 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:4671	FALCO HOLDINGS Co., Ltd	2712.00	342.79	14.47%
JP:4563	AnGes	29.00	-58.00	-66.67%
JP:4694	BML	3835.00	297.80	8.42%
JP:2395	Shin Nippon Biomedical Laboratories, Ltd.	1506.00	99.20	7.05%
JP:4538	Fuso Pharmaceutical Industries,Ltd.	2107.00	69.56	3.41%
JP:4579	RaQualia Pharma Inc.	638.00	110.00	20.83%

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: Aug 17, 2026

FALCO HOLDINGS Co., Ltd AI Stock Analysis