Japan Animal Referral Medical Center Co., Ltd. (6039) AI Stock Analysis

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Japan Animal Referral Medical Center Co., Ltd.

(TSE/TYO:6039)

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Rating:65Neutral

Price Target:JPY 1,020.00▲(19.16% Upside)

Action:reiterated

Date:08/21/26

The score is primarily driven by strong multi-year revenue and earnings growth, but it is meaningfully held back by cash-generation risk (FY2026 free cash flow turning sharply negative) and higher FY2026 debt. Technicals are neutral-to-soft with the stock still below its longer-term moving averages, while valuation is supportive but not especially cheap.

Positive Factors

Sustained revenue growthThe multi-year expansion in revenue indicates sustained demand for the company’s veterinary services rather than reliance on a single period of growth. Continued top-line progress can support operating scale, specialist investment, and broader referral-market penetration over the next several quarters.

Negative Factors

Higher FY2026 leverageThe sharp year-over-year increase in debt raises financial obligations and reduces flexibility if earnings or cash conversion weaken. Although the prior debt-to-equity trend improved, renewed leverage could constrain future investment choices and increase the sensitivity of results to financing costs.

Japan Animal Referral Medical Center Co., Ltd. (6039) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 11.15B
Dividend Yield: 1.40%
Average Volume (3M): 66.34K
Price to Earnings (P/E): 12.4
Beta (1Y): 0.94
Revenue Growth: 15.68%
EPS Growth: 49.24%
Country: Japan
Employees: 328
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Personal Products & Services

Japan Animal Referral Medical Center Co., Ltd. Business Overview & Revenue Model

Company Description

Japan Animal Referral Medical Center Co., Ltd. operates a network of animal medical facilities across Japan, specializing in delivering advanced veterinary care for dogs and cats. These comprehensive centers boast an extensive range of specialized de...

Japan Animal Referral Medical Center Co., Ltd. Financial Statement Overview

Summary

Strong and sustained revenue growth (to ~¥6.19B by FY2026) and improving net income (~¥833M in FY2026) support a solid score. This is offset by increased leverage in FY2026 (debt up to ~¥5.16B) and, most importantly, weak and volatile free cash flow including a sharp swing to ~-¥953M in FY2026 despite positive operating cash flow.

Income Statement

82Very Positive

Balance Sheet

71Positive

Cash Flow

52Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	6.36B	6.19B	5.28B	4.27B	3.87B	2.98B
Gross Profit	2.65B	2.51B	1.81B	1.43B	1.41B	1.07B
EBITDA	1.81B	1.74B	1.29B	961.39M	996.73M	680.27M
Net Income	892.85M	833.43M	520.98M	337.22M	380.66M	286.94M
Balance Sheet
Total Assets	11.24B	11.31B	8.75B	8.77B	8.58B	7.11B
Cash, Cash Equivalents and Short-Term Investments	1.25B	1.59B	1.11B	1.34B	1.92B	1.07B
Total Debt	5.16B	5.16B	3.48B	3.86B	3.98B	3.92B
Total Liabilities	6.28B	6.43B	4.61B	4.96B	4.87B	4.60B
Stockholders Equity	4.96B	4.88B	4.15B	3.81B	3.71B	2.51B
Cash Flow
Free Cash Flow	0	-953.45M	418.70M	-141.26M	82.62M	-44.14M
Operating Cash Flow	0	1.40B	1.37B	899.78M	810.92M	557.57M
Investing Cash Flow	0	-2.49B	-994.38M	-985.86M	-784.07M	-1.43B
Financing Cash Flow	0	1.58B	-608.03M	-392.32M	820.59M	722.09M

Japan Animal Referral Medical Center Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price856.00

Price Trends

50DMA1004.22Negative

100DMA1020.75Negative

200DMA1142.76Negative

Market Momentum

MACD-15.87Positive

RSI36.55Neutral

STOCH21.21Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6039, the sentiment is Negative. The current price of 856.00 is below the 20-day moving average (MA) of 986.65, below the 50-day MA of 1004.22, and below the 200-day MA of 1142.76, indicating a bearish trend. The MACD of -15.87 indicates Positive momentum. The RSI at 36.55 is Neutral, neither overbought nor oversold. The STOCH value of 21.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6039.

Japan Animal Referral Medical Center Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:6039 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:6039	65Neutral	JPY 13.61B	12.39	―	1.40%	15.68%	49.24%
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
JP:9628	58Neutral	JPY 25.63B	7.39	―	5.30%	―	―

* Consumer Cyclical Sector Average

Performance Comparison

JP:6039 and its peers over the selected period
Show on chart	Ticker	Company Name	Price	Change	% Change
	JP:6039	Japan Animal Referral Medical Center Co., Ltd.	856.00	-69.86	-7.55%
	JP:9628	San Holdings, Inc. (Japan)	1076.00	-362.20	-25.18%

Japan Animal Referral Medical Center Co., Ltd. Corporate Events

JARMeC Delivers Double-Digit Profit Growth and Plans Higher Dividend

Aug 14, 2026

Japan Animal Referral Medical Center reported strong results for the three months ended June 30, 2026, with net sales up 11.6% year on year to ¥1,644 million and operating profit surging 35.0% to ¥349 million. Profit attributable to owners...

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 21, 2026

Japan Animal Referral Medical Center Co., Ltd. AI Stock Analysis