Procrea Holdings,Inc. (7384) AI Stock Analysis

• Market Cap: ¥48.41B
• Dividend Yield: 2.9%
• Average Volume (3M): 66.25K
• Price to Earnings (P/E): 30.3
• Beta (1Y): 0.85
• Revenue Growth: 9.94%
• EPS Growth: -61.97%
• Country: JP
• Employees: 2,407
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 95.20
• Shares Outstanding: 28,658,957
• 10 Day Avg. Volume: 44,790
• 30 Day Avg. Volume: 66,250
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥1,781.00
• Price Target Upside: 3.19% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 59 Neutral
• Price Target: ¥1,781.00 ▲(3.19% Upside)

The stock's overall score is driven by strong technical momentum, despite concerns over financial performance and valuation. The company's positive revenue growth and strong cash flow are offset by weak profitability and high leverage. The high P/E ratio suggests potential overvaluation, but the dividend yield offers some investor appeal.

Procrea Holdings,Inc. Business Overview & Revenue Model

Company Description

Procrea Holdings,Inc. operates as a holding company for The Aomori Bank,Ltd. and The Michinoku Bank,Ltd. that provides banking products and services. It offers credit cards, credit guarantees, and credit management and collection services; and engages in consulting, leasing, and real estate management business. The company was incorporated in 2022 and is headquartered in Aomori, Japan.

How the Company Makes Money

Procrea Holdings generates revenue through multiple streams, primarily by offering a range of fertility-related products and services, including advanced reproductive technologies, fertility medications, and diagnostic services. The company also collaborates with healthcare institutions and clinics to provide comprehensive fertility solutions, which involves revenue-sharing agreements. Additionally, Procrea Holdings may benefit from partnerships with pharmaceutical companies for the development and distribution of proprietary medications, further enhancing its revenue potential through licensing deals and royalties. The company's focus on research and development allows it to stay at the forefront of innovation in reproductive health, which can lead to new product launches and increased market share.

Procrea Holdings,Inc. Financial Statement Overview

Summary

The company shows positive revenue growth, but weak profitability and high leverage are concerning. Strong cash flow generation is a positive, but overall financial health requires improvement in profitability and leverage management.

Income Statement

The income statement reveals mixed performance. Revenue growth is positive at 6.08% in the latest year, indicating a recovery from the previous year's decline. However, profitability metrics such as the net profit margin (2.04%) and EBIT margin (-13.76%) are weak, suggesting challenges in cost management and operational efficiency. The negative EBIT margin is particularly concerning for long-term sustainability.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 3.60, indicating significant leverage, which could pose risks if interest rates rise or if revenue growth stalls. Return on equity is low at 0.78%, reflecting limited profitability relative to shareholder equity. The equity ratio is not directly provided, but the high leverage suggests a low equity buffer.

Cash Flow

Cash flow analysis indicates strong free cash flow generation, with a free cash flow to net income ratio of 0.99, suggesting efficient cash conversion. The operating cash flow to net income ratio of 1.24 is healthy, indicating good cash flow relative to earnings. However, the previous year's negative operating cash flow highlights potential volatility in cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	78.86B	77.67B	70.21B	77.90B
Gross Profit	78.86B	73.77B	74.64B	70.09B
EBITDA	-4.09B	-8.29B	-2.05B	53.42B
Net Income	1.23B	1.23B	2.82B	48.96B
Balance Sheet
Total Assets	6.06T	6.06T	5.97T	5.97T
Cash, Cash Equivalents and Short-Term Investments	1.48T	1.48T	1.21T	1.12T
Total Debt	570.66B	570.66B	426.47B	480.93B
Total Liabilities	5.90T	5.90T	5.81T	5.79T
Stockholders Equity	158.30B	158.30B	167.35B	184.44B
Cash Flow
Free Cash Flow	0.00	213.22B	-24.03B	-510.94B
Operating Cash Flow	0.00	215.26B	-19.79B	-508.45B
Investing Cash Flow	0.00	119.69B	104.33B	72.62B
Financing Cash Flow	0.00	-69.56B	61.18B	-2.87B

Procrea Holdings,Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1726.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7384, the sentiment is Positive. The current price of 1726 is above the 20-day moving average (MA) of 1703.80, above the 50-day MA of 1629.90, and above the 200-day MA of 1622.51, indicating a bullish trend. The MACD of 18.99 indicates Positive momentum. The RSI at 62.85 is Neutral, neither overbought nor oversold. The STOCH value of 62.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7384.

Procrea Holdings,Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8387	79 Outperform	59.11B	8.39	4.26%	3.13%	7.21%	-3.97%
8541	77 Outperform	47.12B	8.07	4.22%	2.82%	-3.02%	7.28%
8362	73 Outperform	47.75B	7.87	5.24%	2.84%	10.04%	-16.66%
8344	72 Outperform	50.21B	11.69	3.25%	2.76%	-12.00%	28.81%
7384	59 Neutral	¥48.41B	30.31	―	2.90%	9.94%	-61.97%
8550	54 Neutral	51.29B	-2.35	-14.74%	1.43%	3.90%	-935.77%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Procrea Holdings,Inc. Corporate Events

Procrea Holdings Reports Unrealized Losses with No Impact on Financial Forecasts

Procrea Holdings, Inc. has reported unrealized losses on held-to-maturity bonds amounting to 7,949 million yen for the fiscal year ended March 31, 2025. Despite these losses, the company assures stakeholders that there will be no impact on its consolidated financial results forecasts and dividend forecasts for the same fiscal year, maintaining stability in its financial outlook.