Care Service Co., Ltd.
2425・Standard Market・Services
Business
Care Service Co., Ltd. was established in 1991 and is listed on the Standard Market of the Tokyo Stock Exchange, operating as a company specializing in nursing care. In its home-visit care services business, the company offers day care services (day service) as its core offering, alongside home-visit bathing, home-visit care, home-visit nursing, care management support, small-scale multifunctional home care, welfare equipment rental and sales, and meal delivery services, deployed across a dominant service area in the Tokyo metropolitan region centered on Tokyo's 23 wards. In its comprehensive senior services business, the company provides Angel Care Service, which offers ritual bathing (yukan) and CDC (cosmetic care, dressing, and encoffining) services, on a nationwide basis, in addition to cleaning services and facility referral services. Under its corporate philosophy of providing consistent services "from nursing care to angel care," the company's primary customer base consists of elderly individuals and their families. As of the end of FY2026 (ending March 2026), the company operates 111 business locations domestically.
Business Model
The home care services business, accounting for approximately 69% of net sales, has long-term care insurance benefits as its main revenue source, with a stable earnings structure in which billings via the Tokyo National Health Insurance Federation account for 55.2% of net sales. Meanwhile, the comprehensive senior services business (approximately 31% of net sales) is not subject to long-term care fee revision risk, as it falls outside long-term care insurance coverage, and boasts high profitability with a segment profit margin of 22.6%. The company adopts an asset-light model in which facility openings are, in principle, based on leasing, restraining capital expenditure while funding growth investment and shareholder returns from its own funds.
Company Strengths
The company promotes a dominant strategy of concentrating multiple services in the same area, centered on Tokyo's 23 wards, operating 111 business locations domestically as of the end of FY2026 (ending March 2026). By providing a combination of day care, home-visit bathing, home-visit care, and home care support services in the same region, it achieves participation in the community-based integrated care system and improved customer acquisition efficiency.
The comprehensive senior services business achieved segment sales of ¥2,851 million, segment profit of ¥643 million, and a profit margin of 22.6% in FY2026 (ending March 2026). It is a unique revenue source unaffected by nursing care insurance fee revisions, and plays a role in supplementing the declining profit margin of the home care business. The company newly opened 4 business locations in FY2026 (ending March 2026) and continues nationwide expansion.
Since its founding in 1970, the company established a nursing care division in 1983 and began Angel Care services in 1990, building up its business since the industry's early days. It has been certified as a designated home care service provider since the enforcement of the Long-Term Care Insurance Act in 2000, and the know-how, brand, and customer base cultivated through many years of business operations constitute unique assets that are difficult for competitors to replicate in a short period.
ENVALITH's Perspective
Performance Trend
Revenue maintained a gradual growth trend from ¥8,966 million in FY2022 to ¥9,862 million in FY2025, but FY2026 saw a reversal to decline, falling to ¥9,217 million, down ¥624 million year on year. Operating profit had been on an improving trend, rising from ¥306 million in FY2022 to ¥521 million in FY2025, but plunged to ¥131 million in FY2026. The main cause was a deterioration in the cost of sales ratio (from 86.6% to 90.1%), driven by external factors such as soaring food ingredient and consumable prices, compounded by rising recruitment costs for care personnel and reduced utilization due to staff shortages. An impairment loss of ¥46 million was recorded as an extraordinary loss. The company's forecast for FY2027 (ending March 2027) calls for revenue of ¥9,527 million (+3.4%) and operating profit of ¥14 million (-88.8%), with further profit pressure expected due to upfront recognition of strategic investment expenses.
Growth Strategy
As a 'Second Founding Period,' the company will concentrate investment in human resources, technology, and systems in the initial year of its medium-term management plan (through FY2031, ending March 2031)
The company plans to announce its long-term vision and medium-term management plan through FY2031 (ending March 2031) in June 2026. FY2027 (ending March 2027) is positioned as the initial year, during which strategic investments in human resources, technology, and systems will be concentrated to support sustainable growth going forward.
The company continues to rightsize and consolidate business locations based on regional needs and efficiency, while investing in areas adjacent to its existing home care services. In FY2026 (ending March 2026), it opened 4 locations, closed 6, and consolidated/relocated 2, reorganizing to a 111-location structure.
The company continues to accelerate openings of new locations in new areas for its Angel Care Service. In FY2027 (ending March 2027), it plans to substantially increase hiring to build a structure capable of handling future growth in the number of cases handled. In FY2026 (ending March 2026), it has already opened 4 locations in Kochi, Yokosuka, Nakano, and Saga.
The company is appropriately implementing system-related investments for operational efficiency through ICT utilization and for security measures. This is factored in as one of the cost increase drivers for FY2027 (ending March 2027), aiming for medium- to long-term productivity improvements.
Last updated: July 19, 2026