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olivLaw · US equity research

SBC Medical Group Holdings Incorporated SBC

Services-Offices & Clinics of Doctors of Medicine · SIC 8011 · Vertical: Services-Offices & Clinics of Doctors of Medicine (SIC 8011)

5.02USD−5.64% · 1 dayClose 05 Nov 2026

SBC Medical Group Holdings is a management company (MSO) providing management services to aesthetic and medical clinics, mainly in Japan, with expansion into Singapore, Vietnam and Thailand. The company returned to growth in the second quarter of 2026 after a 2025 in which revenues fell to 173.6 million USD from 205.4 million USD in 2024.

At the close of 05 Nov 2026, SBC Medical Group Holdings Incorporated (SBC) stock was 5.02 USD (−5.64% on the day), with market capitalisation 516.3 m USD, P/E 10.7 on diluted EPS of 0.47 USD over the last 12 months, beta 0.37, 52-week range 2.87–5.69 USD. Latest reported quarter (Q2 2026): revenue of 49.2 m USD (+13.4% YoY), net income of 10.7 m USD (+335.0% YoY), diluted EPS 0.10 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
516.3 m USD
shares as of 31 Jul 2026
P/E (TTM)
10.7
Diluted EPS TTM 0.47 · TTM to 30 Jun 2026
E/P (TTM)
9.33%
TTM to 30 Jun 2026
Dividend yield
unavailable
Beta (2y)
0.37
Volatility (1y) 57%
52-week range
2.875.69

Price history

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Technical reading

RSI (14)
45.5
neutral
Bollinger (20, 2)
5.03 – 5.67
below the lower band · %B -0.02 · band width 12.0%
SMA 50 / 200
4.95 / 3.95
uptrend (price > SMA50 > SMA200)
MACD (12, 26, 9)
0.08 / 0.15
MACD below signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month−5.8%−5.9%+0.1 pp—
3 months+69.0%−4.6%+73.6 pp—
6 months+56.4%+0.2%+56.2 pp—
Year to date+16.5%+7.4%+9.0 pp—
1 year+57.9%+8.2%+49.7 pp−23.7%
3 years−53.0%+68.4%−121.4 pp−56.4%
5 yearsunavailable+56.5%unavailable—
Max drawdown (1y)
−41.7%
02 Feb 2026 → 18 May 2026
Max drawdown (5y)
−82.1%
12 Aug 2024 → 18 May 2026
Compound annual growth (5y)
unavailable
S&P 500 +9.4%

Price returns, dividends excluded.

Quarterly results

Latest quarter: Q2 2026 · 30 Jun 2026

Revenue
49.2 m USD
+13.4% YoY
Net income
10.7 m USD
+335.0% YoY
Diluted EPS
0.10
+400.0% YoY
net / operating
21.7% / 38.5%

Quarterly margins

Quarterly statements · USD

Fiscal yearQ3 '24Q4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26
Revenue53.1 m44.4 m47.3 m43.4 m43.4 m39.6 m43.1 m49.2 m
Cost of revenue9.8 m10.5 m9.6 m13.3 m12.7 m10.6 m12.7 m13.2 m
Gross profit43.2 m33.9 m37.7 m30.0 m30.6 m28.9 m30.3 m36.0 m
SG&A16.6 m13.9 m13.5 m15.5 m14.7 m16.1 m12.6 m17.0 m
Operating income13.8 m4.7 m24.2 m14.6 m15.9 m12.8 m17.7 m19.0 m
Depreciation & amortisation1.0 m ≈931.6 k628.3 k636.1 k ≈746.2 k ≈673.7 k670.4 k1.1 m ≈
Interest expense5.5 k12.4 k4.0 k46.7 k44.9 k52.8 k111.9 k126.1 k
Pre-tax income13.1 m6.1 m31.5 m13.5 m18.5 m18.6 m18.9 m19.6 m
Income tax10.3 m-488.6 k10.0 m11.1 m5.7 m4.3 m7.5 m7.8 m
Net income2.8 m6.5 m21.5 m2.5 m12.8 m14.2 m11.3 m10.7 m
Diluted EPS0.030.06 ≈0.210.020.120.14 ≈0.110.10
Operating cash flow5.0 m ≈-7.3 m1.9 m-8.3 m ≈-20.9 m ≈52.0 m9.2 m22.5 m ≈
Capex409.0 k ≈590.4 k253.7 k306.7 k ≈43.1 k ≈797.5 k125.0 k84.4 k ≈
Share repurchases—0——2.6 m ≈0——

≈ derived quarter (cumulative difference / share-days average)

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Today's P/E sits at the 44 percentile of its own 9-quarter history (min 6.3, median 10.8, max 20.3; quarters with earnings only).

Fiscal years

Fiscal year202320242025
Revenue193.5 m205.4 m173.6 m
Revenue YoYunavailable+6.1%−15.5%
Net income39.4 m46.6 m51.0 m
Net income YoYunavailable+18.4%+9.4%
Diluted EPS0.420.480.50
Diluted EPS YoYunavailable+14.3%+4.2%
net %20.3%22.7%29.4%
Free cash flow42.1 m18.0 m23.3 m

Reported results vs expectations

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Balance sheet & financial health

Fiscal year 2025 · 31 Dec 2025

Cash
163.8 m USD
Financial debt
43.1 m USD
Net debt
-120.7 m USD
Equity
263.3 m USD
Total assets
380.4 m USD
Debt / equity
0.16x
Current ratio
3.78x
ROE
22.2%
ROA
15.8%
FCF margin
13.4%

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2023
193.5 m
2024
205.4 m
2025
173.6 m

SEC (XBRL)· 27 Mar 2026verified

Cost of revenue
2023
56.2 m
2024
49.4 m
2025
46.3 m

SEC (XBRL)· 27 Mar 2026verified

Gross profit
2023
137.3 m
2024
156.1 m
2025
127.3 m

SEC (XBRL)· 27 Mar 2026verified

SG&A
2023
66.2 m
2024
57.7 m
2025
59.8 m

SEC (XBRL)· 27 Mar 2026verified

Operating income
2023
70.7 m
2024
70.3 m
2025
67.5 m

SEC (XBRL)· 27 Mar 2026verified

Depreciation & amortisation
2023
12.2 m
2024
3.8 m
2025
2.7 m

SEC (XBRL)· 27 Mar 2026verified

EBITDA
2023
82.9 m ≈
2024
74.1 m ≈
2025
70.2 m ≈

SEC (XBRL)· 27 Mar 2026derived

Interest expense
2023
45.3 k
2024
28.3 k
2025
148.2 k

SEC (XBRL)· 27 Mar 2026verified

Pre-tax income
2023
73.6 m
2024
73.5 m
2025
82.1 m

SEC (XBRL)· 27 Mar 2026verified

Income tax
2023
35.0 m
2024
26.8 m
2025
31.0 m

SEC (XBRL)· 27 Mar 2026verified

Net income
2023
39.4 m
2024
46.6 m
2025
51.0 m

SEC (XBRL)· 27 Mar 2026verified

Diluted EPS
2023
0.42
2024
0.48
2025
0.50

SEC (XBRL)· 27 Mar 2026verified

Weighted average diluted shares
2023
94.2 m
2024
96.6 m
2025
103.0 m

SEC (XBRL)· 27 Mar 2026verified

Balance sheet · USD

Cash
2023
103.0 m
2024
125.0 m
2025
163.8 m

SEC (XBRL)· 27 Mar 2026verified

Inventories
2023
3.1 m
2024
1.5 m
2025
2.8 m

SEC (XBRL)· 27 Mar 2026verified

Current assets
2023
165.9 m
2024
184.5 m
2025
231.2 m

SEC (XBRL)· 27 Mar 2026verified

Property, plant & equipment, net
2023
13.6 m
2024
8.8 m
2025
7.5 m

SEC (XBRL)· 27 Mar 2026verified

Goodwill
2023
3.6 m
2024
4.6 m
2025
15.4 m

SEC (XBRL)· 27 Mar 2026verified

Intangibles (excl. goodwill)
2023
19.7 m
2024
1.6 m
2025
47.7 m

SEC (XBRL)· 27 Mar 2026verified

Total assets
2023
258.8 m
2024
266.1 m
2025
380.4 m

SEC (XBRL)· 27 Mar 2026verified

Accounts payable
2023
26.5 m
2024
—
2025
—

SEC (XBRL)· 13 Nov 2024verified

Short-term debt
2023
329.2 k
2024
262.1 k
2025
228.2 k

SEC (XBRL)· 27 Mar 2026verified

Long-term debt
2023
—
2024
6.6 m
2025
42.8 m

SEC (XBRL)· 27 Mar 2026verified

Current liabilities
2023
92.5 m
2024
61.2 m
2025
61.1 m

SEC (XBRL)· 27 Mar 2026verified

Total liabilities
2023
115.0 m
2024
71.1 m
2025
117.1 m

SEC (XBRL)· 27 Mar 2026verified

Equity
2023
143.8 m
2024
195.0 m
2025
263.3 m

SEC (XBRL)· 27 Mar 2026verified

Cash flow · USD

Operating cash flow
2023
50.7 m
2024
20.6 m
2025
24.7 m

SEC (XBRL)· 27 Mar 2026verified

Capex
2023
8.5 m
2024
2.6 m
2025
1.4 m

SEC (XBRL)· 27 Mar 2026verified

Free cash flow
2023
42.1 m ≈
2024
18.0 m ≈
2025
23.3 m ≈

SEC (XBRL)· 27 Mar 2026derived

Investing cash flow
2023
1.8 m
2024
-10.1 m
2025
-21.0 m

SEC (XBRL)· 27 Mar 2026verified

Financing cash flow
2023
6.1 m
2024
23.0 m
2025
38.3 m

SEC (XBRL)· 27 Mar 2026verified

Share repurchases
2023
—
2024
0
2025
5.0 m

SEC (XBRL)· 27 Mar 2026verified

Computed indicators

Growth

Revenue growth (YoY)
-15.5%
computed by olivLawFY 2025
Revenue CAGR 3Y
unavailable
input data missing
Revenue CAGR 5Y
unavailable
input data missing
EBIT growth (YoY)
-4.0%
computed by olivLawFY 2025
Net income growth (YoY)
9.4%
computed by olivLawFY 2025
Net income CAGR 3Y
unavailable
input data missing
Net income CAGR 5Y
unavailable
input data missing
EPS growth (YoY)
4.2%
computed by olivLawFY 2025
EPS CAGR 3Y
unavailable
input data missing
EPS CAGR 5Y
unavailable
input data missing
FCF growth (YoY)
29.1%
computed by olivLawFY 2025

Profitability

Gross margin
71.9%
computed by olivLawTTM to 30 Jun 2026
EBITDA margin
39.2%
computed by olivLawTTM to 30 Jun 2026
EBIT margin
37.3%
computed by olivLawTTM to 30 Jun 2026
Net margin
28.0%
computed by olivLawTTM to 30 Jun 2026
FCF margin
35.3%
computed by olivLawTTM to 30 Jun 2026

Returns

ROE
19.3%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
ROA
13.6%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
ROIC
37.3%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
ROCE
19.9%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Payout ratio (EPS)
unavailable
input data missing
Payout ratio (FCF)
unavailable
input data missing

Balance sheet

Net debt
-146.4 m USD
computed by olivLawbalance sheet at 30 Jun 2026
Net debt / EBITDA
-2.1x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Debt / equity
0.1x
computed by olivLawbalance sheet at 30 Jun 2026
Interest coverage
194.9x
computed by olivLawTTM to 30 Jun 2026

Liquidity

Current ratio
3.3x
computed by olivLawbalance sheet at 30 Jun 2026
Quick ratio
3.3x
computed by olivLawbalance sheet at 30 Jun 2026
Cash ratio
2.3x
computed by olivLawbalance sheet at 30 Jun 2026

Cash

Operating cash flow
62.8 m USD
computed by olivLawTTM to 30 Jun 2026
Capital expenditure
1.0 m USD
computed by olivLawTTM to 30 Jun 2026
Free cash flow
61.8 m USD
computed by olivLawTTM to 30 Jun 2026
FCF conversion
126.0%
computed by olivLawTTM to 30 Jun 2026
Cash conversion
91.5%
computed by olivLawTTM to 30 Jun 2026

Efficiency

Days sales outstanding
unavailable
input data missing
Days inventory outstanding
17 days
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Days payables outstanding
unavailable
input data missing
Cash conversion cycle
unavailable
input data missing

Market and valuation

Market capitalisation
516.3 m USD
computed by olivLawbalance sheet at 30 Jun 2026
Enterprise value
369.9 m USD
computed by olivLawbalance sheet at 30 Jun 2026
Market cap / net income TTM
10.5x
computed by olivLawTTM to 30 Jun 2026
P/E (TTM)
10.7x
computed by olivLawTTM to 30 Jun 2026
Earnings yield
9.3%
computed by olivLawTTM to 30 Jun 2026
P/B
2.0x
computed by olivLawbalance sheet at 30 Jun 2026
P/S
2.9x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
EV/EBITDA
5.4x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
EV/EBIT
5.7x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
EV/Sales
2.1x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
P/FCF
8.4x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
FCF yield
12.0%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Dividend yield
unavailable
no dividend in the structured statements; a missing line is not a confirmed zero
Shareholder yield (distributions)
0.5%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026

1 indicators that do not apply to the sector.

Valuation

olivLaw classification

Neutral profile

Score: 89 / 100

A scoring methodology on indicators and valuation, not investment advice.

Closing price

5.02 USD

05 Nov 2026Source: olivLaw, closing series

Market cap: 516.3 m USD

Key indicators

Market capitalisation
516.3 m USD
computed by olivLawbalance sheet at 30 Jun 2026
P/E (TTM)
10.7x
computed by olivLawTTM to 30 Jun 2026
P/B
2.0x
computed by olivLawbalance sheet at 30 Jun 2026
EV/EBITDA
5.4x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
ROE
19.3%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Net margin
28.0%
computed by olivLawTTM to 30 Jun 2026
Revenue growth (YoY)
-15.5%
computed by olivLawFY 2025
Dividend yield
unavailable
no dividend in the structured statements; a missing line is not a confirmed zero

Coverage and freshness

32/37 reporting lines present
Latest full fiscal year: 2025
Latest reported period: 30 Jun 2026
Latest balance sheet date: 30 Jun 2026
Share count (cover of the latest filing), as of: 31 Jul 2026
Source: SEC (XBRL)published 13 Aug 2026
verified 515derived 44

Score by group

  • Valuation91
  • Balance sheet100
  • Returns7
  • Quality100

Estimated value range

Low
8.07
USD per share
Mid
9.46
USD per share
High
11.70
USD per share
Price: 5.02 USD
The price is below the range
Potential to the central value: 88.5% (value / price − 1)
Margin of safety: 47.0% (1 − price / value)
Agreement between methods: single method · 1 methods used · 1 independent bases

The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 8.07 – 11.70 USD.

Valuation assumptions are editorial choices, not measured; beta is not measured.

Method ranges (USD per share)

— — Mid · ▏ Price

Valuation methods

  • DCF (discounted cash flow)8.07 – 11.70 (Mid 9.46)
    WACC 8.9% · starting FCFF 62.0 m USD · terminal value share of EV 73%
    The WACC × g sensitivity gives the method's bounds; these are not probabilities.
    Reverse DCF: no growth between −30% and +40% justifies the price
  • Peers: EV/EBITDAunavailable · not enough peers
  • Peers: P/Eunavailable · not enough peers
  • Dividend discount (DDM)unavailable · the company pays no dividend: a dividend model needs an explicit initiation assumption
Multiple comparisons use the SIC vertical: Services-Offices & Clinics of Doctors of Medicine (SIC 8011)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Neutral profile · Score 89/100

FactorValueScoreWeight used
ROIC · Quality37.3%100 (on a fixed band)13%
Net margin · Quality28.0%100 (vs peers)8%
FCF conversion · Quality126.0%100 (on a fixed band)8%
Revenue CAGR 3Y · Growthunavailableunavailable—
EPS CAGR 3Y · Growthunavailableunavailable—
Net debt / EBITDA · Balance sheet-2.1x100 (on a fixed band)13%
Interest coverage · Balance sheet194.9x100 (on a fixed band)8%
Current ratio · Balance sheet3.3x100 (on a fixed band)5%
P/E (TTM) · Valuation10.7x88 (on a fixed band)13%
EV/EBITDA · Valuation5.4x87 (on a fixed band)13%
FCF yield · Valuation12.0%100 (on a fixed band)11%
Shareholder yield (distributions) · Returns0.5%7 (on a fixed band)8%
Payout ratio (FCF) · Returnsunavailableunavailable—

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet100/100 · 3/3 factors with a value
  • Growth· partialunavailable · 0/2 factors with a value
  • Quality100/100 · 3/3 factors with a value
  • Returns· partial7/100 · 1/2 factors with a value
  • Valuation91/100 · 3/3 factors with a value

A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.

Memo

SBC Medical Group Holdings Incorporated (SBC). Latest full fiscal year: 2025; data up to 2026-06-30.

Figures computed from the financial statements: revenue 173.6 m USD in 2025; YoY growth -15.5%; net margin 28.0%; ROE 19.3%; net debt/EBITDA -2.1x.

The estimated value range is 8.07–11.70 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 9.46 USD, the price of 5.02 USD leaves a potential of 88.5% (value / price − 1) and a margin of safety of 47.0% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.

olivLaw score 89/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: growth, returns. Not investment advice.

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • ROIC: 37.3%
  • Net margin: 28.0%
  • FCF conversion: 126.0%
  • Net debt / EBITDA: -2.1x
  • Interest coverage: 194.9x
  • Current ratio: 3.3x
  • P/E (TTM): 10.7x
  • EV/EBITDA: 5.4x
  • FCF yield: 12.0%
  • The price is below the estimated value range

What contradicts it

  • Shareholder yield (distributions): 0.5%

Not assessed (insufficient data or a ratio without meaning): Revenue CAGR 3Y, EPS CAGR 3Y, Payout ratio (FCF).

Versus the vertical median

Services-Offices & Clinics of Doctors of Medicine (SIC 8011) · same industry (4-digit SIC) · compared with 8 companies

Multiples and returns vs the median

P/E
10.7x
vertical median —
EV/EBITDA
5.4x
vertical median —
P/S
2.9x
vertical median 0.7x
above median (+324.1%)
P/B
2.0x
vertical median 1.3x
above median (+47.7%)
ROE
19.3%
vertical median -11.8%
above median
Net margin
28.0%
vertical median -6.2%
above median
EBIT margin
37.3%
vertical median -6.6%
above median
Revenue YoY
-15.5%
vertical median 25.2%
below median (−161.5%)
Net debt/EBITDA
-2.1x
vertical median —
Dividend yield
—
vertical median 2.8%

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
TDOCTeladoc Health, Inc.1.7 bn—-11.5%-6.3%−1.5%+24% / −48%
STLNStarling Oncology, Inc.682.8 m——-6.2%+27.8%+113% / +292%
SBCSBC Medical Group Holdings Incorporated516.3 m10.719.3%28.0%−15.5%+58% / −53%
CCMConcord Medical Services Holdings Ltd463.7 m——-20.2%+25.2%−8% / −65%
LFMDLifeMD, Inc.110.4 m—6.5%0.1%+25.3%−40% / −70%
AIRSAirSculpt Technologies, Inc.103.8 m—-12.0%-7.8%−15.8%−59% / −71%
BMGLBasel Medical Group Ltd8.2 m—-169.7%-94.0%unavailable−64% / unavailable
HIMSHims & Hers Health, Inc.0—-32.0%-5.5%+59.0%−39% / +171%
AUNAAuna S.A.——7.5%2.5%+13.2%−1% / unavailable

1- and 3-year price returns: for SBC from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

The engine has no published run for this company yet.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Bull
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Nothing is saved.

Estimated price (USD)

Estimated priceBearBaseBull
1 years
2.73
Total return -46% · Per year -46%
4.85
Total return -3% · Per year -3%
7.34
Total return 46% · Per year 46%
3 years
2.17
Total return -57% · Per year -24%
4.38
Total return -13% · Per year -4%
7.34
Total return 46% · Per year 14%
5 years
1.72
Total return -66% · Per year -19%
3.95
Total return -21% · Per year -5%
7.34
Total return 46% · Per year 8%
What moves the 3-year price the most
  • Exit P/E± 1.09
  • Net margin± 0.77
  • Annual revenue growth± 0.69
  • Annual dilution± 0.06

AI analysis

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

In brief

SBC Medical Group Holdings is a management company (MSO) providing management services to aesthetic and medical clinics, mainly in Japan, with expansion into Singapore, Vietnam and Thailand. The company returned to growth in the second quarter of 2026 after a 2025 in which revenues fell to 173.6 million USD from 205.4 million USD in 2024 13.

SWOT

Strengths

  • A management model with recurring service-fee revenue, an extensive partner clinic network and a solid cash position that allows disciplined investment.
  • Accumulated management experience and years of operating data, which the company says it uses to develop AI tools.
  • High profitability relative to revenue, giving financial flexibility.

Weaknesses

  • Reliance on a small group of affiliated medical entities linked to the CEO's relatives limits independent control.
  • Revenue fell in 2025 and the fee revision and ended staffing services weighed on the main segments.
  • Yen exposure and geographic concentration in Japan make results sensitive to local conditions.

Opportunities

  • Higher AI-related service fees and more clinic locations could support sustainable revenue growth.
  • Entry into Thailand, the OrangeTwist collaboration and non-aesthetic growth could open new markets.
  • Integration of Waqoo and recent acquisitions could add capabilities in regenerative medicine.

Threats

  • Japanese rules on the relationship between physicians and management companies could change the franchise model.
  • Franchisee bankruptcy or late payments could reduce service-fee revenue.
  • Competition from large chains and regional operators could pressure fees and market share.

Risks

  • Dependence on affiliated clinicshigh

    Revenue depends largely on the financial success of affiliated clinics, and their difficulties could directly affect service fees 1.

  • Conflicts with affiliated entitieshigh

    CEO relatives control voting in the general meetings of the medical entities, which could lead to disputes or challenges to contracts 1.

  • Need for additional capitalmedium

    The company says it may need additional long-term financing, and an equity issue could dilute existing shareholders 1.

  • Currency exposuremedium

    Dollar-reported results depend on the yen exchange rate, and its movements can change converted revenue and profit 1.

  • Intellectual property protectionlow

    If technology and brand rights cannot be protected in every country of operation, competitiveness could weaken 1.

Investment thesis

What would need to be true (bull case)

  • Return to growth in the second quarter of 2026 and sharply higher profit could show that the new service fees are taking hold 23.
  • If the AI platform and Southeast Asian expansion work, the company could diversify revenue away from Japan.
  • A solid cash position could allow acquisitions and investment without depending on external financing 3.

What would break the thesis

  • Annual revenue fell in 2025, and the 2026 recovery could prove temporary if the fee changes do not hold 13.
  • Concentration on affiliated entities with family links could weigh on investor confidence and attract regulatory attention.
  • International expansion is at an early stage, and results in Thailand and the United States could fall short of management's expectations.

What to watch

  • Realisation of the service-fee increases and their full-year impactQ3 2026
  • Trend in clinic locations and visits over the last twelve monthsQ3 2026
  • Progress of the Thailand project and the OrangeTwist collaboration2027
  • Next annual report with segment revenue and cost detailnext 10-K

Products, market & competition

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

The business

SBC Medical provides partner clinics with advertising and marketing, staff management, booking services, procurement of equipment and consumables, licences for medical technologies and brands, IT solutions and a customer loyalty programme 1. As of 31 December 2025 the company supported 237 franchisee treatment centres in Japan and operated 21 centres in Singapore through AHH 1.

Most revenue comes from affiliated medical entities that the company supports through franchise and service contracts; these are treated as related parties because relatives of the CEO are members of their general meetings 1. The company acquired AHH in Singapore in November 2024, MB career lounge in July 2025 and a controlling stake in Waqoo in December 2025 1.

In December 2025 the company took a minority stake in OT Midco, which operates clinics in the United States, while its Irvine clinic was closed at the end of May 2025 1. The company reports a single operating segment 1.

Market context

The company operates mainly in Japan's aesthetic and dermatology clinic market, with expansion in Singapore and Vietnam and plans to enter Thailand 13. Patient visits over the last twelve months rose 10% year-on-year and average spend per visit rose 9% 3.

Reported revenue is sensitive to the yen: the yen's appreciation against the dollar contributed favourably in 2025, and dollar figures can move with exchange rates 1.

Trends

  • Return to growth in 2026tailwind

    Second-quarter 2026 revenue rose 13% year-on-year and attributable net income rose much faster, suggesting that new service fees could support earnings if applied in full 23.

  • Revised franchise fee structureheadwind

    The revised fee structure, based on clinic size and performance, reduced franchise revenue in 2025 and could limit growth if partner clinics underperform 1.

  • AI integration in servicesmixed

    Management links growth to an AI-enabled MSO platform covering automated call centres, marketing and site selection; the effectiveness of these tools could determine whether fees hold 3.

  • International and non-aesthetic expansionmixed

    The company is pursuing ASEAN expansion through Thailand, collaboration with OrangeTwist in the United States and growth outside aesthetics, which could add revenue but also execution risk 13.

Competitive position

The company notes that each franchisee clinic competes with major clinic chains nationally and internationally and with independent companies regionally; differentiation through management services and cosmetic products determines market share 1.

In the United States the company is entering through its minority investment in OrangeTwist, which operates 24 centres, while competition in Southeast Asia includes local aesthetic and dermatology clinic networks 1.

  • OrangeTwist

    US lifestyle medicine and aesthetics provider in which SBC holds a minority interest through OT Midco.

  • Japanese aesthetic clinic chains

    National chains and regional operators competing with the clinics SBC supports for patients and customers.

  • International clinic chains

    Large clinic networks active in markets where the company expands, such as Singapore and Thailand.

  • Independent regional operators

    Independent regional companies with which partner clinics compete in local markets.

News & filings

In the press

SEC filings

  • Quarterly report13 Aug 2026
  • Current report13 Aug 2026
    Results of operations · Regulation FD disclosure · Financial statements and exhibits
  • Current report14 Jul 2026
    Delisting notice · Item 3.03 · Amendments to articles or bylaws · Shareholder vote · Financial statements and exhibits
  • Proxy statement28 May 2026
  • Current report20 May 2026
    Departure or appointment of officers
  • Quarterly report14 May 2026
  • Current report14 May 2026
    Results of operations · Regulation FD disclosure · Financial statements and exhibits
  • Current report23 Apr 2026
    Material agreement · Financial statements and exhibits
  • Annual report27 Mar 2026
  • Current report27 Mar 2026
    Results of operations · Regulation FD disclosure · Other events · Financial statements and exhibits

Sources

  1. [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / SBC Medical Group Holdings Incorporated · 27 Mar 2026
  2. [2] Form 10-Q, quarter ended 2026-06-30 · SEC / SBC Medical Group Holdings Incorporated · 13 Aug 2026
  3. [3] Form 8-K, results release (exhibit 99.1) · SEC / SBC Medical Group Holdings Incorporated · 13 Aug 2026

Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.