SBC Medical Group Holdings Incorporated Common Stock (SBC)

FairStock Score: 86/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn good returns on capital, carry modest debt, and sell at a sensible price. SBC Medical manages cosmetic treatment centers, mostly in Japan plus Vietnam, the United States, and Singapore. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $49.2M and net income was $10.7M, up from revenue of $43.4M and net income of $2.5M in fiscal Q2 2025. That profit improvement is striking. For FY2025, the year ended 2025-12-31, revenue was $173.6M and net income was $51.0M; FY2024 had revenue of $205.4M and net income of $46.6M. So sales fell while profits rose, which suggests margin expansion or cost discipline, but it also means top-line growth is not dependable. FairStock calculates ROE of 18.91%, ROCE of 11.32%, debt-to-equity of 0.17, trailing free cash flow of $60.4M, and an FCF yield of 11.0%. Those are attractive cash-generation and balance-sheet numbers. The computed Lynch category is STALWART: profit grew 13.8% a year over two years, while revenue fell 5.3%. At the $5.32 close on 2026-10-13, FairStock shows a P/E of 11.08, P/B of 2.07, EV/EBITDA of 5.20, and PEG of 0.09. The Graham Number is $5.27, so the price is slightly above a Graham-style value estimate, with a margin of safety of -0.95%. Piotroski 7/9 and Altman 4.30 suggest reasonable financial health. The key question is whether the latest profit surge is durable or just a temporary margin event. I would want to see revenue stabilize before calling this a comfortable value.

In plain English: SBC Medical provides management and support services to cosmetic treatment clinics in Japan and a few other countries. The business looks financially solid because it earns good profits, generates cash, and owes relatively little debt, but sales have been uneven. At the recent price of $5.32, the shares look roughly fair to slightly cheap compared with the company's earnings and cash flow, not a deep bargain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer