Strong Balance SheetThe company maintains limited leverage and a high equity base, giving durable financial flexibility. Low debt reduces refinancing risk and supports capital allocation for operations or restructuring, enabling resilience to shocks and enabling strategic initiatives over the next several months.

Low Equity Volatility (beta)A very low beta suggests the stock traditionally exhibits limited market volatility, often reflecting steadier cash flows or less cyclical demand. This stability aids management planning and reduces the risk of abrupt financing stress, supporting execution of medium-term operational fixes.

Historic Gross Margin HeadroomMargins were materially higher in 2022, implying the business historically achieved stronger unit economics. If cost structure or pricing is repaired, there is structural room to recover gross margins, supporting sustainable profitability improvement over a multi-month horizon.

Bears Say

Revenue DeclineTop-line has been shrinking, reducing scale benefits and squeezing operating leverage. Continued revenue contraction makes margin recovery harder, limits free cash flow potential, and constrains the firm's ability to invest in growth or service obligations over the coming months.

Weak Cash GenerationFree cash flow deterioration and weaker conversion of net income to operating cash indicate persistent liquidity stress. This undermines the company’s ability to fund operations, dividends, or capex internally, increasing reliance on external financing and limiting strategic flexibility.

Deteriorating Profitability (ROE & Margins)ROE and net margin deterioration show declining capital efficiency and profitability. Sustained negative returns erode shareholder equity, reduce retained earnings, and hamper the company’s capacity to self-fund growth or recover without structural operational changes.

4705 FAQ

What was Clip Corporation’s price range in the past 12 months?

Clip Corporation lowest stock price was ¥751.00 and its highest was ¥893.00 in the past 12 months.

What is Clip Corporation’s market cap?

Clip Corporation’s market cap is ¥3.25B.

When is Clip Corporation’s upcoming earnings report date?

The company’s upcoming earnings report date is not yet available.

How were Clip Corporation’s earnings last quarter?

Currently, no data Available

Is Clip Corporation overvalued?

According to Wall Street analysts Clip Corporation’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Clip Corporation pay dividends?

Clip Corporation pays a Annually dividend of ¥45 which represents an annual dividend yield of 5.52%. See more information on Clip Corporation dividends here

What is Clip Corporation’s EPS estimate?

Clip Corporation’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Clip Corporation have?

Clip Corporation has 4,536,000 shares outstanding.

What happened to Clip Corporation’s price movement after its last earnings report?

Currently, no data Available

Which hedge fund is a major shareholder of Clip Corporation?

Currently, no hedge funds are holding shares in JP:4705

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Clip Corporation

CLIP Corporation engages in the education and sports businesses in Japan. It operates through: Education Business, Sports Business, Restaurant Business, and Other Business segments. The company is involved in the operations of cram school for elementary and junior high school students; soccer classes for infants and elementary school lower grades; Yuasa football club; dance classes; and basketball school for infants and elementary schools. It also engages in the home delivery of lunch; agricultural; and real estate businesses, as well as other business activities. The company was incorporated in 1981 and is headquartered in Nagoya, Japan.