Improved Profitability & High Gross MarginAlue regained operating profitability with gross margins near 63%, showing durable service economics across training deliveries. High gross margins provide a structural buffer to fund content development and client-specific programs, supporting sustainable operating profits if revenue growth persists.

Stronger Cash GenerationRecent operating cash flow and free cash flow turned strongly positive and roughly matched net income, indicating earnings are converting into cash. Reliable cash conversion enhances investment capacity for program development and working-capital needs and improves ability to service debt over time.

Manageable Leverage And Equity GrowthDebt around one-third of equity and recent equity growth signal improved balance-sheet resilience versus earlier periods. Lower relative leverage since 2020 gives the company financial flexibility to fund growth initiatives or absorb cyclical revenue shocks without immediate refinancing stress.

Bears Say

Cyclical Earnings And Cash-flow VolatilityHistorical swings—including losses and negative cash flow in discrete years—reflect sensitivity to economic cycles and client demand for training. Persistent cyclicality raises execution and liquidity risk, making multi-period planning and consistent free cash flow generation harder without more recurring contracts.

Moderate Net MarginDespite strong gross margin, net margin around 6.7% indicates significant fixed or SG&A absorption that limits operating leverage. A modest net margin constrains long-term free-cash-flow upside and leaves less buffer against revenue declines unless structural cost efficiencies are achieved.

Recent Uptick In Debt Vs Prior YearAlthough leverage is manageable overall, debt increased versus 2023 and lacks a consistent downward trend. Rising indebtedness amid cyclical earnings elevates refinancing and interest-rate exposure risk and could limit strategic optionality during weaker demand periods.

7043 FAQ

What was Alue Co., Ltd.’s price range in the past 12 months?

Alue Co., Ltd. lowest stock price was ¥590.00 and its highest was ¥1238.00 in the past 12 months.

What is Alue Co., Ltd.’s market cap?

Alue Co., Ltd.’s market cap is ¥2.33B.

When is Alue Co., Ltd.’s upcoming earnings report date?

Alue Co., Ltd.’s upcoming earnings report date is May 07, 2026 which is in 76 days.

How were Alue Co., Ltd.’s earnings last quarter?

Alue Co., Ltd. released its earnings results on Feb 13, 2026. The company reported ¥39.71 earnings per share for the quarter, beating the consensus estimate of N/A by ¥39.71.

Is Alue Co., Ltd. overvalued?

According to Wall Street analysts Alue Co., Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Alue Co., Ltd. pay dividends?

Alue Co., Ltd. pays a Annually dividend of ¥7 which represents an annual dividend yield of 0.66%. See more information on Alue Co., Ltd. dividends here

What is Alue Co., Ltd.’s EPS estimate?

Alue Co., Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Alue Co., Ltd. have?

Alue Co., Ltd. has 2,554,400 shares outstanding.

What happened to Alue Co., Ltd.’s price movement after its last earnings report?

Alue Co., Ltd. reported an EPS of ¥39.71 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went down -2.7%.

Which hedge fund is a major shareholder of Alue Co., Ltd.?

Currently, no hedge funds are holding shares in JP:7043

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

Alue Co., Ltd.

Alue Co.,Ltd. provides educational services for working adults using human resource development data and machine learning technology primarily in Japan. Its services include level-specific training, global human resource development, thematic training, and e-training services. The company was incorporated in 2003 and is based in Tokyo, Japan.