Revenue And Margin ImprovementConsistent top-line growth with concurrent improvement in gross and operating margins signals durable operational improvement. Higher margins widen the buffer for cost shocks, support reinvestment in the core childcare business, and improve medium-term earnings quality across reporting periods.

Stable Balance SheetA solid equity base and moderate leverage provide financial flexibility to fund expansion and absorb cyclical pressures. This stability reduces refinancing risk, supports steady operations and strategic investments over the coming months without forcing near-term asset sales or emergency capital raises.

Efficient Cash ConversionStrong operating cash conversion indicates core operations generate cash reliably, supporting working capital and recurring capex. Even with capex fluctuations, high conversion efficiency underpins the company’s ability to self-fund routine investments and maintain service levels in its education network.

Bears Say

Free Cash Flow VolatilityRising capex that pushed FCF negative reduces internal funding available for dividends, M&A, or unexpected expenses. Persistent FCF variability can force reliance on external financing, increase financing costs, and constrain strategic flexibility over the medium term.

Low Return On EquityA low ROE suggests the company is not generating strong returns on invested equity, limiting long-term shareholder value creation. If sustained, weak ROE can pressure reinvestment economics and reduce the payoff from growth initiatives in the childcare and after-school segments.

Moderate LeverageWhile leverage is not excessive, combined with FCF volatility it reduces the company's buffer for shocks and limits capacity for large opportunistic investments. Servicing debt during slower periods could constrain cash allocation to growth or dividends over the next several quarters.

7084 FAQ

What was Kids Smile Holdings, Inc.’s price range in the past 12 months?

Kids Smile Holdings, Inc. lowest stock price was ¥875.00 and its highest was ¥3595.00 in the past 12 months.

What is Kids Smile Holdings, Inc.’s market cap?

Kids Smile Holdings, Inc.’s market cap is ¥11.67B.

When is Kids Smile Holdings, Inc.’s upcoming earnings report date?

Kids Smile Holdings, Inc.’s upcoming earnings report date is May 18, 2026 which is in 91 days.

How were Kids Smile Holdings, Inc.’s earnings last quarter?

Kids Smile Holdings, Inc. released its earnings results on Feb 13, 2026. The company reported ¥36.09 earnings per share for the quarter, beating the consensus estimate of N/A by ¥36.09.

Is Kids Smile Holdings, Inc. overvalued?

According to Wall Street analysts Kids Smile Holdings, Inc.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Kids Smile Holdings, Inc. pay dividends?

Kids Smile Holdings, Inc. pays a Semiannually dividend of ¥47.5 which represents an annual dividend yield of 4.89%. See more information on Kids Smile Holdings, Inc. dividends here

What is Kids Smile Holdings, Inc.’s EPS estimate?

Kids Smile Holdings, Inc.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Kids Smile Holdings, Inc. have?

Kids Smile Holdings, Inc. has 3,259,500 shares outstanding.

What happened to Kids Smile Holdings, Inc.’s price movement after its last earnings report?

Kids Smile Holdings, Inc. reported an EPS of ¥36.09 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went up 0.28%.

Which hedge fund is a major shareholder of Kids Smile Holdings, Inc.?

Currently, no hedge funds are holding shares in JP:7084

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

Kids Smile Holdings, Inc.

Kids Smile Holdings Inc. offers childcare and early childhood education services primarily in Japan. It operates facilities, including after-school facilities, global schools, swimming school, preschool-integrated nurseries, licensed nurseries, and kindergarten classrooms. The company was founded in 2008 and is headquartered in Tokyo, Japan.