Seigakusha Co., Ltd. (2179) AI Stock Analysis

• Market Cap: ¥4.57B
• Dividend Yield: 2.6%
• Average Volume (3M): 816.00
• Price to Earnings (P/E): 9.3
• Beta (1Y): 0.27
• Revenue Growth: 8.85%
• EPS Growth: -1.34%
• Country: JP
• Employees: 764
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 87.11
• Shares Outstanding: 5,876,000
• 10 Day Avg. Volume: 830
• 30 Day Avg. Volume: 816
• PEG Ratio: 1.44
• Price to Book (P/B): 1.11
• Price to Sales (P/S): 0.30
• P/FCF Ratio: 8.09
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥864.00 ▲(9.51% Upside)
• Action: Reiterated Date: 09/27/25
• Date: Action: Reiterated 09/27/25

Seigakusha Co., Ltd. demonstrates a strong financial performance with consistent revenue growth and improving profitability. The stock's valuation is attractive, supported by a reasonable P/E ratio and a solid dividend yield. Technical indicators suggest a stable trend, though some caution is warranted due to potential bearish momentum. Overall, the company is well-positioned in its industry, with opportunities for further growth and profitability.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for educational services, enhancing market position and supporting long-term business expansion.

Profitability Margins

Improving profitability margins reflect effective cost control and operational efficiency, contributing to sustainable financial health.

Cash Generation

Strong cash generation supports ongoing investments and operations, ensuring liquidity and financial stability over the long term.

Negative Factors

Free Cash Flow Decline

A decline in free cash flow may limit the company's ability to fund new projects or reduce debt, potentially impacting future growth and financial flexibility.

Modest Net Profit Margin

A modest net profit margin suggests limited profitability compared to peers, which could constrain reinvestment capabilities and shareholder returns.

Leverage

While leverage is manageable, further reduction could enhance financial flexibility and reduce risk, especially in a competitive industry.

Seigakusha Co., Ltd. Business Overview & Revenue Model

Company Description

Seigakusha Co.,Ltd. provides educational services in Japan. It operates through Education-Related Business; Real Estate Leasing Business; and Food and Beverage Business segments. It provides video lessons, individual guidance, and learning guidance for elementary school students, junior high school students, high school students, and high school graduates. The company also provides junior high school and high school exam courses, college entrance exam courses, and middle/high school/university courses, as well as operates nursery schools, kindergarten school, and language schools. In addition, it offers consulting services; rents real estate properties; and operates a restaurant in Osaka. The company was founded in 1982 and is headquartered in Osaka, Japan.

How the Company Makes Money

Seigakusha generates revenue through multiple streams, primarily by selling educational textbooks and resources to schools, universities, and individual learners. The company also earns income from its e-learning platform, which provides subscription-based access to digital content and online courses. Additionally, Seigakusha engages in partnerships with educational institutions and government bodies, which can include collaborative projects that enhance their product offerings and expand their market reach. The growing demand for digital learning solutions, particularly post-pandemic, has further bolstered their revenue through increased online course enrollments and the sale of interactive educational tools.

Seigakusha Co., Ltd. Financial Statement Overview

Summary

Seigakusha Co., Ltd. exhibits a healthy financial profile with consistent revenue growth and improving profitability margins. The balance sheet reflects a stable financial position with moderate leverage. Cash flow metrics indicate strong cash generation, though a recent dip in free cash flow suggests monitoring future investments and expenditures.

Income Statement

Seigakusha Co., Ltd. has shown a robust revenue growth rate of 9% from 2024 to 2025, with consistent increases over the years. The gross profit margin improved to 21.9%, indicating efficient cost management. Net profit margin stands at 3.2%, showing positive profitability trends, though relatively modest in the industry context. The EBIT margin of 5.4% and EBITDA margin of 8.2% demonstrate operational efficiency, albeit with room for improvement.

Balance Sheet

The company maintains a solid equity ratio of 40.7%, reflecting financial stability. A debt-to-equity ratio of 0.61 indicates a manageable level of leverage. Return on equity at 11.9% suggests effective use of equity to generate profits. Overall, the balance sheet reflects a well-managed financial position, though further reduction in debt could enhance financial flexibility.

Cash Flow

Operating cash flow to net income ratio is robust at 2.2, indicating strong cash generation relative to net income. Free cash flow has decreased by 8.1% from 2024 to 2025, but it remains positive, supporting company investments and operations. The free cash flow to net income ratio of 1.2 highlights effective conversion of income to cash, ensuring liquidity.

Breakdown	TTM	Mar 2025	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	14.54B	14.29B	13.10B	12.67B	12.33B	11.64B
Gross Profit	3.19B	3.13B	2.80B	2.67B	2.49B	1.89B
EBITDA	1.12B	1.18B	1.02B	1.05B	979.00M	351.43M
Net Income	387.30M	461.00M	433.81M	421.50M	331.67M	-106.57M
Balance Sheet
Total Assets	8.51B	9.47B	8.86B	8.51B	8.49B	8.69B
Cash, Cash Equivalents and Short-Term Investments	1.38B	2.18B	2.00B	1.70B	1.73B	1.75B
Total Debt	2.07B	2.34B	2.36B	2.48B	2.84B	3.55B
Total Liabilities	5.09B	5.61B	5.39B	5.36B	5.67B	6.17B
Stockholders Equity	3.42B	3.86B	3.47B	3.15B	2.82B	2.52B
Cash Flow
Free Cash Flow	0.00	531.00M	577.75M	425.20M	707.21M	-25.01M
Operating Cash Flow	0.00	1.01B	1.04B	802.21M	1.04B	260.35M
Investing Cash Flow	0.00	-338.00M	-538.99M	-419.61M	-190.59M	-380.35M
Financing Cash Flow	0.00	-166.00M	-227.91M	-437.90M	-748.80M	126.22M

Seigakusha Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 789.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2179, the sentiment is Positive. The current price of 789 is below the 20-day moving average (MA) of 812.40, below the 50-day MA of 807.10, and above the 200-day MA of 776.39, indicating a bullish trend. The MACD of 3.20 indicates Negative momentum. The RSI at 63.05 is Neutral, neither overbought nor oversold. The STOCH value of 96.30 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2179.

Seigakusha Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9470	75 Outperform	¥46.44B	13.99	―	2.28%	7.30%	60.93%
2179	74 Outperform	¥4.57B	9.32	―	2.60%	8.85%	-1.34%
4714	71 Outperform	¥34.33B	22.60	―	5.00%	―	―
4718	70 Outperform	¥38.94B	15.47	―	2.56%	7.41%	22.70%
4678	64 Neutral	¥2.33B	10.21	―	3.34%	1.92%	71.20%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
4720	51 Neutral	¥2.31B	-19.71	―	―	-1.21%	-50.91%