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Seigakusha Co., Ltd. (JP:2179)
:2179
Japanese Market

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

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JP

Seigakusha Co., Ltd.

(2179)

Rating:72Outperform
Price Target:
¥837.00
▲(11.75%Upside)
The overall stock score of 72 reflects Seigakusha Co., Ltd.'s strong financial performance, particularly in revenue growth and profitability, backed by a stable balance sheet. The company's valuation is favorable, with a low P/E ratio and decent dividend yield enhancing its attractiveness. Technical analysis indicates neutral momentum, suggesting the stock is fairly priced at current levels.

Seigakusha Co., Ltd. (2179) vs. iShares MSCI Japan ETF (EWJ)

Seigakusha Co., Ltd. Business Overview & Revenue Model

Company DescriptionSeigakusha Co., Ltd. (2179) is a Japanese company primarily engaged in the education sector. The company operates a variety of educational services, including cram schools, which provide supplementary education to students. Seigakusha is known for its tutoring programs that focus on helping students improve their academic performance and prepare for entrance exams. Additionally, the company offers publishing services for educational materials and operates English language schools, expanding its educational services to cater to different learning needs.
How the Company Makes MoneySeigakusha Co., Ltd. generates revenue through multiple channels within the educational services industry. The primary source of income is tuition fees collected from students enrolled in its cram schools and tutoring programs. These programs are designed to enhance students' academic skills and prepare them for competitive entrance examinations, which is a significant market in Japan. Furthermore, the company earns money by publishing and selling educational materials, which are used in their classes and sold to other educational institutions. Their English language schools also contribute to their revenue, as they offer specialized language courses that attract both local and international students. The company may also engage in partnerships with other educational institutions or businesses to expand their reach and resources, although specific details of such partnerships are not provided.

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
78
Positive
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
72
Positive
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
75
Positive
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue14.29B13.10B12.67B12.33B11.64B
Gross Profit3.13B2.80B2.67B2.49B1.89B
EBITDA1.18B1.02B995.89M1.04B351.43M
Net Income461.00M433.81M421.50M331.67M-106.57M
Balance Sheet
Total Assets9.47B8.86B8.51B8.49B8.69B
Cash, Cash Equivalents and Short-Term Investments2.18B2.00B1.70B1.73B1.75B
Total Debt2.34B2.36B2.48B2.84B3.55B
Total Liabilities5.61B5.39B5.36B5.67B6.17B
Stockholders Equity3.86B3.47B3.15B2.82B2.52B
Cash Flow
Free Cash Flow531.00M577.75M425.20M707.21M-25.01M
Operating Cash Flow1.01B1.04B802.21M1.04B260.35M
Investing Cash Flow-338.00M-538.99M-419.61M-190.59M-380.35M
Financing Cash Flow-166.00M-227.91M-437.90M-748.80M126.22M

Seigakusha Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price749.00
Price Trends
50DMA
752.62
Negative
100DMA
764.47
Negative
200DMA
768.52
Negative
Market Momentum
MACD
-0.57
Positive
RSI
41.33
Neutral
STOCH
7.41
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2179, the sentiment is Negative. The current price of 749 is below the 20-day moving average (MA) of 753.10, below the 50-day MA of 752.62, and below the 200-day MA of 768.52, indicating a bearish trend. The MACD of -0.57 indicates Positive momentum. The RSI at 41.33 is Neutral, neither overbought nor oversold. The STOCH value of 7.41 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2179.

Seigakusha Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
¥3.43B11.75
2.38%2.85%-5.28%
72
Outperform
¥4.15B8.98
2.54%9.04%6.37%
72
Outperform
¥24.43B12.99
4.04%0.69%1.90%
69
Neutral
¥4.14B8.69
1.78%1.03%
68
Neutral
¥195.58B21.438.29%2.33%4.99%2.99%
63
Neutral
¥18.61B19.12
3.50%9.70%45.81%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2179
Seigakusha Co., Ltd.
740.00
-43.03
-5.50%
JP:4319
TAC Co., Ltd.
223.00
44.84
25.17%
JP:4645
Ichishin Holdings Co., Ltd.
424.00
-63.13
-12.96%
JP:4668
Meiko Network Japan Co., Ltd.
747.00
8.65
1.17%
JP:9769
Gakkyusha Co., Ltd.
2,373.00
348.95
17.24%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 05, 2025