SuRaLa Net Co., Ltd. (3998) AI Stock Analysis

• Market Cap: ¥2.35B
• Dividend Yield: N/A
• Average Volume (3M): 13.44K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.84
• Revenue Growth: -4.02%
• EPS Growth: -105.52%
• Country: JP
• Employees: 104
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): -11.14
• Shares Outstanding: 6,694,764
• 10 Day Avg. Volume: 13,960
• 30 Day Avg. Volume: 13,436
• PEG Ratio: -0.44
• Price to Book (P/B): 1.08
• Price to Sales (P/S): 1.25
• P/FCF Ratio: -57.30
• 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: 63 Neutral
• Price Target: ―

SuRaLa Net Co., Ltd.'s stock presents a moderate investment opportunity. The company's strong balance sheet with no debt and significant equity is its main strength. However, declining revenue and profitability, along with bearish technical indicators, pose considerable risks. The relatively high P/E ratio suggests the stock may be overvalued, with no dividend yield to attract income-focused investors.

Positive Factors

Strong Balance Sheet

A strong balance sheet with no debt provides financial stability and flexibility, allowing the company to invest in growth opportunities without the burden of interest payments.

Cash Generation Ability

Strong free cash flow indicates good liquidity and the ability to reinvest in the business, supporting long-term growth and operational resilience.

Gross Profit Margin

A strong gross profit margin suggests effective cost management, which can sustain profitability even in challenging revenue environments, supporting long-term business health.

Negative Factors

Declining Revenue

Declining revenue indicates challenges in market demand or competitive positioning, which could impact the company's ability to grow and maintain market share over time.

Decreased Profitability

A decline in net profit margin reflects reduced operational efficiency, which can strain financial resources and limit the company's ability to invest in future growth.

Operating Cash Flow Decline

A decrease in operating cash flow suggests reduced operational efficiency, which could hinder the company's ability to fund operations and growth initiatives sustainably.

SuRaLa Net Co., Ltd. Business Overview & Revenue Model

Company Description

SuRaLa Net Co.,Ltd. provides educational services through e-learning in Japan and internationally. It also provides operation consulting, marketing promotion, and Website operation services. The company was incorporated in 2008 and is headquartered in Tokyo, Japan. SuRaLa Net Co.,Ltd. is a subsidiary of FC Education Inc.

How the Company Makes Money

SuRaLa Net Co., Ltd. generates revenue primarily through subscription fees for its online learning platforms. The company offers various subscription plans tailored to different educational levels and subjects, allowing customers to choose according to their specific needs. Additionally, SuRaLa Net collaborates with educational institutions, providing them with customized learning solutions and platforms, which serve as another revenue stream. The company's strategic partnerships with schools and educational organizations help expand its customer base and enhance its market presence, further contributing to its earnings.

SuRaLa Net Co., Ltd. Financial Statement Overview

Summary

SuRaLa Net Co., Ltd. presents a mixed financial performance. The income statement reveals challenges in maintaining revenue and profitability levels, while the balance sheet is exceptionally strong with no debt and high equity. Cash flow remains healthy despite a decline in operating cash flow. The company is financially stable but faces challenges in revenue growth and profitability.

Income Statement

SuRaLa Net Co., Ltd. has shown a decrease in total revenue from 2023 to 2024, which indicates a contraction in sales. However, the company maintains a strong gross profit margin, suggesting effective cost management. The net profit margin has declined significantly from the previous year, and EBIT and EBITDA margins have also reduced, indicating a decrease in operational profitability.

Balance Sheet

The company's balance sheet is strong with no debt, leading to a very favorable debt-to-equity ratio. The equity ratio remains high, indicating financial stability and minimal reliance on external financing. Return on equity has declined due to lower net income, but overall, the company maintains a robust equity position.

Cash Flow

Operating cash flow has decreased from the previous year, reflecting lower operational efficiency. However, the company demonstrates a significant free cash flow, indicating good liquidity and the ability to reinvest in the business. The free cash flow to net income ratio is robust, showing effective cash generation relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.93B	1.95B	2.15B	2.15B	1.95B	1.65B
Gross Profit	1.22B	1.26B	1.51B	1.57B	1.48B	1.29B
EBITDA	416.12M	406.86M	633.56M	679.59M	690.24M	654.36M
Net Income	114.86M	72.90M	304.35M	355.40M	399.78M	380.00M
Balance Sheet
Total Assets	2.69B	2.64B	2.71B	2.67B	2.13B	1.78B
Cash, Cash Equivalents and Short-Term Investments	1.13B	1.06B	1.15B	1.33B	1.24B	953.13M
Total Debt	0.00	0.00	1.50M	107.50M	0.00	0.00
Total Liabilities	450.03M	375.00M	457.05M	600.73M	415.13M	496.63M
Stockholders Equity	2.23B	2.24B	2.22B	2.03B	1.71B	1.28B
Cash Flow
Free Cash Flow	0.00	-42.36M	48.75M	172.93M	281.85M	413.12M
Operating Cash Flow	0.00	372.85M	475.54M	542.50M	502.68M	600.35M
Investing Cash Flow	0.00	-414.90M	-433.83M	-503.71M	-222.88M	-187.30M
Financing Cash Flow	0.00	-51.69M	-220.51M	50.11M	11.76M	7.24M

SuRaLa Net Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 373.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3998, the sentiment is Negative. The current price of 373 is above the 20-day moving average (MA) of 357.65, above the 50-day MA of 367.94, and above the 200-day MA of 358.40, indicating a bearish trend. The MACD of -3.85 indicates Negative momentum. The RSI at 40.12 is Neutral, neither overbought nor oversold. The STOCH value of 9.37 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3998.

SuRaLa Net Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2179	74 Outperform	¥4.40B	9.56	―	2.59%	8.85%	-1.34%
4645	68 Neutral	¥3.67B	4.05	―	2.22%	1.82%	208.53%
4668	64 Neutral	¥17.66B	10.29	―	3.79%	9.96%	252.72%
4678	64 Neutral	¥1.98B	10.35	―	3.41%	1.92%	71.20%
3998	63 Neutral	¥2.35B	―	―	―	-4.02%	-105.52%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
4720	51 Neutral	¥1.85B	-5.17	―	―	-1.21%	-50.91%