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

• Market Cap: ¥2.43B
• Dividend Yield: N/A
• Average Volume (3M): 24.85K
• Price to Earnings (P/E): 55.3
• Beta (1Y): 0.84
• Revenue Growth: -9.22%
• EPS Growth: -75.53%
• Country: JP
• Employees: 104
• Sector: Consumer Defensive
• Sector Strength: 61
• Industry: Education & Training Services
• EPS (TTM): 4.83
• Shares Outstanding: 6,694,764
• 10 Day Avg. Volume: 8,410
• 30 Day Avg. Volume: 24,850
• PEG Ratio: -1.35
• Price to Book (P/B): 1.03
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• 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.

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

Company Description

SuRaLa Net Co., Ltd. operates in the educational technology sector, providing digital learning solutions primarily focused on improving academic performance for students. The company's core offerings include online learning platforms that deliver interactive educational content, leveraging artificial intelligence and data analytics to personalize learning experiences. SuRaLa Net's services cater to a wide range of educational needs, from elementary to high school students, aiming to enhance their understanding and mastery of various subjects.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.95B	2.15B	2.15B	1.95B	1.65B
	Gross Profit
1.26B	1.51B	1.57B	1.48B	1.29B
	EBIT
211.51M	387.60M	475.46M	521.05M	540.48M
	EBITDA
406.86M	633.56M	679.59M	690.24M	654.36M
	Net Income Common Stockholders
72.90M	304.35M	355.40M	399.78M	380.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.06B	1.15B	1.33B	1.24B	953.13M
	Total Assets
2.64B	2.71B	2.67B	2.13B	1.78B
	Total Debt
0.00	1.50M	107.50M	0.00	0.00
	Net Debt
-1.06B	-1.15B	-1.23B	-1.24B	-953.13M
	Total Liabilities
375.00M	457.05M	600.73M	415.13M	496.63M
	Stockholders Equity
2.24B	2.22B	2.03B	1.71B	1.28B
Cash Flow		Free Cash Flow
-42.36M	48.75M	172.93M	281.85M	413.12M
	Operating Cash Flow
372.85M	475.54M	542.50M	502.68M	600.35M
	Investing Cash Flow
-414.90M	-433.83M	-503.71M	-222.88M	-187.30M
	Financing Cash Flow
-51.69M	-220.51M	50.11M	11.76M	7.24M

SuRaLa Net Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 363.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3998, the sentiment is Positive. The current price of 363 is above the 20-day moving average (MA) of 356.35, above the 50-day MA of 351.56, and above the 200-day MA of 361.70, indicating a bullish trend. The MACD of 2.72 indicates Negative momentum. The RSI at 57.26 is Neutral, neither overbought nor oversold. The STOCH value of 78.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
4689	78 Outperform	¥3.72T	25.24		1.32%	5.67%	39.04%
4716	77 Outperform	$2.19T	36.26	36.60%	1.08%	8.31%	8.39%
9735	74 Outperform	¥2.34T	20.28	8.55%	1.77%	3.91%	7.86%
3965	73 Outperform	¥4.34B	18.22		2.12%	3.29%	-17.15%
4684	69 Neutral	$2.53T	35.32	15.31%	1.29%	8.65%	12.22%
Sector *	65 Neutral	$8.88B	15.05	4.75%	203.76%	3.54%	-2.50%
3998	63 Neutral	¥2.43B	55.28		―	-9.22%	-75.53%