Septeni Holdings Co., Ltd. (4293) AI Stock Analysis

• Market Cap: ¥83.44B
• Dividend Yield: 7.03%
• Average Volume (3M): 352.20K
• Price to Earnings (P/E): 27.1
• Beta (1Y): 0.35
• Revenue Growth: -10.10%
• EPS Growth: -37.28%
• Country: JP
• Employees: 1,800
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 4.83
• Shares Outstanding: 211,389,650
• 10 Day Avg. Volume: 574,390
• 30 Day Avg. Volume: 352,196
• PEG Ratio: -0.84
• Price to Book (P/B): 1.52
• Price to Sales (P/S): 3.42
• P/FCF Ratio: 31.76
• 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): 21.38
• Revenue Forecast (FY): ¥31.98B

• Rating: 64 Neutral
• Price Target: ¥457.00 ▲(13.68% Upside)
• Action: Downgraded Date: 02/17/26
• Date: Action: Downgraded 02/17/26

The score is primarily supported by strong financial stability (very low leverage) and solid operating profitability with sharp TTM revenue growth. It is held back by clearly bearish technical conditions (below key moving averages with negative MACD) and only moderate valuation appeal, where a strong dividend yield is offset by a P/E around 22.6.

Positive Factors

Revenue Growth

A sustained +210% TTM revenue increase signals expanding client demand and successful market penetration in digital advertising. Over 2-6 months this underpins organic scale, higher bargaining power with media partners, and improved leverage of fixed operating costs to support durable top-line momentum.

High Margins

Very high gross margins (~76%) with mid-teens EBITDA (~15%) indicate strong pricing power and efficient campaign operations. These margins create durable cushion against client mix shifts, support reinvestment in product and talent, and improve the company’s ability to maintain profitability through cycles.

Conservative Balance Sheet & Cash Quality

Extremely low leverage (debt-to-equity ~0.01x) plus free cash flow roughly 0.93x net income indicate strong financial flexibility and credible earnings quality. This durable balance sheet reduces refinancing risk, enables opportunistic investments or M&A, and supports dividend or capex plans.

Negative Factors

Net Margin Erosion

A step-down in net margin from ~20% to ~13% TTM suggests weaker bottom-line conversion driven by cost pressure or mix changes. If persistent, lower net margins reduce retained earnings, constrain reinvestment capacity, and limit the company’s ability to fund growth or maintain dividend levels long-term.

Negative FCF Growth

Negative FCF growth (-3.9% TTM) and relatively low operating cash flow versus revenue point to variability in cash conversion. Over months this can restrict flexibility for marketing investments, technology upgrades, or external growth, and makes funding dividends or buybacks more sensitive to revenue swings.

Modest Return on Equity

Returns on equity in the mid-single digits indicate modest capital efficiency. While conservative capital structure limits risk, persistently low ROE can curb long-term shareholder value creation and signal limited upside from deployed equity relative to peers in the ad/marketing sector.

Septeni Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

Septeni Holdings Co., Ltd. is a Japan-based company primarily engaged in the digital marketing and media content businesses. The company operates through two main segments: Internet Marketing Business and Media Content Business. The Internet Marketing Business provides a wide range of services, including advertising agency services, marketing consulting, and the development and operation of digital advertising platforms. The Media Content Business focuses on the creation and distribution of various digital content, including manga and social media games.

How the Company Makes Money

Septeni primarily makes money through its digital advertising and marketing services delivered via its consolidated subsidiaries. Key revenue streams typically include (1) fees and commissions earned from planning, buying, and operating internet advertising campaigns for clients (e.g., media placement/agency services where the company receives a margin or handling fee), and (2) service revenues from related marketing solutions, such as campaign operations, performance optimization, and other value-added services tied to digital customer acquisition. Revenue is driven by client advertising spend, the company’s ability to acquire and retain advertiser accounts, and its operational performance in managing and optimizing campaigns. Specific breakdowns by segment, material partnerships, and the exact mix of commission vs. service/solution revenue are null.

Septeni Holdings Co., Ltd. Financial Statement Overview

Summary

Strong TTM revenue growth (+210%) and solid profitability (gross margin ~76%, EBITDA margin ~15%) are supported by an extremely conservative balance sheet (debt-to-equity ~0.01x). Offsetting factors are a step-down in net margin versus FY2024 (~13% TTM vs ~20%) and slightly negative free cash flow growth (TTM -3.9%), indicating weaker recent bottom-line and cash-flow momentum.

Income Statement

TTM (Trailing-Twelve-Months) revenue is up strongly (+210%), and profitability remains solid with healthy gross margin (~76%) and mid-teens EBITDA margin (~15%). However, net margin has stepped down versus FY2024 (about 13% TTM vs ~20% in FY2024), indicating weaker bottom-line conversion and/or less favorable mix compared with the prior year.

Balance Sheet

The balance sheet is very conservatively positioned: leverage is extremely low (debt-to-equity ~0.01x TTM), supported by a large equity base. Returns on equity are positive but modest (mid-single digits TTM), suggesting strong stability and financial flexibility, albeit not a high-return profile.

Cash Flow

Cash generation is generally credible: free cash flow is close to net income (about 0.93x TTM), which supports earnings quality. That said, free cash flow growth is negative (TTM -3.9%), and operating cash flow is relatively low versus revenue, pointing to some variability in cash conversion despite overall positive free cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	30.31B	29.69B	28.28B	27.29B	28.82B	21.38B
Gross Profit	23.16B	22.65B	22.20B	22.06B	22.72B	17.29B
EBITDA	5.09B	4.49B	3.82B	4.90B	10.07B	4.97B
Net Income	3.49B	3.74B	5.53B	3.74B	5.73B	2.60B
Balance Sheet
Total Assets	96.34B	96.34B	97.64B	93.61B	88.73B	42.02B
Cash, Cash Equivalents and Short-Term Investments	17.94B	17.94B	22.51B	20.87B	21.34B	16.90B
Total Debt	336.94M	336.94M	4.39B	4.89B	3.09B	4.49B
Total Liabilities	29.76B	29.76B	27.68B	27.90B	25.98B	23.58B
Stockholders Equity	66.55B	66.55B	69.88B	65.59B	62.71B	18.43B
Cash Flow
Free Cash Flow	3.19B	3.19B	3.53B	3.70B	3.54B	4.45B
Operating Cash Flow	3.37B	3.37B	3.68B	3.85B	3.65B	4.62B
Investing Cash Flow	-3.10B	-3.10B	336.35M	-2.02B	-30.55B	90.64M
Financing Cash Flow	-6.04B	-6.04B	-1.63B	-1.91B	31.23B	-1.91B

Septeni Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 402.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4293, the sentiment is Negative. The current price of 402 is below the 20-day moving average (MA) of 412.30, below the 50-day MA of 426.94, and below the 200-day MA of 411.92, indicating a bearish trend. The MACD of -0.31 indicates Negative momentum. The RSI at 46.94 is Neutral, neither overbought nor oversold. The STOCH value of 44.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4293.

Septeni Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6535	75 Outperform	¥27.46B	3.66	―	5.35%	58.08%	29.89%
4293	64 Neutral	¥83.44B	27.09	―	7.03%	-10.10%	-37.28%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
4751	58 Neutral	¥680.65B	13.60	18.07%	1.27%	9.04%	94.01%
2433	58 Neutral	¥368.94B	10.59	3.96%	2.75%	-8.56%	-47.89%
6094	50 Neutral	¥12.09B	2.40	―	―	-2.68%	91.68%
4324	48 Neutral	¥704.11B	-2.63	-59.21%	4.19%	0.24%	-731.34%

Septeni Holdings Co., Ltd. Corporate Events

Septeni to Restructure Executive Ranks with Governance-Focused Charter Change

Septeni Holdings plans to amend its Articles of Incorporation following a board resolution to be presented at its 35th Ordinary General Meeting of Shareholders on March 25, 2026. The move is part of a broader governance initiative linked to its existing executive officer system and is designed to clarify management roles and responsibilities across the group.

The company will abolish the positions of Group Executive Vice President and Executive Officer, and Senior Executive Officer, and instead create new roles of Group Senior Executive Officer and Group Principal Executive Officer. These new positions will carry responsibility for overseeing specific management functions, executing operations, and bearing profit accountability, as well as managing cross-group priority areas, potentially sharpening execution and accountability for stakeholders.

The most recent analyst rating on (JP:4293) stock is a Hold with a Yen418.00 price target. To see the full list of analyst forecasts on Septeni Holdings Co., Ltd. stock, see the JP:4293 Stock Forecast page.

Septeni Revises and Extends Performance-Linked Share Compensation to Bolster Governance

Septeni Holdings will extend and partially revise its performance-linked share-based compensation plan for directors and officers, aligning it with the newly announced Medium-Term Management Plan for fiscal years 2026 to 2028. The plan’s trust period will be extended to May 2029, with compensation for executive directors shifting further from cash to share-based incentives and performance-linked points set against targets that exceed the disclosed medium-term goals.

The company will also broaden eligibility by including outside directors for fixed share-based compensation to strengthen governance and better align board oversight with shareholder value. These changes, subject to shareholder approval at March 2026 general meetings for the parent and key subsidiaries, are intended to enhance competitiveness of compensation within the industry, reinforce commitment to long-term growth, and increase the effectiveness of the board in protecting minority shareholders.

The most recent analyst rating on (JP:4293) stock is a Hold with a Yen418.00 price target. To see the full list of analyst forecasts on Septeni Holdings Co., Ltd. stock, see the JP:4293 Stock Forecast page.

Septeni Sets FY2025 Year-End Dividend at ¥18 Amid Focus on Stable Shareholder Returns

Septeni Holdings has approved a year-end dividend of ¥18 per share for the fiscal year ended December 2025, in line with its stated policy of setting a minimum annual dividend of ¥18 and targeting a payout based on 50% of profit attributable to owners of parent when that exceeds the floor. The total dividend distribution will be ¥3,765 million, resulting in a consolidated payout ratio of 106.9%, indicating that the company is prioritizing stable shareholder returns even as the dividend level declines from the previous year’s ¥31.35 per share in order to keep distributions aligned with current earnings and its long-term capital allocation strategy.

The decision underscores management’s commitment to consistent, stable dividends supported by retained earnings, while maintaining flexibility to fund business expansion and growth investments in high-potential areas. For shareholders, the move confirms the company’s willingness to sustain returns despite profit pressure, but also signals a recalibration from FY2024’s higher payout as Septeni balances shareholder distributions against the need to reinforce its business base in a changing market environment.

The most recent analyst rating on (JP:4293) stock is a Hold with a Yen418.00 price target. To see the full list of analyst forecasts on Septeni Holdings Co., Ltd. stock, see the JP:4293 Stock Forecast page.

Septeni Unveils “VISION 2030” and 2026–2028 Medium-Term Plan to Drive Profitable Growth

Septeni Holdings has unveiled its long-term “VISION 2030” and a three-year Medium-Term Management Plan covering fiscal years 2026 to 2028, positioning itself as a “VALUE MAXIMIZER” to remain indispensable over the long term. Building on record-high revenue and a V-shaped recovery in non-GAAP operating profit since 2024, the company sees this plan as a key milestone toward its 2030 profit goal.

The plan is anchored on four basic policies: deepening existing businesses through synergy and collaboration, exploring new businesses via accelerated investment in future revenue pillars, strengthening its management foundation, and a disciplined capital allocation policy balancing growth investment with high shareholder returns. Septeni has set ambitious financial targets for fiscal 2028, including raising revenue to ¥36.61 billion, non-GAAP operating profit to ¥6.4 billion, profit attributable to owners of parent to ¥5.8 billion, and ROE to 8.4%, all based on organic growth assumptions, underscoring a focus on sustainable expansion and improved shareholder value.

The most recent analyst rating on (JP:4293) stock is a Buy with a Yen519.00 price target. To see the full list of analyst forecasts on Septeni Holdings Co., Ltd. stock, see the JP:4293 Stock Forecast page.

Septeni Holdings Lifts Revenue but Cuts Dividend as Profit Falls, Targets Earnings Rebound in 2026

Septeni Holdings reported revenue of ¥30.3 billion for the year ended December 31, 2025, up 7.2% year on year, with operating profit rising 35.4% and non-GAAP operating profit climbing 38.1%, underscoring solid underlying business performance. However, profit attributable to owners of the parent fell 36.8% to ¥3.49 billion, pressured by factors outside core operations, while total assets declined slightly and cash balances dropped as operating inflows were outpaced by investing and financing outflows.

The company lowered its annual dividend to ¥18 per share for 2025 from ¥31.35 a year earlier, keeping a high payout ratio above 100% but reducing overall shareholder returns in line with weaker bottom-line results. For 2026, Septeni forecasts revenue growth of 7.0% to ¥32.4 billion, an 8.7% rise in non-GAAP operating profit, and a 24.6% jump in profit attributable to owners of the parent, signalling expectations of earnings recovery and improved profitability for shareholders.

The most recent analyst rating on (JP:4293) stock is a Buy with a Yen519.00 price target. To see the full list of analyst forecasts on Septeni Holdings Co., Ltd. stock, see the JP:4293 Stock Forecast page.