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

• Market Cap: ¥87.21B
• Dividend Yield: 7.03%
• Average Volume (3M): 352.20K
• Price to Earnings (P/E): 24.7
• Beta (1Y): 0.36
• 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): 21.17
• Revenue Forecast (FY): ¥31.77B

• Rating: 64 Neutral
• Price Target: ¥418.00 ▲(3.98% 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

Strong Revenue Growth

A sustained +210% TTM revenue surge indicates strong client demand and successful campaign scaling across digital channels. This durable top-line expansion supports reinvestment in tech and operations, strengthens client relationships, and builds long-term market position in digital advertising.

High Margins

Very high gross margin (~76%) and mid-teens EBITDA margin reflect a service-oriented, asset-light model with pricing power. These margin characteristics allow the firm to sustain profitability through cycles, fund margin-enhancing investments, and maintain operating leverage as revenue scales.

Very Low Leverage

An extremely conservative balance sheet with near-zero net debt provides financial flexibility to invest, make acquisitions, or return capital without refinancing risk. Low leverage reduces solvency risk and supports durable operational continuity in downturns.

Negative Factors

Net Margin Compression

A notable decline in net margin versus the prior year signals weaker bottom-line conversion that may reflect cost inflation, less favorable service mix, or pricing pressure. If persistent, margin erosion can limit reinvestment and reduce sustainable profitability over months.

Weak FCF Growth

Although FCF roughly tracks net income, recent negative FCF growth and relatively low operating cash versus revenue indicate variability in cash conversion. This reduces headroom for capex, M&A, or shareholder returns and can constrain strategic flexibility over the medium term.

Modest ROE and EPS Decline

Mid-single-digit ROE alongside a steep decline in EPS suggests the company generates stable but modest shareholder returns and recently faced profit volatility. Persistently low ROE and EPS weakness can limit long-term earnings power and investor confidence in compounding returns.

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 Holdings Co., Ltd. generates revenue primarily through its Internet Marketing and Media Content segments. In the Internet Marketing segment, the company earns money by offering advertising agency services, which involve planning and running digital marketing campaigns for clients, as well as through marketing consulting services. Additionally, the company develops and operates digital advertising platforms, which provide another revenue stream through ad placements and performance marketing. In the Media Content segment, revenue is generated from the creation and distribution of digital content, such as manga and social games, often through partnerships with content creators and platforms. The company leverages its expertise in digital marketing to enhance the reach and monetization of its media content.

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	90.55B	97.64B	93.61B	88.73B	42.01B
Cash, Cash Equivalents and Short-Term Investments	17.94B	17.16B	23.73B	20.87B	21.44B	16.91B
Total Debt	673.88M	918.17M	0.00	4.89B	3.09B	4.49B
Total Liabilities	29.76B	24.92B	27.68B	27.90B	25.98B	23.57B
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: Positive
• Last Price: 402.00
• 50DMA: Negative
• 100DMA: Negative
• 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:4293, the sentiment is Positive. The current price of 402 is below the 20-day moving average (MA) of 409.30, below the 50-day MA of 441.41, and below the 200-day MA of 409.04, indicating a neutral trend. The MACD of -8.38 indicates Negative momentum. The RSI at 49.22 is Neutral, neither overbought nor oversold. The STOCH value of 93.25 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	¥31.04B	13.59	―	5.35%	58.08%	29.89%
4293	64 Neutral	¥87.21B	24.71	―	7.03%	-10.10%	-37.28%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
4751	58 Neutral	¥698.38B	17.87	18.07%	1.27%	9.04%	94.01%
2433	58 Neutral	¥429.88B	20.55	3.96%	2.75%	-8.56%	-47.89%
6094	50 Neutral	¥13.68B	17.08	―	―	-2.68%	91.68%
4324	48 Neutral	¥760.80B	-2.32	-34.34%	4.19%	0.24%	-731.34%

Septeni Holdings Co., Ltd. Corporate Events

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.