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

• Market Cap: ¥91.41B
• Dividend Yield: 7.03%
• Average Volume (3M): 352.20K
• Price to Earnings (P/E): 23.9
• Beta (1Y): 0.39
• Revenue Growth: -10.10%
• EPS Growth: -37.28%
• Country: JP
• Employees: 1,800
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 3.05
• Shares Outstanding: 211,389,650
• 10 Day Avg. Volume: 574,390
• 30 Day Avg. Volume: 352,196
• PEG Ratio: 0.25
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 2.91
• P/FCF Ratio: 23.32
• 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: 77 Outperform
• Price Target: ¥521.00 ▲(29.60% Upside)

The score is driven primarily by strong financial resilience (minimal leverage) and solid TTM growth with healthy margins, tempered by less consistent earnings/cash-flow trajectory. Technically, the stock remains in a broader uptrend but is consolidating near-term. Valuation is somewhat demanding at ~25x earnings, though the ~3.9% dividend yield provides support.

Positive Factors

Conservative balance sheet

Near-zero leverage provides enduring financial flexibility, allowing Septeni to sustain operations through advertising cycles, fund strategic M&A or tech investment without needing costly external financing, and support dividends/capital allocation decisions over the medium term.

Strong recent revenue and margins

A sharp TTM revenue acceleration combined with high gross margins indicates strong demand for the company’s digital marketing services and an efficient service delivery model, supporting durable cash generation and reinvestment capacity if the company sustains client acquisition and retention.

High free cash flow conversion

FCF nearly matching net income signals earnings quality and real cash generation from operations, enabling sustainable dividends, debt-free capital spending, and funding for product development or client solutions without reliance on external capital in the medium term.

Negative Factors

Volatile earnings and cash flow

Earnings and cash-flow volatility undermines forecasting and strategic planning; for an ad-agency model tied to client budgets, this reduces the reliability of future free cash flow and complicates consistent reinvestment, hiring, and payout strategies over the coming months.

Margin normalization from prior peaks

Net margin compression from prior peak years implies reduced operating leverage or higher cost pressure versus the company’s best years; sustained lower margins would constrain return on equity and internal funding for growth initiatives over multiple quarters.

Low operating cash flow relative to revenue

Operating cash flow at ~12% of revenue limits the firm’s margin of safety and organic investment capacity; when coupled with highly variable FCF growth, it increases risk that the company will need to scale back investment or seek external funding during downturns.

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 (+62%) with healthy profitability (~76% gross margin, ~13% net margin) and a very conservative balance sheet (near-zero leverage). Offsetting factors are margin normalization versus prior peak years and more volatile earnings/cash flow growth, reducing predictability.

Income Statement

TTM (Trailing-Twelve-Months) revenue growth accelerated sharply (+62%), and profitability remains healthy with ~76% gross margin and ~13% net margin. However, margins are below the unusually strong 2022–2024 levels (net margin ~20% in 2022/2024), and earnings appear more volatile than revenue (e.g., net income fell from 2024 to TTM), suggesting less consistent bottom-line conversion despite solid topline momentum.

Balance Sheet

The balance sheet is conservatively positioned with extremely low leverage (TTM debt-to-equity ~0.01; 2024 effectively no debt), providing strong financial flexibility. Returns on equity are positive but moderate (mid-single digits in TTM, higher in some prior years), implying the company is very safe but not consistently generating high returns on its equity base.

Cash Flow

Cash generation is solid: free cash flow is close to net income in TTM (about 0.93x) and has remained strong across years, indicating earnings quality. That said, operating cash flow is relatively low versus revenue (roughly ~12% in TTM), and free cash flow growth is highly volatile (large jump in TTM after a small decline in 2024), which reduces predictability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	29.69B	28.28B	27.29B	28.82B	21.38B	17.94B
Gross Profit	22.65B	22.20B	22.06B	22.72B	17.29B	14.60B
EBITDA	4.49B	3.82B	4.90B	10.07B	4.97B	3.37B
Net Income	3.74B	5.53B	3.74B	5.73B	2.60B	1.46B
Balance Sheet
Total Assets	90.55B	97.64B	93.61B	88.73B	42.01B	34.42B
Cash, Cash Equivalents and Short-Term Investments	17.16B	23.73B	20.87B	21.44B	16.91B	14.10B
Total Debt	459.09M	0.00	4.89B	3.09B	4.49B	4.70B
Total Liabilities	24.92B	27.68B	27.90B	25.98B	23.57B	18.61B
Stockholders Equity	65.59B	69.88B	65.59B	62.71B	18.43B	15.79B
Cash Flow
Free Cash Flow	3.32B	3.53B	3.70B	3.54B	4.45B	2.27B
Operating Cash Flow	3.58B	3.68B	3.85B	3.65B	4.62B	2.34B
Investing Cash Flow	-2.99B	336.35M	-2.02B	-30.55B	90.64M	-804.27M
Financing Cash Flow	-6.05B	-1.63B	-1.91B	31.23B	-1.91B	-1.94B

Septeni Holdings Co., Ltd. Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4293, the sentiment is Neutral. The current price of 402 is below the 20-day moving average (MA) of 466.90, below the 50-day MA of 436.90, and below the 200-day MA of 402.77, indicating a neutral trend. The MACD of -2.80 indicates Positive momentum. The RSI at 43.25 is Neutral, neither overbought nor oversold. The STOCH value of 16.14 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
4293	77 Outperform	¥91.41B	23.93	―	7.03%	-10.10%	-37.28%
4326	73 Outperform	¥67.38B	24.19	―	2.51%	1.32%	-22.64%
2461	69 Neutral	¥32.03B	22.19	―	5.08%	3.22%	13.97%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
4751	58 Neutral	¥709.78B	22.31	18.07%	1.27%	9.04%	94.01%
2433	58 Neutral	¥424.01B	26.32	3.96%	2.75%	-8.56%	-47.89%
4324	47 Neutral	¥778.22B	-3.04	-34.34%	4.19%	0.24%	-731.34%

Septeni Holdings Co., Ltd. Corporate Events

Septeni Holdings Reports Revenue Growth Amid Profit Decline

Septeni Holdings Co., Ltd. reported a 6.7% increase in revenue for the nine months ending September 30, 2025, compared to the previous year. Despite this growth, the company experienced a significant decline in profit attributable to owners of the parent, dropping by 41.7%. The financial results reflect ongoing challenges and adjustments within the company’s operations, impacting its profitability and shareholder returns.

The most recent analyst rating on (JP:4293) stock is a Hold with a Yen460.00 price target. To see the full list of analyst forecasts on Septeni Holdings Co., Ltd. stock, see the JP:4293 Stock Forecast page.