EduLab, Inc. (4427) AI Stock Analysis

• Market Cap: ¥3.58B
• Dividend Yield: N/A
• Average Volume (3M): 23.61K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.60
• Revenue Growth: -15.21%
• EPS Growth: -7.31%
• Country: JP
• Employees: 256
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -7.51
• Shares Outstanding: 10,228,470
• 10 Day Avg. Volume: 13,190
• 30 Day Avg. Volume: 23,613
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥343.00
• Price Target Upside: -2.00% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 41 Neutral
• Price Target: ¥343.00 ▼(-2.00% Downside)

EduLab, Inc. is currently facing significant financial and operational challenges, with declining revenues and negative profitability metrics being the most critical factors. The technical analysis indicates a bearish trend, and the valuation metrics reflect the company's unprofitability. These factors collectively result in a low overall stock score.

EduLab, Inc. Business Overview & Revenue Model

Company Description

EduLab, Inc., together with its subsidiaries, researches and develops academic ability measurement technologies and educational tools in Japan and internationally. The company provides test and learning services primarily for languages educational institutions, including universities, private companies, and individuals. It also offers Einavi! and StudyGear, an online service that supports learners preparing for the test in practical English proficiency; Eiken Jr., a testing and game based English learning program for preschool through junior high-school; TEAP CBT; an English proficiency test for reading, writing, listening, and speaking; computerized assessment system for English communication (CASEC), an English proficiency test that utilizes item response theory and computer-adaptive testing technologies; speaking test systems for Eiken grade 4 and 5; and support systems for Eiken group enrollment. The company was incorporated in 2015 and is headquartered in Tokyo, Japan.

How the Company Makes Money

EduLab, Inc. generates revenue through a variety of channels centered around its educational offerings. The company's primary revenue streams include subscription fees for its online learning platforms, which provide access to educational content and resources. Additionally, EduLab earns income from the sale of its educational technology products, which may include software and hardware solutions tailored for educational settings. Another significant source of revenue is the provision of assessment services, where EduLab collaborates with schools and educational organizations to deliver testing and evaluation services. Partnerships with educational institutions and government bodies further contribute to the company's earnings, as EduLab offers customized solutions to meet specific educational needs. The company's ability to maintain and expand these partnerships is a critical factor in its financial performance.

EduLab, Inc. Financial Statement Overview

Summary

EduLab, Inc. is facing significant financial challenges, with declining revenues, persistent losses, and negative cash flows. The negative profitability metrics and cash flow issues pose substantial risks, and the company needs to address these to improve its financial health.

Income Statement

EduLab, Inc. has experienced a consistent decline in revenue and profitability over recent years. The TTM shows a significant negative net profit margin of -12.49%, with a declining gross profit margin to 23.35%. EBIT and EBITDA margins are also negative, indicating operational challenges. The revenue growth rate is negative, suggesting a downward trend in sales.

Balance Sheet

The company maintains a relatively stable equity ratio of 34.80% in the TTM, but the debt-to-equity ratio is concerning at 0.51, indicating moderate leverage. Return on equity is negative due to ongoing net losses, which raises concerns about shareholder returns.

Cash Flow

EduLab, Inc. faces significant cash flow challenges, with negative operating and free cash flows in recent periods. The free cash flow to net income ratio cannot be calculated reliably due to negative figures, highlighting liquidity issues and the inability to generate cash from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.78B	7.14B	7.06B	9.76B	10.09B	7.89B
Gross Profit	1.86B	1.72B	1.93B	2.99B	2.84B	3.99B
EBITDA	118.63M	-928.30M	-2.80B	-42.53M	-3.69B	1.36B
Net Income	-825.21M	-1.27B	-3.11B	-818.70M	-5.26B	378.36M
Balance Sheet
Total Assets	3.64B	3.64B	6.02B	12.44B	18.97B	16.27B
Cash, Cash Equivalents and Short-Term Investments	1.36B	1.67B	3.84B	6.05B	10.70B	7.51B
Total Debt	553.82M	656.42M	2.28B	4.99B	7.96B	6.59B
Total Liabilities	1.76B	1.88B	4.14B	7.40B	12.80B	8.25B
Stockholders Equity	1.45B	1.36B	1.83B	4.90B	5.97B	5.68B
Cash Flow
Free Cash Flow	0.00	-1.53B	-25.97M	-1.69B	-3.37B	25.91M
Operating Cash Flow	0.00	-1.23B	336.61M	-581.12M	-665.01M	1.37B
Investing Cash Flow	0.00	997.15M	1.43B	-3.13B	-3.06B	-1.96B
Financing Cash Flow	0.00	-900.15M	-2.56B	-3.25B	6.90B	1.65B

EduLab, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 350.00
• 50DMA: Negative
• 100DMA: Negative
• 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:4427, the sentiment is Negative. The current price of 350 is below the 20-day moving average (MA) of 362.80, below the 50-day MA of 379.66, and above the 200-day MA of 306.07, indicating a neutral trend. The MACD of -5.03 indicates Negative momentum. The RSI at 40.50 is Neutral, neither overbought nor oversold. The STOCH value of 23.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4427.

EduLab, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2323	76 Outperform	¥5.35B	28.27	17.69%	―	91.71%	210.91%
4421	74 Outperform	¥3.16B	12.78	16.81%	2.61%	5.61%	6.12%
7046	74 Outperform	¥3.40B	29.66	―	0.60%	9.33%	-41.25%
4394	70 Outperform	¥2.47B	18.49	―	2.32%	18.75%	―
3970	66 Neutral	¥2.70B	-24.91	1.99%	4.00%	13.99%	-157.48%
4427	41 Neutral	¥3.58B	―	―	―	-15.21%	-7.31%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%