Shuei Yobiko Co., Ltd. (4678) AI Stock Analysis

• Market Cap: ¥2.23B
• Dividend Yield: 3.34%
• Average Volume (3M): 8.62K
• Price to Earnings (P/E): 1.4
• Beta (1Y): 0.26
• Revenue Growth: 1.92%
• EPS Growth: 71.20%
• Country: JP
• Employees: 656
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 54.29
• Shares Outstanding: 6,710,000
• 10 Day Avg. Volume: 5,330
• 30 Day Avg. Volume: 8,616
• PEG Ratio: -0.04
• Price to Book (P/B): 0.41
• Price to Sales (P/S): 0.18
• P/FCF Ratio: -8.21
• 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: 64 Neutral
• Price Target: ¥365.00 ▲(21.26% Upside)
• Action: Reiterated Date: 10/22/25
• Date: Action: Reiterated 10/22/25

Shuei Yobiko Co., Ltd. receives a moderate score driven by its strong valuation metrics, including a low P/E ratio and attractive dividend yield. Financial performance is stable but challenged by revenue growth and capital efficiency issues. Technical analysis indicates neutral to slightly bearish momentum, with potential overbought conditions.

Positive Factors

Conservative balance sheet

A low debt-to-equity ratio (0.28) and near 48% equity financing give the company durable financial flexibility. Conservative leverage reduces refinancing risk, supports steady operations across cycles, and enables funding of strategic initiatives or buffering of downturns without eroding capital.

Improved operating cash flow

The shift to positive operating cash flow and a 1.58 cash-to-income conversion signal stronger cash generation from core operations. This enhances liquidity for working capital, curriculum investment and modest shareholder returns, reducing reliance on external financing over the medium term.

Improving profitability metrics

Recovery from prior losses to a positive net margin and improved ROE reflects better cost control and profitability execution. Sustained margin recovery and reported EPS growth suggest rising earnings power, supporting reinvestment in programs and longer-term financial sustainability.

Negative Factors

Fluctuating revenue trends

Persistent volatility and recent slight declines in revenue undermine scale economics crucial for education providers. Weak top-line trends constrain margin expansion, limit pricing leverage and reduce the ability to fund long-term initiatives without improving student intake or diversifying revenue streams.

Negative free cash flow

Ongoing negative free cash flow indicates cash consumed by investing or capital needs despite positive operating cash flow. Over months this limits capacity to invest in new courses, facilities or technology without tapping reserves or increasing leverage, constraining sustainable growth execution.

Thin operating margins

Relatively low gross margin and continued pressure on EBIT/EBITDA point to limited pricing power or elevated fixed costs. Structurally thin margins reduce resilience to cost increases and limit funds available for strategic investment, making long-term margin improvement critical for viability.

Shuei Yobiko Co., Ltd. Business Overview & Revenue Model

Company Description

SHUEI YOBIKO Co., Ltd. provides various educational services in Japan. It provides elementary and junior high school services; and distributes educational video content, as well as operates cram and preparatory schools. The company is also involved in the Franchise business. SHUEI YOBIKO Co., Ltd. was founded in 1977 and is headquartered in Shizuoka, Japan.

How the Company Makes Money

Shuei Yobiko generates revenue primarily through tuition fees collected from students enrolled in its various preparatory courses and tutoring services. The company has a diversified revenue model that includes both in-person and online educational offerings, allowing it to cater to a broader audience and adapt to changing market demands. Additionally, Shuei Yobiko may benefit from strategic partnerships with educational institutions and other organizations, which can provide additional avenues for revenue through collaborative programs and sponsorships. The company also focuses on seasonal promotions and marketing campaigns to attract new students, thereby contributing to its overall earnings.

Shuei Yobiko Co., Ltd. Financial Statement Overview

Summary

Shuei Yobiko Co., Ltd. shows a mixed financial performance with improving profitability and cash generation. However, challenges in revenue growth and capital efficiency persist. The balance sheet is strong with low leverage, but focus is needed on sustainable revenue growth and optimizing capital expenditures.

Income Statement

Shuei Yobiko Co., Ltd. has shown fluctuating revenue patterns with a slight decline in recent years. The company achieved a gross profit margin of 16.9% for the latest year, indicating moderate profitability. Net profit margin improved to 2.8% after a negative figure in the prior year, suggesting better expense management. However, EBIT and EBITDA margins remain under pressure, reflecting challenges in operational efficiency.

Balance Sheet

The company's balance sheet reveals a stable financial structure with a debt-to-equity ratio of 0.28, indicating conservative leverage. The equity ratio stands at 48.1%, showing a balanced asset financing structure. Return on equity improved to 6.6%, reflecting enhanced profitability compared to prior periods, though still moderate.

Cash Flow

The cash flow statement shows a significant improvement in operating cash flow, turning positive after a negative prior year, indicating enhanced cash generation capabilities. However, free cash flow remains negative, highlighting the need for better capital expenditure management. The operating cash flow to net income ratio is 1.58, suggesting strong cash conversion from earnings.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	10.67B	10.69B	10.34B	10.72B	10.91B	10.82B
Gross Profit	1.78B	1.80B	1.59B	1.81B	1.89B	1.83B
EBITDA	524.80M	552.38M	-162.85M	560.75M	507.87M	583.25M
Net Income	261.56M	298.10M	-425.31M	169.44M	41.78M	149.96M
Balance Sheet
Total Assets	8.89B	9.43B	8.90B	10.17B	10.70B	11.08B
Cash, Cash Equivalents and Short-Term Investments	866.15M	1.30B	1.15B	1.96B	1.86B	1.55B
Total Debt	1.03B	1.28B	902.78M	1.20B	1.84B	2.54B
Total Liabilities	4.91B	4.89B	4.59B	5.46B	6.08B	6.44B
Stockholders Equity	3.99B	4.54B	4.30B	4.71B	4.62B	4.65B
Cash Flow
Free Cash Flow	0.00	-228.80M	-613.67M	540.53M	789.61M	286.89M
Operating Cash Flow	0.00	471.39M	-292.93M	604.36M	905.64M	313.68M
Investing Cash Flow	0.00	-674.36M	-143.85M	191.01M	410.44M	123.04M
Financing Cash Flow	0.00	346.52M	-382.48M	-702.41M	-835.09M	-98.21M

Shuei Yobiko Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 301.00
• 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:4678, the sentiment is Positive. The current price of 301 is below the 20-day moving average (MA) of 333.80, below the 50-day MA of 318.70, and above the 200-day MA of 299.70, indicating a bullish trend. The MACD of 8.24 indicates Negative momentum. The RSI at 65.77 is Neutral, neither overbought nor oversold. The STOCH value of 61.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4678.

Shuei Yobiko Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9470	75 Outperform	¥45.26B	28.75	―	2.28%	7.30%	60.93%
2179	74 Outperform	¥4.56B	2.26	―	2.60%	8.85%	-1.34%
4714	71 Outperform	¥33.31B	14.97	―	5.00%	―	―
4718	70 Outperform	¥37.94B	18.91	―	2.56%	7.41%	22.70%
4678	64 Neutral	¥2.23B	1.39	―	3.34%	1.92%	71.20%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
4720	51 Neutral	¥2.30B	8.75	―	―	-1.21%	-50.91%