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

• Market Cap: ¥1.98B
• Dividend Yield: 3.41%
• Average Volume (3M): 8.62K
• Price to Earnings (P/E): 10.4
• 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): 12.78
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ¥315.00 ▲(7.51% Upside)

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

Business Model Strength

The diversified educational offerings, including both in-person and online services, allow Shuei Yobiko to adapt to market demands and reach a broader audience, enhancing its resilience and growth potential in the education sector.

Balance Sheet Health

A strong balance sheet with low leverage provides financial stability and flexibility, enabling the company to invest in growth opportunities and withstand economic fluctuations.

Cash Generation Ability

Improved operating cash flow indicates enhanced cash generation capabilities, which is crucial for funding operations, reducing debt, and investing in future growth without relying heavily on external financing.

Negative Factors

Revenue Growth Challenges

Sluggish revenue growth can hinder the company's ability to scale and compete effectively, potentially impacting long-term profitability and market share in the competitive education sector.

Capital Efficiency Issues

Inefficient capital allocation can lead to suboptimal returns on investment, limiting the company's ability to enhance operational efficiency and profitability over the long term.

Free Cash Flow Concerns

Negative free cash flow suggests the company may struggle to fund its operations and growth initiatives without external financing, which could constrain future expansion and strategic flexibility.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: 293.00
• 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 293 is above the 20-day moving average (MA) of 292.10, above the 50-day MA of 288.34, and above the 200-day MA of 289.02, indicating a bullish trend. The MACD of 1.70 indicates Negative momentum. The RSI at 53.75 is Neutral, neither overbought nor oversold. The STOCH value of 51.67 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
4718	70 Outperform	¥43.86B	17.19	―	2.58%	7.41%	22.70%
4645	68 Neutral	¥3.67B	4.05	―	2.22%	1.82%	208.53%
4678	64 Neutral	¥1.98B	10.35	―	3.41%	1.92%	71.20%
4668	64 Neutral	¥17.66B	10.29	―	3.79%	9.96%	252.72%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
4720	51 Neutral	¥1.85B	-5.17	―	―	-1.21%	-50.91%