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

• Market Cap: ¥2.30B
• 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: ¥366.00 ▲(21.59% 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 capital structure

A low debt-to-equity ratio (0.28) and ~48% equity ratio create a durable financial cushion. This conservative structure reduces refinancing and interest-rate risk, preserves borrowing capacity for strategic investments, and supports operational resilience across enrollment and macro cycles over the medium term.

Improved operating cash generation

Operating cash flow has recovered to positive and converts earnings well (OCF/net income 1.58). Sustained cash generation strengthens liquidity, funds working capital and distributions internally, and lowers reliance on external financing, improving the company's medium-term financial flexibility.

Profitability recovery

Return on equity rising to 6.6% and net margin turning positive to 2.8% indicate material operational improvement. This recovery suggests management has begun to restore profitability and cost control, enabling reinvestment or cash returns and improving the firm's ability to generate sustainable shareholder value.

Negative Factors

Revenue weakness

Revenues have been uneven and show a slight recent decline, which undermines scale economics in education services. Persistent top-line pressure can limit margin recovery, reduce pricing power, and constrain long-term growth unless enrollment trends or product mix are structurally improved.

Negative free cash flow

Despite improved operating cash flow, free cash flow remains negative, signalling capex or working capital outflows exceed cash generation. Continued negative FCF erodes liquidity buffers, may force external financing for investments, and raises questions on capital allocation sustainability.

Margin and efficiency pressure

A modest gross margin (16.9%) and continued pressure on EBIT/EBITDA margins point to limited pricing power or elevated fixed costs. Structural margin constraints reduce the firm's ability to convert revenue growth into disproportionate profit increases and weaken long-term return on invested capital.

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

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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	1.58B	1.73B	1.81B	1.75B
EBITDA	539.88M	565.20M	411.52M	688.24M	743.03M	706.24M
Net Income	262.75M	298.10M	-425.31M	169.44M	41.78M	149.96M
Balance Sheet
Total Assets	8.89B	9.46B	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	4.92B	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	-613.17M	546.85M	789.61M	297.14M
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: Positive
• 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 341.90, below the 50-day MA of 325.90, and below the 200-day MA of 301.95, indicating a bullish trend. The MACD of 4.78 indicates Positive momentum. The RSI at 57.62 is Neutral, neither overbought nor oversold. The STOCH value of 64.25 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	¥44.96B	28.75	―	2.28%	7.30%	60.93%
2179	74 Outperform	¥4.52B	2.26	―	2.60%	8.85%	-1.34%
4714	71 Outperform	¥32.97B	14.97	―	5.00%	―	―
4718	70 Outperform	¥38.49B	18.91	―	2.56%	7.41%	22.70%
4678	64 Neutral	¥2.30B	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	¥2.41B	8.75	―	―	-1.21%	-50.91%