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

• Market Cap: ¥2.32B
• 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: 69 Neutral
• Price Target: ¥379.00 ▲(25.91% Upside)
• Action: Reiterated Date: 03/24/26
• Date: Action: Reiterated 03/24/26

The score is supported by a constructive price trend and very strong valuation (very low P/E plus ~2.9% yield). This is tempered by uneven fundamentals—thin and volatile profitability and, most importantly, weak cash conversion with negative free cash flow for two consecutive years despite a solid balance sheet.

Positive Factors

Balance Sheet Health

The company's conservative leverage (D/E 0.28) and ~48% equity financing provide durable financial flexibility. Improved ROE to 6.6% indicates rising profitability on equity, supporting resilience to revenue cycles and capacity to fund strategic investments without high refinancing risk.

Cash Generation Ability

A turnaround to positive operating cash flow and a cash conversion ratio of 1.58 point to stronger earnings quality and sustained internal cash generation. This durable improvement reduces funding dependency, helping to support operations and near-term strategic spending despite FCF headwinds.

Earnings Momentum

Material EPS growth (~31%) alongside an improvement from prior-year net losses to a positive net margin suggests operational recovery. Durable earnings momentum can enhance reinvestment capacity, support incremental margin expansion, and improve stakeholder confidence over the coming months.

Negative Factors

Revenue Growth Sustainability

Reported fluctuating revenues and a slight recent decline signal weak top-line stability. For a preparatory-education business, sustained enrollment or product expansion is required; persistent top-line weakness pressures scale economics and limits scope for durable margin improvement.

Free Cash Flow / Capital Efficiency

Negative free cash flow despite positive operating cash flow indicates capital spending or timing issues that erode liquidity over time. Continued negative FCF can constrain strategic initiatives, dividend sustainability, or require external funding if not corrected over the medium term.

Margin Sustainability

Low absolute gross and net margins with pressured EBIT/EBITDA margins offer limited buffer against cost inflation or enrollment volatility. Structural margin constraints reduce ability to absorb shocks and slow accumulation of retained earnings needed for reinvestment and competitive differentiation.

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.

Shuei Yobiko Co., Ltd. Financial Statement Overview

Summary

Financials are mixed: the balance sheet is relatively conservative with improved leverage (debt-to-equity ~0.21–0.28), but profitability has been volatile (2024 net loss, 2025 recovery to ~2.8% net margin) and cash generation is weak with negative free cash flow in both 2024 and 2025.

Income Statement

Revenue has been broadly stable over the past several years, with a modest decline through 2024 followed by a strong rebound in 2025 (annual revenue growth of ~64%). Profitability, however, has been volatile: 2024 swung to a net loss, while 2025 returned to a positive net margin (~2.8%) that remains well below earlier highs (2020 net margin ~4.7%). Gross margin has been fairly steady (~15%–19%), but operating profitability is thin and sensitive to small changes in cost structure, making earnings quality less consistent.

Balance Sheet

The balance sheet looks conservatively positioned with low-to-moderate leverage: debt-to-equity sits around ~0.21–0.28 in the last two years, improved from the higher levels seen in 2020–2021 (~0.56). Equity has been relatively stable, and total assets have been steady to slightly down, suggesting no aggressive balance-sheet expansion. The key weakness is return on equity volatility—negative in 2024 and only mid-single-digit in 2025—indicating the capital base is not being consistently translated into strong shareholder returns.

Cash Flow

Cash flow performance has weakened and become less reliable. Operating cash flow was negative in 2024 and, while it recovered to positive in 2025, it remained modest relative to sales and profitability. Free cash flow is the main concern: it was strongly positive in 2022–2023 but turned negative in 2024 and stayed negative in 2025, implying higher reinvestment needs and/or working-capital pressure. Overall, the business is not consistently converting earnings into cash available after investment.

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 342.35, below the 50-day MA of 328.20, and below the 200-day MA of 302.82, indicating a bullish trend. The MACD of 4.14 indicates Positive momentum. The RSI at 59.99 is Neutral, neither overbought nor oversold. The STOCH value of 57.94 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
2179	77 Outperform	¥4.53B	2.26	―	2.60%	8.85%	-1.34%
9470	75 Outperform	¥43.74B	28.75	―	2.28%	7.30%	60.93%
4714	71 Outperform	¥32.29B	14.97	―	5.00%	―	―
4718	70 Outperform	¥37.81B	18.91	―	2.56%	7.41%	22.70%
4678	69 Neutral	¥2.32B	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	¥2.38B	8.75	―	―	-1.21%	-50.91%