Riso Kyoiku Co., Ltd. (4714) AI Stock Analysis

• Market Cap: ¥33.82B
• Dividend Yield: 5%
• Average Volume (3M): 532.96K
• Price to Earnings (P/E): 22.6
• Beta (1Y): 0.71
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 1,119
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 3.36
• Shares Outstanding: 171,806,150
• 10 Day Avg. Volume: 610,630
• 30 Day Avg. Volume: 532,956
• PEG Ratio: -9.39
• Price to Book (P/B): 3.53
• Price to Sales (P/S): 1.27
• P/FCF Ratio: 23.40
• 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): 10.6
• Revenue Forecast (FY): ¥35.50B

• Rating: 71 Outperform
• Price Target: ¥222.00 ▲(9.36% Upside)
• Action: N/A Date: 01/04/26
• Date: Action: N/A 01/04/26

The score is driven primarily by strong financial fundamentals, led by an exceptionally conservative balance sheet and solid profitability, offset by inconsistent cash-flow conversion. Technicals are neutral-to-weak due to being below longer-term moving averages and a negative MACD, while valuation is supported by a ~5% dividend yield but tempered by a ~24 P/E.

Riso Kyoiku Co., Ltd. Business Overview & Revenue Model

Company Description

Riso Kyoiku Co., Ltd. operates TOMAS private study Juku schools for elementary, and junior and senior high school students in Japan. The company also operates MEDIC TOMAS private study Juku schools that specialize in preparation for medical school exams. It operates 64 TOMAS private study Juku schools. Riso Kyoiku Co., Ltd. was founded in 1985 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Riso Kyoiku Co., Ltd. Financial Statement Overview

Summary

Strong balance sheet with essentially no leverage and healthy ROE supports a high score, alongside steady revenue growth and solid operating margins. The main constraint is cash-flow quality: operating cash flow has recently lagged net income and free cash flow has been volatile.

Income Statement

Revenue has grown steadily from 2021 to 2025, with profitability recovering materially from the 2021 trough. Gross and operating profitability are solid for the period (gross margin ~26–28% and operating margin ~7–10% in 2022–2025), but net margin has moderated versus the 2022 peak (about 5% in 2024–2025 vs ~8% in 2022), indicating some pressure below the operating line and/or higher costs outside core operations. Overall, the earnings profile is healthy and improving versus earlier years, with a notable one-year dip in 2021 as the main blemish.

Balance Sheet

The balance sheet is exceptionally conservatively financed with essentially no leverage across the entire period (debt-to-equity near zero each year). Equity has grown meaningfully (notably into 2025), and returns on equity are consistently strong (mid-teens to low-20s in 2022–2025), supporting the view that the company is generating good profitability without relying on debt. The main watch item is that returns have come down from the very high 2020–2022 levels, but they remain healthy.

Cash Flow

Cash generation is generally positive in recent years, with operating cash flow and free cash flow both solid in 2022–2025. However, conversion is uneven: operating cash flow is well below net income in the latest two years (coverage ratio ~0.29–0.42 in 2024–2025), and free cash flow declined sharply in 2024 before rebounding in 2025. The 2021 period also shows negative operating and free cash flow, highlighting that cash flow can be more volatile than earnings.

Breakdown	TTM	Feb 2025	Feb 2024	Feb 2023	Feb 2022	Feb 2021
Income Statement
Total Revenue	33.57B	33.39B	32.22B	31.49B	30.01B	25.20B
Gross Profit	8.63B	9.08B	8.52B	8.51B	8.46B	6.11B
EBITDA	2.57B	3.14B	2.87B	2.73B	3.40B	1.41B
Net Income	1.44B	1.74B	1.66B	1.49B	2.39B	555.23M
Balance Sheet
Total Assets	21.40B	22.09B	18.26B	18.25B	19.05B	13.94B
Cash, Cash Equivalents and Short-Term Investments	6.23B	8.95B	5.46B	7.31B	8.01B	3.96B
Total Debt	83.09M	12.94M	0.00	1.68M	3.90M	6.09M
Total Liabilities	10.46B	10.02B	9.60B	8.90B	8.53B	7.37B
Stockholders Equity	10.94B	12.07B	8.65B	9.22B	10.51B	6.58B
Cash Flow
Free Cash Flow	0.00	1.82B	835.18M	2.02B	2.84B	-401.89M
Operating Cash Flow	0.00	2.45B	1.65B	2.78B	3.61B	-36.38M
Investing Cash Flow	0.00	-801.30M	-1.03B	-1.02B	-1.01B	-655.55M
Financing Cash Flow	0.00	1.84B	-2.47B	-2.47B	1.45B	-182.30M

Riso Kyoiku Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9470	75 Outperform	¥46.22B	13.99	―	2.28%	7.30%	60.93%
9769	72 Outperform	¥26.70B	14.85	―	4.01%	-1.18%	-12.01%
4714	71 Outperform	¥33.82B	22.60	―	5.00%	―	―
4718	70 Outperform	¥38.49B	15.47	―	2.56%	7.41%	22.70%
9795	70 Outperform	¥41.81B	14.93	―	3.55%	4.95%	9.43%
4678	64 Neutral	¥2.34B	10.21	―	3.34%	1.92%	71.20%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Riso Kyoiku Co., Ltd. Corporate Events

Riso Kyoiku Cuts Full-Year Earnings Forecast but Maintains Dividend Payout

Riso Kyoiku Group Corporation has revised downward its full-year consolidated earnings forecasts for the fiscal year ending February 28, 2026, cutting projected net sales from ¥36.0 billion to ¥34.2 billion and reducing expected profit attributable to owners of parent from ¥2.0 billion to ¥1.54 billion. The company cited weaker-than-planned student enrollment in its core Tutoring School (TOMAS) and Early Childhood Education (Shingakai) businesses, along with higher land and building rents and increased personnel and recruitment costs tied to efforts to secure and retain talent, as the main reasons for the projected shortfall in both sales and profits relative to its initial plan, though sales are still expected to exceed the previous fiscal year’s level. Despite the downgrade in earnings expectations and the anticipated decline in profitability, the company plans to maintain its previously announced annual dividend forecast of ¥10 per share, signaling a commitment to stable shareholder returns even as cost pressures and competitive dynamics weigh on margins.

The most recent analyst rating on (JP:4714) stock is a Buy with a Yen222.00 price target. To see the full list of analyst forecasts on Riso Kyoiku Co., Ltd. stock, see the JP:4714 Stock Forecast page.

Riso Kyoiku’s Q3 Profit Drops Despite Modest Sales Growth on Rising Costs

Riso Kyoiku Group reported that consolidated net sales for the nine months ended November 30, 2025 edged up 2.2% year on year to ¥25.3 billion, driven by higher revenues at Meimonkai and School TOMAS, while its core TOMAS and Shingakai businesses remained broadly flat. Profitability deteriorated, with operating profit down 22.1% and profit attributable to owners of parent down 16.5%, pressured by higher rent for existing schools, increased personnel expenses from base pay hikes to secure talent, and rising recruitment costs, compounded by TOMAS and Shingakai underperforming initial sales plans; the company aims to restore and reinforce margins by boosting productivity and improving cost efficiency in other areas.

The most recent analyst rating on (JP:4714) stock is a Buy with a Yen222.00 price target. To see the full list of analyst forecasts on Riso Kyoiku Co., Ltd. stock, see the JP:4714 Stock Forecast page.

Riso Kyoiku Posts Higher Sales but Profit Decline and Lowers Full-Year Outlook

Riso Kyoiku Group reported consolidated net sales of ¥25.27 billion for the nine months ended November 30, 2025, up 2.2% year on year, but operating profit declined 22.1% to ¥1.66 billion and profit attributable to owners of parent fell 16.5% to ¥1.12 billion, reflecting margin pressure despite modest revenue growth. The company’s equity ratio weakened slightly to 51.4% as net assets decreased, and it maintained its dividend policy with a planned full-year payout of ¥10 per share, while revising its full-year forecast to modest sales growth of 2.4% but double‑digit declines in operating and net profit, signaling a more challenging earnings environment for the current fiscal year and a potential squeeze on profitability for shareholders and other stakeholders.

The most recent analyst rating on (JP:4714) stock is a Buy with a Yen222.00 price target. To see the full list of analyst forecasts on Riso Kyoiku Co., Ltd. stock, see the JP:4714 Stock Forecast page.