Waseda Academy Co., Ltd. (4718) AI Stock Analysis

• Market Cap: ¥43.92B
• Dividend Yield: 2.58%
• Average Volume (3M): 47.20K
• Price to Earnings (P/E): 17.2
• Beta (1Y): 0.50
• Revenue Growth: 7.41%
• EPS Growth: 22.70%
• Country: JP
• Employees: 1,090
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 72.33
• Shares Outstanding: 19,012,451
• 10 Day Avg. Volume: 31,240
• 30 Day Avg. Volume: 47,196
• PEG Ratio: 1.28
• Price to Book (P/B): 2.49
• Price to Sales (P/S): 1.08
• P/FCF Ratio: 11.64
• 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: 70 Outperform
• Price Target: ¥2,730.00 ▲(17.22% Upside)

Waseda Academy Co., Ltd. scores well due to its strong financial performance, characterized by consistent growth and a solid balance sheet. The valuation is reasonable, with a fair P/E ratio and a modest dividend yield. However, the technical analysis indicates bearish momentum, which slightly dampens the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for educational services and effective business strategies, supporting long-term expansion.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability, providing flexibility for future investments and growth opportunities.

Cash Generation

Strong cash generation supports operational needs and strategic initiatives, ensuring the company can capitalize on growth opportunities.

Negative Factors

Cash Flow Management

While cash generation is strong, the need for improved cash management could impact the company's ability to optimize financial resources.

Technical Analysis

A bearish technical trend may reflect market concerns, potentially affecting investor confidence and stock performance in the medium term.

Operational Efficiency

Operational efficiency is crucial for sustaining profitability; inefficiencies in cash flow management could hinder optimal resource allocation.

Waseda Academy Co., Ltd. Business Overview & Revenue Model

Company Description

Waseda Academy Co., Ltd. operates tutoring schools for elementary, middle, and high school students. It operates 180 schools; and 16 franchise schools under the KOBETSU SCHOOL brand. The company was incorporated in 1974 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Waseda Academy generates revenue primarily through tuition fees paid by students enrolled in its various educational programs and services. The company offers a range of courses, including one-on-one tutoring, group classes, and specialized preparatory programs, which attract a steady stream of students. Additionally, Waseda Academy may earn revenue from supplementary materials such as textbooks and online resources. Partnerships with educational institutions and participation in educational fairs also contribute to its revenue streams. The ongoing demand for quality educational services in Japan supports the company's earnings and growth potential.

Waseda Academy Co., Ltd. Financial Statement Overview

Summary

Waseda Academy Co., Ltd. exhibits strong financial health with consistent revenue and profit growth, efficient cost management, and robust cash generation. The balance sheet is solid with low leverage, indicating financial stability. However, there is room for improvement in cash flow management.

Income Statement

Waseda Academy Co., Ltd. has demonstrated consistent revenue growth over the past years, with the latest year showing a notable 6.7% increase. The gross profit margin is strong at 31.12%, indicating efficient cost management. Net profit margin has improved to 6.67%, showcasing enhanced profitability. EBITDA and EBIT margins are healthy at 14.12% and 10.12%, respectively, pointing to robust operational performance.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.03, indicating minimal leverage and financial risk. The return on equity is commendable at 15.4%, reflecting efficient use of equity capital. A solid equity ratio of 62.0% underscores financial stability and a strong asset base.

Cash Flow

Waseda Academy has shown significant growth in free cash flow, with a growth rate of 46.6% year-over-year. The operating cash flow to net income ratio is robust at 1.66, indicating strong cash generation relative to net earnings. However, the free cash flow to net income ratio of 1.39 suggests potential for improved cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	35.55B	35.07B	32.87B	30.73B	28.55B	25.45B
Gross Profit	11.11B	10.92B	9.93B	8.82B	7.87B	6.68B
EBITDA	5.01B	4.95B	4.19B	3.61B	3.09B	2.02B
Net Income	2.41B	2.34B	2.13B	1.55B	1.11B	529.11M
Balance Sheet
Total Assets	22.15B	24.49B	23.06B	21.11B	19.66B	18.59B
Cash, Cash Equivalents and Short-Term Investments	6.91B	8.12B	7.67B	6.31B	5.21B	5.31B
Total Debt	466.36M	482.68M	520.86M	551.73M	609.56M	1.11B
Total Liabilities	7.99B	9.30B	8.79B	8.58B	8.23B	7.58B
Stockholders Equity	14.15B	15.18B	14.26B	12.53B	11.43B	11.00B
Cash Flow
Free Cash Flow	0.00	3.25B	2.22B	2.12B	1.87B	1.52B
Operating Cash Flow	0.00	3.89B	3.64B	2.91B	2.65B	1.90B
Investing Cash Flow	0.00	-1.34B	-2.36B	-1.13B	-1.70B	-439.73M
Financing Cash Flow	0.00	-2.12B	-761.14M	-687.86M	-1.04B	1.95B

Waseda Academy Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2329.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4718, the sentiment is Neutral. The current price of 2329 is below the 20-day moving average (MA) of 2342.95, below the 50-day MA of 2390.06, and below the 200-day MA of 2394.66, indicating a bearish trend. The MACD of -31.11 indicates Negative momentum. The RSI at 47.27 is Neutral, neither overbought nor oversold. The STOCH value of 71.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4718.

Waseda Academy Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9470	75 Outperform	¥49.53B	13.23	―	2.28%	7.30%	60.93%
9769	72 Outperform	¥26.10B	14.95	―	3.99%	-1.18%	-12.01%
9733	72 Outperform	¥72.39B	19.36	―	4.02%	15.54%	67.62%
4718	70 Outperform	¥43.92B	17.21	―	2.58%	7.41%	22.70%
9795	70 Outperform	¥39.51B	14.05	―	3.55%	4.95%	9.43%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Waseda Academy Co., Ltd. Corporate Events

Waseda Academy Increases Year-End Dividend Forecast

Waseda Academy Co., Ltd. announced an upward revision to its dividend forecast, increasing the year-end dividend by ¥5 per share to ¥35, resulting in an annual dividend of ¥55. This decision reflects the company’s commitment to returning profits to shareholders and is based on its stable business performance, aligning with its policy to maintain a dividend payout ratio of 35% or higher.

Waseda Academy Reports Strong Financial Growth and Dividend Increase

Waseda Academy Co., Ltd. reported a positive financial performance for the six months ending September 30, 2025, with a 7.7% increase in net sales and a 15.9% rise in profit attributable to owners of the parent compared to the previous year. The company also announced an increase in its dividend forecast, reflecting confidence in its financial stability and growth prospects, which could positively impact stakeholders and reinforce its position in the education sector.