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

• Market Cap: ¥48.41B
• Dividend Yield: 2.12%
• Average Volume (3M): 46.81K
• Price to Earnings (P/E): 19.4
• Beta (1Y): 0.52
• Revenue Growth: 7.19%
• EPS Growth: 33.38%
• Country: JP
• Employees: 1,090
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): -15.01
• Shares Outstanding: 19,012,451
• 10 Day Avg. Volume: 86,180
• 30 Day Avg. Volume: 46,813
• 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: ¥2,780.00
• Price Target Upside: 9.23% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: ¥2,780.00 ▲(9.23% Upside)

Waseda Academy Co., Ltd. shows strong financial performance with consistent growth and a solid balance sheet, which is the most significant factor in the overall score. However, technical analysis indicates bearish momentum, which negatively impacts the score. The valuation is fair, providing moderate attractiveness. The absence of earnings call data and corporate events means these factors do not influence the score.

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 Co., Ltd. generates revenue through tuition fees collected from students enrolled in its various educational programs. The company offers a range of services including after-school classes, seasonal intensive courses, and one-on-one tutoring sessions. These services are tailored to meet the individual needs of students, helping them to improve their academic skills and achieve specific educational goals. Additionally, Waseda Academy may engage in partnerships with educational institutions or offer specialized programs that cater to niche markets within the education sector, further contributing to its revenue streams.

Waseda Academy Co., Ltd. Financial Statement Overview

Summary

Waseda Academy Co., Ltd. exhibits strong financial health across all areas. It has demonstrated consistent revenue and profit growth, efficient cost management, and robust cash generation. With a solid balance sheet and low leverage, the company is well-positioned for future growth. Continued focus on improving cash flow will enhance financial flexibility.

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: 2545.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 2545 is below the 20-day moving average (MA) of 2764.35, below the 50-day MA of 2718.81, and above the 200-day MA of 2270.60, indicating a neutral trend. The MACD of -30.95 indicates Positive momentum. The RSI at 36.41 is Neutral, neither overbought nor oversold. The STOCH value of 10.22 is Positive, 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
9795	80 Outperform	¥39.94B	14.79	―	3.38%	5.34%	-0.95%
9769	73 Outperform	¥25.44B	13.81	―	4.09%	-0.36%	-2.22%
9733	69 Neutral	¥56.87B	21.92	―	5.11%	10.27%	-6.00%
4718	69 Neutral	¥48.41B	19.37	―	2.12%	7.19%	33.38%
9470	67 Neutral	¥45.13B	13.86	―	2.46%	6.15%	-17.22%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Waseda Academy Co., Ltd. Corporate Events

Waseda Academy Reports Increased Sales but Faces Operating Loss in Q2 2025

Waseda Academy Co., Ltd. reported a 7.3% increase in net sales for the three months ending June 30, 2025, compared to the same period in 2024. Despite the increase in sales, the company faced an operating loss of ¥326 million. The financial results indicate a challenging quarter, but the company maintains a strong equity-to-asset ratio of 63.9%, suggesting financial stability. The forecast for the fiscal year ending March 31, 2026, projects continued growth in net sales and profits, indicating a positive outlook for the company’s future performance.

Waseda Academy Announces Increased Dividend Payout for 50th Anniversary

Waseda Academy Co., Ltd. announced a resolution to pay dividends of surplus, with a record date of March 31, 2025, subject to approval at the upcoming Annual General Meeting. The proposed year-end dividend is ¥40 per share, including a ¥10 commemorative dividend for the company’s 50th anniversary, reflecting a strategic increase in shareholder returns and aligning with its policy of maintaining a consolidated dividend payout ratio of 35% or higher.

Waseda Academy Reports Strong Financial Growth and Increased Dividends

Waseda Academy Co., Ltd. reported a significant increase in its consolidated financial results for the fiscal year ended March 31, 2025, with net sales rising by 6.7% and operating profit increasing by 22.8%. The company also announced an increase in annual dividends per share, reflecting its strong financial performance and commitment to returning value to shareholders.