Central Sports Co., Ltd. (4801) AI Stock Analysis

• Market Cap: ¥27.14B
• Dividend Yield: 1.86%
• Average Volume (3M): 7.99K
• Price to Earnings (P/E): 26.2
• Beta (1Y): 0.26
• Revenue Growth: 4.17%
• EPS Growth: -20.08%
• Country: JP
• Employees: 963
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): 46.87
• Shares Outstanding: 11,466,300
• 10 Day Avg. Volume: 9,430
• 30 Day Avg. Volume: 7,986
• PEG Ratio: 1.14
• Price to Book (P/B): 1.03
• Price to Sales (P/S): 0.57
• P/FCF Ratio: 101.44
• 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: 61 Neutral
• Price Target: ¥2,563.00 ▲(6.04% Upside)

Central Sports Co., Ltd. has a solid financial foundation with steady revenue growth and improved profitability, which are significant strengths. However, technical indicators suggest potential bearish momentum, and the stock's high P/E ratio indicates it may be overvalued. The lack of earnings call data and corporate events limits further insights.

Positive Factors

Financial Health

The company's solid financial health, characterized by steady revenue growth and improved profitability, supports its long-term sustainability and ability to invest in future growth opportunities.

Low Leverage

Low leverage reduces financial risk and enhances the company's ability to withstand economic downturns, providing a stable foundation for future growth and investment.

Operational Efficiency

Strong cash generation relative to net income indicates efficient operations, allowing the company to fund growth initiatives and manage debt effectively.

Negative Factors

Decline in Free Cash Flow

A significant decline in free cash flow limits the company's ability to invest in new projects or pay down debt, potentially affecting long-term growth and financial flexibility.

Gross Profit Margin Decline

A decline in gross profit margin suggests challenges in cost management, which could pressure profitability if not addressed, impacting long-term financial performance.

EPS Growth Decline

A significant decline in EPS growth indicates potential challenges in profitability and could affect investor confidence, impacting the company's ability to attract investment.

Central Sports Co., Ltd. Business Overview & Revenue Model

Company Description

Central Sports Co., Ltd. manages sports clubs in Japan. The company is also involved in corporate fitness promotion, marine leisure planning and management, care prevention, travel operations, summer and ski school operations, management and guidance related activities, license accreditation and dispatch, children's school, esthetic, facilities building and repair works, bus transportation and management operations, and security businesses. In addition, it procures and supplies sports machines; and operates as a social physical education instructor. The company operates approximately 200 facilities. Central Sports Co., Ltd. was, founded in 1969 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Central Sports Co., Ltd. generates revenue through multiple key streams. The primary source of income comes from the sales of sports equipment and apparel, which includes a range of products such as exercise machines, sports gear, and branded clothing. Additionally, the company earns significant revenue from its fitness club operations, which involve membership fees, personal training services, and specialized fitness classes. Partnerships with various sports organizations and sponsorship deals also contribute to its earnings, further bolstered by promotional events and branded merchandise sales. Overall, the company’s diverse portfolio allows it to capitalize on different segments of the sports and fitness market.

Central Sports Co., Ltd. Financial Statement Overview

Summary

Central Sports Co., Ltd. displays solid financial health with steady revenue growth and improved net profitability. The company maintains a low-risk leverage profile with a strong equity base, which is favorable for long-term sustainability. However, the decline in Free Cash Flow warrants attention, as it may affect future investments or debt servicing capabilities.

Income Statement

Central Sports Co., Ltd. shows moderate revenue growth with a Revenue Growth Rate of 2.68% between 2024 and 2025. The Gross Profit Margin decreased slightly from 13.09% to 11.68%, indicating less efficiency in controlling production costs. Despite this, the company improved its Net Profit Margin from 2.56% to 2.92%, showing better control over overall expenses. EBIT and EBITDA margins are stable, reflecting consistent operating performance.

Balance Sheet

The company maintains a strong balance sheet with a Debt-to-Equity Ratio of 0.19, indicating low leverage and a conservative financial structure. The Equity Ratio is robust at 62.79%, suggesting that a significant portion of the company's assets are financed through equity. Return on Equity improved to 5.26%, reflecting better profitability from shareholders' equity.

Cash Flow

Free Cash Flow declined from ¥2,070 million to ¥263 million, indicating a significant reduction in cash available for expansion and debt repayment. However, the Operating Cash Flow to Net Income Ratio of 1.52 demonstrates strong cash generation relative to net income, highlighting operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	46.95B	46.59B	45.38B	43.60B	40.34B	36.03B
Gross Profit	5.40B	5.44B	5.94B	5.03B	4.65B	3.62B
EBITDA	3.15B	3.22B	3.91B	3.35B	4.65B	323.00M
Net Income	645.00M	1.36B	1.16B	793.00M	1.54B	-2.36B
Balance Sheet
Total Assets	40.27B	41.15B	41.63B	42.56B	44.78B	43.75B
Cash, Cash Equivalents and Short-Term Investments	4.75B	5.38B	7.39B	8.00B	9.21B	6.00B
Total Debt	4.63B	4.95B	6.53B	8.77B	11.18B	13.55B
Total Liabilities	14.73B	15.31B	16.81B	18.66B	21.24B	21.60B
Stockholders Equity	25.54B	25.84B	24.82B	23.89B	23.53B	22.13B
Cash Flow
Free Cash Flow	0.00	263.00M	2.07B	1.59B	5.89B	-3.55B
Operating Cash Flow	0.00	2.06B	3.12B	2.10B	6.32B	-2.97B
Investing Cash Flow	0.00	-1.95B	-1.18B	-346.00M	-482.00M	-456.00M
Financing Cash Flow	0.00	-2.19B	-2.58B	-3.01B	-2.65B	3.50B

Central Sports Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2417.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4801, the sentiment is Negative. The current price of 2417 is below the 20-day moving average (MA) of 2439.55, below the 50-day MA of 2419.78, and below the 200-day MA of 2431.62, indicating a neutral trend. The MACD of 2.08 indicates Positive momentum. The RSI at 44.70 is Neutral, neither overbought nor oversold. The STOCH value of 12.31 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4801.

Central Sports Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7085	76 Outperform	¥67.75B	15.75	―	2.22%	5.92%	20.63%
7092	74 Outperform	¥39.68B	18.25	―	1.95%	16.36%	38.48%
6074	64 Neutral	¥2.03B	11.46	―	3.80%	3.65%	-8.80%
2340	62 Neutral	¥14.89B	20.19	―	―	14.37%	-44.67%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
4801	61 Neutral	¥27.14B	26.22	―	1.86%	4.17%	-20.08%
4343	52 Neutral	¥54.81B	-128.38	―	―	6.00%	-184.09%

Central Sports Co., Ltd. Corporate Events

Central Sports Co., Ltd. Reports Mixed Financial Results for First Half of 2025

Central Sports Co., Ltd. reported its consolidated financial results for the six months ending September 30, 2025, showing a 5.2% increase in net sales compared to the previous year. Despite this growth, the company’s profit attributable to owners of the parent decreased by 36%, indicating challenges in maintaining profitability. The company forecasts continued growth in net sales and profits for the fiscal year ending March 31, 2026, suggesting optimism about future performance.