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

• Market Cap: ¥26.75B
• Dividend Yield: 2.09%
• Average Volume (3M): 12.42K
• Price to Earnings (P/E): 19.7
• Beta (1Y): 0.29
• Revenue Growth: 2.68%
• EPS Growth: 17.16%
• Country: JP
• Employees: 963
• Sector: Consumer Cyclical
• Sector Strength: 61
• Industry: Leisure
• EPS (TTM): 7.43
• Shares Outstanding: 11,466,300
• 10 Day Avg. Volume: 19,500
• 30 Day Avg. Volume: 12,423
• PEG Ratio: -0.72
• Price to Book (P/B): 1.15
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.35
• 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

• Rating: 68 Neutral
• Price Target: ¥2,597.00 ▲(8.75%Upside)

The overall stock score of 67.5 reflects strong financial performance, highlighted by solid revenue growth and a robust balance sheet. However, technical indicators suggest bearish momentum, and the significant decline in Free Cash Flow poses a potential risk for future investments. Valuation metrics indicate a fair market price, supported by a moderate P/E ratio and reasonable dividend yield.

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

Company Description

Central Sports Co., Ltd. (4801) is a Japanese company specializing in the management and operation of fitness clubs, sports facilities, and health-related services. The company is involved in the planning, development, and promotion of fitness programs and wellness solutions, catering to a wide range of customers. With a focus on enhancing physical fitness and promoting healthy lifestyles, Central Sports Co., Ltd. offers tailored fitness programs, personal training, and various sports activities across its network of facilities.

How the Company Makes Money

Central Sports Co., Ltd. generates revenue primarily through membership fees collected from individuals and corporate clients who subscribe to its fitness clubs and wellness programs. Additional income is derived from personal training sessions, group classes, and specialized sports courses offered within its facilities. The company also benefits from the sale of fitness-related merchandise and equipment. Partnerships with corporations and educational institutions for customized wellness programs contribute significantly to its earnings. Furthermore, Central Sports Co., Ltd. may engage in franchising opportunities, expanding its brand presence and revenue potential through strategic partnerships and collaborations within the fitness industry.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	46.31B	46.59B	45.38B	43.60B	40.34B	36.03B
Gross Profit	5.35B	5.44B	5.94B	5.03B	4.65B	3.62B
EBITDA	2.96B	3.22B	3.91B	3.38B	3.14B	2.68B
Net Income	1.30B	1.36B	1.16B	793.00M	1.54B	-2.36B
Balance Sheet
Total Assets	39.02B	41.15B	41.63B	42.56B	44.78B	43.75B
Cash, Cash Equivalents and Short-Term Investments	3.65B	5.38B	7.39B	8.00B	9.21B	6.00B
Total Debt	5.02B	4.95B	6.53B	8.77B	11.18B	13.55B
Total Liabilities	13.39B	15.31B	16.81B	18.66B	21.24B	21.60B
Stockholders Equity	25.63B	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: 2388.00
• 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:4801, the sentiment is Negative. The current price of 2388 is below the 20-day moving average (MA) of 2390.50, below the 50-day MA of 2397.08, and below the 200-day MA of 2400.74, indicating a bearish trend. The MACD of -0.35 indicates Negative momentum. The RSI at 48.17 is Neutral, neither overbought nor oversold. The STOCH value of 60.87 is Neutral, 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
7092	78 Outperform	¥27.67B	13.65		3.39%	13.80%	-4.66%
6074	74 Outperform	¥2.00B	10.40		3.88%	3.08%	-10.93%
7085	74 Outperform	¥63.06B	16.30		2.33%	12.46%	21.76%
4801	68 Neutral	¥26.75B	19.68		2.09%	2.68%	17.16%
2340	64 Neutral	¥15.08B	19.46		―	7.68%	13.08%
4343	64 Neutral	¥55.38B	107.25		0.36%	6.67%	-238.12%
Sector *	62 Neutral	$16.90B	11.24	-7.48%	2.95%	1.60%	-23.76%

Central Sports Co., Ltd. Corporate Events

Central Sports Co., Ltd. Reports Fiscal Year 2025 Financial Results and Positive Outlook

Central Sports Co., Ltd. reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a 2.7% increase in net sales to ¥46,595 million. However, the company experienced a decline in operating and ordinary profits by 26.6% and 30.1%, respectively. Despite these challenges, the profit attributable to owners of the parent rose by 17.1% to ¥1,359 million, indicating resilience in its core operations. The company also announced an increase in annual dividends per share from ¥36.00 to ¥50.00, reflecting a commitment to returning value to shareholders. Looking ahead, Central Sports forecasts a significant improvement in its financial performance for the fiscal year ending March 31, 2026, with expected net sales of ¥50,500 million and a 55.6% increase in operating profit.

Central Sports Co., Ltd. Announces Board of Directors Change

Central Sports Co., Ltd. announced a change in its board of directors, with Tadasu Kimoto retiring from his role as Director and Executive Officer in charge of the Sales Department, Sales Planning Department, and Academy Department, effective June 27, 2025. This change, due to the expiration of his term, will see Kimoto transition to a full-time advisor role, potentially impacting the company’s sales and planning strategies.