WASEDA GAKUSHUKENKYUKAI CO.,LTD. (5869) AI Stock Analysis

• Market Cap: ¥13.63B
• Dividend Yield: 4.31%
• Average Volume (3M): 18.99K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 0.26
• Revenue Growth: 6.02%
• EPS Growth: 12.70%
• Country: JP
• Employees: 383
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Specialty Business Services
• EPS (TTM): 45.00
• Shares Outstanding: 10,211,250
• 10 Day Avg. Volume: 14,810
• 30 Day Avg. Volume: 18,993
• PEG Ratio: -3.78
• Price to Book (P/B): 1.46
• Price to Sales (P/S): 1.46
• P/FCF Ratio: 17.93
• 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: 83 Outperform
• Price Target: ¥1,425.00 ▲(17.09% Upside)
• Action: Reiterated Date: 12/30/25
• Date: Action: Reiterated 12/30/25

The score is driven primarily by strong financial quality (high margins and near-zero leverage) and an attractive valuation (moderate P/E with a high dividend yield). Technicals are supportive with clear trend strength, though momentum indicators are nearing stretched levels, adding some near-term pullback risk.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion potential.

Balance Sheet Health

A debt-free balance sheet provides financial flexibility and reduces risk, enhancing the company's ability to invest in growth opportunities.

Operating Profitability

High and stable operating margins reflect efficient operations and pricing power, contributing to sustainable profitability.

Negative Factors

Net Margin Volatility

Volatility in net margins suggests challenges in managing costs or revenue mix, potentially impacting future profitability.

Cash Conversion

Moderate cash conversion indicates potential working capital constraints or investment needs, limiting cash available for growth or dividends.

Return on Equity

Slight easing in ROE suggests incremental profitability is not fully keeping pace with equity growth, which may affect investor returns.

WASEDA GAKUSHUKENKYUKAI CO.,LTD. Business Overview & Revenue Model

Company Description

WASEDA GAKUSHUKENKYUKAI Co., Ltd. operates educational institutions. It engages in providing cram school management materials for elementary, junior high, and high school students. The company was founded by Toshio Yoshihara on January 22, 1993 and is headquartered in Tokyo, Japan.

How the Company Makes Money

WASEDA GAKUSHUKENKYUKAI CO.,LTD. generates revenue primarily through offering supplementary educational services and products. These services may include tutoring sessions, educational materials, and learning programs designed to help students improve their academic performance. The company may also earn income from partnerships with schools or educational institutions, collaborating to provide enhanced learning experiences. Additionally, the company may offer online courses or digital learning solutions, contributing to its revenue streams.

WASEDA GAKUSHUKENKYUKAI CO.,LTD. Financial Statement Overview

Summary

Strong overall fundamentals: steady revenue growth with high and stable operating profitability, and a very conservative balance sheet with essentially no debt. Main constraints are a 2025 net margin dip and only moderate conversion of earnings into operating/free cash flow.

Income Statement

Revenue has grown steadily over the last three annual periods (about 3.8% in 2023, 5.8% in 2024, and 8.1% in 2025), showing improving momentum. Profitability is strong and consistent: gross margin is stable around ~41%, while operating profitability remains high (EBIT margin ~20–22% and EBITDA margin ~22–25%). The key watch-out is net margin volatility—net margin dipped in 2025 (~14.9%) versus 2024 (~16.6%) despite higher revenue, suggesting higher below-the-line costs or less favorable mix.

Balance Sheet

The balance sheet is conservatively positioned with essentially no leverage (total debt at 0 in 2024 and 2025; debt-to-equity at 0.0). Equity has risen meaningfully (from ~¥5.27B in 2022 to ~¥7.01B in 2025), supporting a stronger capital base. Returns on equity remain solid (~14–16%), though they eased slightly in 2025 versus 2024, indicating incremental profitability has not fully kept pace with the expanding equity base.

Cash Flow

Cash generation is positive with operating cash flow improving versus 2024 (to ~¥1.26B in 2025), and free cash flow also increased (to ~¥571M) with strong growth in 2025. However, cash conversion is only moderate: operating cash flow is below net income in each year shown (coverage ~0.56–0.89), and free cash flow represents less than half of net income in 2024–2025 (~0.42–0.45). This points to working-capital needs and/or ongoing investment requirements that limit how much accounting profit turns into cash.

Breakdown	Mar 2025	Mar 2025	Mar 2024	Mar 2022
Income Statement
Total Revenue	6.99B	6.46B	6.11B	5.89B
Gross Profit	2.85B	2.63B	2.57B	2.50B
EBITDA	1.67B	1.61B	1.37B	1.31B
Net Income	1.04B	1.07B	838.19M	831.04M
Balance Sheet
Total Assets	9.31B	8.97B	8.25B	7.50B
Cash, Cash Equivalents and Short-Term Investments	3.77B	4.59B	4.30B	4.01B
Total Debt	0.00	0.00	0.00	2.78M
Total Liabilities	2.30B	2.16B	2.39B	2.23B
Stockholders Equity	7.01B	6.81B	5.86B	5.27B
Cash Flow
Free Cash Flow	570.54M	423.33M	538.38M	394.74M
Operating Cash Flow	1.26B	1.02B	1.14B	654.44M
Investing Cash Flow	-1.14B	-602.15M	-602.99M	-91.89M
Financing Cash Flow	-843.30M	-117.67M	-252.30M	-280.43M

WASEDA GAKUSHUKENKYUKAI CO.,LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1217.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5869, the sentiment is Positive. The current price of 1217 is below the 20-day moving average (MA) of 1274.00, below the 50-day MA of 1252.96, and above the 200-day MA of 1155.62, indicating a bullish trend. The MACD of 23.96 indicates Negative momentum. The RSI at 91.38 is Negative, neither overbought nor oversold. The STOCH value of 93.87 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5869.

WASEDA GAKUSHUKENKYUKAI CO.,LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5869	83 Outperform	¥13.63B	13.52	―	4.31%	6.02%	12.70%
7912	75 Outperform	¥1.62T	18.04	6.97%	1.47%	3.37%	-31.10%
7911	74 Outperform	¥1.59T	20.55	6.28%	1.07%	3.01%	6.48%
7914	68 Neutral	¥44.79B	13.14	―	3.71%	-0.04%	93.95%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
4384	62 Neutral	¥115.47B	35.71	19.59%	0.16%	18.08%	136.77%
7916	61 Neutral	¥5.78B	19.83	―	2.72%	-1.30%	―