Global Kids Company Corp. (6189) AI Stock Analysis

• Market Cap: ¥9.64B
• Dividend Yield: 5.46%
• Average Volume (3M): 28.64K
• Price to Earnings (P/E): 8.6
• Beta (1Y): 0.27
• Revenue Growth: 2.08%
• EPS Growth: -71.90%
• Country: JP
• Employees: 2,825
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 22.03
• Shares Outstanding: 9,547,580
• 10 Day Avg. Volume: 16,820
• 30 Day Avg. Volume: 28,636
• PEG Ratio: -1.36
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 0.26
• P/FCF Ratio: 4.42
• 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: 65 Neutral
• Price Target: ¥1,054.00 ▲(43.40% Upside)
• Action: Reiterated Date: 03/05/26
• Date: Action: Reiterated 03/05/26

The score is driven primarily by solid revenue growth and especially strong cash flow efficiency, which support financial stability despite low accounting profitability. Technicals are strong with clear upward momentum, but are very overextended (RSI and stochastic), raising pullback risk. Valuation is a key constraint due to the high P/E, only partly offset by the 4.08% dividend yield.

Positive Factors

Cash generation

Very strong cash conversion means the business generates substantial cash relative to accounting earnings, supporting reinvestment, dividend coverage, and product development. Durable cash flow ability reduces reliance on external financing and increases resilience through cycle variability.

Sustained revenue growth

Consistent mid-single-digit revenue growth reflects ongoing customer adoption and market demand for educational products. Over a multi-month horizon this supports predictable top-line expansion and creates a foundation for scaling margins and recurring revenues as subscriptions and institutional contracts accrue.

Diversified subscription & institutional model

A mix of direct subscriptions, institutional bulk sales and licensing builds diversified, recurring revenue and higher retention. Structural ties to schools and partners increase switching costs, stabilize demand, and allow product upsells and custom solutions that compound growth over time.

Negative Factors

Weak profitability margins

Very low operating and net margins indicate difficulty converting revenue into sustainable earnings. This constrains retained earnings for reinvestment, reduces buffer for cost shocks, and implies reliance on volume growth or structural cost improvements to materially lift shareholder returns over coming months.

Rising leverage

Higher debt relative to equity raises financial fixed obligations and reduces flexibility for strategic initiatives. Increases refinancing or interest expense risk and limits ability to pursue M&A or heavy R&D spending without pressuring cash flow, making the company more sensitive to macro tightening or revenue shocks.

Margin pressure & slowing FCF growth

Erosion of gross margin alongside decelerating free cash flow growth signals rising costs or pricing pressure that can compress long-term profitability. If structural, these trends make sustaining investment in product development and distribution harder without further revenue scale or efficiency gains.

Global Kids Company Corp. Business Overview & Revenue Model

Company Description

Global Kids Company Corp. provides child-rearing support services in Japan. The company operates licensed nurseries and non-licensed nurseries; and after-school clubs and children's centers. As of September 30, 2020, it operated 176 facilities, including 125 central government licensed nursery schools; 23 local government licensed nursery schools or centers for early childhood education and care; 11 employer-sponsored nurseries; 13 after-school day care centers or children's houses; and four child developmental support facilities in Tokyo, Kanagawa, Chiba, Saitama, and Osaka areas. The company was formerly known as Global Group Corp. and changed its name to Global Kids Company Corp. in April 2019. Global Kids Company Corp. was founded in 2006 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Global Kids Company Corp. generates revenue through multiple key streams, primarily by selling educational software and digital learning tools directly to consumers and educational institutions. The company offers subscription-based models for its online platforms, allowing users access to a library of interactive educational content. Additionally, revenue is supplemented through partnerships with schools, where customized educational solutions are developed and implemented, resulting in bulk sales and licensing fees. The company also explores strategic collaborations with content creators and technology firms to expand its product offerings, thus enhancing its market presence and revenue potential.

Global Kids Company Corp. Financial Statement Overview

Summary

Revenue growth is solid (8.82%), and cash generation is a clear strength with very strong operating cash flow relative to net income (22.74) and robust free cash flow to net income (97.25%). Offsetting this, profitability is weak (net margin 0.27%, EBIT margin 0.69%) and leverage has risen (debt-to-equity 0.87), limiting overall quality.

Income Statement

The company shows a strong revenue growth rate of 8.82% in the latest year, indicating a positive trajectory. However, profitability metrics such as net profit margin (0.27%) and EBIT margin (0.69%) are low, suggesting challenges in converting revenue into profit. The gross profit margin has slightly decreased over the years, which may indicate rising costs or pricing pressures.

Balance Sheet

The debt-to-equity ratio has increased to 0.87, reflecting higher leverage, which could pose a risk if not managed carefully. Return on equity is low at 0.93%, indicating limited returns for shareholders. The equity ratio stands at 38.44%, showing a moderate level of equity financing.

Cash Flow

The company has demonstrated strong free cash flow growth in previous years, although it has slowed recently. The operating cash flow to net income ratio is healthy at 22.74, indicating strong cash generation relative to net income. The free cash flow to net income ratio is also robust at 97.25%, suggesting efficient cash management.

Breakdown	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	27.00B	26.45B	25.14B	24.35B	23.53B
Gross Profit	2.69B	2.67B	2.09B	3.05B	2.88B
EBITDA	1.01B	1.27B	675.00M	378.00M	1.69B
Net Income	72.00M	256.00M	-55.00M	-315.00M	481.00M
Balance Sheet
Total Assets	20.07B	15.46B	16.68B	16.60B	18.11B
Cash, Cash Equivalents and Short-Term Investments	2.64B	1.24B	1.36B	1.30B	1.33B
Total Debt	6.69B	2.92B	3.98B	3.71B	4.53B
Total Liabilities	12.35B	7.35B	8.57B	8.23B	9.45B
Stockholders Equity	7.71B	8.11B	8.10B	8.37B	8.66B
Cash Flow
Free Cash Flow	1.59B	1.06B	802.00M	770.00M	444.00M
Operating Cash Flow	1.64B	1.49B	1.15B	1.50B	1.24B
Investing Cash Flow	-2.10B	-265.00M	-428.00M	-705.00M	-907.00M
Financing Cash Flow	1.87B	-1.34B	-670.00M	-821.00M	-816.00M

Global Kids Company Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 735.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6189, the sentiment is Positive. The current price of 735 is below the 20-day moving average (MA) of 821.00, below the 50-day MA of 790.28, and above the 200-day MA of 733.34, indicating a bullish trend. The MACD of 28.67 indicates Negative momentum. The RSI at 86.48 is Negative, neither overbought nor oversold. The STOCH value of 69.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6189.

Global Kids Company Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5869	83 Outperform	¥13.00B	6.84	―	4.31%	6.02%	12.70%
1418	74 Outperform	¥9.03B	25.71	―	4.43%	19.02%	48.17%
7987	69 Neutral	¥16.23B	6.15	―	3.79%	-0.03%	84.08%
6189	65 Neutral	¥9.64B	8.62	―	5.46%	2.08%	-71.90%
4337	64 Neutral	¥45.37B	17.68	―	―	22.66%	230.19%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7049	62 Neutral	¥6.60B	-34.26	―	―	24.34%	80.81%

Global Kids Company Corp. Corporate Events

Global Kids Company Posts Sharp Profit Jump and Confirms Stable Dividend Outlook

Global Kids Company Corp. reported strong consolidated results for the quarter ended Dec. 31, 2025, with net sales rising 25.5% year on year to ¥7.94 billion and operating profit more than doubling to ¥351 million. Profit attributable to owners of parent climbed 111.3% to ¥209 million, while total assets and equity remained stable, keeping the equity ratio at 38.4%.

The company maintained its dividend stance, confirming an annual payout forecast of ¥40 per share for the fiscal year ending Sept. 30, 2026, unchanged from the prior year. For the full 2026 fiscal year, it forecasts net sales of ¥33 billion and a near eightfold jump in profit attributable to owners of parent to ¥650 million, signaling expectations of continued operational improvement and earnings growth.

The most recent analyst rating on (JP:6189) stock is a Hold with a Yen729.00 price target. To see the full list of analyst forecasts on Global Kids Company Corp. stock, see the JP:6189 Stock Forecast page.