Global Kids Company Corp. (6189) AI Stock Analysis

• Market Cap: ¥7.92B
• Dividend Yield: 5.46%
• Average Volume (3M): 28.64K
• Price to Earnings (P/E): 43.9
• Beta (1Y): 0.29
• 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: 57 Neutral
• Price Target: ¥859.00 ▲(16.87% Upside)
• Action: Downgraded Date: 12/20/25
• Date: Action: Downgraded 12/20/25

The overall stock score of 57 reflects strong cash flow management and revenue growth, but is tempered by low profitability margins and high leverage. Technical indicators suggest stability without strong momentum, and the high P/E ratio indicates potential overvaluation despite an attractive dividend yield.

Positive Factors

Consistent revenue growth

Nearly 9% revenue growth signals persistent demand for Global Kids' educational products and validates its go-to-market across consumers and institutions. Over 2-6 months this supports recurring subscription scale, improves sales leverage and provides runway for product investment and market share gains.

Strong cash generation

Very high free cash flow conversion and healthy operating cash flow relative to net income indicate robust cash generation. This durability supports reinvestment in content and tech, funds dividends or debt reduction, and cushions the business through cyclical pressures over several quarters.

Diversified recurring revenue streams

A mix of consumer subscriptions, institutional partnerships and licensing creates recurring and bulk revenue channels. This structural diversification reduces single-market reliance, boosts revenue visibility, and strengthens long-term customer retention and upsell potential across schooling and family segments.

Negative Factors

Very low profitability margins

Extremely thin net and EBIT margins limit the firm's ability to absorb cost inflation or fund growth organically. Persistently low margins constrain reinvestment, make returns sensitive to pricing or input shifts, and reduce the buffer that typically protects profitability through economic cycles.

Poor capital efficiency (low ROE)

ROE under 1% indicates limited effectiveness turning equity into shareholder returns. Over a multi-quarter horizon this suggests the business struggles to generate meaningful incremental profit from invested capital, weakening long-term shareholder value creation absent operational improvement.

Rising leverage and slowing FCF growth

Higher debt-to-equity increases financial risk and service costs, while slowing free cash flow growth reduces flexibility to delever or invest. Together these trends constrain capital allocation, elevate refinancing risk, and can amplify downside if margins or revenue momentum falter.

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

Global Kids Company Corp. shows strong revenue growth but faces challenges with low profitability margins. The balance sheet indicates increased leverage, posing potential risks. However, cash flow generation is strong, highlighting efficient cash management.

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: Neutral
• 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 810.40, below the 50-day MA of 785.32, and above the 200-day MA of 731.69, indicating a bullish trend. The MACD of 17.92 indicates Negative momentum. The RSI at 62.17 is Neutral, neither overbought nor oversold. The STOCH value of 61.89 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	¥13.63B	13.52	―	4.31%	6.02%	12.70%
1418	74 Outperform	¥9.14B	10.09	―	4.43%	19.02%	48.17%
7987	69 Neutral	¥16.33B	8.50	―	3.79%	-0.03%	84.08%
4337	64 Neutral	¥48.06B	14.94	―	―	22.66%	230.19%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7049	62 Neutral	¥6.90B	15.63	―	―	24.34%	80.81%
6189	57 Neutral	¥7.92B	43.92	―	5.46%	2.08%	-71.90%

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.