AIAI Group Corporation (6557) AI Stock Analysis

• Market Cap: ¥9.67B
• Dividend Yield: N/A
• Average Volume (3M): 40.82K
• Price to Earnings (P/E): 27.3
• Beta (1Y): -0.88
• Revenue Growth: 11.69%
• EPS Growth: -38.92%
• Country: JP
• Employees: 1,080
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): N/A
• Shares Outstanding: 6,600,762
• 10 Day Avg. Volume: 35,180
• 30 Day Avg. Volume: 40,823
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,447.00
• Price Target Upside: -1.23% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 65 Neutral
• Price Target: ¥1,575.00 ▲(7.51% Upside)

The overall stock score of 65 reflects strong financial performance driven by revenue growth and profitability improvements. However, technical indicators suggest mixed momentum, and the stock's high P/E ratio indicates potential overvaluation. The absence of dividend yield further impacts the valuation score.

AIAI Group Corporation Business Overview & Revenue Model

Company Description

AIAI Group Corporation (6557) is a Japan-based company primarily engaged in the operation of childcare and educational facilities. The company provides services that cater to early childhood education, aiming to support both children and their families. AIAI Group Corporation's core operations are concentrated in the childcare sector, where it operates numerous daycare centers and kindergartens across Japan, focusing on delivering high-quality child care and educational services.

How the Company Makes Money

AIAI Group Corporation generates revenue primarily through the operation of its childcare and educational facilities. Key revenue streams include tuition and enrollment fees from the daycare centers and kindergartens they operate. The company may also receive government subsidies and support aimed at encouraging the development of early childhood education services in Japan. Additionally, partnerships with local governments and educational institutions can contribute to its revenue, as they help expand the company's reach and enhance service offerings. AIAI Group Corporation's focus on providing quality childcare and education positions it to benefit from Japan's ongoing efforts to improve and support early childhood education.

AIAI Group Corporation Financial Statement Overview

Summary

AIAI Group Corporation demonstrates strong revenue growth and improving profitability, with effective cost management and operational efficiency driving better margins. The balance sheet shows moderate improvement in financial leverage, though reliance on debt remains a consideration. Cash flow stability is noteworthy, with positive free cash flow and strong cash conversion ratios. Overall, the company is on a positive financial trajectory, albeit with some reliance on debt financing and the need for sustaining operational cash flows.

Income Statement

AIAI Group Corporation has shown a strong revenue growth trajectory with a significant increase from 11,818 million in 2024 to 13,071 million in 2025, marking a 10.10% growth rate. The gross profit margin improved to 16.35% in 2025 from 14.68% in 2024, indicating enhanced cost management. The net profit margin also improved to 3.23% in 2025, up from 2.99% in 2024, reflecting better profitability. EBIT and EBITDA margins showed healthy increases, suggesting operational efficiency.

Balance Sheet

The company's balance sheet indicates a moderate position with a debt-to-equity ratio of 2.54 in 2025, showing reliance on debt but an improvement from 4.50 in 2024. The return on equity (ROE) increased to 14.97% in 2025, reflecting improved returns for shareholders. However, the equity ratio remains relatively low at 22.58%, suggesting moderate financial leverage.

Cash Flow

AIAI Group Corporation's cash flow statement reveals a decline in operating cash flow from 1,767 million in 2024 to 1,393 million in 2025, suggesting potential operational challenges. However, the free cash flow remains positive, and the free cash flow to net income ratio is strong at 2.49. The operating cash flow to net income ratio is high at 3.30, indicating effective cash conversion from earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.07B	13.07B	11.82B	10.82B	9.43B	8.32B
Gross Profit	2.14B	2.14B	1.74B	1.35B	1.05B	428.92M
EBITDA	1.35B	1.35B	1.31B	651.20M	703.08M	871.65M
Net Income	420.90M	421.88M	353.26M	-506.11M	-65.17M	150.73M
Balance Sheet
Total Assets	12.47B	12.47B	11.66B	11.74B	11.99B	10.50B
Cash, Cash Equivalents and Short-Term Investments	2.35B	2.35B	1.67B	1.31B	948.00M	825.00M
Total Debt	7.16B	7.16B	7.86B	8.68B	8.64B	7.25B
Total Liabilities	9.65B	9.65B	9.91B	10.40B	10.59B	9.07B
Stockholders Equity	2.82B	2.82B	1.75B	1.34B	1.59B	1.43B
Cash Flow
Free Cash Flow	0.00	1.05B	1.19B	-15.13M	-555.63M	-1.81B
Operating Cash Flow	0.00	1.39B	1.77B	873.87M	850.31M	385.68M
Investing Cash Flow	0.00	-424.26M	-619.00M	-809.07M	-1.49B	-2.92B
Financing Cash Flow	0.00	-291.08M	-786.22M	293.35M	1.50B	2.21B

AIAI Group Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1465.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6557, the sentiment is Negative. The current price of 1465 is below the 20-day moving average (MA) of 1549.50, above the 50-day MA of 1460.40, and above the 200-day MA of 1445.49, indicating a bearish trend. The MACD of 11.76 indicates Positive momentum. The RSI at 33.85 is Neutral, neither overbought nor oversold. The STOCH value of 33.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6557.

AIAI Group Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
160A	80 Outperform	¥11.30B	5.66	22.98%	1.74%	―	―
7133	70 Outperform	¥9.58B	13.62	30.32%	1.52%	18.30%	37.13%
6059	68 Neutral	¥6.46B	2.94	14.40%	2.99%	0.92%	1344.43%
7061	66 Neutral	¥11.28B	20.89	18.56%	1.12%	20.37%	-5.97%
6557	65 Neutral	¥9.67B	27.27	―	―	11.69%	-38.92%
2373	63 Neutral	¥6.10B	10.11	5.91%	3.75%	7.60%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%