Kids Smile Holdings, Inc. (7084) AI Stock Analysis

• Market Cap: ¥7.64B
• Dividend Yield: 4.8%
• Average Volume (3M): 11.72K
• Price to Earnings (P/E): 31.7
• Beta (1Y): 0.23
• Revenue Growth: 8.68%
• EPS Growth: 34.16%
• Country: JP
• Employees: 1,241
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 45.79
• Shares Outstanding: 3,259,500
• 10 Day Avg. Volume: 5,070
• 30 Day Avg. Volume: 11,716
• PEG Ratio: 1.80
• Price to Book (P/B): 0.64
• Price to Sales (P/S): 0.30
• P/FCF Ratio: 8.32
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ¥2,988.00 ▲(0.74% Upside)

Kids Smile Holdings, Inc. has a robust financial performance with strong revenue growth and profitability. The technical analysis indicates bullish momentum, though caution is advised due to overbought signals. The valuation is mixed, with a high P/E ratio but an attractive dividend yield. Overall, the stock is well-positioned for growth, but investors should monitor cash flow management and potential short-term price corrections.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a robust demand for Kids Smile Holdings' products and services, enhancing its market position and long-term financial stability.

Profitability Improvement

Improved profitability demonstrates effective cost management and operational efficiency, which are crucial for sustaining long-term business success.

Stable Financial Position

A stable financial position with a solid equity base provides a strong foundation for future growth and resilience against economic fluctuations.

Negative Factors

Cash Flow Volatility

Volatile cash flow can hinder the company's ability to invest in growth opportunities and meet financial obligations, impacting long-term strategic planning.

Moderate Leverage

Moderate leverage with low ROE indicates limited efficiency in using shareholder equity, which may constrain the company's ability to maximize returns.

Free Cash Flow Decline

A decline in free cash flow growth due to rising capital expenditures could limit the company's ability to fund new initiatives and maintain financial flexibility.

Kids Smile Holdings, Inc. Business Overview & Revenue Model

Company Description

Kids Smile Holdings Inc. offers childcare and early childhood education services primarily in Japan. It operates facilities, including after-school facilities, global schools, swimming school, preschool-integrated nurseries, licensed nurseries, and kindergarten classrooms. The company was founded in 2008 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Kids Smile Holdings, Inc. generates revenue through multiple streams, primarily from the sale of educational toys and wellness products, both online and through retail partnerships. The company has established significant relationships with major retailers, allowing for wide distribution of its products. Additionally, Kids Smile Holdings offers subscription-based services that provide ongoing access to digital educational content and wellness programs for families. This model not only creates a steady revenue stream but also encourages customer loyalty. The company may also engage in partnerships with schools and educational institutions, providing tailored solutions that further enhance its earnings potential.

Kids Smile Holdings, Inc. Financial Statement Overview

Summary

Kids Smile Holdings, Inc. presents a robust financial profile with consistent revenue growth and improving profitability metrics. The balance sheet remains stable, supported by a healthy equity base and manageable leverage. However, cash flow management shows room for improvement, with fluctuations in free cash flow and capital expenditures posing potential risks.

Income Statement

Kids Smile Holdings, Inc. has demonstrated strong revenue growth over the years, with a notable increase of 6.12% from 2024 to 2025. The gross profit margin improved to 14.16% in 2025, indicating efficient cost management. The net profit margin rose to 1.11% in 2025, reflecting enhanced profitability despite a previously challenging year in 2022. EBIT and EBITDA margins also improved, showcasing stronger operational performance.

Balance Sheet

The company's balance sheet shows a solid equity base, with the equity ratio at 42.68% in 2025, indicating financial stability. The debt-to-equity ratio of 0.71 suggests moderate leverage, while ROE remains modest at 2.33%, leaving room for improvement in utilizing shareholder equity effectively. Overall, the balance sheet reflects a stable financial position with manageable liabilities.

Cash Flow

Operating cash flow remains strong, albeit with a slight decline from 2024 to 2025. The free cash flow to net income ratio indicates positive cash generation, although the free cash flow growth rate turned negative due to increased capital expenditures. The operating cash flow to net income ratio of 6.13 demonstrates efficient cash conversion from net income, though cash flow volatility remains a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.90B	13.66B	12.87B	11.86B	10.66B	9.11B
Gross Profit	1.98B	1.93B	1.59B	1.26B	1.03B	858.82M
EBITDA	1.22B	1.21B	1.11B	1.22B	1.95B	1.58B
Net Income	237.84M	151.56M	132.31M	188.08M	686.31M	547.98M
Balance Sheet
Total Assets	11.87B	15.22B	14.16B	13.85B	14.66B	13.94B
Cash, Cash Equivalents and Short-Term Investments	2.12B	4.67B	3.59B	2.77B	3.15B	2.14B
Total Debt	2.59B	4.59B	4.01B	3.92B	5.11B	5.38B
Total Liabilities	5.61B	8.72B	7.84B	7.65B	8.65B	8.65B
Stockholders Equity	6.25B	6.50B	6.32B	6.20B	6.01B	5.29B
Cash Flow
Free Cash Flow	0.00	498.35M	769.33M	885.36M	1.26B	-576.71M
Operating Cash Flow	0.00	929.47M	976.09M	1.18B	2.28B	1.60B
Investing Cash Flow	0.00	-413.81M	-224.42M	-347.61M	-1.02B	-2.33B
Financing Cash Flow	0.00	562.40M	70.50M	-1.21B	-241.01M	1.34B

Kids Smile Holdings, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2966.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7084, the sentiment is Positive. The current price of 2966 is above the 20-day moving average (MA) of 2816.30, above the 50-day MA of 2567.65, and above the 200-day MA of 1899.31, indicating a bullish trend. The MACD of 132.59 indicates Positive momentum. The RSI at 73.29 is Negative, neither overbought nor oversold. The STOCH value of 64.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7084.

Kids Smile Holdings, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2179	74 Outperform	¥4.40B	9.56	―	2.56%	8.85%	-1.34%
7084	73 Outperform	¥7.64B	31.71	―	4.80%	8.68%	34.16%
2152	72 Outperform	¥14.99B	15.16	―	1.66%	4.07%	11.48%
4645	68 Neutral	¥3.67B	4.05	―	2.21%	1.82%	208.53%
7097	64 Neutral	¥12.52B	19.40	―	0.89%	6.83%	0.79%
4705	63 Neutral	¥3.03B	-35.41	―	5.47%	-3.09%	-305.97%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%