Sakurasaku Plus Co., Ltd. (7097) AI Stock Analysis

• Market Cap: ¥13.16B
• Dividend Yield: 0.84%
• Average Volume (3M): 5.93K
• Price to Earnings (P/E): 17.1
• Beta (1Y): 0.06
• Revenue Growth: 8.44%
• EPS Growth: 17.98%
• Country: JP
• Employees: 1,771
• Sector: Healthcare
• Sector Strength: 45
• Industry: Education & Training Services
• EPS (TTM): 39.22
• Shares Outstanding: 4,608,400
• 10 Day Avg. Volume: 8,720
• 30 Day Avg. Volume: 5,926
• PEG Ratio: 9.71
• Price to Book (P/B): 1.96
• Price to Sales (P/S): 0.62
• P/FCF Ratio: 5.25
• 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: 62 Neutral
• Price Target: ¥2,932.00 ▲(12.64% Upside)
• Action: Reiterated Date: 01/30/26
• Date: Action: Reiterated 01/30/26

The score is driven primarily by solid overall financial performance (especially revenue growth and stable profitability) offset by weaker cash-flow quality. Technicals are currently a headwind with the stock below key short-term averages despite oversold readings, while valuation is broadly reasonable but not strongly compelling given the low dividend yield.

Positive Factors

Consistent revenue growth

Recurring childcare service revenue and steady top-line expansion improve predictability of cash inflows. Durable revenue growth supports capacity investment and margin leverage in a services business tied to ongoing demand for childcare, aiding multi-quarter planning and creditworthiness.

Healthy gross margins and operational efficiency

Sustained gross and operating margins reflect an efficient cost structure in facility-based childcare operations, enabling consistent operating cash generation. Stable margins provide buffer against cyclical cost pressures and support reinvestment in service quality and network stability over months.

Improving leverage and stable ROE

Improving leverage and stable ROE indicate stronger capital structure management and effective use of equity. Reduced leverage risk increases financial flexibility for incremental capex or openings of new facilities, lowering refinancing risk across the medium term.

Negative Factors

Volatile free cash flow conversion

Variable FCF despite strong operating cash flow signals inconsistent cash conversion from earnings, which can constrain dividends, debt repayment and organic expansion. Persistent volatility increases financing risk and complicates multi-quarter capital allocation decisions.

Equity ratio needs improvement

A below-ideal equity ratio reduces the balance-sheet cushion against operational shocks and may force reliance on external financing for growth. Over a multi-month horizon this can raise funding costs or limit the pace of new facility openings if retained capital is insufficient.

Slight decline in net profit margins

A reduction in net margins, even if modest, erodes retained earnings and reduces the operating buffer against rising input costs like labor or facility expenses. If the trend persists it could impair long-term profitability and slow re-investment in service improvements or expansion.

Sakurasaku Plus Co., Ltd. Business Overview & Revenue Model

Company Description

Sakurasaku Plus Co., Ltd. (7097) is a Japanese company specializing in the development and distribution of high-quality educational and training materials, particularly focusing on digital content and e-learning solutions. The company operates primarily in the education technology sector, providing innovative tools and resources aimed at enhancing learning experiences for students and professionals alike. Its core products include interactive learning platforms, educational software, and supplementary instructional materials designed to cater to various educational needs across different age groups and learning environments.

How the Company Makes Money

Sakurasaku Plus Co., Ltd. generates revenue primarily through the sale of its digital educational products and subscriptions to its e-learning platforms. The company has established multiple revenue streams, including direct sales to educational institutions, licensing agreements with corporate clients for employee training programs, and subscription models for individual users accessing its online content. Additionally, Sakurasaku Plus may benefit from partnerships with schools and universities, providing tailored educational solutions that drive increased adoption of its products. The growth in demand for online learning and educational technology solutions significantly contributes to the company's financial performance.

Sakurasaku Plus Co., Ltd. Financial Statement Overview

Summary

Income statement strength (75) is supported by consistent revenue growth and stable operating margins. Balance sheet is solid but not exceptional (68) with improving leverage and stable ROE, while cash flow is the main drag (60) due to volatile free cash flow and weaker conversion of profits into free cash flow.

Income Statement

Sakurasaku Plus Co., Ltd. has shown consistent revenue growth over the years, with a 3.88% increase in the latest period. The company maintains a healthy gross profit margin, although net profit margins have slightly decreased. EBIT and EBITDA margins indicate stable operational efficiency, contributing to a strong income statement performance.

Balance Sheet

The company's balance sheet reflects a moderate debt-to-equity ratio, which has improved over the past year, indicating better leverage management. Return on equity has been stable, showcasing effective use of equity. However, the equity ratio suggests room for improvement in asset financing.

Cash Flow

Operating cash flow remains strong, but the free cash flow growth rate is volatile, with significant fluctuations in recent years. The operating cash flow to net income ratio is robust, yet the free cash flow to net income ratio indicates potential challenges in converting profits into free cash flow.

Breakdown	Jul 2025	Jul 2024	Jul 2023	Jul 2022	Jul 2021
Income Statement
Total Revenue	18.39B	17.21B	13.84B	11.99B	10.00B
Gross Profit	2.88B	2.31B	1.63B	1.30B	1.59B
EBITDA	1.37B	1.13B	874.00M	1.51B	2.08B
Net Income	611.00M	607.00M	325.00M	365.00M	956.00M
Balance Sheet
Total Assets	13.26B	13.64B	14.49B	13.42B	11.38B
Cash, Cash Equivalents and Short-Term Investments	2.52B	1.49B	752.00M	1.36B	1.17B
Total Debt	3.77B	4.49B	5.72B	4.62B	3.37B
Total Liabilities	7.44B	8.35B	9.55B	8.77B	7.13B
Stockholders Equity	5.82B	5.27B	4.92B	4.63B	4.24B
Cash Flow
Free Cash Flow	2.18B	2.07B	-1.47B	-1.92B	-507.00M
Operating Cash Flow	2.25B	3.11B	87.00M	176.00M	1.72B
Investing Cash Flow	-246.00M	-1.06B	-1.51B	-1.34B	-2.74B
Financing Cash Flow	-973.00M	-1.30B	817.00M	1.36B	1.39B

Sakurasaku Plus Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2603.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7097, the sentiment is Positive. The current price of 2603 is below the 20-day moving average (MA) of 2700.05, below the 50-day MA of 2943.05, and below the 200-day MA of 2629.27, indicating a neutral trend. The MACD of -42.55 indicates Negative momentum. The RSI at 51.71 is Neutral, neither overbought nor oversold. The STOCH value of 88.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7097.

Sakurasaku Plus Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2152	83 Outperform	¥16.79B	14.11	―	1.63%	4.07%	11.48%
2179	74 Outperform	¥4.57B	9.32	―	2.60%	8.85%	-1.34%
4645	68 Neutral	¥3.52B	3.79	―	2.20%	1.82%	208.53%
7084	64 Neutral	¥9.91B	34.72	―	4.89%	8.68%	34.16%
4705	63 Neutral	¥3.26B	-23.72	―	5.52%	-3.09%	-305.97%
7097	62 Neutral	¥13.16B	17.13	―	0.84%	8.44%	17.98%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%