SERENDIP HOLDINGS Co. Ltd. (7318) AI Stock Analysis

• Market Cap: ¥19.72B
• Dividend Yield: N/A
• Average Volume (3M): 75.45K
• Price to Earnings (P/E): 3.8
• Beta (1Y): 1.29
• Revenue Growth: 72.32%
• EPS Growth: 1424.97%
• Country: JP
• Employees: 615
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 148.65
• Shares Outstanding: 19,061,216
• 10 Day Avg. Volume: 59,610
• 30 Day Avg. Volume: 75,446
• PEG Ratio: 0.01
• Price to Book (P/B): 1.02
• Price to Sales (P/S): 0.33
• P/FCF Ratio: -3.90
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ¥1,183.00 ▲(12.24% Upside)

The overall stock score is primarily driven by strong financial performance and attractive valuation, indicating potential for growth. However, technical indicators suggest bearish momentum, which poses a risk. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Revenue Growth

The significant revenue growth indicates robust demand for the company's offerings and effective market penetration, supporting long-term expansion.

Profitability Improvement

Improved profitability margins suggest efficient cost management and pricing strategies, enhancing the company's ability to generate sustainable profits.

Return on Equity

A high ROE indicates strong financial performance and efficient use of equity, which can attract investors and support future growth initiatives.

Negative Factors

Cash Flow Challenges

Negative free cash flow can constrain the company's ability to invest in growth opportunities and may necessitate external financing, impacting financial flexibility.

Moderate Leverage

Moderate leverage suggests potential risk if earnings decline, as it may limit the company's ability to take on additional debt for expansion or operations.

Cash Conversion Inefficiencies

Inefficient cash conversion can hinder the company's ability to quickly reinvest in business operations and may affect liquidity management.

SERENDIP HOLDINGS Co. Ltd. Business Overview & Revenue Model

Company Description

Serendip Holdings Co.,Ltd. operates business succession support, management consulting, M&A advisory, corporate revitalization support, corporate advisory, professional manager dispatch, and other incidental business in Japan. It provides dispatch of professional managers, management consulting, and engineer dispatch services; engages in co-investment of fund financial advisory services; automotive interior and exterior parts; and automobile precision parts. The company also offers automatic connector and battery-related automatic assembly machine; cream solder printing machines; and prototype production in development services. Serendip Holdings Co.,Ltd. was incorporated in 2006 and is headquartered in Nagoya, Japan.

How the Company Makes Money

SERENDIP HOLDINGS generates revenue through multiple streams, including investment income, dividends from subsidiaries, and capital gains from asset disposals. The company strategically invests in high-growth sectors, leveraging its expertise to enhance the operational efficiency and market reach of its portfolio companies. Key revenue streams include rental income from real estate holdings, sales of consumer products, and profits from technology-related ventures. Significant partnerships with industry leaders and collaboration with emerging startups also contribute to its earnings, enabling SERENDIP HOLDINGS to capitalize on market trends and expand its influence in various sectors.

SERENDIP HOLDINGS Co. Ltd. Financial Statement Overview

Summary

SERENDIP HOLDINGS Co. Ltd. shows strong revenue and profit growth with improved margins and return on equity. The balance sheet is stable with moderate leverage, but cash flow management presents challenges, particularly in free cash flow generation.

Income Statement

SERENDIP HOLDINGS Co. Ltd. has demonstrated a strong revenue growth trajectory, with a notable increase from ¥19.79 billion in 2024 to ¥25.12 billion in 2025, marking a 26.9% growth rate. The gross profit margin improved to 16.9%, and the net profit margin significantly increased to 8.3%, indicating enhanced profitability. EBIT and EBITDA margins also showed positive trends, reflecting efficient operational performance.

Balance Sheet

The company's balance sheet reflects a solid equity position with a debt-to-equity ratio of 1.65, which is manageable but indicates moderate leverage. The return on equity (ROE) improved significantly to 26.1%, showcasing effective utilization of shareholder funds. The equity ratio stands at 24.8%, suggesting a balanced asset structure, though there is room for improvement in reducing liabilities.

Cash Flow

Cash flow analysis reveals challenges with free cash flow, which turned negative in 2025. However, operating cash flow remains positive, albeit lower than the previous year. The operating cash flow to net income ratio is 0.14, indicating some inefficiencies in cash conversion. The company should focus on improving free cash flow generation to support long-term financial health.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	29.67B	25.12B	19.79B	15.20B	13.81B	14.46B
Gross Profit	4.90B	4.24B	3.25B	2.47B	2.13B	2.34B
EBITDA	-119.00M	4.23B	1.92B	1.69B	1.29B	1.57B
Net Income	2.29B	2.09B	518.84M	312.50M	199.98M	398.50M
Balance Sheet
Total Assets	31.07B	32.24B	20.27B	16.17B	15.68B	14.80B
Cash, Cash Equivalents and Short-Term Investments	4.89B	6.68B	4.13B	3.09B	3.62B	3.09B
Total Debt	14.14B	13.58B	7.17B	6.37B	7.08B	7.29B
Total Liabilities	22.99B	24.11B	14.12B	11.69B	11.12B	11.78B
Stockholders Equity	7.96B	8.01B	6.15B	4.48B	4.47B	2.92B
Cash Flow
Free Cash Flow	0.00	-2.10B	1.21B	186.83M	-505.62M	-899.81M
Operating Cash Flow	0.00	292.36M	2.58B	1.05B	777.18M	992.64M
Investing Cash Flow	0.00	-4.04B	-2.53B	-392.07M	-1.17B	-1.39B
Financing Cash Flow	0.00	6.01B	888.63M	-867.06M	770.80M	848.61M

SERENDIP HOLDINGS Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1054.00
• 50DMA: Negative
• 100DMA: Negative
• 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:7318, the sentiment is Positive. The current price of 1054 is below the 20-day moving average (MA) of 1062.47, below the 50-day MA of 1241.71, and above the 200-day MA of 910.46, indicating a neutral trend. The MACD of -60.86 indicates Negative momentum. The RSI at 46.03 is Neutral, neither overbought nor oversold. The STOCH value of 52.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7318.

SERENDIP HOLDINGS Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5071	82 Outperform	¥11.19B	9.86	―	3.66%	-5.11%	-13.97%
6580	75 Outperform	¥15.55B	24.58	―	0.61%	32.31%	105.04%
9252	72 Outperform	¥9.88B	15.19	―	0.67%	31.76%	-25.89%
7318	69 Neutral	¥19.72B	3.84	―	―	72.32%	1424.97%
4346	64 Neutral	¥10.69B	11.60	―	3.65%	16.07%	50.91%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

SERENDIP HOLDINGS Co. Ltd. Corporate Events

SERENDIP HOLDINGS Announces Strategic Subsidiary Reorganization

SERENDIP HOLDINGS Co., Ltd. has announced a strategic reorganization involving a share exchange between its subsidiaries, Mitsuiya Kogyo Co., Ltd. and SERENDIP SPC No.1 Co., Ltd. This move aims to consolidate the development capabilities and production technologies of Mitsuiya Kogyo and EXCELL, enhancing synergies and shifting towards a comprehensive proposal-based business model. The reorganization will position SPC No. 1 as an intermediate holding company, renamed SERENDIP Automotive Co., Ltd., to strengthen its role in the automotive parts industry.

SERENDIP HOLDINGS Reports Robust Financial Growth for 2025

SERENDIP HOLDINGS Co., Ltd. reported a substantial increase in its financial performance for the six months ending September 30, 2025, with net sales nearly doubling compared to the previous year. The company’s improved profitability and financial position indicate strong operational growth and a positive outlook for stakeholders.