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

• Market Cap: ¥15.62B
• Dividend Yield: N/A
• Average Volume (3M): 86.72K
• Price to Earnings (P/E): 7.3
• Beta (1Y): 1.10
• Revenue Growth: 26.97%
• EPS Growth: 285.34%
• Country: JP
• Employees: 615
• Sector: Industrials
• Sector Strength: 93
• Industry: Specialty Business Services
• EPS (TTM): -101.06
• Shares Outstanding: 4,751,365
• 10 Day Avg. Volume: 66,780
• 30 Day Avg. Volume: 86,723
• PEG Ratio: -0.49
• Price to Book (P/B): 1.91
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥3,670.00
• Price Target Upside: 6.22% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 80 Outperform
• Price Target: ¥3,876.00 ▲(12.19%Upside)

The overall stock score of 80 reflects strong technical momentum and undervaluation, supported by robust financial performance. While the company shows significant growth and profitability, increased leverage and declining free cash flow present risks that require careful monitoring. The lack of earnings call and corporate events data did not impact the score.

SERENDIP HOLDINGS Co. Ltd. Business Overview & Revenue Model

Company Description

SERENDIP HOLDINGS Co. Ltd. (7318) is a diversified company engaged in various sectors, including technology, manufacturing, and services. The company focuses on delivering innovative solutions and high-quality products to its customers, leveraging its expertise and resources across different industries to drive growth and create value.

How the Company Makes Money

SERENDIP HOLDINGS Co. Ltd. generates revenue through multiple streams, primarily focusing on the sale of its technology and manufacturing products. The company also provides specialized services that cater to a wide range of industries, enhancing its overall revenue mix. Significant partnerships with key industry players and a strong distribution network further bolster its earnings by expanding market reach and driving sales growth.

SERENDIP HOLDINGS Co. Ltd. Financial Statement Overview

Summary

SERENDIP HOLDINGS Co. Ltd. demonstrates strong revenue growth and improved profitability, supported by consistent margins and efficient equity utilization. However, increased leverage and declining free cash flow indicate potential risks that need careful management. The company's strategic investments may drive future growth, yet maintaining liquidity and managing debt levels will be critical to sustaining financial stability.

Income Statement

The company shows robust revenue growth over the years, with a revenue growth rate of 27% from 2024 to 2025, and 30% from 2023 to 2024. Gross profit margins have remained consistent, highlighting stable cost management. The net profit margin improved significantly in 2025, reaching 8.3% from 2.6% in 2024, indicating enhanced profitability and operational efficiency. The EBIT and EBITDA margins also show positive trends, emphasizing strong operational performance.

Balance Sheet

The debt-to-equity ratio has increased, reflecting higher leverage, which may pose a risk if not managed carefully. However, the company maintains a healthy equity ratio of 24.8% in 2025, ensuring a stable financial structure. Return on equity improved to 26.1% in 2025, demonstrating efficient use of equity to generate profits. Despite the increase in debt, the company’s equity growth and asset base expansion are positive indicators.

Cash Flow

The company experienced a decline in free cash flow in 2025, primarily due to increased capital expenditures, which could impact liquidity. The operating cash flow to net income ratio decreased significantly, but the company still maintains positive operating cash flows. The free cash flow to net income ratio has turned negative, signaling potential cash flow challenges. However, the strategic investments could support future growth.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	25.12B	19.79B	15.20B	13.81B	14.46B
Gross Profit	4.24B	3.25B	2.47B	2.13B	2.34B
EBITDA	4.23B	1.92B	1.69B	1.29B	1.57B
Net Income	2.09B	518.84M	312.50M	199.98M	398.50M
Balance Sheet
Total Assets	32.24B	20.27B	16.17B	15.68B	14.80B
Cash, Cash Equivalents and Short-Term Investments	6.68B	4.13B	3.09B	3.62B	3.09B
Total Debt	13.21B	7.17B	6.37B	7.08B	7.29B
Total Liabilities	24.11B	14.12B	11.69B	11.12B	11.78B
Stockholders Equity	8.01B	6.15B	4.48B	4.47B	2.92B
Cash Flow
Free Cash Flow	-2.10B	1.21B	186.83M	-505.62M	-899.81M
Operating Cash Flow	292.36M	2.58B	1.05B	777.18M	992.64M
Investing Cash Flow	-3.82B	-2.53B	-392.07M	-1.17B	-1.39B
Financing Cash Flow	5.79B	888.63M	-867.06M	770.80M	848.61M

SERENDIP HOLDINGS Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3455.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

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 3455 is above the 20-day moving average (MA) of 3204.00, above the 50-day MA of 2701.04, and above the 200-day MA of 1860.02, indicating a bullish trend. The MACD of 190.70 indicates Positive momentum. The RSI at 64.04 is Neutral, neither overbought nor oversold. The STOCH value of 86.10 is Negative, 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	¥10.57B	7.74		3.87%	24.10%	71.19%
7318	80 Outperform	¥15.62B	7.32		―	26.97%	285.34%
9252	76 Outperform	¥10.51B	10.88		0.59%	35.24%	56.28%
4346	74 Outperform	¥11.51B	13.11		2.26%	15.11%	139.25%
6580	68 Neutral	¥14.95B	30.07		0.64%	44.22%	112.44%
Sector *	65 Neutral	$10.90B	15.41	5.26%	1.89%	3.11%	-26.85%

SERENDIP HOLDINGS Co. Ltd. Corporate Events

SERENDIP HOLDINGS Acquires SURTECKARIYA to Boost Growth

SERENDIP HOLDINGS Co., Ltd. has announced the acquisition of SURTECKARIYA Co., Ltd., as part of its strategy to achieve 50 billion yen in consolidated sales. The acquisition is aimed at enhancing the company’s planning capability and expanding its global market presence, while also focusing on decarbonization and the promotion of future factory initiatives to boost manufacturing productivity.

SERENDIP HOLDINGS Acquires SURTECKARIYA to Boost Growth and Synergies

SERENDIP HOLDINGS CO., LTD. has acquired all shares of SURTECKARIYA Co., Ltd., marking its largest M&A transaction to date. This acquisition aligns with SERENDIP’s strategic plan to achieve non-organic growth and enhance its position in the automotive industry, particularly as it transitions towards electrification and decarbonization. The acquisition is expected to create synergies by integrating SURTECKARIYA’s expertise in surface treatment and global supply chain with SERENDIP’s existing capabilities, potentially increasing revenue and profits.