LITALICO Inc. (7366) AI Stock Analysis

• Market Cap: ¥49.35B
• Dividend Yield: 0.65%
• Average Volume (3M): 157.60K
• Price to Earnings (P/E): 17.5
• Beta (1Y): 1.10
• Revenue Growth: 13.93%
• EPS Growth: 24.55%
• Country: JP
• Employees: 4,714
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Advertising Agencies
• EPS (TTM): 15.83
• Shares Outstanding: 35,712,310
• 10 Day Avg. Volume: 97,500
• 30 Day Avg. Volume: 157,600
• 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: ¥1,672.50
• Price Target Upside: 21.02% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 76 Outperform
• Price Target: ¥1,535.00 ▲(11.07% Upside)

LITALICO Inc. scores well due to its strong financial performance, characterized by revenue growth and effective cost management. Technical analysis indicates stability with some bearish momentum, while valuation metrics suggest the stock is fairly priced. The absence of earnings call data and corporate events does not impact the score significantly.

LITALICO Inc. Business Overview & Revenue Model

Company Description

LITALICO Inc. operates school for learning and preschool in Japan. The company also supports children with disabilities; and undertakes employment support project based on comprehensive support law for people with disabilities, as well as engages in the Internet media business. Its services include LITALICO Works, a service that supports working of people with disabilities; LITALICO Junior, a social skill/learning classroom for infants to high school students; LITALICO Wonder, an IT and manufacturing classroom; and LITALICO Developmental Navi, a developmental disability portal site that shares information with parents. The company's services also comprise LITALICO Work Navi, an employment information site of people with disabilities; LITALICO Career, a career service site for disability welfare; and LITALICO Life that provides information and life plan design tailored to individual's interests and issues. It operates 86 LITALICO Works, 119 LITALICO Junior, and 17 LITALICO Wonder establishments. The company was founded in 2005 and is headquartered in Tokyo, Japan.

How the Company Makes Money

LITALICO Inc. generates revenue through various educational and employment support services. Its key revenue streams include tuition fees from specialized schools for individuals with disabilities, fees for career development and employment support services, and consulting fees from businesses and organizations seeking to improve accessibility and inclusivity for disabled individuals. The company also partners with government agencies and private organizations to provide funded services, which contribute to its earnings.

LITALICO Inc. Financial Statement Overview

Summary

LITALICO Inc. displays strong financial health with consistent revenue and profit growth, effective cost management, and solid cash flow generation. The company's balance sheet reflects prudent financial management, though the rising debt levels warrant careful monitoring.

Income Statement

LITALICO Inc. has shown impressive revenue growth with consistent year-over-year increases from 2021 to 2025. The gross profit margin has remained strong, reflecting effective cost management. However, the net profit margin has seen some decline recently, indicating increased expenses or pressures on profitability. Despite this, the company maintains a healthy EBIT and EBITDA margin, underscoring operational efficiency.

Balance Sheet

The company's balance sheet reveals a moderate debt-to-equity ratio, reflecting a balanced approach to leverage. There has been a consistent increase in stockholders' equity, indicating retained earnings and potential reinvestment in the business. However, the rise in total debt over the years suggests a growing reliance on external financing, which could pose risks if not managed carefully.

Cash Flow

LITALICO Inc. has demonstrated robust operating cash flow generation, which supports its net income effectively. The free cash flow has also shown growth, indicating strong liquidity to fund operations and investments. Nonetheless, the fluctuations in capital expenditure suggest variability in investment activities, which could impact future cash flows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	33.21B	33.21B	27.68B	24.17B	19.74B	1.00B
Gross Profit	12.30B	12.30B	11.77B	9.70B	7.62B	606.42M
EBITDA	5.90B	3.53B	6.63B	5.29B	2.87B	-44.78M
Net Income	2.20B	2.40B	3.54B	1.81B	1.08B	-122.54M
Balance Sheet
Total Assets	32.72B	32.72B	25.31B	18.90B	14.30B	910.38M
Cash, Cash Equivalents and Short-Term Investments	4.33B	4.33B	4.51B	3.70B	2.28B	99.55M
Total Debt	13.20B	13.20B	9.97B	8.36B	6.09B	593.45M
Total Liabilities	20.26B	20.26B	14.88B	15.84B	8.55B	738.63M
Stockholders Equity	12.47B	12.47B	10.43B	6.89B	5.75B	171.75M
Cash Flow
Free Cash Flow	0.00	4.03B	4.70B	1.18B	427.00M	-495.40M
Operating Cash Flow	0.00	4.94B	5.39B	2.91B	1.69B	-194.73M
Investing Cash Flow	0.00	-6.61B	-1.20B	-3.00B	-2.76B	-299.17M
Financing Cash Flow	0.00	1.53B	-3.38B	1.50B	2.11B	593.45M

LITALICO Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1382.00
• 50DMA: Positive
• 100DMA: Positive
• 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:7366, the sentiment is Positive. The current price of 1382 is above the 20-day moving average (MA) of 1366.35, above the 50-day MA of 1362.48, and above the 200-day MA of 1175.09, indicating a bullish trend. The MACD of 8.08 indicates Negative momentum. The RSI at 52.01 is Neutral, neither overbought nor oversold. The STOCH value of 54.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7366.

LITALICO Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6535	81 Outperform	38.27B	12.88	0.00%	3.93%	14.91%	22.07%
4293	77 Outperform	89.94B	26.36	0.00%	7.31%	-12.17%	-47.60%
7366	76 Outperform	¥49.35B	17.55		0.65%	13.93%	24.55%
2148	76 Outperform	34.18B	22.40	19.17%	5.88%	1.36%	-0.89%
7068	76 Outperform	13.86B	14.37	30.17%	1.75%	3.41%	117.10%
2461	63 Neutral	34.91B	27.21	0.00%	5.12%	2.34%	-12.13%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

LITALICO Inc. Corporate Events

LITALICO Inc. Announces Merger with Subsidiary to Enhance Services

LITALICO Inc. has announced an absorption-type merger with its wholly owned subsidiary, Plus One Solutions, Inc., aiming to enhance its management support services by concentrating resources. This merger, effective November 1, 2025, will not alter the company’s name, location, or business operations, and is expected to have an immaterial impact on its financial results.

The most recent analyst rating on (JP:7366) stock is a Buy with a Yen1598.00 price target. To see the full list of analyst forecasts on LITALICO Inc. stock, see the JP:7366 Stock Forecast page.

LITALICO Inc. Updates on Share Repurchase Program

LITALICO Inc. announced the status of its share repurchase program, revealing that it repurchased 84,300 shares for a total of 118,237,900 yen between August 1 and August 31, 2025. This move is part of a broader strategy approved by the Board of Directors to buy back up to 500,000 shares, aiming to enhance shareholder value and optimize capital structure.

The most recent analyst rating on (JP:7366) stock is a Buy with a Yen1598.00 price target. To see the full list of analyst forecasts on LITALICO Inc. stock, see the JP:7366 Stock Forecast page.

LITALICO Inc. Completes Share Repurchase as Part of Strategic Initiative

LITALICO Inc. announced the completion of a share repurchase program, acquiring 100,900 shares for approximately 130.5 million yen between July 1 and July 31, 2025. This initiative is part of a broader strategy approved by the Board of Directors to repurchase up to 500,000 shares by March 2026, aiming to enhance shareholder value and optimize capital structure.

The most recent analyst rating on (JP:7366) stock is a Buy with a Yen1810.00 price target. To see the full list of analyst forecasts on LITALICO Inc. stock, see the JP:7366 Stock Forecast page.

LITALICO Inc. Reports Robust Financial Growth in Q2 2025

LITALICO Inc. reported a significant increase in its financial performance for the three months ended June 30, 2025, with net sales rising by 28.4% year-on-year. The company’s operating profit surged by 271.6%, reflecting a strong recovery and strategic focus on its core operations after selling its shares in nCS Inc. This financial growth positions LITALICO favorably in the industry, potentially enhancing its market standing and stakeholder confidence.

The most recent analyst rating on (JP:7366) stock is a Buy with a Yen2120.00 price target. To see the full list of analyst forecasts on LITALICO Inc. stock, see the JP:7366 Stock Forecast page.

LITALICO Inc. Reports Progress on Share Repurchase Program

LITALICO Inc. announced the status of its share repurchase program, revealing that it has repurchased 74,200 shares for a total of 95,004,200 yen between June 1 and June 30, 2025. This move is part of a broader plan approved by the Board of Directors to repurchase up to 500,000 shares, aiming to enhance shareholder value and optimize capital structure.

The most recent analyst rating on (JP:7366) stock is a Buy with a Yen2120.00 price target. To see the full list of analyst forecasts on LITALICO Inc. stock, see the JP:7366 Stock Forecast page.