LITALICO Inc. (7366) AI Stock Analysis

• Market Cap: ¥45.21B
• Dividend Yield: 0.69%
• Average Volume (3M): 149.37K
• Price to Earnings (P/E): 15.0
• Beta (1Y): 1.06
• Revenue Growth: 10.71%
• EPS Growth: 30.80%
• Country: JP
• Employees: 4,714
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Advertising Agencies
• EPS (TTM): 18.94
• Shares Outstanding: 35,712,310
• 10 Day Avg. Volume: 110,060
• 30 Day Avg. Volume: 149,370
• PEG Ratio: -0.51
• Price to Book (P/B): 3.18
• Price to Sales (P/S): 1.19
• P/FCF Ratio: 9.85
• 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: 66 Neutral
• Price Target: ¥1,320.00 ▲(1.69% Upside)

LITALICO Inc. demonstrates strong financial performance, which is the most significant factor in its overall score. However, the technical analysis indicates bearish market sentiment, which negatively impacts the stock's attractiveness. The valuation is moderate, offering a balanced view of the stock's potential. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for LITALICO's services, supporting long-term business sustainability and expansion potential.

Cash Flow Generation

Strong cash flow generation enhances liquidity, enabling LITALICO to fund operations, invest in growth opportunities, and maintain financial stability.

Operational Efficiency

Sustained gross profit margins highlight LITALICO's ability to manage costs effectively, ensuring profitability and competitive positioning in the market.

Negative Factors

Rising Debt Levels

Increasing debt levels could strain LITALICO's financial flexibility, posing risks if not managed carefully, especially in economic downturns.

Declining Net Profit Margins

Declining net profit margins may signal rising costs or pricing pressures, potentially impacting LITALICO's long-term profitability and investment capacity.

Capital Expenditure Variability

Variable capital expenditures could impact future cash flows, affecting LITALICO's ability to consistently invest in growth and maintain operational efficiency.

LITALICO Inc. Business Overview & Revenue Model

Company Description

LITALICO Inc. (7366) is a Japanese company that specializes in education and support services for individuals with developmental disabilities. The company operates in two main sectors: educational services and technology solutions. LITALICO offers a range of core products and services, including after-school programs, vocational training, and online learning platforms designed to empower individuals with special needs and enhance their skills for better integration into society and the workforce.

How the Company Makes Money

LITALICO generates revenue primarily through its educational services, which include fees from its after-school programs and vocational training centers. The company also earns income from its technology solutions, which are designed to assist in the learning and development of individuals with disabilities. Additionally, LITALICO may receive funding or grants from government sources and partnerships with various organizations focused on disability support and education. These key revenue streams, combined with a growing demand for specialized educational services, contribute significantly to the company's 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. The positive trajectory in key financial metrics positions the company well for future growth, albeit with some attention needed on profitability margins and debt management.

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	34.70B	33.21B	27.68B	24.17B	19.74B	1.00B
Gross Profit	13.03B	12.30B	10.78B	9.70B	7.62B	606.42M
EBITDA	7.83B	7.14B	6.63B	5.29B	2.87B	-44.78M
Net Income	2.61B	2.40B	3.54B	1.81B	1.08B	-122.54M
Balance Sheet
Total Assets	37.20B	32.72B	25.31B	22.73B	14.30B	910.38M
Cash, Cash Equivalents and Short-Term Investments	4.62B	4.33B	4.51B	3.70B	2.28B	99.55M
Total Debt	17.99B	13.20B	9.97B	8.36B	6.09B	593.45M
Total Liabilities	24.78B	20.26B	14.88B	15.84B	8.55B	738.63M
Stockholders Equity	12.42B	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: 1298.00
• 50DMA: Positive
• 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:7366, the sentiment is Positive. The current price of 1298 is above the 20-day moving average (MA) of 1260.95, above the 50-day MA of 1253.94, and above the 200-day MA of 1266.46, indicating a bullish trend. The MACD of 2.96 indicates Negative momentum. The RSI at 57.38 is Neutral, neither overbought nor oversold. The STOCH value of 65.50 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	¥27.75B	12.15	―	5.36%	58.08%	29.89%
4293	77 Outperform	¥86.17B	22.77	―	7.57%	-10.10%	-37.28%
7068	76 Outperform	¥17.13B	15.36	―	1.43%	7.24%	215.65%
7366	66 Neutral	¥45.21B	14.99	―	0.69%	10.71%	30.80%
2461	63 Neutral	¥34.59B	24.14	―	5.08%	3.22%	13.97%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2148	62 Neutral	¥29.95B	20.81	―	6.71%	2.09%	-2.15%

LITALICO Inc. Corporate Events

LITALICO Inc. Announces Share Repurchase to Enhance Shareholder Value

LITALICO Inc. announced the repurchase of 31,000 of its common shares for approximately 39.7 million yen, as part of a broader plan to repurchase up to 300,000 shares by the end of 2025. This strategic move is aimed at enhancing shareholder value and optimizing the company’s capital structure, reflecting a commitment to financial stability and investor confidence.

LITALICO Inc. Announces Strategic Share Repurchase Plan

LITALICO Inc. has announced a share repurchase plan as approved by its board of directors. The initiative aims to improve capital efficiency and increase shareholder returns by repurchasing up to 300,000 common shares, representing 0.8% of its total issued shares, with a maximum budget of 300 million yen. This move is expected to positively impact the company’s capital policies and potentially enhance its market positioning.

LITALICO Inc. Reports Strong Financial Growth for First Half of 2025

LITALICO Inc. reported a significant increase in its consolidated financial results for the six months ended September 30, 2025, with net sales rising by 21.6% year-on-year to 18,864 million yen. The company also saw a substantial improvement in operating profit, which more than doubled compared to the previous year, reflecting a strong performance despite the sale of its shares in nCS Inc. earlier in 2025. This financial growth underscores LITALICO’s robust market positioning and its strategic focus on continuing operations, which could positively impact stakeholders by enhancing shareholder value and supporting future expansion plans.

LITALICO Inc. Completes Share Repurchase Program

LITALICO Inc. has completed a share repurchase program, acquiring 41,200 shares for approximately 55.1 million yen between September 1 and September 12, 2025. This move is part of a larger repurchase plan approved by the Board of Directors in May 2025, aiming to buy back up to 500,000 shares, reflecting the company’s strategic efforts to manage its capital structure and potentially enhance shareholder value.