LITALICO Inc. (7366) AI Stock Analysis

• Market Cap: ¥44.14B
• Dividend Yield: 0.7%
• Average Volume (3M): 149.37K
• Price to Earnings (P/E): 25.4
• Beta (1Y): 0.99
• Revenue Growth: 10.71%
• EPS Growth: 30.80%
• Country: JP
• Employees: 4,714
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Advertising Agencies
• EPS (TTM): N/A
• 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: 61 Neutral
• Price Target: ¥1,289.00 ▼(-0.39% Downside)
• Action: Reiterated Date: 10/30/25
• Date: Action: Reiterated 10/30/25

LITALICO Inc. receives an overall score of 61, driven primarily by solid financial performance with strong revenue growth and cash flow generation, though tempered by declining profitability and rising debt levels. Weak technical momentum, with the stock trading below key moving averages, further weighs on the score. Valuation remains neutral, offering no major upside or downside catalyst.

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. 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 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. shows strong revenue growth of 11.5% and solid cash flow generation with an Operating Cash Flow to Net Income Ratio of 2.06. However, declining net profit margins (7.2% in 2025 from 11.9% in 2024) and increasing leverage (Debt-to-Equity Ratio of 1.06) temper the outlook. The score reflects a balanced view of growth strengths and profitability risks.

Income Statement

LITALICO Inc. shows strong revenue growth of 11.5% from 2024 to 2025, reflecting a positive trajectory. Gross Profit Margin remains solid at 37.0%, though Net Profit Margin declined to 7.2% in 2025 from 11.9% in 2024 due to a drop in Net Income. EBIT Margin also saw a slight decrease to 10.3% from 12.5%, indicating some pressure on profitability. While growth is a key strength, the dip in margins highlights a potential risk to sustained profitability.

Balance Sheet

The company's balance sheet reflects moderate stability with a Debt-to-Equity Ratio of 1.06 in 2025, up from 0.96 in 2024, suggesting increased leverage. Return on Equity (ROE) decreased to 19.3% in 2025 from 34.0% in 2024, impacted by lower Net Income. Equity Ratio improved to 38.1% from 41.2%, showing a reasonable equity base. While the equity position is a strength, rising debt levels pose a potential risk.

Cash Flow

LITALICO Inc. demonstrates decent cash flow health with Operating Cash Flow to Net Income Ratio at 2.06 in 2025, indicating strong cash generation relative to earnings. Free Cash Flow to Net Income Ratio is also robust at 1.68. However, Free Cash Flow Growth Rate declined by 14.2% from 2024 to 2025, reflecting a slowdown. Strong cash conversion is a positive, but the drop in free cash flow growth signals potential challenges in sustaining momentum.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	33.02B	33.21B	27.68B	24.17B	19.74B	1.00B
Gross Profit	12.57B	11.69B	10.78B	9.25B	7.51B	605.51M
EBITDA	7.60B	7.03B	6.37B	5.36B	3.18B	-42.48M
Net Income	2.81B	2.40B	3.54B	1.81B	1.08B	-122.54M
Balance Sheet
Total Assets	37.20B	32.72B	25.31B	22.73B	15.08B	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	11.66B	6.09B	2.39B
Total Liabilities	24.78B	20.25B	14.88B	15.84B	9.32B	738.63M
Stockholders Equity	12.42B	12.47B	10.43B	6.89B	5.75B	4.59B
Cash Flow
Free Cash Flow	0.00	4.03B	4.70B	3.63B	1.10B	-495.40M
Operating Cash Flow	0.00	4.94B	5.39B	4.19B	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	225.00M	2.11B	593.45M

LITALICO Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1294.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7366, the sentiment is Negative. The current price of 1294 is below the 20-day moving average (MA) of 1317.15, above the 50-day MA of 1293.96, and below the 200-day MA of 1300.36, indicating a bearish trend. The MACD of -0.45 indicates Positive momentum. The RSI at 45.42 is Neutral, neither overbought nor oversold. The STOCH value of 12.79 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7366.

LITALICO Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2130	69 Neutral	¥14.01B	12.09	―	2.51%	10.17%	327.27%
4767	65 Neutral	¥16.01B	6.65	―	3.96%	3.83%	-18.07%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
7366	61 Neutral	¥44.14B	25.44	―	0.70%	10.71%	30.80%
7078	51 Neutral	¥3.67B	-645.05	―	―	-8.67%	-407.35%
4760	48 Neutral	¥1.27B	6.11	―	3.86%	3.93%	-4.20%

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.

The most recent analyst rating on (JP:7366) stock is a Hold with a Yen1320.00 price target. To see the full list of analyst forecasts on LITALICO Inc. stock, see the JP:7366 Stock Forecast page.

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.

The most recent analyst rating on (JP:7366) stock is a Hold with a Yen1402.00 price target. To see the full list of analyst forecasts on LITALICO Inc. stock, see the JP:7366 Stock Forecast page.

LITALICO Inc. Reports 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.

The most recent analyst rating on (JP:7366) stock is a Hold with a Yen1402.00 price target. To see the full list of analyst forecasts on LITALICO Inc. stock, see the JP:7366 Stock Forecast page.