LITALICO Inc. (7366) AI Stock Analysis

• Market Cap: ¥45.64B
• Dividend Yield: 0.7%
• Average Volume (3M): 109.26K
• Price to Earnings (P/E): 19.0
• Beta (1Y): 1.12
• Revenue Growth: 11.49%
• EPS Growth: -32.32%
• Country: JP
• Employees: 4,714
• Sector: Consumer Defensive
• Sector Strength: 56
• Industry: Advertising Agencies
• EPS (TTM): 28.50
• Shares Outstanding: 35,712,310
• 10 Day Avg. Volume: 112,350
• 30 Day Avg. Volume: 109,256
• PEG Ratio: 0.97
• Price to Book (P/B): 12.38
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 78.01
• 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: ¥1,570.00
• Price Target Upside: 22.85% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 80 Outperform
• Price Target: ¥1,521.00 ▲(19.01%Upside)

LITALICO Inc. scores 79.6, driven by strong financial performance and positive technical indicators. The company's effective cost management and robust cash flow are significant strengths. While the stock's valuation is moderate, the low dividend yield limits income potential. Attention to profitability margins and debt levels remains essential.

LITALICO Inc. Business Overview & Revenue Model

Company Description

LITALICO Inc. is a Japanese company that operates in the education and welfare sectors, focusing on providing support and services for individuals with disabilities. The company offers a range of services including education programs, employment support, and social skill development, designed to empower individuals with disabilities and promote their inclusion in society. LITALICO's core services are delivered through specialized schools, training centers, and online platforms.

How the Company Makes Money

LITALICO Inc. primarily generates revenue through its educational and welfare services aimed at individuals with disabilities. The company's key revenue streams include tuition fees from its specialized education programs, fees for employment support services, and revenue from consulting services provided to businesses and educational institutions. Additionally, LITALICO partners with government agencies and private organizations to deliver comprehensive support solutions, which further contributes to its earnings. The company also leverages its online platforms to reach a wider audience and enhance its service offerings.

LITALICO Inc. Financial Statement Overview

Summary

LITALICO Inc. exhibits strong financial health characterized by consistent revenue growth, effective cost management, and robust cash flow generation. The balance sheet shows prudent financial management, although increasing debt levels need monitoring. The company is well-positioned 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	33.62B	33.21B	29.79B	24.17B	19.74B	1.00B
Gross Profit	12.38B	12.30B	11.77B	9.70B	7.62B	606.42M
EBITDA	5.70B	3.53B	6.63B	5.29B	3.18B	-44.78M
Net Income	2.30B	2.40B	3.54B	1.81B	1.08B	-122.54M
Balance Sheet
Total Assets	35.44B	32.72B	25.31B	18.90B	14.30B	910.38M
Cash, Cash Equivalents and Short-Term Investments	4.99B	4.33B	4.51B	3.70B	2.28B	99.55M
Total Debt	16.07B	13.20B	9.97B	8.36B	6.09B	593.45M
Total Liabilities	23.74B	20.26B	14.88B	11.50B	8.55B	738.63M
Stockholders Equity	11.70B	12.47B	10.43B	7.41B	5.75B	171.75M
Cash Flow
Free Cash Flow	1.86B	4.03B	4.70B	1.18B	427.00M	-495.40M
Operating Cash Flow	2.35B	4.94B	5.39B	2.91B	1.69B	-194.73M
Investing Cash Flow	-515.00M	-6.61B	-1.20B	-3.00B	-2.76B	-299.17M
Financing Cash Flow	-1.14B	1.53B	-3.38B	1.50B	2.11B	593.45M

LITALICO Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1278.00
• 50DMA: Negative
• 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 1278 is above the 20-day moving average (MA) of 1259.05, below the 50-day MA of 1286.74, and above the 200-day MA of 1117.56, indicating a neutral trend. The MACD of -6.85 indicates Negative momentum. The RSI at 53.18 is Neutral, neither overbought nor oversold. The STOCH value of 79.58 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	¥37.63B	13.81		3.38%	14.35%	-5.35%
2148	80 Outperform	¥32.44B	20.92		6.19%	1.24%	0.17%
7366	80 Outperform	¥45.64B	19.00		0.70%	11.49%	-32.32%
7068	79 Outperform	¥14.27B	14.37		1.75%	3.41%	117.22%
4293	77 Outperform	¥88.05B	24.46		7.46%	-17.46%	43.19%
Sector *	68 Neutral	¥198.41B	21.33	8.29%	2.33%	4.99%	3.05%
2461	63 Neutral	¥29.41B	22.74		3.60%	-5.88%	15.11%

LITALICO Inc. Corporate Events

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.

LITALICO Inc. Updates on Share Repurchase Progress

LITALICO Inc. has announced the status of its recent share repurchase, acquiring 75,700 shares for a total of 101,009,500 yen between May 8 and May 31, 2025. This move is part of a broader strategy approved by the board to repurchase up to 500,000 shares by March 2026, reflecting the company’s efforts to enhance shareholder value and optimize its 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.

LITALICO Inc. Proposes Amendments to Facilitate Business Diversification

LITALICO Inc. announced a proposal to amend its Articles of Incorporation to accommodate the anticipated diversification of its business activities. This amendment, to be discussed at the upcoming Annual General Meeting, aims to expand the company’s operational scope, potentially enhancing its market positioning and offering new opportunities for stakeholders.

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. Announces Capital Reduction Plan

LITALICO Inc. has announced a capital reduction plan, approved by its Board of Directors, to enhance its capital policy flexibility. The reduction will not affect the company’s total net assets or business performance, as it involves a reclassification within the balance sheet without changing the number of issued shares.

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. Completes Stock Acquisition Rights Cancellation

LITALICO Inc. announced the completion of the acquisition and cancellation of its 18th, 19th, and 20th rounds of stock acquisition rights, which were initially issued to repay short-term loans for acquiring the Developmental Disability Center of Nebraska, LLC. The company used cash on hand and bank borrowings to settle these loans, and the impact on its consolidated performance for the current fiscal year is expected to be negligible.

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. Announces Share Repurchase Plan to Boost Shareholder Returns

LITALICO Inc. has announced a share repurchase plan aimed at enhancing shareholder returns and improving capital efficiency. The company plans to buy back up to 500,000 shares, representing 1.4% of its issued shares, with a maximum purchase price of 500 million yen. This move is expected to implement agile capital policies and potentially strengthen LITALICO’s market position.

LITALICO Inc. Cancels Stock Options with Minimal Fiscal Impact

LITALICO Inc. has announced the acquisition and cancellation of its 18th, 19th, and 20th round of stock options, originally issued to repay short-term loans for acquiring the Developmental Disability Center of Nebraska, Inc. This decision, facilitated by utilizing cash on hand and bank borrowings, is expected to have a negligible impact on the company’s consolidated performance for the fiscal year.

LITALICO Inc. Secures $30 Million for U.S. Expansion

LITALICO Inc. has announced a $30 million borrowing from Mizuho Bank to fund its U.S. business expansion and facility development. This strategic move aims to provide housing and self-reliance support services for individuals with severe intellectual or developmental disabilities in Nebraska, addressing a significant need for such services in the U.S. market.

LITALICO Inc. Reports Earnings Discrepancy Due to Business Sale

LITALICO Inc. announced a discrepancy between its forecasted and actual earnings for the fiscal year ending March 2025, primarily due to the sale of nCS Co., Ltd. This sale led to a reclassification of business operations, impacting revenue figures. Despite lower-than-expected revenue, operating profit and profit attributable to owners exceeded forecasts due to strong performance in the Child Welfare segment and effective cost management.