KOSAIDO Holdings Co.Ltd. (7868) AI Stock Analysis

• Market Cap: ¥61.56B
• Dividend Yield: 2.94%
• Average Volume (3M): 708.80K
• Price to Earnings (P/E): 15.3
• Beta (1Y): 0.52
• Revenue Growth: 3.07%
• EPS Growth: -24.64%
• Country: JP
• Employees: 1,100
• Sector: Industrials
• Sector Strength: 73
• Industry: Specialty Business Services
• EPS (TTM): 7.83
• Shares Outstanding: 144,340,040
• 10 Day Avg. Volume: 746,600
• 30 Day Avg. Volume: 708,803
• 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: ¥487.00
• Price Target Upside: 12.47% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 66 Neutral
• Price Target: ¥487.00 ▲(12.47% Upside)

KOSAIDO Holdings has a strong financial foundation with robust revenue growth and a solid balance sheet. However, the stock faces challenges with cash flow management and lacks strong technical momentum. The valuation is reasonable, providing a moderate dividend yield. Overall, the stock is positioned for potential growth but requires improvements in cash flow management and technical indicators to enhance investor confidence.

KOSAIDO Holdings Co.Ltd. Business Overview & Revenue Model

Company Description

KOSAIDO Holdings Co., Ltd. is a Japanese company primarily engaged in the human resources and printing businesses. The company operates through various segments, including human resources services, information and printing services, and other business activities. Its core services encompass temporary staffing, recruitment, and employment support, as well as comprehensive printing solutions, from planning and design to production and processing.

How the Company Makes Money

KOSAIDO Holdings Co., Ltd. generates revenue through a diverse set of activities, primarily from its human resources services and information and printing services. The human resources segment earns money by providing staffing solutions, recruitment services, and employment support, where the company charges clients for successfully placing candidates or for the temporary staff it provides. The information and printing services segment generates income through offering printing and related services, which include planning, design, and production, catering to both corporate and individual clients. Additionally, the company may engage in strategic partnerships and collaborations that enhance its service delivery and expand its market reach, thus contributing to its overall earnings.

KOSAIDO Holdings Co.Ltd. Financial Statement Overview

Summary

KOSAIDO Holdings shows strong financial performance with robust revenue growth and stable profitability. The balance sheet is solid, indicating financial stability and effective leverage management. However, cash flow management needs improvement due to negative free cash flow growth and challenges in converting income to cash.

Income Statement

KOSAIDO Holdings has demonstrated a strong revenue growth trajectory, with a notable increase in total revenue from 36.2 billion to 38.3 billion yen in the most recent year. The gross profit margin has improved to 42.15%, indicating efficient cost management. While the net profit margin stands at 11.66%, the EBIT margin increased to 21.67%, reflecting enhanced operational efficiency. However, the EBITDA margin slightly decreased to 25.09%. Overall, the income statement shows a positive growth trend with stable profitability.

Balance Sheet

The balance sheet of KOSAIDO Holdings is robust, characterized by a healthy equity ratio of 61.84% which indicates strong financial stability. The debt-to-equity ratio of 0.47 suggests prudent leverage management. Return on equity is at 9.34%, indicating effective use of equity to generate profits. Overall, the balance sheet reflects a stable and well-capitalized financial position, with a low-risk profile.

Cash Flow

The cash flow statement presents challenges with negative free cash flow growth, moving from a positive 6.98 billion yen to a negative 10.73 billion yen. The operating cash flow to net income ratio is negative, highlighting issues in converting profits to cash flow. Moreover, the free cash flow to net income ratio is negative. Despite these challenges, the company shows potential for cash flow improvement with strategic financial management adjustments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	38.30B	38.30B	35.46B	36.67B	35.36B	31.50B
Gross Profit	16.15B	16.15B	14.22B	12.28B	10.87B	8.86B
EBITDA	9.89B	9.61B	8.85B	6.77B	6.51B	2.63B
Net Income	4.46B	4.46B	4.34B	4.04B	3.64B	854.00M
Balance Sheet
Total Assets	77.26B	77.26B	77.50B	71.13B	73.74B	64.59B
Cash, Cash Equivalents and Short-Term Investments	15.71B	15.71B	22.97B	18.70B	21.66B	14.15B
Total Debt	22.59B	22.59B	22.13B	23.40B	28.57B	25.37B
Total Liabilities	29.31B	29.31B	29.96B	29.70B	36.22B	32.97B
Stockholders Equity	47.76B	47.76B	47.30B	41.26B	37.43B	31.51B
Cash Flow
Free Cash Flow	0.00	-10.73B	6.98B	4.42B	2.65B	2.01B
Operating Cash Flow	0.00	-8.45B	10.00B	6.29B	3.66B	3.11B
Investing Cash Flow	0.00	4.09B	-9.02B	-3.94B	-700.00M	56.00M
Financing Cash Flow	0.00	-2.94B	-712.00M	-5.40B	5.54B	-15.84B

KOSAIDO Holdings Co.Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 433.00
• 50DMA: Negative
• 100DMA: Negative
• 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:7868, the sentiment is Negative. The current price of 433 is below the 20-day moving average (MA) of 445.90, below the 50-day MA of 459.78, and below the 200-day MA of 488.54, indicating a bearish trend. The MACD of -6.32 indicates Positive momentum. The RSI at 35.94 is Neutral, neither overbought nor oversold. The STOCH value of 11.83 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7868.

KOSAIDO Holdings Co.Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7914	76 Outperform	¥50.36B	10.89		4.83%	1.93%	202.39%
7868	66 Neutral	¥61.56B	15.27		2.94%	3.07%	-24.64%
7946	66 Neutral	¥1.28B	23.74		1.77%	3.75%	-61.56%
Sector *	64 Neutral	$10.73B	15.74	7.60%	2.01%	2.75%	-15.09%
7893	63 Neutral	¥28.21B	63.07		3.23%	3.42%	-120.51%
7916	60 Neutral	¥4.67B	29.01		3.35%	-0.55%	―
7805	60 Neutral	¥3.42B	8.72		1.87%	-5.37%	48.09%

KOSAIDO Holdings Co.Ltd. Corporate Events

KOSAIDO Holdings Reports Strong Financial Growth and Strategic Realignment

KOSAIDO Holdings Co., Ltd. reported a significant increase in its consolidated financial results for the fiscal year ended March 31, 2025, with net sales rising by 8% and operating profit increasing by 55.9% compared to the previous year. The company has also undergone significant changes in its scope of consolidation, with the inclusion of three new companies and the exclusion of three others, indicating a strategic shift in its operational focus.