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

• Market Cap: ¥68.93B
• Dividend Yield: 2.88%
• Average Volume (3M): 640.45K
• Price to Earnings (P/E): 20.0
• Beta (1Y): 0.68
• Revenue Growth: 0.02%
• EPS Growth: -27.38%
• Country: JP
• Employees: 1,100
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 8.26
• Shares Outstanding: 144,340,040
• 10 Day Avg. Volume: 510,950
• 30 Day Avg. Volume: 640,446
• PEG Ratio: -11.02
• Price to Book (P/B): 1.56
• Price to Sales (P/S): 1.95
• P/FCF Ratio: -6.95
• 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): 36.4
• Revenue Forecast (FY): ¥38.00B

• Rating: 65 Neutral
• Price Target: ¥522.00 ▲(15.49% Upside)
• Action: Reiterated Date: 10/25/25
• Date: Action: Reiterated 10/25/25

KOSAIDO Holdings demonstrates strong financial performance with robust revenue growth and a solid balance sheet. However, technical indicators suggest a bearish trend, and cash flow management needs improvement. The stock is reasonably valued with an attractive dividend yield, but lacks strong market momentum.

Positive Factors

Balance Sheet Strength

High equity ratio and modest leverage provide durable financial stability, lowering insolvency risk and preserving strategic optionality. This capital structure supports sustained investment, dividend policy flexibility, and resilience through economic cycles, enabling longer-term growth execution.

Revenue Growth Trend

Recent top-line expansion signals persistent demand and successful commercial execution. Durable revenue growth supports scale economies, funds reinvestment in core operations, and underpins medium-term strategic initiatives, improving the company's ability to fund capex and expand margins over time.

Improved Profitability Margins

Stronger gross and EBIT margins indicate effective cost control and pricing power, which are structural drivers of sustainable profitability. Higher operating efficiency increases retained earnings and strengthens cash generation potential if converted, supporting strategic flexibility and shareholder returns.

Negative Factors

Cash Conversion Weakness

Material deterioration in free cash flow and weak operating cash conversion indicate earnings quality and liquidity risks. Persistent negative FCF constrains capex, dividends, deleveraging and M&A, forcing reliance on financing and impairing the firm's ability to fund long-term strategic initiatives without structural fixes.

Earnings Per Share Decline

A near-40% EPS decline is a substantive erosion of shareholder profitability that can reflect margin pressure, one-offs, or business weakness. If sustained, it undermines reinvestment capacity, dividend coverage and investor confidence, and may signal fundamental challenges in generating per-share value over the medium term.

EBITDA Margin Pressure

A declining EBITDA margin, even if modest, highlights rising operating costs or adverse revenue mix. If the trend persists, operating leverage will compress, reducing cash available for strategic initiatives and increasing sensitivity to demand slumps, which can impair long-term competitiveness and investment capacity.

KOSAIDO Holdings Co.Ltd. Business Overview & Revenue Model

Company Description

KOSAIDO Holdings Co., Ltd. operates as a printing company in Japan. The company offers offset, newspaper, digital, and package printing services. It also provides human resource services, including recruitment media, human resource development/ education/training, temporary staffing, RPO, and HR tech services; and BPO services. The company also engages in the free paper rack agency; environmental information magazine publication; and exhibition businesses. In addition, it is involved in the crematorium hall management, funeral planning and management, and other funeral related services. The company was formerly known as Kosaido Co., Ltd. and changed its name to KOSAIDO Holdings Co., Ltd. in October 2021. KOSAIDO Holdings Co., Ltd. was founded in 1949 and is based in Tokyo, Japan.

How the Company Makes Money

KOSAIDO Holdings generates revenue through multiple streams, primarily from its advertising and marketing services, which include campaign management, digital advertising, and media buying. The company partners with various industries, leveraging its expertise to deliver tailored marketing solutions. Additionally, KOSAIDO earns income from its publishing segment by selling advertising space and producing content for its magazines. The integration of IT services also contributes to its revenue, as it provides technological support that enhances marketing effectiveness for clients. Strategic partnerships with businesses in different sectors further bolster its earning potential by expanding its service offerings and market reach.

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, the cash flow statement reveals challenges in converting income to cash, which needs improvement for sustained growth.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	37.69B	38.30B	35.46B	36.67B	35.36B	31.50B
Gross Profit	15.48B	16.15B	13.47B	12.28B	10.87B	8.86B
EBITDA	9.35B	9.61B	8.85B	6.77B	6.51B	2.63B
Net Income	4.06B	4.46B	4.34B	4.04B	3.64B	854.00M
Balance Sheet
Total Assets	75.30B	77.26B	77.50B	71.13B	73.74B	64.59B
Cash, Cash Equivalents and Short-Term Investments	13.98B	15.71B	22.97B	18.70B	21.66B	14.15B
Total Debt	21.36B	22.59B	22.13B	23.40B	28.57B	25.37B
Total Liabilities	27.20B	29.31B	29.96B	29.70B	36.22B	32.97B
Stockholders Equity	47.96B	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: Positive
• Last Price: 452.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7868, the sentiment is Positive. The current price of 452 is below the 20-day moving average (MA) of 494.00, below the 50-day MA of 479.14, and below the 200-day MA of 453.31, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 53.68 is Neutral, neither overbought nor oversold. The STOCH value of 57.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
7805	77 Outperform	¥3.56B	7.45	―	1.93%	-1.00%	105.56%
7946	71 Outperform	¥2.54B	34.49	―	1.68%	3.07%	-32.45%
7914	68 Neutral	¥44.79B	13.14	―	3.71%	-0.04%	93.95%
7868	65 Neutral	¥68.93B	20.00	―	2.88%	0.02%	-27.38%
7893	65 Neutral	¥30.10B	-60.93	―	3.97%	4.10%	-121.49%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7916	61 Neutral	¥5.78B	19.83	―	2.72%	-1.30%	―

KOSAIDO Holdings Co.Ltd. Corporate Events

KOSAIDO Posts Lower Nine-Month Profit but Keeps Dividend and Backs Full-Year Recovery Forecast

KOSAIDO Holdings reported consolidated net sales of ¥25.84 billion for the nine months ended December 31, 2025, down 5.8% year on year, with operating profit falling 22.7% to ¥4.46 billion and profit attributable to owners of parent dropping 22.8% to ¥3.32 billion. Despite weaker earnings, the equity ratio improved to 65.9% as total assets declined, and the company maintained its dividend plan, forecasting full-year fiscal 2026 net sales of ¥39.75 billion and a 20.6% rise in full-year profit attributable to owners of parent, signaling confidence in earnings recovery.

KOSAIDO plans to pay an annual dividend of ¥13.34 per share for the year ending March 31, 2026, slightly higher than the previous year, reflecting a continued commitment to shareholder returns. The full-year forecast implies modest top-line growth and largely flat operating profit and ordinary profit, suggesting a more challenging operating environment but also indicating that management expects to stabilize performance and support earnings growth in the final quarter of the fiscal year.

The most recent analyst rating on (JP:7868) stock is a Hold with a Yen532.00 price target. To see the full list of analyst forecasts on KOSAIDO Holdings Co.Ltd. stock, see the JP:7868 Stock Forecast page.