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

• Market Cap: ¥60.42B
• Dividend Yield: 2.94%
• Average Volume (3M): 640.45K
• Price to Earnings (P/E): 15.0
• Beta (1Y): 0.56
• Revenue Growth: 0.02%
• EPS Growth: -27.38%
• Country: JP
• Employees: 1,100
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 7.42
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: ¥458.00 ▲(1.33% Upside)

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

Revenue Growth

Consistent revenue growth indicates expanding market presence and effective business strategies, supporting long-term sustainability.

Balance Sheet Health

A strong balance sheet with a high equity ratio ensures financial stability and resilience, providing a solid foundation for future growth.

Operational Efficiency

Improved operational efficiency, as seen in rising EBIT margins, enhances profitability and competitive positioning over the long term.

Negative Factors

Cash Flow Challenges

Negative free cash flow growth can strain financial resources, limiting the company's ability to invest in growth opportunities and manage debt.

Profit Conversion Issues

Challenges in converting profits to cash flow may impact liquidity and operational flexibility, posing risks to financial health.

Declining EBITDA Margin

A declining EBITDA margin suggests potential pressures on cost management or pricing power, which could affect future profitability.

KOSAIDO Holdings Co.Ltd. Business Overview & Revenue Model

Company Description

KOSAIDO Holdings Co., Ltd. (7868) is a diversified Japanese company primarily engaged in advertising and marketing services. Operating through various subsidiaries, the company provides integrated solutions in fields such as digital marketing, branding, and media planning. KOSAIDO also engages in the publishing of magazines and other print media, while expanding its reach into IT and technology services that support its core offerings.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: Neutral
• Last Price: 452.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• 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 Neutral. The current price of 452 is above the 20-day moving average (MA) of 444.10, above the 50-day MA of 433.64, and below the 200-day MA of 460.23, indicating a neutral trend. The MACD of 5.86 indicates Negative momentum. The RSI at 53.06 is Neutral, neither overbought nor oversold. The STOCH value of 39.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	69 Neutral	¥49.24B	10.64	―	4.00%	-0.04%	93.95%
7946	67 Neutral	¥1.29B	24.06	―	1.72%	3.07%	-32.45%
7868	65 Neutral	¥60.42B	14.99	―	2.94%	0.02%	-27.38%
7893	65 Neutral	¥27.96B	-49.62	―	3.95%	4.10%	-121.49%
7805	64 Neutral	¥3.34B	7.46	―	1.93%	-1.00%	105.56%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7916	61 Neutral	¥5.21B	9.59	―	2.77%	-1.30%	―

KOSAIDO Holdings Co.Ltd. Corporate Events

KOSAIDO Holdings Reports Decline in Q1 2025 Financial Results

KOSAIDO Holdings Co., Ltd. reported a decline in its financial performance for the three months ending June 30, 2025, with net sales and profits showing a decrease compared to the previous year. Despite the downturn, the company maintains a stable equity ratio and has not revised its financial forecasts for the fiscal year ending March 31, 2026, indicating a cautious but steady outlook.