Gakken Holdings Co., Ltd. (9470) AI Stock Analysis

• Market Cap: ¥46.44B
• Dividend Yield: 2.28%
• Average Volume (3M): 109.03K
• Price to Earnings (P/E): 14.0
• Beta (1Y): 0.43
• Revenue Growth: 7.30%
• EPS Growth: 60.93%
• Country: JP
• Employees: 9,593
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 9.74
• Shares Outstanding: 44,633,232
• 10 Day Avg. Volume: 101,650
• 30 Day Avg. Volume: 109,030
• PEG Ratio: 0.20
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 0.22
• P/FCF Ratio: 10.43
• 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): 96.05
• Revenue Forecast (FY): ¥207.87B

• Rating: 75 Outperform
• Price Target: ¥1,270.00 ▲(13.49% Upside)
• Action: Reiterated Date: 12/11/25
• Date: Action: Reiterated 12/11/25

Gakken Holdings Co., Ltd. receives a strong overall score driven by positive technical analysis and a reasonable valuation. The company's stable financial performance supports this score, although there is room for improvement in profitability margins. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a positive trajectory, reflecting the company's ability to expand its market reach and product adoption.

Cash Generation

Improved cash generation enhances financial flexibility, allowing Gakken to invest in growth opportunities and manage debt effectively.

Operational Efficiency

Improved operational efficiency through better EBIT and EBITDA margins suggests effective cost management, supporting long-term profitability.

Negative Factors

Profitability Margins

Low net profit margins may limit the company's ability to reinvest in growth and weather economic downturns, impacting long-term sustainability.

Debt Levels

While leverage is moderate, ongoing monitoring is necessary to ensure debt levels do not hinder financial stability and growth potential.

Cash Conversion Efficiency

Moderate cash conversion efficiency may limit the company's ability to fund operations and growth initiatives, affecting long-term competitiveness.

Gakken Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

Gakken Holdings Co., Ltd. publishes books and magazines in Japan and internationally. It provides learning classes for developing capabilities to think for oneself for preschoolers, elementary, and junior high and high school students; piano courses; operates science classroom Kagaku Plus, and learning centers/cram schools, as well as a service to dispatch home tutors; and develops educational materials for learning centers. The company also operates approximately 400 housing and facilities for the elderly; offers home-based care services, including home-visit nursing and daycare services; conducts food delivery services to prevent nursing care and promotes health; and operates nursery school/children' s daycare center and afterschool children's clubs, as well as developmental support programs. In addition, it is involved in the publication of children's books, study-aid books, dictionaries, general books/ technical books, practical books, magazines, and books for libraries; online classes business; developing web services and software to digitalizing contents in the medical field; and designing, developing, and selling of stationeries and miscellaneous goods. Further, the company offers educational toys/learning materials/ games; school supplies, playground equipment, picture books for pre-school children, kindergarten facilities, and seminar for guardians/toddler classrooms; textbooks/supplemental books/education information contents, educational books/magazines, movies, and welfare/health/special needs education contents for elementary and junior high school; and mock exam/various test materials and essay writing materials. Additionally, it provides employment support, logistics, and office support services; and operates research institutions. The company was formerly known as Gakken Co., Ltd. and changed its name to Gakken Holdings Co., Ltd. in October 2009. Gakken Holdings Co., Ltd. was incorporated in 1947 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Gakken Holdings generates revenue through multiple streams, primarily from the sale of educational materials, textbooks, and learning aids. The company also earns income from its educational services, including tutoring and school operations. Key revenue streams include direct sales to schools and educational institutions, as well as retail sales to consumers. Furthermore, Gakken engages in partnerships with educational institutions and government bodies to provide customized educational solutions, which enhances its revenue potential. The company's focus on digital content and online learning platforms also contributes to its earnings, capitalizing on the growing demand for remote education solutions.

Gakken Holdings Co., Ltd. Financial Statement Overview

Summary

Gakken Holdings Co., Ltd. exhibits stable financial performance with consistent revenue growth and improving operational margins. The balance sheet reflects moderate leverage, and the cash flow statement shows a positive trend in cash generation. However, profitability margins are relatively low, indicating room for improvement.

Income Statement

Gakken Holdings Co., Ltd. has demonstrated consistent revenue growth with a 2.56% increase in the latest year, indicating a positive trajectory. The gross profit margin and net profit margin have shown stability, with the latest figures at 27.6% and 1.8% respectively. However, the net profit margin remains relatively low, which could be a concern for profitability. EBIT and EBITDA margins have improved, reflecting better operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved slightly to 0.69, indicating a moderate level of leverage. Return on equity is at 6.9%, showing a reasonable return for shareholders. The equity ratio stands at 37.1%, suggesting a stable capital structure. However, the company should continue to monitor its debt levels to ensure financial stability.

Cash Flow

Operating cash flow has increased, supporting the company's ability to generate cash from operations. The free cash flow growth rate is positive, indicating improved cash generation. However, the free cash flow to net income ratio is moderate, suggesting room for improvement in converting profits into cash. Overall, the cash flow position is stable but could benefit from enhanced cash conversion efficiency.

Breakdown	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	199.12B	185.57B	164.12B	156.03B	150.60B
Gross Profit	54.95B	49.90B	46.69B	46.43B	45.16B
EBITDA	14.04B	10.24B	10.08B	9.65B	9.04B
Net Income	3.58B	2.26B	3.19B	3.44B	2.62B
Balance Sheet
Total Assets	139.19B	130.71B	136.33B	123.68B	116.90B
Cash, Cash Equivalents and Short-Term Investments	22.92B	20.39B	20.84B	22.52B	19.77B
Total Debt	35.63B	37.38B	42.25B	41.37B	38.40B
Total Liabilities	79.72B	77.06B	81.29B	74.79B	69.49B
Stockholders Equity	51.59B	51.67B	52.98B	48.69B	47.24B
Cash Flow
Free Cash Flow	4.21B	3.20B	3.26B	2.21B	-281.00M
Operating Cash Flow	7.82B	7.16B	5.46B	5.17B	4.44B
Investing Cash Flow	392.00M	1.84B	-4.76B	-5.80B	-18.11B
Financing Cash Flow	-5.60B	-9.38B	-6.20B	2.00B	7.81B

Gakken Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1119.00
• 50DMA: Negative
• 100DMA: Negative
• 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:9470, the sentiment is Positive. The current price of 1119 is above the 20-day moving average (MA) of 1057.15, above the 50-day MA of 1080.40, and above the 200-day MA of 1024.58, indicating a neutral trend. The MACD of -7.41 indicates Negative momentum. The RSI at 49.02 is Neutral, neither overbought nor oversold. The STOCH value of 32.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9470.

Gakken Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9470	75 Outperform	¥46.44B	13.99	―	2.28%	7.30%	60.93%
9733	72 Outperform	¥81.61B	20.61	―	3.98%	15.54%	67.62%
4714	71 Outperform	¥34.33B	22.60	―	5.00%	―	―
4718	70 Outperform	¥38.94B	15.47	―	2.56%	7.41%	22.70%
9795	70 Outperform	¥42.34B	14.93	―	3.55%	4.95%	9.43%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Gakken Holdings Co., Ltd. Corporate Events

Gakken Board Effectiveness Review Highlights Governance Gaps in Strategy and Board Operations

Gakken Holdings’ board of directors has completed an externally assisted self-evaluation of its effectiveness, covering board composition and operation, management and business strategy, corporate ethics and risk management, performance monitoring and executive officer oversight, and engagement with shareholders and other stakeholders. The survey, conducted in September 2025 among all directors and company auditors, produced an overall average score of 3.9 out of 5, with particularly strong ratings in corporate ethics, risk management, performance monitoring, executive compensation and shareholder dialogue, but comparatively weaker scores in management and business strategy, which also showed the largest decline versus the prior year’s survey. Internal directors rated overall effectiveness slightly lower than external directors, and company auditors were more critical than directors, especially on strategy, while benchmark comparisons indicated that Gakken lags peers of similar market capitalization in several governance dimensions, notably board composition/operation and strategy oversight. Based on these findings, and generally positive feedback on last year’s action plan, the board approved a new action plan running through September 2026 that prioritizes continued improvements in board operations and more rigorous monitoring of management and business strategy, signaling a push to strengthen governance standards and align more closely with market and stakeholder expectations.

The most recent analyst rating on (JP:9470) stock is a Buy with a Yen1270.00 price target. To see the full list of analyst forecasts on Gakken Holdings Co., Ltd. stock, see the JP:9470 Stock Forecast page.

Gakken to Grant Restricted Treasury Shares to Directors and Executives

Gakken Holdings has resolved to dispose of 83,033 shares of its treasury stock as restricted stock compensation to five directors and ten executive officers, at a price of 1,142 yen per share for a total of 94,823,686 yen, with a payment date set for January 19, 2026. The move is part of a previously approved restricted stock compensation plan for directors and a similar plan for executive officers, designed to align management incentives with the company’s medium- to long-term corporate value and sustainable growth in shareholder value; the resulting dilution, at 0.18% of issued shares as of September 30, 2025, is described as minor and reasonable, with transfer restrictions applying until the recipients resign or retire from their roles.

The most recent analyst rating on (JP:9470) stock is a Buy with a Yen1270.00 price target. To see the full list of analyst forecasts on Gakken Holdings Co., Ltd. stock, see the JP:9470 Stock Forecast page.

Gakken Holdings Introduces Employee Stock Incentive System

Gakken Holdings Co., Ltd. has announced the introduction of a restricted stock incentive system for its Employee Shareholding Association to commemorate its 80th anniversary. This initiative aims to enhance employee welfare by allowing employees to acquire restricted shares, thereby promoting asset formation and aligning employee interests with shareholder value. The specific details of the system will be finalized in future board meetings.

The most recent analyst rating on (JP:9470) stock is a Buy with a Yen1129.00 price target. To see the full list of analyst forecasts on Gakken Holdings Co., Ltd. stock, see the JP:9470 Stock Forecast page.

Gakken Holdings Proposes Amendments to Strengthen Governance

Gakken Holdings Co., Ltd. announced a proposal to amend its Articles of Incorporation, aiming to transition to a company with an Audit and Supervisory Committee to strengthen corporate governance. The amendments also include provisions for flexible shareholder meetings and director liability exemptions, reflecting the company’s commitment to adaptability and enhanced oversight.

The most recent analyst rating on (JP:9470) stock is a Buy with a Yen1129.00 price target. To see the full list of analyst forecasts on Gakken Holdings Co., Ltd. stock, see the JP:9470 Stock Forecast page.

Gakken Holdings to Enhance Governance with New Supervisory Structure

Gakken Holdings Co., Ltd. announced its decision to transition to a company with an audit and supervisory committee, a move aimed at strengthening corporate governance by enhancing the supervisory functions of its board of directors. This transition, set for approval at the upcoming Annual General Meeting, is expected to streamline decision-making processes and improve corporate value. Additionally, changes in executive personnel have been proposed to align with this new structure, indicating a strategic shift in the company’s management approach.

The most recent analyst rating on (JP:9470) stock is a Buy with a Yen1129.00 price target. To see the full list of analyst forecasts on Gakken Holdings Co., Ltd. stock, see the JP:9470 Stock Forecast page.

Gakken Holdings Unveils Ambitious ‘Gakken 2027’ Management Plan

Gakken Holdings Co., Ltd. has announced its new management plan, ‘Gakken 2027 ~Value UP~,’ which aims to enhance business, finance, and organizational value over the next two years. The plan builds on the success of the previous ‘Gakken 2025 SHIFT’ plan, which achieved profit targets despite economic challenges. Gakken intends to continue expanding in education and healthcare, focusing on global growth and high-value services, with a goal of achieving significant financial milestones by 2027.

The most recent analyst rating on (JP:9470) stock is a Buy with a Yen1129.00 price target. To see the full list of analyst forecasts on Gakken Holdings Co., Ltd. stock, see the JP:9470 Stock Forecast page.

Gakken Holdings Reports Robust Financial Growth for FY 2025

Gakken Holdings Co., Ltd. reported a significant increase in its financial performance for the fiscal year ended September 30, 2025, with net sales rising by 7.3% and profit attributable to owners of the parent increasing by 58.3%. The company’s strategic additions, such as DTP Education Solutions JSC, and changes in accounting policies have contributed to its improved financial results, indicating a positive outlook for stakeholders.

The most recent analyst rating on (JP:9470) stock is a Buy with a Yen1129.00 price target. To see the full list of analyst forecasts on Gakken Holdings Co., Ltd. stock, see the JP:9470 Stock Forecast page.