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

• Market Cap: ¥46.13B
• Dividend Yield: 2.4%
• Average Volume (3M): 106.55K
• Price to Earnings (P/E): 14.3
• Beta (1Y): 0.46
• Revenue Growth: 6.15%
• EPS Growth: -17.22%
• Country: JP
• Employees: 9,593
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 7.68
• Shares Outstanding: 44,633,232
• 10 Day Avg. Volume: 76,110
• 30 Day Avg. Volume: 106,550
• 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: ¥1,022.00
• Price Target Upside: -3.58% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 67 Neutral
• Price Target: ¥1,022.00 ▼(-3.58% Downside)

Gakken Holdings exhibits strong financial performance with robust revenue growth and operational efficiency. Stability in the balance sheet and fair valuation further strengthen its position. However, the need for improved cash flow management and moderate technical indicators limit the stock's rating.

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

Company Description

Gakken Holdings Co., Ltd. is a leading Japanese company operating primarily in the education and publishing sectors. Established in 1947, Gakken is renowned for its educational materials, including textbooks, study guides, and digital content for all age groups, from preschool to higher education. The company also engages in the production of educational toys and operates a chain of educational facilities, including cram schools, kindergartens, and senior care services, further diversifying its portfolio.

How the Company Makes Money

Gakken Holdings Co., Ltd. generates revenue through a diverse set of business activities centered around education and publishing. Its primary revenue streams include the sale of textbooks and educational materials to schools and individual consumers. Gakken also earns from its network of educational facilities, which include tuition fees from its cram schools and kindergartens. Additionally, the company benefits from its publishing arm by selling books, magazines, and digital content. The company has developed strategic partnerships with educational institutions and government bodies to enhance product distribution and expand its educational services. Furthermore, Gakken's venture into senior care services and educational toys offers additional revenue pathways, making its business model robust and multifaceted.

Gakken Holdings Co., Ltd. Financial Statement Overview

Summary

Gakken Holdings shows strong revenue growth and operational efficiency with a stable balance sheet. However, cash flow performance needs improvement, and there is room for enhancing profitability and shareholder returns.

Income Statement

Gakken Holdings has demonstrated a consistent upward trend in revenue growth, with a TTM revenue growth rate of 14.97% compared to the previous year. The gross profit margin stands at 26.75% in TTM, indicating efficient cost management. The net profit margin improved to 1.65% in TTM, showing profitability. However, the net profit margin is relatively low, suggesting room for improvement in cost control or pricing strategy. The EBIT margin is stable at 3.54%, and EBITDA margin is 5.47%, reflecting steady operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is 0.79 in TTM, reflecting a balanced capital structure with moderate leverage. The equity ratio is 37.04%, indicating a solid equity base. Return on equity (ROE) is 6.12% for TTM, which suggests moderate returns on shareholder investments. The balance sheet reflects stability, but there is a need to enhance returns to shareholders.

Cash Flow

Cash flow analysis is limited due to missing data in TTM. The free cash flow growth rate in the previous annual period was negative, indicating challenges in generating cash from operations. The operating cash flow to net income ratio was positive at 3.17 in the last annual period, showing strong cash generation relative to net income, but the absence of TTM data limits a complete assessment.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	190.90B	185.57B	164.12B	156.03B	150.60B	143.52B
Gross Profit	50.40B	49.90B	46.69B	46.43B	45.16B	41.73B
EBITDA	10.23B	10.24B	10.08B	9.65B	9.04B	8.03B
Net Income	2.91B	2.26B	3.19B	3.44B	2.62B	2.32B
Balance Sheet
Total Assets	141.88B	130.71B	136.33B	123.68B	116.90B	103.74B
Cash, Cash Equivalents and Short-Term Investments	24.38B	20.39B	20.84B	22.52B	19.77B	25.60B
Total Debt	40.16B	37.38B	42.25B	41.37B	38.40B	37.43B
Total Liabilities	85.02B	77.06B	81.29B	74.79B	69.49B	67.50B
Stockholders Equity	52.24B	51.67B	52.98B	48.69B	47.24B	36.17B
Cash Flow
Free Cash Flow	0.00	3.20B	3.26B	2.21B	-281.00M	2.47B
Operating Cash Flow	0.00	7.16B	5.46B	5.17B	4.44B	5.97B
Investing Cash Flow	0.00	1.84B	-4.76B	-5.80B	-18.11B	-1.59B
Financing Cash Flow	0.00	-9.38B	-6.20B	2.00B	7.81B	-22.00M

Gakken Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1060.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

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 1060 is above the 20-day moving average (MA) of 1048.70, above the 50-day MA of 999.70, and above the 200-day MA of 985.09, indicating a bullish trend. The MACD of 16.98 indicates Positive momentum. The RSI at 62.32 is Neutral, neither overbought nor oversold. The STOCH value of 81.98 is Negative, 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
9795	80 Outperform	39.51B	14.63	9.56%	3.19%	5.34%	-0.95%
4718	73 Outperform	53.18B	21.28	15.40%	1.59%	7.19%	33.38%
9470	67 Neutral	¥46.13B	14.28		2.40%	6.15%	-17.22%
9733	67 Neutral	56.55B	21.80	6.27%	5.15%	10.27%	-6.00%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Gakken Holdings Co., Ltd. Corporate Events

Gakken Holdings Reports Increased Sales but Decline in Profits for H1 2025

Gakken Holdings Co., Ltd. reported consolidated financial results for the six months ended March 31, 2025, showing a 5.7% increase in net sales compared to the previous year. Despite the rise in sales, the company experienced a decline in operating and ordinary profits by 11.7% and 18.3%, respectively, due to increased costs and strategic investments. The profit attributable to owners of the parent rose significantly by 36.8%, indicating improved efficiency and cost management. The company also announced a slight increase in dividends, reflecting confidence in its financial stability and future growth prospects.