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

• Market Cap: ¥48.61B
• Dividend Yield: 2.28%
• Average Volume (3M): 109.03K
• Price to Earnings (P/E): 13.0
• Beta (1Y): 0.44
• 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): 20.28
• Shares Outstanding: 44,633,232
• 10 Day Avg. Volume: 101,650
• 30 Day Avg. Volume: 109,030
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ¥1,270.00 ▲(13.70% Upside)

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 shows strong revenue growth and operational efficiency, with a stable balance sheet. However, the low net profit margin and negative free cash flow growth indicate areas for improvement in profitability and cash flow management.

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 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	194.15B	199.12B	185.57B	164.12B	156.03B	150.60B
Gross Profit	52.04B	54.95B	49.90B	46.69B	46.43B	45.16B
EBITDA	10.69B	14.04B	10.24B	10.08B	9.65B	9.04B
Net Income	3.13B	3.58B	2.26B	3.19B	3.44B	2.62B
Balance Sheet
Total Assets	138.98B	139.19B	130.71B	136.33B	123.68B	116.90B
Cash, Cash Equivalents and Short-Term Investments	24.86B	22.92B	20.39B	20.84B	22.52B	19.77B
Total Debt	40.58B	35.63B	37.38B	42.25B	41.37B	38.40B
Total Liabilities	82.60B	79.72B	77.06B	81.29B	74.79B	69.49B
Stockholders Equity	51.98B	51.59B	51.67B	52.98B	48.69B	47.24B
Cash Flow
Free Cash Flow	0.00	4.21B	3.20B	3.26B	2.21B	-281.00M
Operating Cash Flow	0.00	7.82B	7.16B	5.46B	5.17B	4.44B
Investing Cash Flow	0.00	392.00M	1.84B	-4.76B	-5.80B	-18.11B
Financing Cash Flow	0.00	-5.60B	-9.38B	-6.20B	2.00B	7.81B

Gakken Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1117.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9470, the sentiment is Neutral. The current price of 1117 is below the 20-day moving average (MA) of 1132.70, above the 50-day MA of 1089.06, and above the 200-day MA of 1002.55, indicating a neutral trend. The MACD of 10.29 indicates Positive momentum. The RSI at 49.51 is Neutral, neither overbought nor oversold. The STOCH value of 16.17 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥48.61B	12.99	―	2.28%	7.30%	60.93%
9733	72 Outperform	¥73.20B	19.58	―	3.98%	15.54%	67.62%
4718	70 Outperform	¥42.56B	16.68	―	2.56%	7.41%	22.70%
9795	70 Outperform	¥39.80B	14.15	―	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 Holdings Forms Strategic Alliance with Nippon Life

Gakken Holdings Co., Ltd. has announced a strategic capital and business alliance with Nippon Life Insurance Company to enhance its operations in the nursing care and childcare sectors. This collaboration aims to integrate the expertise and networks of both companies to improve industry sustainability, develop new business models, and support local communities. Nippon Life will acquire a 2% stake in Gakken Holdings, and the partnership will focus on joint initiatives in nursing care, childcare, and educational content development.

The most recent analyst rating on (JP:9470) stock is a Hold with a Yen1022.00 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 Strong Financial Performance for Nine Months Ending June 2025

Gakken Holdings Co., Ltd. reported consolidated financial results for the nine months ending June 30, 2025, showing a 6.2% increase in net sales compared to the previous year. Despite a slight decline in operating and ordinary profits, the company experienced a significant 46.4% rise in profit attributable to owners of the parent, indicating strong financial performance and potential positive implications for stakeholders.