SE Holdings & Incubations Co., Ltd. (9478) AI Stock Analysis

• Market Cap: ¥5.56B
• Dividend Yield: 0.99%
• Average Volume (3M): 35.93K
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.83
• Revenue Growth: -1.63%
• EPS Growth: -11.41%
• Country: JP
• Employees: 301
• Sector: Communication Services
• Sector Strength: 94
• Industry: Publishing
• EPS (TTM): 5.92
• Shares Outstanding: 17,084,227
• 10 Day Avg. Volume: 27,820
• 30 Day Avg. Volume: 35,930
• 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: ¥396.00
• Price Target Upside: 10.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 79 Outperform
• Price Target: ¥396.00 ▲(10.61% Upside)

The stock's strong technical indicators and reasonable valuation drive its attractiveness. Financial performance supports the stock's stability, despite operational challenges. Overbought technical signals suggest caution for short-term investors.

Positive Factors

Strong Balance Sheet

A strong balance sheet with a good equity ratio indicates financial stability, providing a solid foundation for long-term growth and resilience against economic fluctuations.

Consistent Profitability

Consistent profitability with healthy margins suggests effective cost management and pricing strategies, supporting sustainable business operations and potential reinvestment in growth initiatives.

Cash Flow Management

Strong cash flow management ensures liquidity and the ability to fund operations and investments, which is crucial for long-term strategic initiatives and financial health.

Negative Factors

Declining Cash Flow Growth

Declining cash flow growth may indicate challenges in sustaining cash generation, potentially impacting the company's ability to invest in new opportunities or manage debt effectively.

Operational Inefficiencies

Operational inefficiencies, as indicated by declining margins, could lead to increased costs and reduced profitability, affecting the company's competitive position and long-term growth prospects.

Revenue Growth Concerns

Negative revenue growth suggests challenges in market expansion or product demand, potentially limiting the company's ability to scale and compete effectively in the long term.

SE Holdings & Incubations Co., Ltd. Business Overview & Revenue Model

Company Description

SE Holdings & Incubations Co., Ltd. (9478) is a Japanese company operating primarily in the information technology sector. The company focuses on the development and management of IT-related businesses and services. SE Holdings & Incubations aims to support and incubate innovative technology ventures, providing resources and expertise to foster growth and development within its portfolio companies.

How the Company Makes Money

SE Holdings & Incubations Co., Ltd. generates revenue through a combination of business incubation, investment activities, and IT service management. The company invests in promising technology startups, providing them with capital, strategic guidance, and operational support, which can lead to capital gains when these companies succeed or are acquired. Additionally, SE Holdings & Incubations offers IT services and solutions to its portfolio companies and other clients, earning service fees and consultancy charges. Its revenue model is significantly influenced by the performance of its investments and the demand for its IT services.

SE Holdings & Incubations Co., Ltd. Financial Statement Overview

Summary

The company shows consistent profitability and strong balance sheet metrics. While revenues are stable, operational inefficiencies are emerging, and cash flow growth has been declining.

Income Statement

The company has maintained a stable revenue base, with slight fluctuations over the years. Gross profit and net profit margins are healthy, showing consistent profitability. However, the recent decline in both EBIT and EBITDA margins from previous years suggests potential operational inefficiencies or increased costs.

Balance Sheet

The balance sheet is strong, with a good equity ratio reflecting financial stability. The debt-to-equity ratio is manageable, indicating controlled leverage. Return on equity remains robust, demonstrating effective use of equity to generate profits.

Cash Flow

The company exhibits strong cash flow management, with positive free cash flow and a solid operating cash flow to net income ratio. However, a decline in free cash flow growth in recent years points to possible challenges in sustaining cash generation levels.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.24B	7.24B	7.32B	7.33B	7.09B	6.31B
Gross Profit	3.54B	3.54B	3.73B	3.86B	3.85B	3.12B
EBITDA	967.50M	878.00M	1.20B	1.45B	1.46B	947.00M
Net Income	531.00M	531.00M	729.00M	965.00M	907.00M	573.00M
Balance Sheet
Total Assets	15.54B	15.54B	14.47B	11.89B	11.32B	10.13B
Cash, Cash Equivalents and Short-Term Investments	10.88B	10.88B	9.76B	6.98B	6.66B	5.57B
Total Debt	3.49B	3.49B	2.98B	2.58B	2.52B	2.60B
Total Liabilities	6.50B	6.50B	5.94B	4.91B	4.89B	4.61B
Stockholders Equity	9.04B	9.04B	8.52B	6.98B	6.43B	5.52B
Cash Flow
Free Cash Flow	0.00	407.00M	424.00M	-39.00M	568.00M	353.00M
Operating Cash Flow	0.00	451.00M	479.00M	-11.00M	609.00M	425.00M
Investing Cash Flow	0.00	-16.00M	45.00M	-2.00M	-53.00M	-78.00M
Financing Cash Flow	0.00	-15.00M	-195.00M	-492.00M	-311.00M	115.00M

SE Holdings & Incubations Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 358.00
• 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:9478, the sentiment is Neutral. The current price of 358 is below the 20-day moving average (MA) of 358.35, above the 50-day MA of 353.18, and above the 200-day MA of 299.75, indicating a neutral trend. The MACD of 0.98 indicates Positive momentum. The RSI at 50.57 is Neutral, neither overbought nor oversold. The STOCH value of 21.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:9478.

SE Holdings & Incubations Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2408	79 Outperform	¥4.77B	20.00		5.45%	4.93%	-28.92%
9478	79 Outperform	¥5.56B	11.86		0.99%	-1.63%	-11.41%
2481	72 Outperform	¥3.84B	9.87		2.87%	-1.58%	-21.00%
9475	69 Neutral	¥7.69B	93.07		1.18%	-2.63%	-96.18%
2376	67 Neutral	¥4.42B	21.61		1.90%	8.48%	-35.32%
Sector *	60 Neutral	$47.13B	4.38	-11.40%	4.21%	1.87%	-42.87%
9479	55 Neutral		―		―	-0.55%	89.02%