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

• Market Cap: ¥5.79B
• Dividend Yield: 0.96%
• Average Volume (3M): 38.35K
• Price to Earnings (P/E): 12.3
• Beta (1Y): 0.79
• Revenue Growth: -3.02%
• EPS Growth: -30.86%
• Country: JP
• Employees: 301
• Sector: Communication Services
• Sector Strength: 97
• Industry: Publishing
• EPS (TTM): 6.65
• Shares Outstanding: 17,084,227
• 10 Day Avg. Volume: 31,090
• 30 Day Avg. Volume: 38,346
• PEG Ratio: -0.44
• Price to Book (P/B): 0.54
• Price to Sales (P/S): 0.67
• P/FCF Ratio: 11.96
• 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

• Rating: 73 Outperform
• Price Target: ¥448.00 ▲(12.00% Upside)

SE Holdings & Incubations Co., Ltd. receives a strong overall score driven by solid financial performance and positive technical indicators. The company's stable financial metrics and bullish technical signals are the most significant factors. The valuation is reasonable, though not a standout, and there are no notable earnings call insights or corporate events to influence the score further.

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

Company Description

SE Holdings and Incubations Co., Ltd. primarily engages in the publishing business in Japan. The company is involved in publishing and selling computer-related books and magazines; organizing computer-related conferences and trainings; delivering computer-related technology information through Web; publishing and selling common and translated books; selling software and hardware through online shops; selling other computer-related products and services; and real estate leasing activities. It also develops and sells entertainment software and mobile Internet technologies and services. In addition, the company plans and manufactures sub-contracting services for product accessories and enclosures, as well as offers product marketing and sales promotion related services; support services for engineers; and company PR/IR support services for IT related companies. Further, it offers IT education, as well as provides job referral services for the health professionals; and administrative agency services. Additionally, the company produces, publishes, and sells teaching materials; and plans and manages seminars for examinees of qualified certified electrician test. The company was formerly known as SHOEISHA Co., Ltd. SE Holdings and Incubations Co., Ltd. was incorporated in 1985 and is headquartered in Tokyo, Japan.

How the Company Makes Money

SE Holdings generates revenue primarily through equity stakes in the startups it incubates, earning a share of their profits as they grow and succeed. Additionally, the company manages investment funds that provide capital to emerging businesses, earning management fees and performance-based incentives. Strategic partnerships with larger corporations and venture capital firms also enhance its revenue potential by facilitating co-investment opportunities and resource sharing. Furthermore, consulting services offered to portfolio companies contribute to its earnings, reinforcing its role as a key player in the startup ecosystem.

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	7.19B	7.24B	7.32B	7.33B	7.09B	6.31B
Gross Profit	3.50B	3.54B	3.73B	3.86B	3.85B	3.12B
EBITDA	886.75M	878.00M	1.20B	1.45B	1.46B	947.00M
Net Income	512.00M	531.00M	729.00M	965.00M	907.00M	573.00M
Balance Sheet
Total Assets	16.23B	15.54B	14.47B	11.89B	11.32B	10.13B
Cash, Cash Equivalents and Short-Term Investments	11.92B	10.88B	9.76B	6.98B	6.66B	5.57B
Total Debt	3.93B	3.49B	2.98B	2.58B	2.52B	2.60B
Total Liabilities	6.98B	6.50B	5.94B	4.91B	4.89B	4.61B
Stockholders Equity	9.25B	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	-261.00M	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: Positive
• Last Price: 400.00
• 50DMA: Positive
• 100DMA: Positive
• 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:9478, the sentiment is Positive. The current price of 400 is above the 20-day moving average (MA) of 371.55, above the 50-day MA of 364.28, and above the 200-day MA of 312.48, indicating a bullish trend. The MACD of 8.54 indicates Negative momentum. The RSI at 69.78 is Neutral, neither overbought nor oversold. The STOCH value of 67.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	―	¥5.03B	20.36	―	5.16%	6.79%	-30.39%
9478	―	¥5.79B	12.29	―	0.96%	-3.02%	-30.86%
2481	―	¥3.67B	9.43	―	2.98%	-1.58%	-21.00%
2376	―	¥4.16B	20.35	―	2.01%	8.48%	-35.32%
Sector *	―	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
9475	―	¥7.69B	92.85	―	1.18%	-2.63%	-96.18%
9479	―	―	―	―	―	-0.55%	89.02%