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

• Market Cap: ¥6.27B
• Dividend Yield: 0.86%
• Average Volume (3M): 38.35K
• Price to Earnings (P/E): 15.9
• Beta (1Y): 0.83
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ¥448.00 ▲(9.00% Upside)

The stock's overall score is driven by strong technical indicators and solid financial performance. The upward price trend and positive momentum are significant strengths, while operational challenges and modest valuation metrics slightly temper the outlook.

Positive Factors

Strong Balance Sheet

A strong balance sheet with a good equity ratio indicates financial stability, enabling the company to withstand economic fluctuations and invest in growth opportunities.

Effective Cash Flow Management

Effective cash flow management with positive free cash flow ensures the company can fund its operations, invest in new ventures, and return value to shareholders over time.

Consistent Profitability

Consistent profitability with healthy profit margins indicates efficient operations and the ability to generate returns, supporting long-term business sustainability.

Negative Factors

Declining Revenue Growth

Declining revenue growth can hinder the company's ability to expand and compete, potentially impacting its market position and long-term viability.

Operational Inefficiencies

Operational inefficiencies reflected in declining EBIT and EBITDA margins may lead to increased costs, reducing profitability and limiting growth potential.

Cash Flow Growth Challenges

Challenges in sustaining cash flow growth can restrict the company's ability to invest in new projects and return capital to shareholders, affecting long-term financial health.

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

Company Description

SE Holdings & Incubations Co., Ltd. (9478) is a diversified holding company engaged in various sectors including technology incubation, investment management, and business development. The company focuses on nurturing innovative startups and providing them with essential resources, mentorship, and funding to accelerate their growth. By leveraging its extensive network and expertise, SE Holdings aims to drive innovation and create value across its portfolio of companies.

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

SE Holdings & Incubations Co., Ltd. shows a solid financial standing with consistent profitability and strong balance sheet metrics. The income statement reveals stable revenues but highlights some operational challenges. Cash flow generation is robust, though recent trends suggest caution in maintaining growth. The company is well-positioned in the industry, yet needs to focus on improving operational efficiencies to sustain its financial health.

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	1.27B	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: 411.00
• 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 411 is above the 20-day moving average (MA) of 402.35, above the 50-day MA of 387.66, and above the 200-day MA of 328.58, indicating a bullish trend. The MACD of 5.64 indicates Negative momentum. The RSI at 57.54 is Neutral, neither overbought nor oversold. The STOCH value of 41.29 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	79 Outperform	¥5.11B	20.62	―	5.09%	6.79%	-30.39%
9478	73 Outperform	¥6.27B	15.94	―	0.86%	-3.02%	-30.86%
2481	72 Outperform	¥3.64B	9.20	―	3.03%	1.41%	-6.45%
2376	67 Neutral	¥4.21B	20.57	―	1.93%	4.91%	-60.12%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
9475	58 Neutral	¥8.51B	37.44	―	1.06%	0.02%	-88.78%
9479	55 Neutral	―	―	―	―	-0.55%	89.02%