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

• Market Cap: ¥7.42B
• Dividend Yield: 0.87%
• Average Volume (3M): 38.35K
• Price to Earnings (P/E): 8.2
• Beta (1Y): 0.67
• Revenue Growth: -3.02%
• EPS Growth: -30.86%
• Country: JP
• Employees: 301
• Sector: Communication Services
• Sector Strength: 97
• Industry: Publishing
• EPS (TTM): 11.86
• Shares Outstanding: 16,284,225
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: ¥574.00 ▲(47.18% Upside)
• Action: Downgraded Date: 01/29/26
• Date: Action: Downgraded 01/29/26

The score is driven primarily by solid financial performance (strong balance sheet and healthy cash generation despite margin pressure), supported by a strong technical uptrend. This is tempered by overbought momentum signals and a low dividend yield, while valuation remains reasonable.

Positive Factors

Strong balance sheet & ROE

A strong equity ratio and controlled leverage provide durable financial flexibility, lowering refinancing and solvency risks. Robust ROE signals efficient capital use, supporting sustained investment in content, incubations and strategic initiatives without jeopardizing solvency over the next 2-6 months.

Positive operating cash generation

Consistent positive operating and free cash flow underpins self‑funding of publishing cycles and incubation projects. Strong cash conversion supports reinvestment, working capital needs and selective M&A, giving the business enduring ability to finance growth without heavy external funding.

Diversified content + incubation model

A diversified mix of publishing, digital content and an incubation strategy provides multiple revenue streams and optionality. Incubation can seed higher-growth subsidiaries, while content assets drive recurring royalties and platform synergies, supporting steady structural revenue potential.

Negative Factors

Severe recent revenue decline

A reported ~91% decline in revenue growth is a material structural risk: it indicates lost scale or shrinking top-line activity that can erode margins, reduce bargaining power with distributors, and hinder the company’s ability to fund content investments and incubations over the medium term.

Margin compression (EBIT/EBITDA down)

Falling EBIT and EBITDA margins point to rising costs or operational inefficiencies. Sustained margin compression reduces internal funding capacity, weakens return on new projects, and makes it harder to absorb revenue volatility—diminishing long‑term profitability resilience.

Low dividend income support

A low dividend yield suggests limited cash returns to shareholders and reduces appeal to income-oriented investors. If capital allocation favors reinvestment over payouts without offsetting growth, shareholder return stability and investor base diversification may be constrained long term.

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

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

Summary

Overall financials are solid: strong balance sheet strength and profitability are supported by a good equity position and robust ROE, while cash flow remains positive with healthy operating cash conversion. Offsetting this, income statement trends show declining EBIT/EBITDA margins and slowing free cash flow growth, indicating rising costs or efficiency pressure.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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	3.26B	2.59B	2.53B	2.60B
Total Liabilities	6.98B	6.50B	5.94B	4.91B	4.88B	4.60B
Stockholders Equity	9.25B	9.04B	8.53B	6.98B	6.43B	5.53B
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: 390.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 390 is below the 20-day moving average (MA) of 470.35, below the 50-day MA of 452.56, and above the 200-day MA of 386.50, indicating a bullish trend. The MACD of 14.29 indicates Negative momentum. The RSI at 62.63 is Neutral, neither overbought nor oversold. The STOCH value of 86.34 is Negative, 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
9478	70 Outperform	¥7.42B	8.23	―	0.87%	-3.02%	-30.86%
7875	70 Outperform	¥10.85B	5.64	―	3.40%	3.71%	78.87%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
9475	58 Neutral	¥9.91B	14.53	―	1.06%	0.02%	-88.78%
3641	48 Neutral	¥9.45B	35.35	―	1.02%	-8.03%	―
3137	46 Neutral	¥2.98B	17.33	―	―	5.00%	84.92%
4833	44 Neutral	¥5.08B	-1.08	―	―	26.55%	-49.99%