Shingakukai Holdings Co., Ltd. (9760) AI Stock Analysis

• Market Cap: ¥3.28B
• Dividend Yield: 1.48%
• Average Volume (3M): 19.74K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.58
• Revenue Growth: 24.56%
• EPS Growth: 25.32%
• Country: JP
• Employees: 137
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): -22.52
• Shares Outstanding: 20,031,000
• 10 Day Avg. Volume: 16,280
• 30 Day Avg. Volume: 19,743
• PEG Ratio: 0.09
• Price to Book (P/B): 0.35
• Price to Sales (P/S): 0.52
• P/FCF Ratio: -19.64
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: ¥166.00 ▼(-2.35% Downside)

The overall stock score of 45 reflects significant financial challenges, including negative profitability and cash flow issues. Technical indicators suggest weak momentum, and the valuation is hampered by a negative P/E ratio. The modest dividend yield provides limited compensation for these risks.

Positive Factors

Revenue Growth

Despite financial challenges, the company has achieved significant revenue growth, indicating strong demand for its educational services and potential for market expansion.

Innovative Teaching Methodologies

The use of innovative teaching methodologies and technology enhances the company's educational offerings, potentially leading to higher student satisfaction and retention.

Diversified Revenue Streams

Diversified revenue streams from tuition, materials, and partnerships provide a stable financial base and reduce dependence on any single income source.

Negative Factors

Negative Profitability

Consistently negative profit margins indicate ongoing operational inefficiencies, which can hinder long-term financial sustainability and growth potential.

Cash Flow Issues

Persistent negative cash flow suggests the company is struggling to generate sufficient cash from operations, potentially leading to liquidity issues and reliance on external financing.

Operational Losses

Ongoing operational losses highlight the need for strategic restructuring to improve financial health and ensure the company's long-term viability.

Shingakukai Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

Shingakukai Holdings Co., Ltd. (9760) is a Japan-based company primarily engaged in the education sector. The company operates a network of educational institutions, including cram schools and vocational training centers, catering to a diverse student base. Shingakukai Holdings focuses on providing quality education and learning resources, leveraging innovative teaching methodologies and technology to enhance student outcomes. The company also offers various educational materials and services aimed at improving academic performance and career readiness.

How the Company Makes Money

Shingakukai Holdings generates revenue through multiple streams, primarily from tuition fees charged to students enrolled in its educational programs across its network of institutions. Additional revenue is derived from the sale of educational materials, including textbooks and online learning resources. The company may also engage in partnerships with schools and corporations to provide specialized training programs, which can further contribute to its earnings. Furthermore, Shingakukai Holdings invests in technology to enhance its educational offerings, which may lead to increased enrollment and retention rates, ultimately boosting its financial performance.

Shingakukai Holdings Co., Ltd. Financial Statement Overview

Summary

Shingakukai Holdings Co., Ltd. is facing significant financial challenges across its income statement, balance sheet, and cash flow statement. The company struggles with profitability and cash flow, relying on external financing. Continued operational losses and negative cash flow highlight the need for strategic restructuring to improve financial health.

Income Statement

The company has faced declining revenue over the years, with a significant drop in gross profit turning negative in recent periods. Net profit margins have been consistently negative, indicating ongoing losses. The EBIT and EBITDA margins are also negative, reflecting operational inefficiencies.

Balance Sheet

The balance sheet shows moderate stability with a debt-to-equity ratio suggesting some leverage, though not excessively high. However, the return on equity is negative, indicating a lack of profitability. The equity ratio is reasonable, but the overall financial health is weakened by persistent losses.

Cash Flow

The cash flow statement reveals consistent negative free cash flow, highlighting cash burn issues. Although there was some improvement in operating cash flow, it remains negative. The company has relied heavily on financing activities to maintain liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.03B	6.25B	4.72B	6.67B	13.85B	11.86B
Gross Profit	-259.47M	171.10M	-654.33M	-717.79M	-8.82B	-3.28B
EBITDA	-608.19M	-197.75M	-1.36B	-1.19B	-5.32B	-3.05B
Net Income	-961.51M	-562.80M	-1.68B	-1.63B	-5.77B	-3.69B
Balance Sheet
Total Assets	24.29B	23.63B	23.37B	19.44B	28.95B	43.88B
Cash, Cash Equivalents and Short-Term Investments	7.86B	5.78B	5.48B	6.51B	5.94B	16.76B
Total Debt	8.00B	7.04B	6.50B	5.90B	5.86B	9.03B
Total Liabilities	15.46B	14.31B	13.37B	7.90B	15.28B	23.54B
Stockholders Equity	8.83B	9.32B	10.00B	11.54B	13.68B	20.34B
Cash Flow
Free Cash Flow	0.00	-165.06M	-1.23B	-1.13B	-5.91B	967.81M
Operating Cash Flow	0.00	1.23B	-1.17B	-1.10B	-5.86B	979.87M
Investing Cash Flow	0.00	14.60M	37.69M	3.21B	4.23B	250.69M
Financing Cash Flow	0.00	424.64M	465.18M	-439.08M	264.69M	587.65M

Shingakukai Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 170.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9760, the sentiment is Neutral. The current price of 170 is below the 20-day moving average (MA) of 171.05, below the 50-day MA of 171.54, and below the 200-day MA of 172.62, indicating a bearish trend. The MACD of -1.36 indicates Positive momentum. The RSI at 49.48 is Neutral, neither overbought nor oversold. The STOCH value of 62.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:9760.

Shingakukai Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7795	73 Outperform	¥8.65B	7.27	―	4.00%	6.83%	41.94%
7509	73 Outperform	¥5.94B	4.51	―	3.34%	7.25%	-11.62%
7827	72 Outperform	¥2.64B	6.00	―	3.50%	15.59%	-9.99%
7670	71 Outperform	¥9.91B	5.49	―	4.61%	-5.07%	13.98%
7066	69 Neutral	¥4.79B	10.15	―	3.37%	-1.69%	-18.95%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
9760	45 Neutral	¥3.28B	-3.20	―	1.48%	24.56%	25.32%