Gakkyusha Co., Ltd. (9769) AI Stock Analysis

• Market Cap: ¥26.87B
• Dividend Yield: 4.01%
• Average Volume (3M): 8.74K
• Price to Earnings (P/E): 14.8
• Beta (1Y): 0.39
• Revenue Growth: -1.18%
• EPS Growth: -12.01%
• Country: JP
• Employees: 535
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 64.37
• Shares Outstanding: 10,968,356
• 10 Day Avg. Volume: 8,190
• 30 Day Avg. Volume: 8,743
• PEG Ratio: 6.22
• Price to Book (P/B): 3.22
• Price to Sales (P/S): 1.78
• P/FCF Ratio: 13.99
• 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: 72 Outperform
• Price Target: ¥2,760.00 ▲(15.72% Upside)
• Action: Reiterated Date: 10/30/25
• Date: Action: Reiterated 10/30/25

Gakkyusha Co., Ltd. has a strong financial foundation with consistent revenue growth and solid profitability, which significantly boosts its overall score. The technical analysis presents mixed signals, indicating some caution in the short term. The valuation is attractive, supported by a reasonable P/E ratio and a strong dividend yield, making it appealing for long-term investors.

Positive Factors

Profitability margins

Sustained gross and net margins indicate durable operating efficiency and pricing power in the education business. Strong margins support internal reinvestment, consistent cash returns to shareholders, and provide resilience versus cyclical revenue swings over the next several months.

Low leverage and strong equity base

Very low leverage and a high equity ratio give the company financial flexibility to fund growth or weather downturns without heavy interest burden. This balance-sheet strength supports durable capital allocation for capex, dividends, or strategic moves over the medium term.

Efficient cash generation

Consistent conversion of earnings into operating and free cash flow underpins sustainable funding for operations, capex and shareholder returns. Strong cash conversion reduces reliance on external financing and supports long-term financial stability and strategic flexibility.

Negative Factors

Slight revenue contraction

A negative revenue growth rate, even if modest, signals potential demand headwinds or market saturation risks in the education segment. Continued revenue decline would pressure absolute profit dollars and limit the company’s ability to expand services or invest in growth initiatives over coming quarters.

Negative EPS trend

Declining EPS suggests profit per share is under pressure from margin compression, lower volumes, or one-time items. Persistent negative EPS growth can erode retained earnings and constrain strategic investments or dividend sustainability in the medium term.

Free cash flow growth volatility

Fluctuations in free cash flow growth relative to net income create risk to consistent funding of dividends, capex and M&A. If FCF underperforms earnings, the company’s ability to sustain shareholder returns or pursue investments could be impaired during operational stress periods.

Gakkyusha Co., Ltd. Business Overview & Revenue Model

Company Description

Gakkyusha Co.,Ltd. manages cram schools that offers guidance for entrance exams to junior high schools, high schools, and universities in Japan and internationally. The company was founded in 1972 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Gakkyusha Co., Ltd. generates revenue primarily through the sale of educational materials, which include printed textbooks, digital content, and e-learning platforms. Key revenue streams come from both institutional sales to schools and universities, as well as individual sales to students and parents. Additionally, the company earns income from its consulting services, providing expertise and training to educational institutions. Partnerships with schools, educational organizations, and other publishers also contribute to its earnings, allowing Gakkyusha to broaden its market reach and enhance its product offerings.

Gakkyusha Co., Ltd. Financial Statement Overview

Summary

Gakkyusha Co., Ltd. exhibits strong financial performance with consistent revenue growth, solid margins, and efficient cash management. The low leverage and high equity ratio further enhance financial stability. However, maintaining free cash flow growth in line with net income is an area for improvement.

Income Statement

Gakkyusha Co., Ltd. demonstrates strong profitability with consistent revenue growth and solid margins. The gross profit margin stands at approximately 35.6%, and the net profit margin is around 14.0%. Revenue has grown steadily over the years, indicating a positive trajectory in the education sector. Both EBIT and EBITDA margins are robust, reflecting efficient cost management and operating leverage.

Balance Sheet

The company's balance sheet shows stability with a prudent debt-to-equity ratio of approximately 0.23, indicating low leverage and strong equity backing. The equity ratio of about 60.3% suggests financial stability and a solid asset base. However, the return on equity of 25.4% is strong, showcasing effective use of shareholders' funds to generate profits.

Cash Flow

Cash flow analysis reveals strong operational cash flows with an operating cash flow to net income ratio of 1.21, indicating efficient cash conversion. The free cash flow growth rate shows some fluctuations but remains positive, supporting investment and shareholder returns. The free cash flow to net income ratio of approximately 0.91 suggests sound cash generation capability relative to earnings.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	13.21B	13.29B	13.20B	12.99B	12.38B	11.29B
Gross Profit	4.69B	4.73B	4.80B	4.88B	4.39B	3.68B
EBITDA	2.89B	3.10B	3.13B	3.22B	2.61B	2.03B
Net Income	1.82B	1.86B	1.83B	1.88B	1.51B	1.11B
Balance Sheet
Total Assets	10.71B	12.16B	10.91B	10.68B	9.89B	9.70B
Cash, Cash Equivalents and Short-Term Investments	1.78B	2.64B	2.25B	1.92B	1.98B	1.98B
Total Debt	1.27B	1.65B	1.75B	2.07B	2.43B	2.95B
Total Liabilities	3.95B	4.82B	4.42B	4.88B	4.96B	5.55B
Stockholders Equity	6.75B	7.34B	6.49B	5.79B	4.94B	4.15B
Cash Flow
Free Cash Flow	0.00	1.69B	1.88B	1.74B	1.27B	1.19B
Operating Cash Flow	0.00	2.25B	2.20B	2.61B	1.93B	1.91B
Investing Cash Flow	0.00	-110.58M	-321.20M	-888.84M	-628.25M	-744.77M
Financing Cash Flow	0.00	-1.25B	-1.57B	-1.80B	-1.31B	-294.89M

Gakkyusha Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2385.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9769, the sentiment is Positive. The current price of 2385 is below the 20-day moving average (MA) of 2444.85, below the 50-day MA of 2428.64, and above the 200-day MA of 2304.99, indicating a neutral trend. The MACD of 5.27 indicates Positive momentum. The RSI at 48.05 is Neutral, neither overbought nor oversold. The STOCH value of 16.81 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9769.

Gakkyusha Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4668	78 Outperform	¥18.06B	10.42	―	3.81%	9.96%	252.72%
9769	72 Outperform	¥26.87B	14.83	―	4.01%	-1.18%	-12.01%
4718	70 Outperform	¥38.09B	15.13	―	2.56%	7.41%	22.70%
9795	70 Outperform	¥41.48B	14.63	―	3.55%	4.95%	9.43%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Gakkyusha Co., Ltd. Corporate Events

Gakkyusha Holds Guidance as Profits Improve and Dividends Rise Despite Lower Sales

Gakkyusha reported consolidated net sales of ¥10.1 billion for the nine months ended December 31, 2025, down 2.3% year on year, while operating and ordinary profit both rose, but profit attributable to owners of parent slipped 4.0%, reflecting margin resilience amid slightly weaker top-line growth. The balance sheet remained solid with total assets of ¥12.8 billion and an equity ratio of 61.8%, and the company kept its full-year forecast unchanged, projecting 5.0% sales growth and higher profits, while signaling stronger shareholder returns via a planned dividend increase to ¥103 per share for the fiscal year ending March 2026.

Gakkyusha’s equity increased to ¥7.93 billion and its equity ratio improved from 60.3% at the prior fiscal year-end, underscoring financial stability that supports continued investment and payouts. The company’s decision not to revise earnings or dividend forecasts, alongside the hike from ¥90 to ¥103 per share year on year, indicates management confidence in cash generation and may reassure investors seeking steady returns in Japan’s education sector.

The most recent analyst rating on (JP:9769) stock is a Buy with a Yen2739.00 price target. To see the full list of analyst forecasts on Gakkyusha Co., Ltd. stock, see the JP:9769 Stock Forecast page.