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

• Market Cap: ¥25.37B
• Dividend Yield: 3.89%
• Average Volume (3M): 9.82K
• Price to Earnings (P/E): 13.8
• Beta (1Y): 0.37
• Revenue Growth: -0.36%
• EPS Growth: -2.22%
• Country: JP
• Employees: 535
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): -6.12
• Shares Outstanding: 10,968,356
• 10 Day Avg. Volume: 6,580
• 30 Day Avg. Volume: 9,816
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥2,581.00
• Price Target Upside: 11.59% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: ¥2,581.00 ▲(11.59% Upside)

Gakkyusha Co., Ltd. scores well due to its strong financial performance, characterized by consistent revenue growth and solid profitability. The valuation is reasonable with an attractive dividend yield. However, technical analysis indicates potential short-term weakness, which slightly offsets the overall positive outlook.

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 its tutoring services. The company's key revenue streams include fees charged for its after-school classes, online courses, and private tutoring sessions. These services are offered to students across different educational stages, requiring tuition payments that contribute significantly to the company's earnings. Additionally, Gakkyusha may engage in partnerships with educational institutions or content providers to enhance its service offerings, though specifics on such partnerships are not detailed. The company's ability to attract students through its reputation for quality education is a crucial factor in its revenue generation.

Gakkyusha Co., Ltd. Financial Statement Overview

Summary

Gakkyusha Co., Ltd. reflects a solid financial position with strong revenue growth, profitability, and efficient cash management. The low leverage and high equity ratio further enhance financial stability. The company demonstrates strong profitability with consistent revenue growth and solid margins. Potential areas for improvement include maintaining free cash flow growth in line with net income to ensure sustainable cash generation.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.29B	13.29B	13.20B	12.99B	12.38B	11.29B
Gross Profit	4.73B	4.73B	4.80B	4.88B	4.39B	3.68B
EBITDA	3.00B	3.10B	3.13B	3.22B	2.61B	2.03B
Net Income	1.86B	1.86B	1.83B	1.88B	1.51B	1.11B
Balance Sheet
Total Assets	12.16B	12.16B	10.91B	10.68B	9.89B	9.70B
Cash, Cash Equivalents and Short-Term Investments	2.64B	2.64B	2.25B	1.92B	1.98B	1.98B
Total Debt	1.65B	1.65B	1.75B	2.07B	2.43B	2.95B
Total Liabilities	4.82B	4.82B	4.42B	4.88B	4.96B	5.55B
Stockholders Equity	7.34B	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: Negative
• Last Price: 2313.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9769, the sentiment is Negative. The current price of 2313 is below the 20-day moving average (MA) of 2324.70, below the 50-day MA of 2328.90, and above the 200-day MA of 2155.59, indicating a neutral trend. The MACD of 0.41 indicates Positive momentum. The RSI at 46.44 is Neutral, neither overbought nor oversold. The STOCH value of 26.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9769.

Gakkyusha Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9795	80 Outperform	39.51B	14.78	9.56%	3.22%	5.34%	-0.95%
9769	73 Outperform	¥25.37B	13.78		3.89%	-0.36%	-2.22%
4718	73 Outperform	53.18B	21.64	15.40%	1.60%	7.19%	33.38%
4668	64 Neutral	18.51B	16.15	4.49%	3.52%	10.85%	123.10%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Gakkyusha Co., Ltd. Corporate Events

Gakkyusha Co., Ltd. Maintains Independence Amid Shareholder Dynamics

Gakkyusha Co., Ltd. has announced details about its controlling shareholders, highlighting that KSKK Co., Ltd. holds 37.7% of its voting rights. Despite this significant shareholding, KSKK Co., Ltd., primarily engaged in real estate rental, maintains no business tie-ups with Gakkyusha, ensuring the latter’s operational independence. This structure allows Gakkyusha to operate without constraints from its major shareholder, preserving its strategic autonomy.

Gakkyusha Co., Ltd. Reports Fiscal Year 2025 Financial Results

Gakkyusha Co., Ltd. reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a slight increase in net sales by 0.7% to 13,289 million yen. Despite a decrease in operating and ordinary profits, the company managed to increase its profit attributable to owners of the parent by 1.9%. The financial position improved with total assets rising to 12,156 million yen and net assets increasing to 7,338 million yen. The company announced a dividend increase to 90 yen per share and forecasted further growth in the next fiscal year with a 5% increase in net sales.