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

• Market Cap: ¥24.79B
• Dividend Yield: 4.14%
• Average Volume (3M): 8.74K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 0.37
• Revenue Growth: -1.18%
• EPS Growth: -12.01%
• Country: JP
• Employees: 535
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 89.98
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥2,533.00 ▲(10.32% Upside)

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

Financial Stability

Gakkyusha's low leverage and strong equity ratio indicate financial stability, reducing risk and providing a solid foundation for future growth.

Cash Flow Efficiency

Efficient cash conversion supports ongoing investments and shareholder returns, enhancing long-term financial health and operational flexibility.

Profitability

Strong profit margins reflect effective cost management and operational efficiency, supporting sustainable profitability and competitive positioning.

Negative Factors

Revenue Growth Challenges

Negative revenue growth indicates potential challenges in market expansion or service uptake, which could impact long-term business prospects.

Earnings Growth Decline

Declining EPS growth suggests potential profitability pressures, which may affect investor confidence and the company's ability to reinvest in growth.

Free Cash Flow Alignment

Misalignment between free cash flow and net income growth could limit the company's ability to fund new initiatives and return value to shareholders.

Gakkyusha Co., Ltd. Business Overview & Revenue Model

Company Description

Gakkyusha Co., Ltd. (9769) is a Japanese company primarily engaged in the education and publishing sectors. The company focuses on developing educational materials, including textbooks and digital learning resources, catering to various educational levels. Gakkyusha also offers supplementary services such as teacher training and educational consulting, aiming to enhance the overall learning experience for students and educators alike.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: Negative
• Last Price: 2296.00
• 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 2296 is below the 20-day moving average (MA) of 2304.50, below the 50-day MA of 2301.15, and above the 200-day MA of 2206.86, indicating a neutral trend. The MACD of 4.59 indicates Positive momentum. The RSI at 48.22 is Neutral, neither overbought nor oversold. The STOCH value of 25.36 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	75 Outperform	¥40.17B	14.29	―	3.54%	4.95%	9.54%
9769	72 Outperform	¥24.79B	13.46	―	4.14%	-1.18%	-12.01%
4718	70 Outperform	¥43.86B	17.19	―	2.58%	7.41%	22.70%
4668	64 Neutral	¥17.66B	10.29	―	3.79%	9.96%	252.72%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Gakkyusha Co., Ltd. Corporate Events

Gakkyusha Co., Ltd. Reports Financial Results with Increased Profits and Dividends

Gakkyusha Co., Ltd. reported its consolidated financial results for the six months ending September 30, 2025, showing a slight decrease in net sales by 1.6% compared to the previous year. Despite this, the company achieved a 6.1% increase in operating profit, indicating improved operational efficiency. The company also announced an increase in dividends, reflecting a positive outlook for the fiscal year ending March 31, 2026, with a forecasted 5% growth in net sales and a 12.2% rise in operating profit.