Step Co., Ltd. (9795) AI Stock Analysis

• Market Cap: ¥41.81B
• Dividend Yield: 3.55%
• Average Volume (3M): 22.52K
• Price to Earnings (P/E): 14.9
• Beta (1Y): 0.30
• Revenue Growth: 4.95%
• EPS Growth: 9.43%
• Country: JP
• Employees: 945
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 74.40
• Shares Outstanding: 16,670,000
• 10 Day Avg. Volume: 10,720
• 30 Day Avg. Volume: 22,523
• PEG Ratio: 1.55
• Price to Book (P/B): 1.44
• Price to Sales (P/S): 2.49
• P/FCF Ratio: 12.71
• 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): 175.7
• Revenue Forecast (FY): ¥16.60B

• Rating: 70 Outperform
• Price Target: ¥2,611.00 ▲(7.85% Upside)
• Action: Reiterated Date: 12/11/25
• Date: Action: Reiterated 12/11/25

Step Co., Ltd. scores well due to its strong financial performance and reasonable valuation. However, technical analysis indicates bearish momentum, which could pose short-term risks. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Revenue Growth

The robust revenue growth indicates strong market demand for Step Co., Ltd.'s offerings, supporting long-term business expansion and market positioning.

Balance Sheet Health

Minimal leverage reduces financial risk, providing Step Co., Ltd. with greater flexibility to invest in growth opportunities and withstand economic downturns.

Profit Margins

Strong profit margins reflect efficient cost management, enhancing Step Co., Ltd.'s ability to reinvest in the business and sustain competitive advantages.

Negative Factors

Free Cash Flow Volatility

Volatility in free cash flow growth may impact Step Co., Ltd.'s ability to consistently fund operations and strategic initiatives, potentially affecting long-term stability.

Technical Analysis

While not a fundamental factor, bearish technical indicators could signal investor concerns, potentially impacting Step Co., Ltd.'s market perception and capital raising ability.

Earnings Call Data Absence

The lack of recent earnings call data limits transparency and investor insight into Step Co., Ltd.'s strategic direction and management's outlook, potentially affecting investor confidence.

Step Co., Ltd. Business Overview & Revenue Model

Company Description

Step Co.,Ltd. operates cram schools in Japan. The company also operates and manages childcare and nursery schools. It has 154 schools in Kanagawa prefecture. The company was founded in 1975 and is headquartered in Fujisawa, Japan.

How the Company Makes Money

Step Co., Ltd. generates revenue primarily through its diverse portfolio of technology solutions and services. The company earns income from software licensing, where clients pay for the right to use its proprietary software products, as well as from custom software development projects tailored to specific client needs. Additionally, Step Co., Ltd. offers IT consulting services, providing expert advice and strategies that help organizations optimize their technology investments. Key revenue streams also include maintenance and support services for its software products, ensuring ongoing customer satisfaction and retention. Significant partnerships with other technology firms and enterprises enhance its market reach and contribute to its earnings by enabling collaborative projects and expanding its service offerings.

Step Co., Ltd. Financial Statement Overview

Summary

Step Co., Ltd. demonstrates strong financial performance with significant revenue growth, healthy profit margins, and a stable balance sheet with minimal leverage. Cash flow management is efficient, though there is some volatility in free cash flow growth.

Income Statement

Step Co., Ltd. has demonstrated strong revenue growth with a significant increase of 83.9% in the latest year, indicating robust expansion. The company maintains healthy profit margins, with a net profit margin of 16.97% and an EBIT margin of 24.40%, showcasing efficient cost management and profitability. The consistent improvement in gross profit margin over the years further highlights operational efficiency.

Balance Sheet

The company's balance sheet is solid, characterized by a very low debt-to-equity ratio of 0.005, indicating minimal leverage and financial risk. The equity ratio is strong, reflecting a stable financial structure. Return on equity has been consistently positive, underscoring effective use of shareholder funds to generate profits.

Cash Flow

Step Co., Ltd. exhibits strong cash flow management, with a high operating cash flow to net income ratio of 1.43, indicating efficient cash generation relative to profits. The free cash flow to net income ratio is also robust at 0.92, suggesting good cash conversion. However, the free cash flow growth rate has been volatile, which could pose potential risks.

Breakdown	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	15.85B	15.10B	14.44B	13.65B	13.04B
Gross Profit	4.69B	4.36B	4.00B	4.44B	4.27B
EBITDA	4.39B	4.09B	3.72B	4.16B	4.02B
Net Income	2.69B	2.51B	2.41B	2.56B	2.47B
Balance Sheet
Total Assets	30.57B	29.26B	28.63B	27.57B	26.79B
Cash, Cash Equivalents and Short-Term Investments	7.84B	9.67B	9.73B	9.35B	8.65B
Total Debt	142.25M	295.53M	311.87M	409.02M	1.58B
Total Liabilities	3.15B	3.02B	2.70B	2.77B	3.92B
Stockholders Equity	27.42B	26.24B	25.94B	24.80B	22.87B
Cash Flow
Free Cash Flow	3.11B	3.13B	2.38B	2.71B	3.41B
Operating Cash Flow	3.38B	3.38B	2.85B	3.06B	3.72B
Investing Cash Flow	-3.19B	-937.54M	-1.03B	-388.41M	-401.88M
Financing Cash Flow	-2.02B	-2.50B	-1.45B	-1.97B	-2.55B

Step Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2421.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9795, the sentiment is Positive. The current price of 2421 is below the 20-day moving average (MA) of 2510.35, below the 50-day MA of 2481.84, and above the 200-day MA of 2363.30, indicating a bullish trend. The MACD of 15.60 indicates Negative momentum. The RSI at 55.21 is Neutral, neither overbought nor oversold. The STOCH value of 78.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9795.

Step Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9470	75 Outperform	¥46.22B	13.99	―	2.28%	7.30%	60.93%
9769	72 Outperform	¥26.70B	14.85	―	4.01%	-1.18%	-12.01%
4714	71 Outperform	¥33.82B	22.60	―	5.00%	―	―
9795	70 Outperform	¥41.81B	14.93	―	3.55%	4.95%	9.43%
4718	70 Outperform	¥38.49B	15.47	―	2.56%	7.41%	22.70%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Step Co., Ltd. Corporate Events

STEP Co., Ltd. Reports Progress on Ongoing Share Buyback Program

STEP Co., Ltd. announced that it repurchased 31,000 of its common shares on the Tokyo Stock Exchange between December 1 and December 31, 2025, for a total of 74,318,100 yen, as part of a board-approved share buyback program conducted under the Companies Act. Under the broader authorization granted on September 25, 2025—allowing up to 280,000 shares and 672,000,000 yen in purchases through September 30, 2026—the company has cumulatively bought back 121,200 shares for 292,235,800 yen by the end of December 2025, signaling an ongoing effort to enhance capital efficiency and shareholder value through treasury stock acquisition.

The most recent analyst rating on (JP:9795) stock is a Buy with a Yen2611.00 price target. To see the full list of analyst forecasts on Step Co., Ltd. stock, see the JP:9795 Stock Forecast page.

STEP Co. Clarifies Relationship and Independence from Major Affiliated Shareholder K-Planning

STEP Co., Ltd. has disclosed that K-Planning Co., Ltd. is classified as one of its other affiliated companies, holding 36.24% of STEP’s voting rights as of September 30, 2025. Although STEP’s Representative Director and Chairman, Kyoji Tatsui, concurrently serves as Representative Director of K-Planning and several STEP officers and managing executive officers have invested in K-Planning’s shareholding association, the company emphasizes that K-Planning’s role is limited to managing securities and related assets, there are no special approval requirements imposed on STEP’s business or management decisions, and therefore STEP’s operational independence is maintained; the company also reports that there are currently no transactions with this controlling shareholder.

The most recent analyst rating on (JP:9795) stock is a Buy with a Yen2611.00 price target. To see the full list of analyst forecasts on Step Co., Ltd. stock, see the JP:9795 Stock Forecast page.

STEP Co., Ltd. Announces Share Repurchase

STEP Co., Ltd. has announced the repurchase of 55,900 of its own common shares, amounting to 134,899,800 yen, through market purchases on the Tokyo Stock Exchange during October 2025. This move is part of a broader resolution to acquire up to 280,000 shares, reflecting 1.78% of the total issued shares, with a total acquisition cost capped at 672,000,000 yen, extending until September 2026.

The most recent analyst rating on (JP:9795) stock is a Buy with a Yen2730.00 price target. To see the full list of analyst forecasts on Step Co., Ltd. stock, see the JP:9795 Stock Forecast page.

STEP Co., Ltd. Increases Year-End Dividend for FY2025

STEP Co., Ltd. announced a decision to increase its year-end dividend to ¥45.00 per share for the fiscal year ending September 30, 2025, up from the previous forecast of ¥41.00. This move aligns with the company’s policy of prioritizing shareholder returns and reflects its strong business performance, with total dividend payments amounting to ¥709,709 thousand.

The most recent analyst rating on (JP:9795) stock is a Buy with a Yen2647.00 price target. To see the full list of analyst forecasts on Step Co., Ltd. stock, see the JP:9795 Stock Forecast page.