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

• Market Cap: ¥39.80B
• Dividend Yield: 3.55%
• Average Volume (3M): 22.52K
• Price to Earnings (P/E): 14.2
• Beta (1Y): 0.28
• Revenue Growth: 4.95%
• EPS Growth: 9.43%
• Country: JP
• Employees: 945
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 44.54
• Shares Outstanding: 16,670,000
• 10 Day Avg. Volume: 10,720
• 30 Day Avg. Volume: 22,523
• PEG Ratio: 1.81
• Price to Book (P/B): 1.17
• Price to Sales (P/S): 2.03
• P/FCF Ratio: 9.80
• 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: 70 Outperform
• Price Target: ¥2,611.00 ▲(8.30% Upside)

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. presents a solid financial profile with strong revenue growth, high profitability, and minimal leverage. The company maintains a stable balance sheet and robust cash flow, indicating a well-managed financial structure. The consistent growth and efficient operations position the company favorably within the Education & Training Services industry, with limited financial risks and a strong outlook for future performance.

Income Statement

Step Co., Ltd. has demonstrated consistent revenue growth with a 4.55% increase in the latest year, alongside strong profitability metrics. The gross profit margin stands at 28.91%, and the net profit margin is 16.62%, indicating efficient cost management and robust profitability. The EBIT margin of 23.26% and EBITDA margin of 26.67% further reinforce the company's operational efficiency. These metrics suggest a healthy income statement with a positive growth trajectory.

Balance Sheet

The balance sheet of Step Co., Ltd. is strong, with a low debt-to-equity ratio of 0.01, indicating minimal leverage and financial risk. The return on equity (ROE) is 9.56%, reflecting effective use of equity to generate profits. The equity ratio of 89.66% shows a high level of financial stability and a strong asset base. Overall, the balance sheet reflects a stable financial position with low risk.

Cash Flow

Step Co., Ltd. exhibits a healthy cash flow position with a free cash flow growth rate of 31.87%, indicating strong cash generation capabilities. The operating cash flow to net income ratio of 1.35 suggests efficient conversion of net income into cash. Additionally, the free cash flow to net income ratio of 1.25 highlights the company's ability to generate ample free cash flow relative to its net income. These metrics underline a robust cash flow statement with strong liquidity.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	15.72B	15.85B	15.10B	14.44B	13.65B	13.04B
Gross Profit	4.52B	4.69B	4.36B	4.00B	4.44B	4.27B
EBITDA	4.30B	4.39B	4.09B	3.72B	4.16B	4.02B
Net Income	2.59B	2.69B	2.51B	2.41B	2.56B	2.47B
Balance Sheet
Total Assets	28.94B	30.57B	29.26B	28.63B	27.57B	26.79B
Cash, Cash Equivalents and Short-Term Investments	8.69B	7.84B	9.67B	9.73B	9.35B	8.65B
Total Debt	179.52M	142.25M	295.53M	311.87M	409.02M	1.58B
Total Liabilities	2.34B	3.15B	3.02B	2.70B	2.77B	3.92B
Stockholders Equity	26.60B	27.42B	26.24B	25.94B	24.80B	22.87B
Cash Flow
Free Cash Flow	0.00	3.11B	3.13B	2.38B	2.71B	3.41B
Operating Cash Flow	0.00	3.38B	3.38B	2.85B	3.06B	3.72B
Investing Cash Flow	0.00	-3.19B	-937.54M	-1.03B	-388.41M	-401.88M
Financing Cash Flow	0.00	-2.02B	-2.50B	-1.45B	-1.97B	-2.55B

Step Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2411.00
• 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 2411 is above the 20-day moving average (MA) of 2396.40, above the 50-day MA of 2401.50, and above the 200-day MA of 2310.27, indicating a bullish trend. The MACD of -4.39 indicates Negative momentum. The RSI at 53.52 is Neutral, neither overbought nor oversold. The STOCH value of 64.60 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	¥48.61B	12.99	―	2.28%	7.30%	60.93%
9769	72 Outperform	¥25.86B	14.81	―	4.01%	-1.18%	-12.01%
9795	70 Outperform	¥39.80B	14.15	―	3.55%	4.95%	9.43%
4718	70 Outperform	¥42.56B	16.68	―	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. 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.

STEP Co., Ltd. Announces Share Repurchase Plan

STEP Co., Ltd. has announced a resolution to repurchase up to 280,000 of its own shares, which accounts for 1.78% of the total issued shares, as part of its efforts to enhance capital efficiency and provide shareholder returns. The repurchase period is set from October 1, 2025, to September 30, 2026, with a maximum acquisition cost of 672 million yen, and will be conducted through market purchases on the Tokyo Stock Exchange.

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.

STEP Co., Ltd. Completes Treasury Share Disposition to Employees

STEP Co., Ltd. has completed the payment procedures for the disposition of treasury shares as restricted shares to its employees, following a resolution made by the board of directors on July 31, 2025. This move involves the disposal of 91,720 common shares at a value of 2,280 yen per share, totaling 209,121,600 yen, and is aimed at 376 employees, potentially impacting employee retention and motivation.

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.