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Seigakusha Co., Ltd. (JP:2179)
:2179
Japanese Market

Seigakusha Co., Ltd. (2179) AI Stock Analysis

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JP

Seigakusha Co., Ltd.

(2179)

Rating:72Outperform
Price Target:
¥839.00
▲(12.47%Upside)
Seigakusha Co., Ltd. is supported by strong financial performance, particularly in revenue growth and profitability margins. The valuation is attractive with a low P/E ratio and a decent dividend yield, suggesting potential undervaluation. However, technical indicators present mixed signals, with some bearish trends that warrant caution. The lack of earnings call insights or notable corporate events implies that the financial and valuation aspects are the primary drivers of the stock's score.

Seigakusha Co., Ltd. (2179) vs. iShares MSCI Japan ETF (EWJ)

Seigakusha Co., Ltd. Business Overview & Revenue Model

Company DescriptionSeigakusha Co., Ltd. (2179) is a Japan-based company primarily engaged in providing educational services. The company operates in the education sector, offering a variety of learning programs and tutoring services. These include preparatory schools, private tutoring, and other educational services aimed at students preparing for entrance exams in Japan. Seigakusha is committed to delivering high-quality educational support to enhance students' academic performance.
How the Company Makes MoneySeigakusha Co., Ltd. generates revenue primarily through tuition fees collected from students enrolled in its various educational programs. The company's key revenue streams include fees from preparatory school courses, private tutoring sessions, and other academic services. The company may also earn income from educational materials and resources provided to students. Significant factors contributing to its earnings include the competitive nature of entrance exams in Japan, which drives demand for quality tutoring and preparatory education. Additionally, Seigakusha's reputation and track record in improving student outcomes help sustain and grow its customer base.

Seigakusha Co., Ltd. Financial Statement Overview

Summary
Seigakusha Co., Ltd. exhibits a healthy financial profile with consistent revenue growth and improving profitability margins. The balance sheet reflects a stable financial position with moderate leverage. Cash flow metrics indicate strong cash generation, though a recent dip in free cash flow suggests monitoring future investments and expenditures.
Income Statement
78
Positive
Seigakusha Co., Ltd. has shown a robust revenue growth rate of 9% from 2024 to 2025, with consistent increases over the years. The gross profit margin improved to 21.9%, indicating efficient cost management. Net profit margin stands at 3.2%, showing positive profitability trends, though relatively modest in the industry context. The EBIT margin of 5.4% and EBITDA margin of 8.2% demonstrate operational efficiency, albeit with room for improvement.
Balance Sheet
72
Positive
The company maintains a solid equity ratio of 40.7%, reflecting financial stability. A debt-to-equity ratio of 0.61 indicates a manageable level of leverage. Return on equity at 11.9% suggests effective use of equity to generate profits. Overall, the balance sheet reflects a well-managed financial position, though further reduction in debt could enhance financial flexibility.
Cash Flow
75
Positive
Operating cash flow to net income ratio is robust at 2.2, indicating strong cash generation relative to net income. Free cash flow has decreased by 8.1% from 2024 to 2025, but it remains positive, supporting company investments and operations. The free cash flow to net income ratio of 1.2 highlights effective conversion of income to cash, ensuring liquidity.
Breakdown
Mar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
14.29B13.10B12.67B12.33B11.64B
Gross Profit
3.13B2.80B2.67B2.49B1.89B
EBIT
778.00M702.95M712.17M640.45M25.36M
EBITDA
1.18B1.02B995.89M1.04B351.43M
Net Income Common Stockholders
461.00M433.81M421.50M331.67M-106.57M
Balance SheetCash, Cash Equivalents and Short-Term Investments
2.18B2.00B1.70B1.73B1.75B
Total Assets
9.47B8.86B8.51B8.49B8.69B
Total Debt
2.34B2.36B2.48B2.84B3.55B
Net Debt
163.00M361.55M775.71M1.11B1.79B
Total Liabilities
5.61B5.39B5.36B5.67B6.17B
Stockholders Equity
3.86B3.47B3.15B2.82B2.52B
Cash FlowFree Cash Flow
531.00M577.75M425.20M707.21M-25.01M
Operating Cash Flow
1.01B1.04B802.21M1.04B260.35M
Investing Cash Flow
-338.00M-538.99M-419.61M-190.59M-380.35M
Financing Cash Flow
-166.00M-227.91M-437.90M-748.80M126.22M

Seigakusha Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price746.00
Price Trends
50DMA
757.17
Negative
100DMA
775.08
Negative
200DMA
767.91
Negative
Market Momentum
MACD
-1.80
Positive
RSI
45.90
Neutral
STOCH
64.55
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2179, the sentiment is Negative. The current price of 746 is below the 20-day moving average (MA) of 752.35, below the 50-day MA of 757.17, and below the 200-day MA of 767.91, indicating a bearish trend. The MACD of -1.80 indicates Positive momentum. The RSI at 45.90 is Neutral, neither overbought nor oversold. The STOCH value of 64.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2179.

Seigakusha Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥24.62B13.10
4.00%0.69%1.90%
75
Outperform
¥4.27B8.96
1.73%1.03%
73
Outperform
¥3.36B11.52
2.42%2.85%-5.28%
72
Outperform
¥4.21B9.11
2.55%9.04%6.37%
70
Outperform
¥18.41B18.91
3.39%9.70%45.81%
65
Neutral
$8.91B14.974.70%203.30%3.50%-2.45%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2179
Seigakusha Co., Ltd.
758.00
-8.43
-1.10%
JP:4319
TAC Co., Ltd.
230.00
54.78
31.26%
JP:4645
Ichishin Holdings Co., Ltd.
409.00
-65.41
-13.79%
JP:4668
Meiko Network Japan Co., Ltd.
734.00
37.21
5.34%
JP:9769
Gakkyusha Co., Ltd.
2,245.00
247.78
12.41%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.