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SuRaLa Net Co., Ltd. (JP:3998)
:3998
Japanese Market
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SuRaLa Net Co., Ltd. (3998) AI Stock Analysis

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JP:3998

SuRaLa Net Co., Ltd.

(3998)

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Neutral 61 (OpenAI - Gpt-5.6Sol)
Rating:61Neutral
Price Target:
¥291.00
▼(-21.98% Downside)
Action:Reiterated
Date:08/04/26
The score is primarily supported by a very strong, low-risk balance sheet and generally positive cash generation, but it is held back by materially weakened profitability (including slightly negative net income) and an unattractive earnings-based valuation signal (negative P/E). Technicals are supportive of an uptrend, but overbought readings temper the outlook.
Positive Factors
Recurring adaptive-learning platform
A cloud-based adaptive platform with recurring contract and license economics can deepen customer relationships as institutions add students, grades, subjects, or schools. That expansion potential supports repeat revenue and makes the product more embedded in education workflows over the medium term.
Negative Factors
Material profitability deterioration
The sharp decline in EBITDA margin and move into a slight net loss indicate that revenue growth is not currently translating into durable earnings power. Continued margin pressure could constrain reinvestment, weaken returns, and increase earnings volatility over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring adaptive-learning platform
A cloud-based adaptive platform with recurring contract and license economics can deepen customer relationships as institutions add students, grades, subjects, or schools. That expansion potential supports repeat revenue and makes the product more embedded in education workflows over the medium term.
Read all positive factors

SuRaLa Net Co., Ltd. (3998) vs. iShares MSCI Japan ETF (EWJ)

SuRaLa Net Co., Ltd. Business Overview & Revenue Model

Company Description
SuRaLa Net Co.,Ltd. specializes in delivering online educational solutions, catering to markets both within Japan and globally. Additionally, the firm offers a suite of supplementary services, including operational advisory, promotional strategies...
How the Company Makes Money
SuRaLa Net primarily makes money by providing its e-learning products and related services under contracts to educational customers. Key revenue streams are: (1) Usage/license fees for its “Surala” learning platform and digital content, typically ...

SuRaLa Net Co., Ltd. Financial Statement Overview

Summary
Income statement quality is weak despite 2025 revenue re-acceleration (+27.8%) as profitability deteriorated sharply (net income slightly negative and EBITDA margin down to ~13% vs ~21% in 2024 and ~30%+ in 2021–2023). Offsetting this, the balance sheet is very strong with essentially no debt and a large equity base, and cash flow is generally positive with free cash flow rebounding in 2025 (¥238mm) after a negative 2024—though cash generation remains choppy.
Income Statement
46
Neutral
Balance Sheet
82
Very Positive
Cash Flow
64
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.88B1.93B1.95B2.15B2.15B1.95B
Gross Profit1.10B1.17B1.23B1.47B1.54B1.47B
EBITDA296.34M356.98M483.56M629.53M660.93M659.38M
Net Income-45.73M-3.78M72.89M304.35M355.40M399.78M
Balance Sheet
Total Assets2.99B2.48B2.67B2.71B2.67B2.13B
Cash, Cash Equivalents and Short-Term Investments1.18B767.89M1.06B1.15B1.33B1.24B
Total Debt500.00M0.000.001.50M107.50M0.00
Total Liabilities792.51M275.19M407.10M457.05M600.73M415.13M
Stockholders Equity2.18B2.19B2.24B2.22B2.03B1.71B
Cash Flow
Free Cash Flow0.00238.26M372.40M475.30M509.98M281.85M
Operating Cash Flow0.00239.65M372.85M475.54M542.50M502.68M
Investing Cash Flow0.00-484.42M-414.90M-433.83M-503.71M-222.88M
Financing Cash Flow0.00-48.40M-51.69M-220.51M50.11M11.76M

SuRaLa Net Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price373.00
Price Trends
50DMA
297.14
Negative
100DMA
303.64
Negative
200DMA
313.40
Negative
Market Momentum
MACD
-4.52
Positive
RSI
27.82
Positive
STOCH
19.88
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3998, the sentiment is Negative. The current price of 373 is above the 20-day moving average (MA) of 288.75, above the 50-day MA of 297.14, and above the 200-day MA of 313.40, indicating a bearish trend. The MACD of -4.52 indicates Positive momentum. The RSI at 27.82 is Positive, neither overbought nor oversold. The STOCH value of 19.88 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3998.

SuRaLa Net Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
¥11.20B12.97―2.49%21.04%1.74%
79
Outperform
¥3.56B35.48―1.34%-1.08%108.06%
76
Outperform
¥1.94B11.08―2.59%-2.92%-20.86%
62
Neutral
¥3.52B8.86――11.12%64.89%
61
Neutral
¥1.87B-37.86――-2.24%-140.19%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3998
SuRaLa Net Co., Ltd.
276.00
-104.00
-27.37%
JP:7353
KIYO Learning Co Ltd
513.00
-295.00
-36.51%
JP:9339
COACH A Co., Ltd.
1,490.00
42.92
2.97%
JP:9345
Bizmates,Inc.
580.00
-396.30
-40.59%
JP:9560
PROGRIT, Inc.
883.00
-256.38
-22.50%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Aug 04, 2026