Ichishin Holdings Co., Ltd. (4645) AI Stock Analysis

Ichishin Holdings Co., Ltd.

(TSE/TYO:4645)

Select Model

Rating:77Outperform

Price Target:JPY 495.00▲(12.24% Upside)

Action:upgraded

Date:08/04/26

Ichishin Holdings' overall score of 77 is primarily driven by its deeply discounted valuation and exceptional cash flow generation. The extremely low P/E ratio and strong free cash flow conversion present compelling value, while bullish technical trends indicate positive market sentiment. Elevated debt levels act as the most significant secondary risk factor, though management's proactive deleveraging and high return on equity demonstrate fundamentally sound financial management.

Positive Factors

Consistent positive cash generationSustained positive operating cash flow and a material free cash flow recovery in 2025–2026 indicate the business can internally fund operations, service debt and support dividends or selective reinvestment. Over a 2–6 month horizon this underpins balance sheet resilience and execution capacity.

Negative Factors

High leverage limits flexibilityPersistently high debt-to-equity and sizable total debt constrain financial flexibility, increase refinancing and interest rate vulnerability, and limit capacity for M&A or investment. Over the medium term this elevates solvency risk and narrows strategic options during downturns.

Ichishin Holdings Co., Ltd. (4645) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 3.60B
Dividend Yield: 2.27%
Average Volume (3M): 1,960
Price to Earnings (P/E): 13.7
Beta (1Y): 0.17
Revenue Growth: 2.49%
EPS Growth: -71.48%
Country: Japan
Employees: 924
Sector: Consumer Defensive
Sector Strength: 62
Industry: Education & Training Services

Ichishin Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

Ichishin Holdings Co.,Ltd., through its subsidiaries, engages in the education business in Japan. The company operates cram schools for elementary school students, junior high school students, high school students, and high school graduates; entrance...

Ichishin Holdings Co., Ltd. Financial Statement Overview

Summary

Solid operational progress with surging net income and exceptional cash flow conversion, highlighted by an FCF to net income ratio of 1.75x. While the balance sheet carries elevated leverage (debt-to-equity of 2.62x), proactive debt reduction and an impressive ROE above 25% help mitigate these risks.

Income Statement

70Positive

Balance Sheet

60Neutral

Cash Flow

85Very Positive

Financial statement breakdown
Breakdown	TTM	Feb 2026	Feb 2025	Feb 2024	Feb 2023	Feb 2022
Income Statement
Total Revenue	18.65B	18.65B	18.46B	17.95B	17.29B	17.32B
Gross Profit	3.08B	3.08B	3.08B	3.07B	2.98B	3.04B
EBITDA	2.08B	1.37B	1.25B	1.26B	1.23B	1.28B
Net Income	628.09M	628.55M	317.30M	363.26M	365.90M	421.56M
Balance Sheet
Total Assets	13.40B	13.40B	13.87B	13.16B	12.42B	12.71B
Cash, Cash Equivalents and Short-Term Investments	5.14B	5.14B	4.39B	4.28B	4.13B	4.60B
Total Debt	6.45B	6.45B	7.09B	6.29B	6.06B	6.38B
Total Liabilities	10.88B	10.88B	11.67B	10.42B	10.12B	10.64B
Stockholders Equity	2.46B	2.46B	2.15B	2.70B	2.27B	2.05B
Cash Flow
Free Cash Flow	0	1.10B	891.51M	268.98M	387.76M	1.16B
Operating Cash Flow	0	1.37B	1.19B	657.91M	855.57M	1.61B
Investing Cash Flow	0	280.49M	-763.18M	-261.13M	-724.91M	-481.63M
Financing Cash Flow	0	-926.60M	-356.84M	-226.57M	-609.36M	-276.78M

Ichishin Holdings Co., Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price441.00

Price Trends

50DMA437.06Positive

100DMA433.65Positive

200DMA432.26Positive

Market Momentum

MACD-0.21Negative

RSI54.65Neutral

STOCH47.62Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4645, the sentiment is Positive. The current price of 441.00 is above the 20-day moving average (MA) of 437.30, above the 50-day MA of 437.06, and above the 200-day MA of 432.26, indicating a bullish trend. The MACD of -0.21 indicates Negative momentum. The RSI at 54.65 is Neutral, neither overbought nor oversold. The STOCH value of 47.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4645.

Ichishin Holdings Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

JP:4645 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:4718	86Outperform	JPY 52.03B	19.34	―	2.36%	7.90%	7.66%
JP:4645	77Outperform	JPY 3.59B	13.70	―	2.27%	2.49%	-71.48%
JP:4714	72Outperform	JPY 49.97B	25.34	―	3.40%	4.45%	40.72%
JP:9470	68Neutral	JPY 44.39B	12.12	―	2.84%	7.30%	12.44%
Sector *	62Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
JP:4678	61Neutral	JPY 2.23B	22.33	―	3.01%	1.03%	-62.01%
JP:4668	55Neutral	JPY 16.25B	21.14	―	4.12%	4.87%	-51.32%

* Consumer Defensive Sector Average

Performance Comparison

JP:4645 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:4645	Ichishin Holdings Co., Ltd.	441.00	-8.75	-1.95%
JP:4668	Meiko Network Japan Co., Ltd.	704.00	26.66	3.94%
JP:4678	Shuei Yobiko Co., Ltd.	332.00	51.48	18.35%
JP:4714	Riso Kyoiku Co., Ltd.	294.00	106.52	56.81%
JP:4718	Waseda Academy Co., Ltd.	2759.00	447.76	19.37%
JP:9470	Gakken Holdings Co., Ltd.	1020.00	21.25	2.13%

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

Ichishin Holdings Co., Ltd. AI Stock Analysis