Waseda Academy Co., Ltd. (4718) AI Stock Analysis

• Market Cap: ¥47.69B
• Dividend Yield: 2.17%
• Average Volume (3M): 47.20K
• Price to Earnings (P/E): 19.1
• Beta (1Y): 0.51
• Revenue Growth: 7.19%
• EPS Growth: 33.38%
• Country: JP
• Employees: 1,090
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): -15.01
• Shares Outstanding: 19,012,451
• 10 Day Avg. Volume: 31,240
• 30 Day Avg. Volume: 47,196
• PEG Ratio: 1.28
• Price to Book (P/B): 2.49
• Price to Sales (P/S): 1.08
• P/FCF Ratio: 11.64
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: ¥2,834.00 ▲(12.06% Upside)

Waseda Academy Co., Ltd. scores well due to its strong financial performance, characterized by consistent growth and a solid balance sheet. Technical analysis indicates a bearish trend, which slightly offsets the positive financial outlook. Valuation metrics suggest the stock is fairly priced with moderate income potential. The absence of earnings call and corporate events data did not impact the score.

Waseda Academy Co., Ltd. Business Overview & Revenue Model

Company Description

Waseda Academy Co., Ltd. operates tutoring schools for elementary, middle, and high school students. It operates 180 schools; and 16 franchise schools under the KOBETSU SCHOOL brand. The company was incorporated in 1974 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Waseda Academy generates revenue primarily through tuition fees paid by students enrolled in its various educational programs and services. The company offers a range of courses, including one-on-one tutoring, group classes, and specialized preparatory programs, which attract a steady stream of students. Additionally, Waseda Academy may earn revenue from supplementary materials such as textbooks and online resources. Partnerships with educational institutions and participation in educational fairs also contribute to its revenue streams. The ongoing demand for quality educational services in Japan supports the company's earnings and growth potential.

Waseda Academy Co., Ltd. Financial Statement Overview

Summary

Waseda Academy Co., Ltd. exhibits strong financial health across all areas. It has demonstrated consistent revenue and profit growth, efficient cost management, and robust cash generation. With a solid balance sheet and low leverage, the company is well-positioned for future growth. Continued focus on improving cash flow will enhance financial flexibility.

Income Statement

Waseda Academy Co., Ltd. has demonstrated consistent revenue growth over the past years, with the latest year showing a notable 6.7% increase. The gross profit margin is strong at 31.12%, indicating efficient cost management. Net profit margin has improved to 6.67%, showcasing enhanced profitability. EBITDA and EBIT margins are healthy at 14.12% and 10.12%, respectively, pointing to robust operational performance.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.03, indicating minimal leverage and financial risk. The return on equity is commendable at 15.4%, reflecting efficient use of equity capital. A solid equity ratio of 62.0% underscores financial stability and a strong asset base.

Cash Flow

Waseda Academy has shown significant growth in free cash flow, with a growth rate of 46.6% year-over-year. The operating cash flow to net income ratio is robust at 1.66, indicating strong cash generation relative to net earnings. However, the free cash flow to net income ratio of 1.39 suggests potential for improved cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	35.55B	35.07B	32.87B	30.73B	28.55B	25.45B
Gross Profit	11.11B	10.92B	9.93B	8.82B	7.87B	6.68B
EBITDA	5.01B	4.95B	4.19B	3.61B	3.09B	2.02B
Net Income	2.41B	2.34B	2.13B	1.55B	1.11B	529.11M
Balance Sheet
Total Assets	22.15B	24.49B	23.06B	21.11B	19.66B	18.59B
Cash, Cash Equivalents and Short-Term Investments	6.91B	8.12B	7.67B	6.31B	5.21B	5.31B
Total Debt	466.36M	482.68M	520.86M	551.73M	609.56M	1.11B
Total Liabilities	7.99B	9.30B	8.79B	8.58B	8.23B	7.58B
Stockholders Equity	14.15B	15.18B	14.26B	12.53B	11.43B	11.00B
Cash Flow
Free Cash Flow	0.00	3.25B	2.22B	2.12B	1.87B	1.52B
Operating Cash Flow	0.00	3.89B	3.64B	2.91B	2.65B	1.90B
Investing Cash Flow	0.00	-1.34B	-2.36B	-1.13B	-1.70B	-439.73M
Financing Cash Flow	0.00	-2.12B	-761.14M	-687.86M	-1.04B	1.95B

Waseda Academy Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2529.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4718, the sentiment is Neutral. The current price of 2529 is below the 20-day moving average (MA) of 2582.75, below the 50-day MA of 2695.67, and above the 200-day MA of 2308.87, indicating a neutral trend. The MACD of -59.07 indicates Negative momentum. The RSI at 43.29 is Neutral, neither overbought nor oversold. The STOCH value of 83.52 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4718.

Waseda Academy Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9795	80 Outperform	¥38.94B	14.40	―	3.37%	5.34%	-0.95%
9470	75 Outperform	¥45.35B	13.92	―	2.47%	6.15%	-17.22%
9769	73 Outperform	¥25.60B	13.82	―	4.13%	-0.36%	-2.22%
4718	71 Outperform	¥47.69B	19.08	―	2.17%	7.19%	33.38%
9733	71 Outperform	¥56.98B	21.97	―	5.04%	10.27%	-6.00%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Waseda Academy Co., Ltd. Corporate Events

Waseda Academy Reports Increased Sales but Faces Operating Loss in Q2 2025

Waseda Academy Co., Ltd. reported a 7.3% increase in net sales for the three months ending June 30, 2025, compared to the same period in 2024. Despite the increase in sales, the company faced an operating loss of ¥326 million. The financial results indicate a challenging quarter, but the company maintains a strong equity-to-asset ratio of 63.9%, suggesting financial stability. The forecast for the fiscal year ending March 31, 2026, projects continued growth in net sales and profits, indicating a positive outlook for the company’s future performance.