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

• Market Cap: ¥42.26B
• Dividend Yield: 2.45%
• Average Volume (3M): 17.58K
• Price to Earnings (P/E): 17.6
• Beta (1Y): 0.53
• Revenue Growth: 6.48%
• EPS Growth: 18.62%
• Country: JP
• Employees: 1,090
• Sector: Consumer Defensive
• Sector Strength: 69
• Industry: Education & Training Services
• EPS (TTM): 45.95
• Shares Outstanding: 19,012,451
• 10 Day Avg. Volume: 24,440
• 30 Day Avg. Volume: 17,583
• PEG Ratio: 1.84
• Price to Book (P/B): 2.83
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: N/A
• Number of Analyst Covering: 0

• Rating: 63 Neutral
• Price Target: ―

Waseda Academy's strong financial performance underpins its stability and growth prospects, reflected in a financial performance score of 75. The technical analysis indicates potential short-term volatility, while the valuation score suggests the stock is reasonably priced with an attractive dividend yield. The lack of earnings call and corporate events data did not impact the assessment.

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

Company Description

Waseda Academy Co., Ltd. is a leading educational services provider based in Japan. The company specializes in offering supplementary education through a network of cram schools, or 'juku,' which cater primarily to elementary, junior high, and high school students. Waseda Academy is renowned for its rigorous curriculum aimed at preparing students for entrance examinations to prestigious schools and universities. The company operates a range of educational programs that include traditional classroom-based learning as well as online and digital learning solutions.

How the Company Makes Money

Waseda Academy Co., Ltd. generates revenue primarily through tuition fees collected from students enrolled in its cram schools. These fees are the mainstay of its income, reflecting the demand for high-quality educational preparation in Japan's competitive academic environment. The company offers various courses that cater to different educational levels and needs, thereby diversifying its income streams. Additionally, Waseda Academy may earn income from the sale of educational materials, such as textbooks and study guides, as well as through its online learning platforms. Partnerships with educational institutions or technology providers can also enhance its offerings and contribute to revenue, although these are supplementary to its core business model focused on direct educational services.

Waseda Academy Co., Ltd. Financial Statement Overview

Summary

Waseda Academy demonstrates strong revenue growth and profitability with a 19.4% increase in revenue and healthy profit margins. The balance sheet is robust with a high equity ratio and low debt levels. However, the absence of recent cash flow data is a concern, though historical performance suggests effective cash management.

Income Statement

Waseda Academy has shown robust revenue growth with a 19.4% increase from 2023 to TTM, indicating strong demand for its services. The gross profit margin is healthy at 30.7% TTM, and the net profit margin improved to 6.4%, reflecting efficient cost management. The EBIT and EBITDA margins of 9.5% and 13.3% respectively indicate solid operational performance, contributing to its high profitability score.

Balance Sheet

The company maintains a strong equity position with an equity ratio of 58% TTM. The debt-to-equity ratio is low at 0.04, indicating low financial leverage and reduced risk. Return on equity is impressive at 15.96%, showing effective utilization of equity to generate profit. However, the increase in debt from the previous year could be a potential area to monitor.

Cash Flow

The cash flow metrics are less positive due to unreported operating and free cash flow in the TTM period. Historically, free cash flow has grown, but the lack of recent data hampers comprehensive analysis. The operating cash flow to net income ratio of 1.71 in 2023 indicates strong cash generation relative to earnings, but current data would provide better insights.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
34.47B	32.87B	30.73B	28.55B	25.45B	24.61B
	Gross Profit
10.58B	9.93B	8.82B	7.87B	6.68B	6.88B
	EBIT
3.27B	2.89B	2.40B	1.82B	1.06B	1.17B
	EBITDA
4.59B	4.19B	3.61B	3.09B	2.02B	2.29B
	Net Income Common Stockholders
2.22B	2.13B	1.55B	1.11B	529.11M	772.44M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.77B	7.67B	6.31B	5.21B	5.31B	1.89B
	Total Assets
23.99B	23.06B	21.11B	19.66B	18.59B	15.32B
	Total Debt
522.00M	520.86M	551.73M	609.56M	1.11B	1.23B
	Net Debt
-6.22B	-7.15B	-5.75B	-4.60B	-4.20B	-665.19M
	Total Liabilities
10.08B	8.79B	8.58B	8.23B	7.58B	7.08B
	Stockholders Equity
13.91B	14.26B	12.53B	11.43B	11.00B	8.24B
Cash Flow		Free Cash Flow
0.00	2.22B	2.12B	1.87B	1.52B	744.22M
	Operating Cash Flow
0.00	3.64B	2.91B	2.65B	1.90B	1.53B
	Investing Cash Flow
0.00	-2.36B	-1.13B	-1.70B	-439.73M	-146.47M
	Financing Cash Flow
0.00	-761.14M	-687.86M	-1.04B	1.95B	-999.16M

Waseda Academy Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2241.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4718, the sentiment is Positive. The current price of 2241 is above the 20-day moving average (MA) of 2224.20, above the 50-day MA of 2116.20, and above the 200-day MA of 1813.32, indicating a bullish trend. The MACD of 43.81 indicates Positive momentum. The RSI at 56.32 is Neutral, neither overbought nor oversold. The STOCH value of 64.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
9735	75 Outperform	$2.39T	20.69	8.55%	1.73%	3.60%	6.61%
4712	72 Outperform	¥14.28B	5.77		1.33%	17.70%	68.00%
4668	66 Neutral	¥17.96B	18.45		3.49%	9.70%	45.81%
Sector *	64 Neutral	$8.88B	14.67	4.78%	173.89%	3.39%	2.18%
4718	63 Neutral	¥42.26B	17.64		2.45%	6.48%	18.62%
4678	54 Neutral	¥1.95B	6.53		3.45%	2.17%	―

Waseda Academy Co., Ltd. Corporate Events

Waseda Academy Announces Change in Major Shareholder

Waseda Academy Co., Ltd. announced a change in its major shareholder as of March 31, 2025. The change involves Shinichi Kawabata, who maintains his position as the second-largest shareholder with a slight decrease in his voting rights ratio from 10.10% to 9.96%. This adjustment in shareholder structure is confirmed not to impact the company’s business performance.