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

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JP:4718

Waseda Academy Co., Ltd.

(TSE/TYO:4718)

Select Model
Rating:81Outperform
Price Target:JPY 3,234.00â–²(18.12% Upside)
Action:reiterated
Date:10/28/26

The company's exceptional financial strength, marked by a debt-free balance sheet, expanding margins, and robust cash flows, is the primary driver of the score. The stock's strong technical uptrend adds to the positive outlook, though overbought signals temper the near-term view. A fair valuation with a solid dividend yield provides additional support.

Positive Factors
Revenue and margin expansionSustained revenue growth alongside expanding gross, operating, and net margins indicates improving operating economics rather than growth purchased at declining profitability. This combination can strengthen internal funding capacity and support more durable earnings progression over the next several quarters.
Negative Factors
Moderating revenue growthThe slower latest growth rate suggests Waseda Academy is moving toward a more mature expansion profile, which may make future earnings growth increasingly dependent on margin gains or higher student and program penetration. That can limit the pace of compounding over the medium term.

Waseda Academy Co., Ltd. (4718) vs. iShares MSCI Japan ETF (EWJ)

-20%-10%0%10%20%30%JP:4718+20.34%EWJ+13.61%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 49.38B
Dividend Yield
2.37%
Average Volume (3M)
45.85K
Price to Earnings (P/E)
16.9
Beta (1Y)
0.51
Revenue Growth
8.48%
EPS Growth
20.40%
Country
Japan
Employees
1,109
Sector
General
Sector Strength
55
Industry
Education & Training Services

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

Company Description

Waseda Academy Co., Ltd. provides supplementary education through its network of tutoring centers, catering to students across elementary, middle, and high school levels. The company manages 180 direct-operation schools and supports an additional 16...

How the Company Makes Money

The company primarily makes money by charging customers (students and their families) fees for educational services. Its core revenue stream is tuition collected for enrollment in its tutoring and exam-preparation programs, typically priced by course...

Waseda Academy Co., Ltd. Financial Statement Overview

Summary

Strong financial health across all statements. Revenue growth is steady, margins are expanding (net margin 6.6%), the balance sheet is nearly debt-free (D/E 3.2%), and cash flow generation is robust with an 85.7% FCF conversion rate. The high ROE of 15.4% reflects excellent capital efficiency.

Income Statement

82Very Positive

Balance Sheet

95Very Positive

Cash Flow

90Very Positive
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue38.36B37.66B35.07B32.87B30.73B28.55B
Gross Profit12.53B12.19B10.92B9.93B8.82B7.87B
EBITDA5.16B4.96B4.95B4.19B3.61B3.09B
Net Income2.64B2.49B2.34B2.13B1.55B1.11B
Balance Sheet
Total Assets24.38B26.20B24.49B23.45B21.51B20.08B
Cash, Cash Equivalents and Short-Term Investments10.09B10.59B8.12B7.67B6.31B5.21B
Total Debt516.25M525.55M482.68M520.86M551.73M609.56M
Total Liabilities8.55B9.64B9.30B9.19B8.97B8.64B
Stockholders Equity15.84B16.56B15.18B14.26B12.53B11.43B
Cash Flow
Free Cash Flow03.60B3.25B2.70B2.37B2.04B
Operating Cash Flow04.20B3.89B3.64B2.91B2.65B
Investing Cash Flow0-422.42M-1.34B-2.36B-1.13B-1.70B
Financing Cash Flow0-1.32B-2.12B-761.14M-687.86M-1.04B

Waseda Academy Co., Ltd. Technical Analysis

Technical Analysis SentimentPositive
Last Price2738.00

Price Trends

50DMA2546.37Positive
100DMA2468.16Positive
200DMA2273.29Positive

Market Momentum

MACD63.99Negative
RSI58.77Neutral
STOCH42.30Neutral

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 2738.00 is above the 20-day moving average (MA) of 2632.45, above the 50-day MA of 2546.37, and above the 200-day MA of 2273.29, indicating a bullish trend. The MACD of 63.99 indicates Negative momentum. The RSI at 58.77 is Neutral, neither overbought nor oversold. The STOCH value of 42.30 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

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:4718 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:4718JP:471881OutperformJPY 52.01B16.90―2.37%8.48%20.40%
JP:4714JP:471472OutperformJPY 49.97B25.34―3.40%4.45%40.72%
JP:9795JP:979569NeutralJPY 37.65B12.45―4.02%3.63%7.07%
JP:4678JP:467868NeutralJPY 2.21B14.37―3.04%1.13%-19.95%
JP:9470JP:947068NeutralJPY 44.09B12.10―2.86%7.30%12.44%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:4668JP:466855NeutralJPY 16.25B21.20―4.14%4.87%-51.32%

* General Sector Average

Performance Comparison

0%20%40%JP:4718JP:4668JP:4678JP:4714JP:9470JP:9795Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:4718 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:4718Waseda Academy Co., Ltd.2738.00415.1117.87%
JP:4668Meiko Network Japan Co., Ltd.710.0017.272.49%
JP:4678Shuei Yobiko Co., Ltd.331.0049.5017.59%
JP:4714Riso Kyoiku Co., Ltd.294.0099.8651.43%
JP:9470Gakken Holdings Co., Ltd.1032.004.080.40%
JP:9795Step Co., Ltd.2290.00-47.46-2.03%

Waseda Academy Co., Ltd. Corporate Events

Waseda Academy to Absorb Noda Gakuen in Exam-Prep Merger

Oct 26, 2026

Waseda Academy Co., Ltd. has approved an absorption-type merger of its wholly owned subsidiary Noda Gakuen Co., Ltd., effective April 1, 2027, with Waseda Academy as the surviving entity and Noda dissolved. The move follows a board resolution dated O...

Waseda Academy Lifts Earnings and Dividend Forecasts on Strong Enrollment

Oct 26, 2026

Waseda Academy revised its earnings outlook for the six months to September 30, 2026 and the full fiscal year ending March 31, 2027, projecting higher net sales and profits than previously forecast. The upgrade is driven by stronger-than-planned stud...

Eishinkan Increases Stake to Become Major Shareholder in Waseda Academy

Oct 8, 2026

Waseda Academy Co., Ltd. has announced a change in its major shareholders following confirmation of the shareholder register as of September 30, 2026. Eishinkan Co., Ltd., an operator of tutoring schools based in Fukuoka, increased its stake to 1,950...

Waseda Academy Completes ¥1.49 Billion Share Buyback to Boost Capital Efficiency

Aug 3, 2026

Waseda Academy Co., Ltd. has completed a share repurchase program authorized by its board on July 31, 2026, acquiring 600,000 common shares for approximately ¥1.49 billion through the Tokyo Stock Exchange’s ToSTNeT-3 off-auction system. The buyback,...

Waseda Academy Launches ¥1.5 Billion Share Buyback to Boost Capital Efficiency

Jul 31, 2026

Waseda Academy Co., Ltd. announced that its Board of Directors has approved a share buyback, aiming to enhance capital efficiency and secure greater flexibility in its capital policy. The move reflects a shareholder-oriented financial strategy in the...

Waseda Academy to Dispose Treasury Shares for Performance-Based Stock Incentives

Jul 31, 2026

Waseda Academy has approved the disposal of 90,000 treasury shares, worth about ¥231 million, to trust accounts at The Master Trust Bank of Japan for use in performance-based stock remuneration plans for directors and employees. The Board Incentive P...

Waseda Academy Bolsters Performance-Based Stock Incentive Trusts for Executives and Staff

Jul 31, 2026

Waseda Academy Co., Ltd., listed on the TSE Prime, operates in the education services industry, focusing on preparatory and tutoring school operations in Japan. The company targets students seeking advancement to competitive schools and universities,...

Waseda Academy posts Q1 loss but keeps upbeat full-year forecast and higher dividend plan

Jul 31, 2026

Waseda Academy reported consolidated net sales of ¥7,719 million for the three months ended June 30, 2026, up 9.9% year on year, while still posting an operating loss of ¥89 million and a net loss attributable to owners of the parent of ¥128 million....

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: Oct 28, 2026