Central Sports Co., Ltd. (4801) AI Stock Analysis

• Market Cap: ¥26.72B
• Dividend Yield: 1.89%
• Average Volume (3M): 22.03K
• Price to Earnings (P/E): 41.4
• Beta (1Y): 0.27
• Revenue Growth: 3.23%
• EPS Growth: -61.68%
• Country: JP
• Employees: 963
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): 4.74
• Shares Outstanding: 11,466,300
• 10 Day Avg. Volume: 35,310
• 30 Day Avg. Volume: 22,033
• PEG Ratio: 1.14
• Price to Book (P/B): 1.03
• Price to Sales (P/S): 0.57
• P/FCF Ratio: 101.44
• 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: ¥2,511.00
• Price Target Upside: 4.45% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 56 Neutral
• Price Target: ¥2,511.00 ▲(4.45% Upside)

Central Sports Co., Ltd. has a moderate overall stock score driven primarily by its solid financial performance, which is offset by bearish technical indicators and an overvalued stock price. The company's strong balance sheet and profitability are positive, but the technical analysis suggests caution in the short term. The lack of earnings call and corporate events data means these factors did not influence the score.

Central Sports Co., Ltd. Business Overview & Revenue Model

Company Description

Central Sports Co., Ltd. (4801) is a leading company in the health and fitness industry, primarily operating in Japan. The company specializes in the management and operation of fitness clubs, swimming schools, and wellness facilities. Its services cater to a wide range of customer needs, from general fitness and swimming lessons to specialized health programs. Central Sports is committed to promoting healthy lifestyles and wellness through its comprehensive range of fitness and sports services.

How the Company Makes Money

Central Sports Co., Ltd. generates revenue primarily through membership fees collected from its fitness clubs and swimming schools. The company offers various membership plans and packages tailored to different customer segments, including individual, family, and corporate memberships. In addition to membership fees, Central Sports earns income from personal training sessions, group fitness classes, and specialized health programs. The company also benefits from the sale of sports equipment, apparel, and health supplements through its on-site retail outlets. Furthermore, Central Sports occasionally partners with schools and organizations to provide specialized training programs, adding an additional revenue stream. Overall, the company's diversified offerings and strategic partnerships contribute to its financial performance.

Central Sports Co., Ltd. Financial Statement Overview

Summary

Central Sports Co., Ltd. displays solid financial health with steady revenue growth and improved net profitability. The company maintains a low-risk leverage profile with a strong equity base, which is favorable for long-term sustainability. However, the decline in Free Cash Flow warrants attention, as it may affect future investments or debt servicing capabilities.

Income Statement

Central Sports Co., Ltd. shows moderate revenue growth with a Revenue Growth Rate of 2.68% between 2024 and 2025. The Gross Profit Margin decreased slightly from 13.09% to 11.68%, indicating less efficiency in controlling production costs. Despite this, the company improved its Net Profit Margin from 2.56% to 2.92%, showing better control over overall expenses. EBIT and EBITDA margins are stable, reflecting consistent operating performance.

Balance Sheet

The company maintains a strong balance sheet with a Debt-to-Equity Ratio of 0.19, indicating low leverage and a conservative financial structure. The Equity Ratio is robust at 62.79%, suggesting that a significant portion of the company's assets are financed through equity. Return on Equity improved to 5.26%, reflecting better profitability from shareholders' equity.

Cash Flow

Free Cash Flow declined from ¥2,070 million to ¥263 million, indicating a significant reduction in cash available for expansion and debt repayment. However, the Operating Cash Flow to Net Income Ratio of 1.52 demonstrates strong cash generation relative to net income, highlighting operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	46.95B	46.59B	45.38B	43.60B	40.34B	36.03B
Gross Profit	5.40B	5.44B	5.94B	5.03B	4.65B	3.62B
EBITDA	3.15B	3.22B	3.91B	3.35B	4.65B	323.00M
Net Income	645.00M	1.36B	1.16B	793.00M	1.54B	-2.36B
Balance Sheet
Total Assets	40.27B	41.15B	41.63B	42.56B	44.78B	43.75B
Cash, Cash Equivalents and Short-Term Investments	4.75B	5.38B	7.39B	8.00B	9.21B	6.00B
Total Debt	4.63B	4.95B	6.53B	8.77B	11.18B	13.55B
Total Liabilities	14.73B	15.31B	16.81B	18.66B	21.24B	21.60B
Stockholders Equity	25.54B	25.84B	24.82B	23.89B	23.53B	22.13B
Cash Flow
Free Cash Flow	0.00	263.00M	2.07B	1.59B	5.89B	-3.55B
Operating Cash Flow	0.00	2.06B	3.12B	2.10B	6.32B	-2.97B
Investing Cash Flow	0.00	-1.95B	-1.18B	-346.00M	-482.00M	-456.00M
Financing Cash Flow	0.00	-2.19B	-2.58B	-3.01B	-2.65B	3.50B

Central Sports Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2404.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4801, the sentiment is Negative. The current price of 2404 is below the 20-day moving average (MA) of 2510.53, below the 50-day MA of 2526.39, and below the 200-day MA of 2417.85, indicating a bearish trend. The MACD of -34.75 indicates Positive momentum. The RSI at 28.52 is Positive, neither overbought nor oversold. The STOCH value of 1.85 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4801.

Central Sports Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7092	78 Outperform	¥32.85B	15.11	―	2.57%	16.15%	22.41%
6074	74 Outperform	¥2.08B	11.77	―	3.71%	4.70%	-10.05%
7085	73 Outperform	¥76.96B	19.73	―	2.03%	6.85%	7.52%
4343	66 Neutral	¥70.12B	107.25	―	0.13%	6.46%	-208.86%
2340	62 Neutral	¥15.05B	19.71	―	―	12.42%	-18.48%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
4801	56 Neutral	¥26.72B	41.43	―	1.89%	3.23%	-61.68%

Central Sports Co., Ltd. Corporate Events

Central Sports Co., Ltd. Reports Fiscal Year 2025 Financial Results and Positive Outlook

Central Sports Co., Ltd. reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a 2.7% increase in net sales to ¥46,595 million. However, the company experienced a decline in operating and ordinary profits by 26.6% and 30.1%, respectively. Despite these challenges, the profit attributable to owners of the parent rose by 17.1% to ¥1,359 million, indicating resilience in its core operations. The company also announced an increase in annual dividends per share from ¥36.00 to ¥50.00, reflecting a commitment to returning value to shareholders. Looking ahead, Central Sports forecasts a significant improvement in its financial performance for the fiscal year ending March 31, 2026, with expected net sales of ¥50,500 million and a 55.6% increase in operating profit.