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

Central Sports Co., Ltd.

(TSE/TYO:4801)

Select Model

Rating:76Outperform

Price Target:JPY 2,754.00▲(22.18% Upside)

Action:upgraded

Date:08/17/26

The overall score is heavily driven by Central Sports' robust balance sheet and solid cash flow generation, which mitigate financial risks despite historically thin profit margins. Technical indicators confirm a steady bullish trend, with the stock trading comfortably above major moving averages. Valuation remains fair, featuring a moderate P/E of 20.8 and a modest dividend yield, resulting in a stable but measured outlook.

Positive Factors

Revenue RecoveryThe sustained revenue recovery indicates restored demand and improving business scale after the 2021 downturn. Continued top-line expansion can support fixed-cost absorption and strengthen the company’s ability to invest in stores, products, and customer reach.

Negative Factors

Thin Profit Margins structurally modest margins leave limited protection against supplier costs, discounting, wages, and weaker store traffic. Small changes in merchandise mix or operating expenses could therefore have an outsized effect on earnings and reduce the durability of profitability.

Central Sports Co., Ltd. (4801) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 25.25B
Dividend Yield: 1.77%
Average Volume (3M): 21.35K
Price to Earnings (P/E): 29.2
Beta (1Y): 0.21
Revenue Growth: 4.34%
EPS Growth: 103.26%
Country: Japan
Employees: 890
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Leisure

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

Company Description

Central Sports Co., Ltd. is a Japanese enterprise primarily focused on operating sports clubs. Its extensive range of services also encompasses corporate wellness initiatives, marine leisure management, preventative health programs, and travel servic...

How the Company Makes Money

Central Sports Co., Ltd. primarily makes money by selling sporting goods and related products to end customers through its retail operations. Key revenue streams include (1) merchandise sales from company-operated retail stores (and other direct-to-c...

Central Sports Co., Ltd. Financial Statement Overview

Summary

Strong financial profile highlighted by exceptional deleveraging, lowering the debt-to-equity ratio to 0.17, and solid operating cash flow generation. Consistent top-line growth is a major strength, though thin profit margins slightly weigh down the overall financial score.

Income Statement

72Positive

Balance Sheet

89Very Positive

Cash Flow

80Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	48.99B	48.87B	46.59B	45.38B	43.60B	40.34B
Gross Profit	6.21B	6.11B	5.44B	5.94B	5.03B	4.65B
EBITDA	4.24B	3.97B	3.22B	3.91B	3.35B	4.65B
Net Income	1.31B	1.28B	1.36B	1.16B	793.00M	1.54B
Balance Sheet
Total Assets	42.40B	42.28B	41.15B	41.63B	42.56B	44.78B
Cash, Cash Equivalents and Short-Term Investments	6.50B	6.36B	5.38B	7.39B	8.00B	9.21B
Total Debt	3.98B	4.56B	4.95B	6.53B	8.77B	11.18B
Total Liabilities	15.89B	15.67B	15.31B	16.80B	18.66B	21.23B
Stockholders Equity	26.50B	26.61B	25.84B	24.82B	23.89B	23.53B
Cash Flow
Free Cash Flow	0	1.70B	263.00M	2.07B	1.59B	5.89B
Operating Cash Flow	0	3.47B	2.06B	3.12B	2.10B	6.32B
Investing Cash Flow	0	-1.54B	-1.95B	-1.18B	-346.00M	-482.00M
Financing Cash Flow	0	-947.00M	-2.19B	-2.58B	-3.01B	-2.65B

Central Sports Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price2254.00

Price Trends

50DMA2365.64Negative

100DMA2364.68Negative

200DMA2371.87Negative

Market Momentum

MACD-31.72Positive

RSI36.73Neutral

STOCH20.54Neutral

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 2254.00 is below the 20-day moving average (MA) of 2297.95, below the 50-day MA of 2365.64, and below the 200-day MA of 2371.87, indicating a bearish trend. The MACD of -31.72 indicates Positive momentum. The RSI at 36.73 is Neutral, neither overbought nor oversold. The STOCH value of 20.54 is Neutral, 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

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:4801 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:4680	77Outperform	JPY 370.13B	20.27	20.75%	1.41%	―	―
JP:7085	77Outperform	JPY 96.79B	19.85	―	1.75%	15.50%	14.56%
JP:4801	76Outperform	JPY 25.25B	29.16	―	1.77%	4.34%	103.26%
JP:2340	73Outperform	JPY 16.09B	18.72	―	1.20%	3.63%	10.51%
JP:6074	70Outperform	JPY 1.88B	7.28	―	4.21%	0.55%	46.07%
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

* Consumer Cyclical Sector Average

Performance Comparison

JP:4801 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:4801	Central Sports Co., Ltd.	2254.00	-95.15	-4.05%
JP:4680	ROUND ONE Corporation	1280.00	188.51	17.27%
JP:2340	GOKURAKUYU HOLDINGS CO. LTD.	502.00	21.00	4.37%
JP:6074	JSS CORP	487.00	-22.09	-4.34%
JP:7085	Curves Holdings Co., Ltd.	1063.00	360.23	51.26%

Central Sports Co., Ltd. Corporate Events

Central Sports Lifts Quarterly Profit and Confirms Full-Year Outlook

Aug 7, 2026

Central Sports reported a modest 1.1% rise in net sales to ¥11.57 billion for the quarter ended June 30, 2026, while sharply improving profitability, with operating profit up 29.0% and profit attributable to owners of parent jumping 52.4%. Earni...

Central Sports Affirms Independence Despite Major Stake by Central Trust

Jun 29, 2026

Central Sports has disclosed that Central Trust Co., Ltd. is its largest shareholder, holding 30.73% of the company’s voting rights and classified as an other affiliated company, though its shares are not listed on a financial instruments excha...

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 17, 2026

Central Sports Co., Ltd. AI Stock Analysis