Kids Smile Holdings, Inc. (7084) AI Stock Analysis

Kids Smile Holdings, Inc.

(TSE/TYO:7084)

Select Model

Rating:48Neutral

Price Target:JPY 2,743.00▲(2.01% Upside)

Action:reiterated

Date:09/17/26

The overall score is constrained by significant financial headwinds, primarily the deterioration in cash flow and increased leverage, which elevate financial risk. Slowing revenue growth and thin profitability further dampen the outlook. Technicals show weak momentum with the stock trading below key moving averages. A high P/E ratio adds valuation risk, though a strong dividend yield provides some support.

Positive Factors

Long-term revenue growthThe substantial multi-year revenue increase indicates that the group has expanded its childcare and education services base over time. Continued scale development can support broader operating reach and provide a foundation for future earnings growth, even as the latest annual pace has moderated.

Negative Factors

Weakened cash generationThe multi-year decline in operating cash flow and the swing to negative free cash flow indicate that accounting earnings are converting less effectively into usable cash. If this persists, the group may have less internally generated funding for investment and greater reliance on external financing.

Kids Smile Holdings, Inc. (7084) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 8.61B
Dividend Yield: 3.72%
Average Volume (3M): 4,620
Price to Earnings (P/E): 38.3
Beta (1Y): 0.37
Revenue Growth: 6.93%
EPS Growth: -5.75%
Country: Japan
Employees: 1,316
Sector: General
Sector Strength: 55
Industry: Personal Products & Services

Kids Smile Holdings, Inc. Business Overview & Revenue Model

Company Description

Kids Smile Holdings Inc. specializes in delivering childcare and early childhood education, primarily serving families across Japan. Its operations encompass a diverse array of educational and care establishments, which range from after-school progra...

How the Company Makes Money

Kids Smile Holdings, Inc. makes money primarily through revenues generated by its consolidated subsidiaries that operate childcare facilities and related services. Key revenue streams typically include fees and other operating income associated with...

Kids Smile Holdings, Inc. Financial Statement Overview

Summary

Financial performance is mixed. Revenue growth and improving gross margins are positives, but slowing growth, thin operating margins, a sharp rise in debt, and significantly weakened cash flow that turned negative weigh heavily on the score.

Income Statement

60Neutral

Balance Sheet

42Neutral

Cash Flow

32Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	14.52B	14.52B	13.66B	12.87B	11.86B	10.66B
Gross Profit	2.21B	2.21B	1.92B	1.59B	1.25B	1.02B
EBITDA	1.12B	1.11B	1.17B	1.06B	830.32M	626.71M
Net Income	220.66M	220.66M	151.56M	132.31M	188.08M	686.31M
Balance Sheet
Total Assets	16.70B	16.70B	15.22B	14.16B	13.85B	14.66B
Cash, Cash Equivalents and Short-Term Investments	5.72B	5.72B	4.67B	3.59B	2.77B	3.15B
Total Debt	6.59B	6.59B	4.60B	4.04B	3.97B	5.19B
Total Liabilities	10.55B	10.55B	8.72B	7.84B	7.65B	8.65B
Stockholders Equity	6.15B	6.15B	6.50B	6.32B	6.20B	6.01B
Cash Flow
Free Cash Flow	0	-449.13M	498.35M	769.61M	886.82M	1.26B
Operating Cash Flow	0	577.06M	929.47M	976.09M	1.18B	2.28B
Investing Cash Flow	0	-967.59M	-413.81M	-224.42M	-347.61M	-1.02B
Financing Cash Flow	0	1.44B	562.40M	70.50M	-1.21B	-241.01M

Kids Smile Holdings, Inc. Technical Analysis

Technical Analysis SentimentNegative

Last Price2689.00

Price Trends

50DMA2765.15Negative

100DMA2691.25Negative

200DMA2774.18Negative

Market Momentum

MACD-23.84Positive

RSI45.12Neutral

STOCH58.84Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7084, the sentiment is Negative. The current price of 2689.00 is below the 20-day moving average (MA) of 2729.75, below the 50-day MA of 2765.15, and below the 200-day MA of 2774.18, indicating a bearish trend. The MACD of -23.84 indicates Positive momentum. The RSI at 45.12 is Neutral, neither overbought nor oversold. The STOCH value of 58.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7084.

Kids Smile Holdings, Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:7084 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:2152	77Outperform	JPY 16.20B	13.94	―	1.73%	3.83%	17.57%
JP:4714	72Outperform	JPY 49.97B	25.34	―	3.40%	4.45%	40.72%
JP:9470	68Neutral	JPY 44.39B	12.12	―	2.84%	7.30%	12.44%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:4668	55Neutral	JPY 16.25B	21.14	―	4.12%	4.87%	-51.32%
JP:7097	51Neutral	JPY 13.03B	17.91	―	1.00%	-4.32%	4.85%
JP:7084	48Neutral	JPY 8.76B	38.34	―	3.72%	6.93%	-5.75%

* General Sector Average

Performance Comparison

JP:7084 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:7084	Kids Smile Holdings, Inc.	2687.00	420.21	18.54%
JP:2152	Youji Corporation	1500.00	134.66	9.86%
JP:4668	Meiko Network Japan Co., Ltd.	704.00	26.66	3.94%
JP:4714	Riso Kyoiku Co., Ltd.	294.00	106.52	56.81%
JP:7097	Sakurasaku Plus Co., Ltd.	2812.00	255.59	10.00%
JP:9470	Gakken Holdings Co., Ltd.	1020.00	19.31	1.93%

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: Sep 17, 2026

Kids Smile Holdings, Inc. AI Stock Analysis