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

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Kids Smile Holdings, Inc.

(TSE/TYO:7084)

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Rating:46Neutral

Price Target:JPY 2,360.00▼(-9.30% Downside)

Action:reiterated

Date:09/17/26

Kids Smile Holdings faces significant headwinds, primarily driven by severe cash flow deterioration and bearish technical momentum. While the company offers steady revenue growth and an appealing dividend yield, its rising debt burden, persistently thin net profitability, and expensive P/E ratio severely limit its overall score.

Positive Factors

Long-term Revenue GrowthRevenue has risen roughly 59% from FY2021 to FY2026, showing that the childcare and education platform has expanded its operating base over several years. Although the latest pace slowed, this cumulative growth supports durable demand and provides a broader base for future service revenue.

Negative Factors

Slowing Growth and Thin ProfitabilityRevenue growth slowed to about 4.4% in FY2026 from the stronger multi-year expansion, while net margin remained around 1.5%. Slower topline growth combined with thin profitability reduces operating cushion and makes future earnings more sensitive to cost pressure.

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

Market Cap: JPY 8.34B
Dividend Yield: 3.84%
Average Volume (3M): 4,800
Price to Earnings (P/E): 37.1
Beta (1Y): 0.53
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

The company demonstrates reliable top-line growth and steadily improving gross margins, reaching 15.2%. However, financial health is heavily compromised by plunging operating cash flow, negative free cash flow, and rising leverage with a debt-to-equity ratio of 1.07.

Income Statement

65Positive

Balance Sheet

45Neutral

Cash Flow

30Negative

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 Price2602.00

Price Trends

50DMA2739.08Negative

100DMA2724.23Negative

200DMA2761.91Negative

Market Momentum

MACD-51.61Positive

RSI45.70Neutral

STOCH50.43Neutral

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 2602.00 is below the 20-day moving average (MA) of 2640.50, below the 50-day MA of 2739.08, and below the 200-day MA of 2761.91, indicating a bearish trend. The MACD of -51.61 indicates Positive momentum. The RSI at 45.70 is Neutral, neither overbought nor oversold. The STOCH value of 50.43 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 15.92B	13.57	―	1.78%	3.83%	17.57%
JP:4714	72Outperform	JPY 49.97B	25.34	―	3.40%	4.45%	40.72%
JP:9470	68Neutral	JPY 44.91B	12.38	―	2.78%	5.66%	-4.77%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:4668	55Neutral	JPY 16.39B	21.35	―	4.08%	4.87%	-51.32%
JP:7097	51Neutral	JPY 12.87B	17.77	―	1.00%	-4.32%	4.85%
JP:7084	46Neutral	JPY 8.47B	37.13	―	3.84%	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.	2602.00	10.28	0.40%
JP:2152	Youji Corporation	1461.00	83.86	6.09%
JP:4668	Meiko Network Japan Co., Ltd.	711.00	25.01	3.65%
JP:4714	Riso Kyoiku Co., Ltd.	294.00	102.71	53.69%
JP:7097	Sakurasaku Plus Co., Ltd.	2791.00	191.98	7.39%
JP:9470	Gakken Holdings Co., Ltd.	1042.00	11.16	1.08%

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