Sakurasaku Plus Co., Ltd. (7097) AI Stock Analysis

Sakurasaku Plus Co., Ltd.

(TSE/TYO:7097)

Select Model

Rating:59Neutral

Price Target:JPY 2,825.00▲(0.46% Upside)

Action:reiterated

Date:09/12/26

Sakurasaku Plus Co., Ltd. receives a moderate score of 59, heavily influenced by poor technical momentum and a mixed financial profile. While the company maintains stable equity and consistent net income growth at a fair valuation, significant risks have emerged through a recent top-line revenue contraction and negative free cash flow. Furthermore, the stock remains locked in a bearish technical downtrend. Investors should monitor for a stabilization in cash flow and a recovery in revenue growth before expecting a momentum reversal.

Positive Factors

Positive profitabilityThe company remains profitable, with operating profit and net income described as solid through 2024–2026 and improved compared with earlier years. This provides an established earnings base that can support ongoing operations and investment, even though profitability is below its prior peak.

Negative Factors

Revenue slowdown and modest marginsThe latest annual period reversed the prior growth trend, with revenue declining about 4%, while net and operating margins remained modest. Slower sales and limited margin buffer could constrain earnings growth and make profitability more sensitive to changes in operating performance.

Sakurasaku Plus Co., Ltd. (7097) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 12.23B
Dividend Yield: 1.00%
Average Volume (3M): 5,101
Price to Earnings (P/E): 17.9
Beta (1Y): 0.19
Revenue Growth: -4.32%
EPS Growth: 4.85%
Country: Japan
Employees: 1,804
Sector: General
Sector Strength: 55
Industry: Personal Products & Services

Sakurasaku Plus Co., Ltd. Business Overview & Revenue Model

Company Description

Sakurasaku Plus Co., Ltd. engages in the provision of childcare and child rearing support services.. It offers real estate brokerage and management services for the operation of daycare centers. The company was founded by Yoshitaka Nishioon, Shuhei M...

How the Company Makes Money

The company makes money primarily by operating childcare facilities (e.g., nursery schools) and receiving revenue tied to those operations. Key revenue streams typically include (1) fees paid by users/parents for childcare services and (2) public fun...

Sakurasaku Plus Co., Ltd. Financial Statement Overview

Summary

The company demonstrates a stable foundation with consistent equity building and bottom-line net income growth. However, recent headwinds weigh on performance, notably a 4% revenue contraction breaking a multi-year growth streak, and severe cash flow volatility marked by a plunge into negative free cash flow.

Income Statement

68Positive

Balance Sheet

74Positive

Cash Flow

52Neutral

Financial statement breakdown
Breakdown	TTM	Jul 2026	Jul 2025	Jul 2024	Jul 2023	Jul 2022
Income Statement
Total Revenue	17.59B	17.59B	18.39B	17.21B	13.84B	11.99B
Gross Profit	2.82B	2.76B	2.88B	2.31B	1.63B	1.20B
EBITDA	1.64B	1.57B	1.75B	1.38B	874.00M	555.00M
Net Income	695.00M	652.00M	611.00M	607.00M	326.00M	364.00M
Balance Sheet
Total Assets	15.33B	15.33B	13.26B	13.64B	14.49B	13.42B
Cash, Cash Equivalents and Short-Term Investments	2.37B	2.37B	2.52B	1.49B	752.00M	1.36B
Total Debt	5.53B	5.53B	3.77B	4.58B	5.72B	4.67B
Total Liabilities	9.25B	9.25B	7.43B	8.35B	9.54B	8.77B
Stockholders Equity	6.08B	6.08B	5.82B	5.27B	4.92B	4.63B
Cash Flow
Free Cash Flow	0	-1.30B	2.18B	2.15B	-1.34B	-1.83B
Operating Cash Flow	0	1.30B	2.25B	3.11B	87.00M	176.00M
Investing Cash Flow	0	-2.68B	-246.00M	-1.06B	-1.51B	-1.34B
Financing Cash Flow	0	1.23B	-973.00M	-1.30B	817.00M	1.36B

Sakurasaku Plus Co., Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price2812.00

Price Trends

50DMA2766.82Positive

100DMA2829.34Negative

200DMA2860.18Negative

Market Momentum

MACD11.51Negative

RSI55.90Neutral

STOCH69.01Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7097, the sentiment is Positive. The current price of 2812.00 is above the 20-day moving average (MA) of 2789.45, above the 50-day MA of 2766.82, and below the 200-day MA of 2860.18, indicating a neutral trend. The MACD of 11.51 indicates Negative momentum. The RSI at 55.90 is Neutral, neither overbought nor oversold. The STOCH value of 69.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7097.

Sakurasaku Plus Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:7097 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:4718	86Outperform	JPY 52.03B	19.34	―	2.36%	7.90%	7.66%
JP:2152	77Outperform	JPY 16.20B	13.94	―	1.73%	3.83%	17.57%
JP:7353	62Neutral	JPY 3.45B	8.67	―	―	11.12%	64.89%
JP:7084	59Neutral	JPY 8.76B	38.34	―	3.72%	6.93%	-5.75%
JP:7097	59Neutral	JPY 13.03B	17.91	―	1.00%	-4.32%	4.85%
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%

* General Sector Average

Performance Comparison

JP:7097 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:7097	Sakurasaku Plus Co., Ltd.	2812.00	287.30	11.38%
JP:2152	Youji Corporation	1500.00	14.65	0.99%
JP:4668	Meiko Network Japan Co., Ltd.	704.00	26.66	3.94%
JP:4718	Waseda Academy Co., Ltd.	2759.00	447.76	19.37%
JP:7084	Kids Smile Holdings, Inc.	2687.00	419.25	18.49%
JP:7353	KIYO Learning Co Ltd	502.00	-291.00	-36.70%

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 12, 2026

Sakurasaku Plus Co., Ltd. AI Stock Analysis