SERENDIP HOLDINGS Co. Ltd. (7318) AI Stock Analysis

• Market Cap: ¥22.99B
• Dividend Yield: N/A
• Average Volume (3M): 101.57K
• Price to Earnings (P/E): 9.8
• Beta (1Y): 1.09
• Revenue Growth: 48.34%
• EPS Growth: 395.14%
• Country: JP
• Employees: 615
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 79.18
• Shares Outstanding: 4,764,479
• 10 Day Avg. Volume: 80,270
• 30 Day Avg. Volume: 101,570
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥4,177.00
• Price Target Upside: -17.61% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 84 Outperform
• Price Target: ¥4,177.00 ▼(-17.61% Downside)

SERENDIP HOLDINGS Co. Ltd. receives a strong overall score driven by robust financial performance and attractive valuation. The technical analysis supports a bullish outlook, though investors should be aware of the high RSI and Stochastic indicators. The lack of earnings call and corporate events data does not impact the score significantly.

SERENDIP HOLDINGS Co. Ltd. Business Overview & Revenue Model

Company Description

SERENDIP HOLDINGS Co. Ltd. (7318) is a diversified company operating primarily in the technology and automotive sectors. The company focuses on developing innovative solutions and products that cater to the evolving needs of these industries. Its offerings include advanced automotive components, software solutions, and technological services aimed at enhancing operational efficiency and product performance across various applications.

How the Company Makes Money

SERENDIP HOLDINGS Co. Ltd. generates revenue through the sale of its automotive components, which are supplied to major automotive manufacturers. Additionally, the company earns income from its technology services division, which provides software development and IT solutions tailored to client requirements in different industries. Key revenue streams include long-term contracts with automotive companies and service agreements within the technology sector. Collaborations and partnerships with industry leaders also play a significant role in maintaining and expanding the company's market presence and revenue base.

SERENDIP HOLDINGS Co. Ltd. Financial Statement Overview

Summary

SERENDIP HOLDINGS Co. Ltd. shows strong revenue and profit growth with improved margins and return on equity. The balance sheet is stable with moderate leverage, but cash flow management is challenged by negative free cash flow. Focus on operational efficiency and cash flow improvement is crucial.

Income Statement

SERENDIP HOLDINGS Co. Ltd. has demonstrated a strong revenue growth trajectory, with a notable increase from ¥19.79 billion in 2024 to ¥25.12 billion in 2025, marking a 26.9% growth rate. The gross profit margin improved to 16.9%, and the net profit margin significantly increased to 8.3%, indicating enhanced profitability. EBIT and EBITDA margins also showed positive trends, reflecting efficient operational performance.

Balance Sheet

The company's balance sheet reflects a solid equity position with a debt-to-equity ratio of 1.65, which is manageable but indicates moderate leverage. The return on equity (ROE) improved significantly to 26.1%, showcasing effective utilization of shareholder funds. The equity ratio stands at 24.8%, suggesting a balanced asset structure, though there is room for improvement in reducing liabilities.

Cash Flow

Cash flow analysis reveals challenges with free cash flow, which turned negative in 2025. However, operating cash flow remains positive, albeit lower than the previous year. The operating cash flow to net income ratio is 0.14, indicating some inefficiencies in cash conversion. The company should focus on improving free cash flow generation to support long-term financial health.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	25.12B	25.12B	19.79B	15.20B	13.81B	14.46B
Gross Profit	4.24B	4.24B	3.25B	2.47B	2.13B	2.34B
EBITDA	-506.00M	4.23B	1.92B	1.69B	1.29B	1.57B
Net Income	2.09B	2.09B	518.84M	312.50M	199.98M	398.50M
Balance Sheet
Total Assets	32.24B	32.24B	20.27B	16.17B	15.68B	14.80B
Cash, Cash Equivalents and Short-Term Investments	6.68B	6.68B	4.13B	3.09B	3.62B	3.09B
Total Debt	13.21B	13.21B	7.17B	6.37B	7.08B	7.29B
Total Liabilities	24.11B	24.11B	14.12B	11.69B	11.12B	11.78B
Stockholders Equity	8.01B	8.01B	6.15B	4.48B	4.47B	2.92B
Cash Flow
Free Cash Flow	0.00	-2.10B	1.21B	186.83M	-505.62M	-899.81M
Operating Cash Flow	0.00	292.36M	2.58B	1.05B	777.18M	992.64M
Investing Cash Flow	0.00	-4.04B	-2.53B	-392.07M	-1.17B	-1.39B
Financing Cash Flow	0.00	6.01B	888.63M	-867.06M	770.80M	848.61M

SERENDIP HOLDINGS Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5070.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7318, the sentiment is Positive. The current price of 5070 is below the 20-day moving average (MA) of 5474.00, above the 50-day MA of 4601.90, and above the 200-day MA of 2623.28, indicating a neutral trend. The MACD of 136.29 indicates Positive momentum. The RSI at 47.68 is Neutral, neither overbought nor oversold. The STOCH value of 19.02 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7318.

SERENDIP HOLDINGS Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7318	84 Outperform	¥22.99B	9.79	―	―	48.34%	395.14%
5071	82 Outperform	11.67B	9.22	―	3.52%	4.84%	10.75%
9252	79 Outperform	10.71B	11.15	22.60%	0.58%	35.24%	56.28%
4346	74 Outperform	14.51B	13.53	23.96%	1.79%	21.32%	377.20%
6580	73 Outperform	14.49B	24.17	15.55%	0.66%	43.35%	270.78%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

SERENDIP HOLDINGS Co. Ltd. Corporate Events

SERENDIP HOLDINGS Expands into Indian Automotive Market with New Joint Venture

SERENDIP HOLDINGS CO., LTD. has announced the establishment of a joint venture with NTF India Private Limited to expand its business in the Indian automotive market. This strategic move is part of SERENDIP’s broader plan to achieve significant growth through global expansion and innovation in manufacturing. By integrating advanced technologies from Mitsuiya Industrial Co., Ltd. with NTF’s manufacturing expertise, the joint venture aims to enhance competitiveness and increase order volumes in the growing Indian market.

SERENDIP HOLDINGS Acquires SURTECKARIYA to Boost Growth

SERENDIP HOLDINGS Co., Ltd. has announced the acquisition of SURTECKARIYA Co., Ltd., as part of its strategy to achieve 50 billion yen in consolidated sales. The acquisition is aimed at enhancing the company’s planning capability and expanding its global market presence, while also focusing on decarbonization and the promotion of future factory initiatives to boost manufacturing productivity.

SERENDIP HOLDINGS Acquires SURTECKARIYA to Boost Growth and Synergies

SERENDIP HOLDINGS CO., LTD. has acquired all shares of SURTECKARIYA Co., Ltd., marking its largest M&A transaction to date. This acquisition aligns with SERENDIP’s strategic plan to achieve non-organic growth and enhance its position in the automotive industry, particularly as it transitions towards electrification and decarbonization. The acquisition is expected to create synergies by integrating SURTECKARIYA’s expertise in surface treatment and global supply chain with SERENDIP’s existing capabilities, potentially increasing revenue and profits.