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

0 Followers

SERENDIP HOLDINGS Co. Ltd.

(TSE/TYO:7318)

Select Model

Rating:65Neutral

Price Target:JPY 1,107.00▲(7.48% Upside)

Action:downgraded

Date:08/20/26

The overall score of 65 reflects a company with strong financial performance and an extremely attractive valuation, offset by significant technical weakness. The primary driver is robust revenue and profit growth, which makes the low P/E ratio of 6.24 stand out as a potential value opportunity. However, the stock is under heavy selling pressure, trading far below key moving averages with bearish momentum indicators, creating a stark contrast between fundamentals and market sentiment. The leveraged balance sheet and historically volatile cash flows add a layer of financial risk that prevents a higher score.

Positive Factors

Strong Revenue GrowthThe sharp FY2026 revenue acceleration, following several years of prior growth, indicates improving demand and expanding business scale. If sustained, stronger sales provide a broader base for operating leverage, reinvestment, and continued development of the company’s market position over coming quarters.

Negative Factors

Elevated LeveragePersistently elevated leverage increases the company’s dependence on debt financing and reduces flexibility if earnings weaken. Because total debt also increased alongside asset growth, softer operating performance could place greater pressure on financing capacity, interest burdens, and future capital allocation.

SERENDIP HOLDINGS Co. Ltd. (7318) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 18.79B
Dividend Yield: ―
Average Volume (3M): 110.67K
Price to Earnings (P/E): 4.6
Beta (1Y): 1.48
Revenue Growth: 84.10%
EPS Growth: -74.60%
Country: Japan
Employees: 3,185
Sector: Industrials
Sector Strength: 63
Industry: Specialty Business Services

SERENDIP HOLDINGS Co. Ltd. Business Overview & Revenue Model

Company Description

Serendip Holdings Co.,Ltd. operates predominantly in Japan, providing a comprehensive suite of services that includes business succession support, management consulting, M&A advisory, corporate revitalization, general corporate counsel, and the deplo...

SERENDIP HOLDINGS Co. Ltd. Financial Statement Overview

Summary

Strong revenue growth of 72.5% and a doubling of net income highlight excellent operational momentum. However, a slight decline in gross margin, reliance on non-operating income, and a leveraged balance sheet with a debt-to-equity ratio of 1.69 temper the score. Cash flow has improved but remains volatile with a low free cash flow conversion rate of 16.7%.

Income Statement

80Positive

Balance Sheet

75Positive

Cash Flow

65Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	57.69B	51.16B	25.12B	19.79B	15.20B	13.81B
Gross Profit	8.57B	7.89B	4.24B	3.25B	2.47B	2.13B
EBITDA	4.57B	4.35B	2.01B	1.71B	1.37B	1.14B
Net Income	4.11B	4.15B	2.09B	518.84M	312.50M	199.98M
Balance Sheet
Total Assets	58.99B	57.66B	32.24B	20.27B	16.17B	15.68B
Cash, Cash Equivalents and Short-Term Investments	15.60B	13.66B	6.68B	4.13B	3.09B	3.62B
Total Debt	23.07B	22.83B	13.36B	7.17B	6.37B	7.08B
Total Liabilities	40.00B	40.59B	24.11B	14.11B	11.69B	11.12B
Stockholders Equity	13.41B	13.53B	8.01B	6.16B	4.48B	4.47B
Cash Flow
Free Cash Flow	0	738.80M	-2.10B	1.34B	230.22M	-473.28M
Operating Cash Flow	0	4.43B	292.36M	2.68B	1.05B	777.18M
Investing Cash Flow	0	-2.57B	-4.04B	-2.53B	-392.07M	-1.17B
Financing Cash Flow	0	3.92B	6.01B	888.63M	-867.06M	770.80M

SERENDIP HOLDINGS Co. Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price1030.00

Price Trends

50DMA1246.96Negative

100DMA1589.57Negative

200DMA1667.49Negative

Market Momentum

MACD-59.49Negative

RSI36.85Neutral

STOCH65.66Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7318, the sentiment is Negative. The current price of 1030.00 is below the 20-day moving average (MA) of 1114.65, below the 50-day MA of 1246.96, and below the 200-day MA of 1667.49, indicating a bearish trend. The MACD of -59.49 indicates Negative momentum. The RSI at 36.85 is Neutral, neither overbought nor oversold. The STOCH value of 65.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7318.

SERENDIP HOLDINGS Co. Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

JP:7318 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:7914	68Neutral	JPY 42.32B	8.34	―	4.86%	-0.61%	48.02%
JP:7318	65Neutral	JPY 20.53B	4.57	―	―	84.10%	-74.60%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
JP:7814	63Neutral	JPY 26.44B	4.67	―	6.66%	11.59%	88.95%
JP:7912	57Neutral	JPY 1.18T	14.52	7.01%	1.49%	3.56%	-7.20%
JP:7911	46Neutral	JPY 1.17T	15.07	5.81%	2.14%	7.39%	-4.92%

* Industrials Sector Average

Performance Comparison

JP:7318 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:7318	SERENDIP HOLDINGS Co. Ltd.	1030.00	-213.75	-17.19%
JP:7912	Dai Nippon Printing Co	2743.00	335.43	13.93%
JP:7911	Toppan Printing Co	2053.00	-28.08	-1.35%
JP:7814	JAPAN Creative Platform Group Co., Ltd.	567.00	-196.41	-25.73%
JP:7914	Kyodo Printing Co., Ltd.	1645.00	266.04	19.29%

SERENDIP HOLDINGS Co. Ltd. Corporate Events

SERENDIP HOLDINGS Reports Record Q2 FY2027 Sales and Operating Profit

Nov 13, 2026

SERENDIP HOLDINGS reported that SURTECKARIYA, consolidated from the start of the period, drove record-high consolidated net sales, operating profit and ordinary profit in Q2 FY2027. Net sales reached 31,862 million yen, up 65.2% year over year, while...

SERENDIP HOLDINGS Reports Six-Month Financial Results

Nov 13, 2026

SERENDIP HOLDINGS Co., Ltd., a Tokyo Stock Exchange-listed company, reported consolidated results for the six months ended September 30, 2026, with net sales of ¥31,862 million, up 65.2% year on year, and operating profit of ¥1,027 million, up 46.8%....

Serendip Holdings to Merge Key Automotive Subsidiaries for Integrated Growth

Oct 21, 2026

SERENDIP HOLDINGS has approved an absorption-type merger of its consolidated subsidiaries, with Serendip Automotive as the surviving entity and Mitsuiya Industrial and EXCELL being dissolved, effective April 1, 2027. The transaction involves no share...

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 20, 2026

SERENDIP HOLDINGS Co. Ltd. AI Stock Analysis