CELM, Inc. (7367) AI Stock Analysis

CELM, Inc.

(TSE/TYO:7367)

Select Model

Rating:63Neutral

Price Target:JPY 360.00▲(12.15% Upside)

Action:reiterated

Date:08/17/26

CELM scores moderately, driven by strong revenue growth and attractive valuation metrics (P/E of 12.6x, 4.4% dividend yield), offset by meaningful risks. The most significant concerns are compressing profit margins and a dramatic increase in leverage, which introduce financial risk in a cyclical staffing business. Cash flow generation remains a bright spot, but the balance sheet deterioration warrants caution. Technical indicators are neutral, offering no directional catalyst. Overall, CELM presents a growth-at-a-cost profile: compelling top-line expansion and shareholder returns, but investors should closely monitor whether debt-funded expansion delivers adequate returns and whether margin pressures stabilize.

Positive Factors

Revenue re-accelerationThe sharp improvement in FY2026 revenue growth indicates renewed demand and stronger business activity. If sustained, this can support operating leverage, expand the company’s customer base, and provide a durable foundation for future earnings.

Negative Factors

Higher leverageThe material rise in debt-to-equity has reduced balance-sheet flexibility compared with recent years. Higher leverage can constrain investment choices, increase sensitivity to financing costs, and make the company less resilient if operating performance weakens.

CELM, Inc. (7367) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 6.93B
Dividend Yield: 4.83%
Average Volume (3M): 5,701
Price to Earnings (P/E): 12.3
Beta (1Y): 0.62
Revenue Growth: 17.46%
EPS Growth: 0.81%
Country: Japan
Employees: 245
Sector: General
Sector Strength: 55
Industry: Education & Training Services

CELM, Inc. Business Overview & Revenue Model

Company Description

CELM, Inc. specializes in delivering comprehensive support solutions for human resources and organizational effectiveness. Its extensive portfolio encompasses a range of services, including leadership development programs, management mentoring, and i...

How the Company Makes Money

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CELM, Inc. Financial Statement Overview

Summary

CELM has delivered impressive revenue growth, more than doubling over five years to a projected ¥10.3B in FY2026, with strong cash flow conversion and healthy ROE (~18.7%). However, gross and net margins are compressing (net margin declining from 8.4% to a projected 5.6%), net income dipped in FY2025, and total debt surged nearly 9x from FY2023 to FY2025, pushing debt-to-equity to ~0.97. While FY2026 projections suggest some deleveraging, the elevated leverage in a cyclical staffing business and margin erosion are meaningful risks that offset the growth narrative.

Income Statement

72Positive

Balance Sheet

55Neutral

Cash Flow

70Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	10.37B	10.31B	8.18B	7.50B	7.27B	6.47B
Gross Profit	5.16B	5.14B	4.23B	3.85B	3.76B	3.34B
EBITDA	1.63B	1.62B	1.31B	1.22B	960.30M	918.69M
Net Income	563.84M	581.33M	552.62M	631.53M	542.79M	373.54M
Balance Sheet
Total Assets	6.81B	7.06B	7.28B	4.92B	5.00B	6.00B
Cash, Cash Equivalents and Short-Term Investments	1.59B	1.84B	1.70B	1.97B	1.73B	2.96B
Total Debt	2.42B	2.20B	2.73B	561.11M	302.89M	545.86M
Total Liabilities	3.86B	3.94B	4.48B	1.80B	1.70B	2.07B
Stockholders Equity	2.96B	3.12B	2.81B	3.12B	3.31B	3.94B
Cash Flow
Free Cash Flow	0	1.02B	1.03B	605.02M	657.60M	1.11B
Operating Cash Flow	0	1.03B	1.06B	710.52M	699.74M	1.11B
Investing Cash Flow	0	-15.06M	-2.48B	-372.22M	-41.89M	-20.89M
Financing Cash Flow	0	-877.84M	1.14B	-206.63M	-1.91B	908.41M

CELM, Inc. Technical Analysis

Technical Analysis SentimentNegative

Last Price321.00

Price Trends

50DMA325.02Negative

100DMA326.64Negative

200DMA324.65Negative

Market Momentum

MACD-1.38Positive

RSI44.96Neutral

STOCH80.00Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7367, the sentiment is Negative. The current price of 321.00 is below the 20-day moving average (MA) of 323.55, below the 50-day MA of 325.02, and below the 200-day MA of 324.65, indicating a bearish trend. The MACD of -1.38 indicates Positive momentum. The RSI at 44.96 is Neutral, neither overbought nor oversold. The STOCH value of 80.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7367.

CELM, Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:7367 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:6539	84Outperform	JPY 24.47B	24.13	―	5.72%	1.27%	-2.58%
JP:7089	82Outperform	JPY 8.97B	9.35	―	―	44.43%	124.90%
JP:3991	71Outperform	JPY 7.95B	5.50	―	2.39%	-8.80%	33.17%
JP:4177	69Neutral	JPY 5.46B	13.70	―	3.96%	11.36%	-39.12%
JP:7367	63Neutral	JPY 6.58B	12.31	―	4.83%	17.46%	0.81%
JP:3900	59Neutral	JPY 10.40B	-14.10	―	―	1.74%	-199.70%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:7367 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:7367	CELM, Inc.	321.00	-9.93	-3.00%
JP:3900	CrowdWorks, Inc.	657.00	-171.00	-20.65%
JP:3991	Wantedly, Inc.	836.00	-288.53	-25.66%
JP:4177	i-plug, Inc.	1364.00	229.77	20.26%
JP:6539	MATCHING SERVICE JAPAN CO.LTD.	979.00	31.90	3.37%
JP:7089	For Startups, Inc.	1357.00	400.50	41.87%

CELM, Inc. Corporate Events

CELM Posts Modest Q1 Growth, Keeps Outlook and Plans Higher Dividend

Aug 13, 2026

CELM Inc. reported first-quarter consolidated net sales of ¥2.33 billion, up 2.8% year on year, with EBITDA rising slightly to ¥383 million and operating profit edging up to ¥262 million. Ordinary profit was flat and profit attributabl...

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 17, 2026

CELM, Inc. AI Stock Analysis