Gakken Holdings Co., Ltd. (9470) AI Stock Analysis

• Market Cap: ¥45.35B
• Dividend Yield: 2.42%
• Average Volume (3M): 109.03K
• Price to Earnings (P/E): 13.9
• Beta (1Y): 0.46
• Revenue Growth: 6.15%
• EPS Growth: -17.22%
• Country: JP
• Employees: 9,593
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 7.68
• Shares Outstanding: 44,633,232
• 10 Day Avg. Volume: 101,650
• 30 Day Avg. Volume: 109,030
• PEG Ratio: -0.70
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 0.23
• P/FCF Ratio: 13.33
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: ¥1,182.00 ▲(9.95% Upside)

Gakken Holdings' strong financial performance, particularly in revenue growth and operational efficiency, is a key strength. The stock's positive technical indicators and fair valuation further support its attractiveness. However, improvements in profitability and cash flow management are needed to enhance the overall financial position.

Gakken Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

Gakken Holdings Co., Ltd. (9470) is a Japanese company primarily engaged in the education and publishing sectors. The company operates through various segments, including educational services, publishing, and content development. Gakken is known for its wide range of educational materials, including textbooks, learning aids, and digital content, catering to students of all ages from preschool to higher education. Additionally, Gakken provides tutoring services and operates schools, contributing to its comprehensive approach to education.

How the Company Makes Money

Gakken Holdings generates revenue through multiple streams, primarily from the sale of educational materials, textbooks, and learning aids. The company also earns income from its educational services, including tutoring and school operations. Key revenue streams include direct sales to schools and educational institutions, as well as retail sales to consumers. Furthermore, Gakken engages in partnerships with educational institutions and government bodies to provide customized educational solutions, which enhances its revenue potential. The company's focus on digital content and online learning platforms also contributes to its earnings, capitalizing on the growing demand for remote education solutions.

Gakken Holdings Co., Ltd. Financial Statement Overview

Summary

Gakken Holdings shows strong revenue growth and operational efficiency with a stable balance sheet. However, cash flow performance needs improvement, and there is room for enhancing profitability and shareholder returns.

Income Statement

Gakken Holdings has demonstrated a consistent upward trend in revenue growth, with a TTM revenue growth rate of 14.97% compared to the previous year. The gross profit margin stands at 26.75% in TTM, indicating efficient cost management. The net profit margin improved to 1.65% in TTM, showing profitability. However, the net profit margin is relatively low, suggesting room for improvement in cost control or pricing strategy. The EBIT margin is stable at 3.54%, and EBITDA margin is 5.47%, reflecting steady operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is 0.79 in TTM, reflecting a balanced capital structure with moderate leverage. The equity ratio is 37.04%, indicating a solid equity base. Return on equity (ROE) is 6.12% for TTM, which suggests moderate returns on shareholder investments. The balance sheet reflects stability, but there is a need to enhance returns to shareholders.

Cash Flow

Cash flow analysis is limited due to missing data in TTM. The free cash flow growth rate in the previous annual period was negative, indicating challenges in generating cash from operations. The operating cash flow to net income ratio was positive at 3.17 in the last annual period, showing strong cash generation relative to net income, but the absence of TTM data limits a complete assessment.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	194.15B	185.57B	164.12B	156.03B	150.60B	143.52B
Gross Profit	52.04B	49.90B	46.69B	46.43B	45.16B	41.73B
EBITDA	10.69B	10.24B	10.08B	9.65B	9.04B	8.03B
Net Income	3.13B	2.26B	3.19B	3.44B	2.62B	2.32B
Balance Sheet
Total Assets	138.98B	130.71B	136.33B	123.68B	116.90B	103.74B
Cash, Cash Equivalents and Short-Term Investments	24.86B	20.39B	20.84B	22.52B	19.77B	25.60B
Total Debt	40.58B	37.38B	42.25B	41.37B	38.40B	37.43B
Total Liabilities	82.60B	77.06B	81.29B	74.79B	69.49B	67.50B
Stockholders Equity	51.98B	51.67B	52.98B	48.69B	47.24B	36.17B
Cash Flow
Free Cash Flow	0.00	3.20B	3.26B	2.21B	-281.00M	2.47B
Operating Cash Flow	0.00	7.16B	5.46B	5.17B	4.44B	5.97B
Investing Cash Flow	0.00	1.84B	-4.76B	-5.80B	-18.11B	-1.59B
Financing Cash Flow	0.00	-9.38B	-6.20B	2.00B	7.81B	-22.00M

Gakken Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1075.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9470, the sentiment is Positive. The current price of 1075 is above the 20-day moving average (MA) of 1043.20, above the 50-day MA of 1035.42, and above the 200-day MA of 978.90, indicating a bullish trend. The MACD of 6.70 indicates Negative momentum. The RSI at 64.27 is Neutral, neither overbought nor oversold. The STOCH value of 91.59 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9470.

Gakken Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9795	80 Outperform	¥38.94B	14.40	―	3.37%	5.34%	-0.95%
9470	75 Outperform	¥45.35B	13.92	―	2.42%	6.15%	-17.22%
4718	71 Outperform	¥46.14B	18.47	―	2.14%	7.19%	33.38%
9733	71 Outperform	¥56.98B	21.97	―	5.04%	10.27%	-6.00%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Gakken Holdings Co., Ltd. Corporate Events

Gakken Holdings Forms Strategic Alliance with Nippon Life

Gakken Holdings Co., Ltd. has announced a strategic capital and business alliance with Nippon Life Insurance Company to enhance its operations in the nursing care and childcare sectors. This collaboration aims to integrate the expertise and networks of both companies to improve industry sustainability, develop new business models, and support local communities. Nippon Life will acquire a 2% stake in Gakken Holdings, and the partnership will focus on joint initiatives in nursing care, childcare, and educational content development.

The most recent analyst rating on (JP:9470) stock is a Hold with a Yen1022.00 price target. To see the full list of analyst forecasts on Gakken Holdings Co., Ltd. stock, see the JP:9470 Stock Forecast page.

Gakken Holdings Reports Strong Financial Performance for Nine Months Ending June 2025

Gakken Holdings Co., Ltd. reported consolidated financial results for the nine months ending June 30, 2025, showing a 6.2% increase in net sales compared to the previous year. Despite a slight decline in operating and ordinary profits, the company experienced a significant 46.4% rise in profit attributable to owners of the parent, indicating strong financial performance and potential positive implications for stakeholders.