Nagase Brothers, Inc. (9733) AI Stock Analysis

• Market Cap: ¥56.63B
• Dividend Yield: 5.13%
• Average Volume (3M): 13.55K
• Price to Earnings (P/E): 21.8
• Beta (1Y): 0.29
• Revenue Growth: 10.27%
• EPS Growth: -6.00%
• Country: JP
• Employees: 1,398
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 5.33
• Shares Outstanding: 30,445,227
• 10 Day Avg. Volume: 9,950
• 30 Day Avg. Volume: 13,553
• 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: ¥1,985.00
• Price Target Upside: 1.90% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 67 Neutral
• Price Target: ¥1,985.00 ▲(1.90% Upside)

Nagase Brothers, Inc. scores well due to strong financial performance, particularly in cash flow generation and revenue growth. The technical analysis provides mixed signals, with potential for positive long-term trends. Valuation offers a balanced view with a high dividend yield and moderate P/E ratio. The absence of recent earnings call and corporate events data limits the overall assessment but does not detract from the stock's fundamental strengths.

Nagase Brothers, Inc. Business Overview & Revenue Model

Company Description

Nagase Brothers Inc. provides education services in Japan. It operates high schools, preparatory schools, junior high schools, business schools, elementary schools, and swimming schools; and offers entrance exam, online schools and english schools, as well as publishes reference books. Nagase Brothers Inc. was founded in 1971 and is headquartered in Musashino, Japan.

How the Company Makes Money

Nagase Brothers, Inc. generates revenue primarily through the sale of educational publications, such as textbooks and test preparation materials, which are widely used in schools and educational institutions across Japan. The company also earns income from providing educational services and solutions, which may include online learning platforms, tutoring services, and educational consulting. Partnerships with educational institutions and collaborations with educators contribute significantly to its revenue by expanding its market reach and enhancing its product offerings.

Nagase Brothers, Inc. Financial Statement Overview

Summary

Nagase Brothers, Inc. exhibits consistent revenue growth and efficient operations, as reflected in stable margins. The balance sheet shows a balanced leverage position, but there are concerns regarding declining return on equity. The cash flow statement indicates strong cash generation and improved free cash flow, highlighting financial stability. Overall, the company is well-positioned in the Education & Training Services industry, with room for improved profitability.

Income Statement

Nagase Brothers, Inc. has shown consistent revenue growth over the years, with a revenue growth rate of 4.28% in the latest year. The gross profit margin stands at 24.97% for the most recent year, indicating efficient cost management. However, the net profit margin has decreased from 4.91% to 3.54%, reflecting challenges in converting revenue into profit. The EBIT and EBITDA margins are relatively stable, suggesting operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is 0.96, indicating a moderate level of leverage. The return on equity has decreased from 11.78% to 6.27%, reflecting lower returns for shareholders. However, the equity ratio has improved slightly to 34.59%, showing a stronger equity position relative to total assets.

Cash Flow

Nagase Brothers, Inc. has improved its free cash flow significantly, with a growth rate of 238.34% over the past year. The operating cash flow to net income ratio is strong at 4.19, demonstrating robust cash generation relative to net income. The free cash flow to net income ratio also improved, indicating enhanced cash efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	55.26B	55.26B	52.99B	52.35B	49.41B	45.85B
Gross Profit	14.44B	13.80B	14.33B	15.01B	15.54B	15.26B
EBITDA	6.86B	7.03B	7.44B	8.89B	7.62B	6.82B
Net Income	1.96B	1.96B	2.60B	4.00B	3.44B	2.43B
Balance Sheet
Total Assets	90.11B	90.11B	88.29B	78.10B	76.56B	71.71B
Cash, Cash Equivalents and Short-Term Investments	18.57B	18.57B	26.47B	19.53B	21.47B	21.87B
Total Debt	29.98B	29.98B	35.64B	26.28B	28.95B	27.97B
Total Liabilities	58.93B	58.93B	59.52B	51.66B	53.45B	51.12B
Stockholders Equity	31.17B	31.17B	28.77B	26.45B	23.11B	20.59B
Cash Flow
Free Cash Flow	0.00	6.75B	1.99B	2.08B	3.73B	4.50B
Operating Cash Flow	0.00	8.20B	4.07B	4.68B	5.78B	6.34B
Investing Cash Flow	0.00	-7.78B	-1.95B	-2.85B	-5.54B	-1.33B
Financing Cash Flow	0.00	-8.31B	4.75B	-3.82B	-720.00M	-210.00M

Nagase Brothers, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1948.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9733, the sentiment is Positive. The current price of 1948 is below the 20-day moving average (MA) of 1951.00, above the 50-day MA of 1941.20, and above the 200-day MA of 1833.96, indicating a neutral trend. The MACD of 1.84 indicates Positive momentum. The RSI at 50.52 is Neutral, neither overbought nor oversold. The STOCH value of 28.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9733.

Nagase Brothers, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9795	80 Outperform	40.01B	14.81	9.56%	3.18%	5.34%	-0.95%
4718	73 Outperform	53.50B	21.41	15.40%	1.59%	7.19%	33.38%
9470	67 Neutral	46.35B	14.23	4.37%	2.39%	6.15%	-17.22%
9733	67 Neutral	¥56.63B	21.83		5.13%	10.27%	-6.00%
9696	65 Neutral	29.89B	176.82	6.97%	1.86%	7.52%	-80.63%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%