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Step Co., Ltd.
(9795)
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Rating:75Outperform
Price Target:
¥2,498.00
▲(3.18% Upside)
Action:Reiterated
Date:08/04/26
The score is driven primarily by strong financial performance (rapid revenue growth, solid margins, very low leverage, and strong cash conversion). Valuation is supportive with a moderate P/E and an attractive dividend yield. These positives are tempered by weaker technicals, as the stock trades below key moving averages and momentum indicators remain subdued.
Positive Factors
Balance Sheet Strength
Extremely low leverage (debt/equity 0.005) gives durable financial flexibility: lowers interest burden, supports investment or shareholder returns, and provides a buffer in downturns. This structural strength reduces refinancing risk and preserves capacity for strategic initiatives over months.
Negative Factors
Volatile Free Cash Flow Growth
While cash conversion ratios are strong, volatility in free cash flow growth signals irregularity in cash available for investment or returns. This can reflect working capital swings or lumpy receipts, making multi-quarter planning and steady dividend/capex forecasting more uncertain for investors.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
Extremely low leverage (debt/equity 0.005) gives durable financial flexibility: lowers interest burden, supports investment or shareholder returns, and provides a buffer in downturns. This structural strength reduces refinancing risk and preserves capacity for strategic initiatives over months.
Read all positive factors
Step Co., Ltd. (9795) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥38.19B
Dividend Yield3.82%
Average Volume (3M)22.52K
Price to Earnings (P/E)12.8
Beta (1Y)0.31
Revenue Growth3.53%
EPS Growth11.39%
CountryJP
Employees954
SectorConsumer Defensive
Sector Strength42
IndustryEducation & Training Services
Share Statistics
EPS (TTM)174.40
Shares Outstanding16,670,000
10 Day Avg. Volume10,720
30 Day Avg. Volume22,523
Financial Highlights & Ratios
PEG Ratio1.55
Price to Book (P/B)1.44
Price to Sales (P/S)2.49
P/FCF Ratio12.71
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)176.1
Revenue Forecast (FY)¥16.30B
Step Co., Ltd. Business Overview & Revenue Model
Company Description
Step Co.,Ltd. is an educational services provider in Japan, primarily known for running cram schools. The company also manages and operates childcare and nursery facilities. Established in 1975, Step Co.,Ltd. maintains a network of 154 schools loc...
How the Company Makes Money
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Step Co., Ltd. Financial Statement Overview
Summary
Income Statement
85
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
80
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 16.04B | 15.85B | 15.10B | 14.44B | 13.65B | 13.04B |
| Gross Profit | 4.77B | 4.69B | 4.36B | 3.98B | 4.41B | 4.24B |
| EBITDA | 4.34B | 4.24B | 3.98B | 3.65B | 4.09B | 3.94B |
| Net Income | 2.73B | 2.69B | 2.51B | 2.41B | 2.56B | 2.47B |
Balance Sheet | ||||||
| Total Assets | 30.62B | 30.70B | 29.32B | 28.70B | 27.62B | 26.83B |
| Cash, Cash Equivalents and Short-Term Investments | 7.59B | 7.84B | 9.67B | 9.73B | 9.35B | 8.65B |
| Total Debt | 102.52M | 142.25M | 295.53M | 311.87M | 409.02M | 1.58B |
| Total Liabilities | 2.88B | 3.28B | 3.09B | 2.76B | 2.83B | 3.96B |
| Stockholders Equity | 27.74B | 27.42B | 26.24B | 25.94B | 24.80B | 22.87B |
Cash Flow | ||||||
| Free Cash Flow | 3.11B | 3.11B | 3.13B | 2.42B | 2.71B | 3.41B |
| Operating Cash Flow | 3.38B | 3.38B | 3.38B | 2.85B | 3.06B | 3.72B |
| Investing Cash Flow | -3.19B | -3.19B | -937.54M | -1.03B | -388.41M | -401.88M |
| Financing Cash Flow | -2.02B | -2.02B | -2.50B | -1.45B | -1.97B | -2.55B |
Step Co., Ltd. Technical Analysis
Positive
2421.00
Price Trends
2248.04
Positive
2269.98
Positive
2344.30
Negative
Market Momentum
21.89
Negative
67.87
Neutral
91.73
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9795, the sentiment is Positive. The current price of 2421 is above the 20-day moving average (MA) of 2264.65, above the 50-day MA of 2248.04, and above the 200-day MA of 2344.30, indicating a neutral trend. The MACD of 21.89 indicates Negative momentum. The RSI at 67.87 is Neutral, neither overbought nor oversold. The STOCH value of 91.73 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9795.
Step Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
85 Outperform | ¥28.84B | 15.42 | ― | 4.01% | -1.57% | 2.90% | |
79 Outperform | ¥17.82B | 13.78 | ― | 3.54% | 6.26% | 21.52% | |
75 Outperform | ¥38.19B | 12.79 | ― | 3.55% | 3.53% | 11.39% | |
75 Outperform | ¥47.82B | 18.14 | ― | 2.56% | 7.90% | 7.66% | |
74 Outperform | ¥35.86B | 19.50 | ― | 5.00% | 2.77% | 16.87% | |
68 Neutral | ¥45.04B | 12.35 | ― | 2.28% | 7.30% | 12.44% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% |
* Consumer Defensive Sector Average
JP:9795
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Step Co., Ltd. Corporate Events
Step Co. Delivers Higher Earnings and Dividends on Strong Nine-Month Results
Jul 30, 2026
Step Co., Ltd., a Tokyo Stock Exchange-listed company, reported solid non-consolidated results for the nine months ended June 30, 2026, with net sales rising 3.6% year on year to ¥12,220 million. Operating profit grew 6.3% to ¥3,026 mill...
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.