Intrinsic Value With us Corporation (9696.T)

• Previous Close: ¥3,225.00
• Intrinsic Value: ¥1,821.00
• Upside potential: -44%

Stock Valuation Context

Business Model And Market Position

With us Corporation is a Japan-based education service provider specializing in supplementary learning, exam preparation, and career guidance for students and professionals. The company operates a diversified portfolio of services, including cram schools, e-learning platforms, language courses, and corporate training solutions. Its revenue model is built on tuition fees, content licensing, and ICT-related services, positioning it as a comprehensive education provider in a highly competitive sector. The company leverages its long-standing presence since 1976 to maintain credibility, while its multi-channel approach—spanning physical schools, online platforms, and corporate partnerships—enhances its market penetration. With Japan’s emphasis on academic achievement and lifelong learning, With us Corporation occupies a niche in test preparation and vocational upskilling, though it faces competition from both traditional institutions and digital-first edtech players. Its expansion into language services and healthcare-related education reflects strategic diversification to capture adjacent demand.

Revenue Profitability And Efficiency

In FY 2024, With us Corporation reported revenue of JPY 20.69 billion, with net income of JPY 904 million, reflecting a modest net margin of approximately 4.4%. Operating cash flow stood at JPY 982 million, though capital expenditures of JPY -363 million indicate restrained investment in growth. The company’s cash position of JPY 8.07 billion suggests liquidity resilience, but its profitability metrics highlight operational cost pressures inherent in the education sector.

Earnings Power And Capital Efficiency

The company’s diluted EPS of JPY 99.43 underscores its ability to generate earnings despite competitive and regulatory headwinds. With a low beta of -0.094, its earnings exhibit low correlation to broader market volatility, typical of defensive education services. However, the modest net income relative to revenue implies room for improved cost management or pricing strategies to enhance returns on invested capital.

Balance Sheet And Financial Health

With us Corporation maintains a conservative balance sheet, with JPY 8.07 billion in cash against JPY 1.02 billion in total debt, indicating strong solvency. The negligible leverage and high cash reserves provide flexibility for strategic initiatives or weathering cyclical downturns. The absence of significant debt-related risks aligns with its stable, cash-generating business model.

Growth Trends And Dividend Policy

The company’s growth appears tempered, with limited capex signaling a focus on optimizing existing operations rather than aggressive expansion. Its dividend payout of JPY 60 per share reflects a commitment to shareholder returns, though the yield is likely modest given the current market capitalization. Future growth may hinge on scaling digital offerings or expanding corporate training partnerships.

Valuation And Market Expectations

At a market cap of JPY 23.47 billion, the stock trades at a P/E multiple derived from its JPY 99.43 EPS, though exact comparables are context-dependent. The negative beta suggests investor perception of the business as a defensive play, with valuation likely factoring in Japan’s demographic challenges and competitive education landscape.

Strategic Advantages And Outlook

With us Corporation benefits from its entrenched brand and diversified education services, which mitigate reliance on any single segment. Its cash-rich position allows for opportunistic investments in digital transformation or M&A. However, long-term success will depend on adapting to Japan’s shrinking student population and increasing demand for flexible, technology-driven learning solutions.

Sources

Company filings, market data