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Townnews-Sha Co., Ltd. (JP:2481)
:2481
Japanese Market
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Townnews-Sha Co., Ltd. (2481) AI Stock Analysis

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JP:2481

Townnews-Sha Co., Ltd.

(2481)

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Outperform 81 (OpenAI - Gpt-5.6Sol)
Rating:81Outperform
Price Target:
¥763.00
▲(10.42% Upside)
Action:Reiterated
Date:08/19/26
The score is driven primarily by strong financial stability (notably a zero-debt balance sheet) and improving revenue growth, supported by an attractive valuation (low P/E and solid dividend yield). Technicals are constructive with price above key moving averages and positive MACD, though momentum indicators are only moderately strong, and profitability/cash conversion variability keeps the overall score from being higher.
Positive Factors
Revenue Acceleration
The sharp 2026 revenue acceleration indicates renewed demand and improved commercial execution. If sustained, growth can strengthen operating leverage and expand the company’s regional advertising base over the next several quarters.
Negative Factors
Margin Volatility
The uneven margin trajectory shows that strong gross margins have not translated into consistently improving bottom-line profitability. Continued volatility could constrain earnings growth and make results more sensitive to operating costs and execution.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Acceleration
The sharp 2026 revenue acceleration indicates renewed demand and improved commercial execution. If sustained, growth can strengthen operating leverage and expand the company’s regional advertising base over the next several quarters.
Read all positive factors

Townnews-Sha Co., Ltd. (2481) vs. iShares MSCI Japan ETF (EWJ)

Townnews-Sha Co., Ltd. Business Overview & Revenue Model

Company Description
Townnews-Sha Co.,Ltd. engages in the publishing business in Japan. It issues Town News, a local information paper and selling advertising space on local politics, economy, society, culture, sports, and other topics. It also publishes commemorative...
How the Company Makes Money
Townnews-Sha primarily makes money by monetizing local audience reach through advertising and related services. Key revenue streams typically include: (1) Advertising sales in its locally distributed publications (e.g., ad space sold to local busi...

Townnews-Sha Co., Ltd. Financial Statement Overview

Summary
Strong 2026 revenue acceleration (26.5% growth) and consistently high gross margins (~63%–66%) support a solid profitability profile. A debt-free, steadily growing balance sheet meaningfully reduces risk. The main constraint is uneven execution: operating/net margins and cash conversion weakened in 2025 and only partially improved in 2026, and cash flow coverage vs. earnings has been softer in 2025–2026.
Income Statement
78
Positive
Balance Sheet
91
Very Positive
Cash Flow
74
Positive
BreakdownJun 2025Jun 2024Jun 2023Jun 2022Jun 2021
Income Statement
Total Revenue3.99B3.68B3.74B3.69B3.25B
Gross Profit2.56B2.43B2.44B2.35B2.06B
EBITDA646.43M508.51M625.89M614.84M416.37M
Net Income454.49M389.14M492.58M430.00M310.96M
Balance Sheet
Total Assets6.46B5.85B5.49B4.98B4.54B
Cash, Cash Equivalents and Short-Term Investments2.53B2.28B2.03B1.89B1.95B
Total Debt0.000.000.000.000.00
Total Liabilities788.88M741.28M693.78M625.28M607.16M
Stockholders Equity5.67B5.11B4.80B4.35B3.93B
Cash Flow
Free Cash Flow393.52M387.08M381.78M395.19M377.30M
Operating Cash Flow396.82M400.18M428.76M464.85M411.30M
Investing Cash Flow-241.59M235.99M-361.89M-418.56M-222.47M
Financing Cash Flow-110.41M-104.89M-93.85M-82.81M-77.29M

Townnews-Sha Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price691.00
Price Trends
50DMA
638.68
Positive
100DMA
651.41
Positive
200DMA
654.39
Positive
Market Momentum
MACD
5.96
Negative
RSI
65.51
Neutral
STOCH
53.43
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2481, the sentiment is Positive. The current price of 691 is above the 20-day moving average (MA) of 645.90, above the 50-day MA of 638.68, and above the 200-day MA of 654.39, indicating a bullish trend. The MACD of 5.96 indicates Negative momentum. The RSI at 65.51 is Neutral, neither overbought nor oversold. The STOCH value of 53.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2481.

Townnews-Sha Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
¥3.65B8.042.95%8.45%16.79%
70
Outperform
¥9.51B7.811.06%10.53%1379.90%
66
Neutral
¥11.45B9.783.82%2.17%-22.98%
64
Neutral
¥19.79B17.412.01%6.60%-41.82%
60
Neutral
$48.67B4.58-11.27%4.14%2.83%-41.78%
55
Neutral
¥3.31B13.222.78%11.79%
44
Neutral
¥2.37B-38.2610.76%-290.17%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2481
Townnews-Sha Co., Ltd.
661.00
-22.76
-3.33%
JP:2164
Chiikishinbunsha Co., Ltd.
154.00
-61.83
-28.65%
JP:2341
Arbeit-Times Co., Ltd.
170.00
14.21
9.12%
JP:3678
MEDIA DO Co., Ltd.
1,285.00
-480.62
-27.22%
JP:7849
Starts Publishing Corporation
2,980.00
-1,041.39
-25.90%
JP:9475
Shobunsha Holdings, Inc.
526.00
108.00
25.84%
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 19, 2026