Monogatari Corporation (3097) AI Stock Analysis

• Market Cap: ¥176.21B
• Dividend Yield: 0.8%
• Average Volume (3M): 127.27K
• Price to Earnings (P/E): 25.5
• Beta (1Y): 0.52
• Revenue Growth: 16.91%
• EPS Growth: 12.17%
• Country: JP
• Employees: 1,809
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 49.80
• Shares Outstanding: 39,202,980
• 10 Day Avg. Volume: 113,370
• 30 Day Avg. Volume: 127,270
• PEG Ratio: 7.68
• Price to Book (P/B): 3.67
• Price to Sales (P/S): 1.19
• P/FCF Ratio: 92.26
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥5,078.00 ▲(12.97% Upside)

Monogatari Corporation's strong financial performance, characterized by revenue growth and a stable balance sheet, is the primary driver of its stock score. The technical analysis indicates a strong upward trend, although overbought signals suggest caution. The valuation reflects a relatively high P/E ratio, indicating the stock may be overvalued. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates effective business strategies and market demand, supporting long-term financial health and expansion.

Stable Balance Sheet

A strong balance sheet with reduced leverage risk enhances financial stability, providing resilience against economic fluctuations.

Robust Return on Equity

High return on equity reflects efficient use of shareholder funds, indicating strong management performance and potential for sustainable growth.

Negative Factors

Volatile Free Cash Flow

Volatility in free cash flow growth suggests challenges in cash management, potentially impacting the company's ability to fund operations and growth consistently.

Decreased EBIT and EBITDA Margins

Declining EBIT and EBITDA margins may indicate rising operational costs or inefficiencies, which could affect profitability if not addressed.

Low Free Cash Flow to Net Income Ratio

A low free cash flow to net income ratio suggests difficulties in converting earnings to cash, potentially limiting reinvestment and dividend capabilities.

Monogatari Corporation Business Overview & Revenue Model

Company Description

The Monogatari Corporation operates restaurant chain and specialty stores in Japan and internationally. The company is also involved in the management of franchise chain business. As of August 01, 2018, it operated approximately 459 stores in Japan, including 253 directly operated stores and 206 franchise stores; and 16 stores internationally, including 13 directly operated stores and 3 franchise stores. The company was founded in 1949 and is headquartered in Toyohashi, Japan.

How the Company Makes Money

Monogatari Corporation generates revenue through several key streams. Firstly, the company earns significant income from the sale of animated series and films, both domestically and internationally. This includes licensing agreements with streaming platforms and television networks. Secondly, revenue is derived from video game sales, including both physical and digital formats, as well as in-game purchases. Additionally, the company profits from merchandise sales related to its popular franchises, including toys, apparel, and collectibles. Strategic partnerships with other media companies and distributors also enhance its revenue potential, as these collaborations can lead to broader distribution channels and co-production opportunities.

Monogatari Corporation Financial Statement Overview

Summary

Monogatari Corporation demonstrates strong revenue growth and profitability with a stable balance sheet. The company has improved leverage ratios and a robust return on equity. However, cash flow generation, while improving, shows volatility in free cash flow growth, indicating potential areas for cash management enhancement.

Income Statement

Monogatari Corporation has demonstrated strong revenue growth with a 4.01% increase in the latest year, maintaining a healthy gross profit margin of approximately 65%. The net profit margin is stable at around 5%, indicating efficient cost management. However, the EBIT and EBITDA margins have slightly decreased, suggesting potential areas for operational improvement.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.38, reflecting a stronger equity position and reduced leverage risk. Return on equity remains robust at 15.29%, showcasing effective use of shareholder funds. The equity ratio stands at a solid 54.41%, indicating a stable financial structure.

Cash Flow

Operating cash flow has increased, supporting a healthy operating cash flow to net income ratio of 1.92. However, free cash flow growth is volatile, with a significant increase in the latest year but previously negative growth. The free cash flow to net income ratio is relatively low, suggesting potential challenges in converting earnings to cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	123.92B	123.92B	107.16B	92.27B	73.28B	64.02B
Gross Profit	80.64B	80.64B	70.14B	60.23B	47.82B	42.11B
EBITDA	14.28B	14.28B	12.58B	10.48B	8.64B	6.39B
Net Income	6.16B	6.16B	5.64B	4.69B	3.73B	2.73B
Balance Sheet
Total Assets	74.03B	74.03B	61.53B	50.01B	46.20B	47.75B
Cash, Cash Equivalents and Short-Term Investments	12.52B	12.52B	12.24B	7.35B	8.46B	14.21B
Total Debt	15.35B	15.35B	14.93B	10.32B	10.59B	17.04B
Total Liabilities	33.66B	33.66B	31.97B	25.06B	23.24B	27.79B
Stockholders Equity	40.28B	40.28B	29.41B	24.78B	22.96B	19.96B
Cash Flow
Free Cash Flow	0.00	1.60B	462.00M	2.33B	1.72B	213.98M
Operating Cash Flow	0.00	11.84B	10.63B	9.70B	8.78B	5.79B
Investing Cash Flow	0.00	-13.95B	-9.24B	-8.04B	-7.38B	-5.78B
Financing Cash Flow	0.00	2.71B	3.52B	-3.23B	-7.25B	4.23B

Monogatari Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4495.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3097, the sentiment is Positive. The current price of 4495 is above the 20-day moving average (MA) of 4411.50, above the 50-day MA of 4185.70, and above the 200-day MA of 3915.76, indicating a bullish trend. The MACD of 69.50 indicates Negative momentum. The RSI at 58.84 is Neutral, neither overbought nor oversold. The STOCH value of 78.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3097.

Monogatari Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3097	72 Outperform	¥176.21B	25.49	―	0.80%	16.91%	12.17%
3087	70 Outperform	¥114.48B	16.94	―	2.09%	5.78%	10.26%
3543	69 Neutral	¥139.90B	22.95	―	1.88%	16.70%	-0.37%
7630	66 Neutral	¥148.92B	49.61	―	1.71%	9.51%	6.29%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
2695	58 Neutral	¥126.90B	35.27	―	0.63%	4.32%	11.78%
7412	41 Neutral	¥101.96B	144.64	―	―	-12.01%	―

Monogatari Corporation Corporate Events

Monogatari Corporation Reports Strong Financial Growth for Q3 2025

Monogatari Corporation reported a significant increase in its consolidated financial results for the three months ended September 30, 2025, with net sales rising by 19.6% and profit attributable to owners of the parent increasing by 45.8% compared to the previous year. The company also announced an increase in its annual dividend forecast, indicating a strong financial position and positive outlook for the fiscal year ending June 30, 2026.

Monogatari Corporation Expands U.S. Presence with Strategic Asset Acquisition

Monogatari Corporation’s subsidiary, Shin Nihon Kousan Inc., has entered into an agreement to acquire store assets from Mikio Corporation in California. This acquisition aligns with Monogatari’s growth strategy to expand its presence in the U.S. restaurant market, leveraging synergies with the SHOGUN Group and capitalizing on the compact restaurant model of Mikio Corporation to accelerate expansion into smaller cities and suburban areas.

Monogatari Corporation Announces Disposal of Treasury Shares as RSUs

Monogatari Corporation has announced the disposal of treasury shares as Restricted Stock Units (RSUs) for directors and executive officers. This move is part of their compensation system aimed at enhancing corporate and shareholder value sustainably. The disposal includes two types of RSUs: employment condition type and ESG condition-weighted type, with specific shares allocated to directors and executive officers. This initiative is designed to align the interests of the company’s leadership with long-term corporate goals and ESG targets, reflecting a strategic effort to bolster stakeholder value.