SLD Entertainment, Inc. (3223) AI Stock Analysis

• Market Cap: ¥1.67B
• Dividend Yield: N/A
• Average Volume (3M): 12.26K
• Price to Earnings (P/E): 13.2
• Beta (1Y): 0.36
• Revenue Growth: -0.53%
• EPS Growth: -17.97%
• Country: JP
• Employees: 127
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 2.45
• Shares Outstanding: 1,560,864
• 10 Day Avg. Volume: 6,190
• 30 Day Avg. Volume: 12,260
• PEG Ratio: -0.43
• Price to Book (P/B): 2.83
• Price to Sales (P/S): 0.38
• P/FCF Ratio: 13.93
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ¥1,242.00 ▲(11.99% Upside)

SLD Entertainment, Inc. receives a strong overall stock score driven by solid financial performance and positive technical indicators. The company's effective debt management and cash flow generation are key strengths. The stock's reasonable valuation further supports its attractiveness, although the lack of dividend yield and some concerns about declining net income slightly temper the outlook.

Positive Factors

Low leverage (Debt-to-Equity 0.20)

A low debt-to-equity ratio (0.20) provides durable financial flexibility for a content-driven firm. It lowers interest burden, helps absorb cyclical box-office and distribution swings, and enables strategic multi-year investments in intellectual property without over-reliance on external financing.

Strong free cash flow generation

Material free cash flow ($101.15M) supports sustained investment in content creation, licensing, and platform development. Reliable cash conversion reduces need for dilutive or debt financing, enabling organic growth, selective M&A, and the ability to fund long-term franchises through volatile revenue periods.

High gross profit margin (~80%)

A near-80% gross margin signals strong content economics and scalable distribution. High unit margins grant structural pricing power and the capacity to invest in marketing or IP development while maintaining profitability, supporting long-term operating leverage as revenues normalize or expand.

Negative Factors

Sharp recent revenue decline

A reported revenue growth metric of roughly -53% denotes a significant top-line contraction that can be structural. Sustained revenue declines erode scale, reduce bargaining leverage with platforms and distributors, and constrain the firm’s ability to reinvest in new content and maintain long-term competitive positioning.

Declining EPS

EPS falling by roughly 18% signals weakening per-share profitability and potential margin pressure. Continued EPS declines limit retained earnings accumulation, reduce strategic financial flexibility for high-cost productions, and may indicate structural cost or revenue mix issues needing remediation.

Decreasing stockholders' equity / net income

A noted decrease in stockholders' equity coupled with declining net income weakens the balance sheet over time. Eroding equity reduces headroom for borrowing, can trigger covenant or rating pressure, and limits the company’s capacity to fund large upfront content investments essential in entertainment.

SLD Entertainment, Inc. Business Overview & Revenue Model

Company Description

SLD Entertainment, Inc. operates restaurants in Japan. It operates a dining cafe under the kawara CAFE & DINING brand name; and plans and conducts live events and cultural contents focusing on music, art, and food. The company also offers event planning and shop production services; engages in store building activities; and space production services. SLD Entertainment, Inc. was incorporated in 2004 and is headquartered in Tokyo, Japan.

How the Company Makes Money

SLD Entertainment generates revenue through multiple streams, primarily by producing and licensing content for theatrical releases, television broadcasts, and streaming platforms. The company earns income from box office sales, syndication deals, and subscription fees from its proprietary streaming service. Additionally, partnerships with major networks and distribution platforms enhance its reach and profitability. Merchandise sales and licensing agreements for branded content also contribute to its overall earnings, allowing SLD Entertainment to capitalize on its intellectual property.

SLD Entertainment, Inc. Financial Statement Overview

Summary

SLD Entertainment, Inc. demonstrates solid financial performance with strong profitability and cash flow generation. The company has effectively managed its debt levels, contributing to a stable balance sheet. However, concerns regarding the decline in net income and stockholders' equity slightly offset the positive outlook.

Income Statement

SLD Entertainment, Inc. has shown a strong recovery in its income statement metrics over the past few years. The company achieved a Gross Profit Margin of 79.98% and a Net Profit Margin of 3.93% in the latest annual report. The Revenue Growth Rate from the previous year was 2.10%, indicating steady growth. EBIT and EBITDA margins were 3.81% and 4.02%, respectively, showing improved operational efficiency. However, the decline in net income from the previous year suggests potential challenges in maintaining profitability.

Balance Sheet

The balance sheet of SLD Entertainment, Inc. reflects a stable financial position with a Debt-to-Equity Ratio of 0.20, indicating low leverage. The Return on Equity (ROE) is 28.90%, which is a positive sign of profitability. The Equity Ratio stands at 46.31%, suggesting a balanced capital structure. However, the decrease in stockholders' equity over the years could be a concern for long-term financial stability.

Cash Flow

The cash flow statement shows a significant improvement, with a positive Free Cash Flow of $101.15 million. The Operating Cash Flow to Net Income Ratio is 0.84, indicating efficient cash generation from operations. The Free Cash Flow to Net Income Ratio is 0.70, reflecting a healthy conversion of earnings into cash. Despite these strengths, the company experienced fluctuations in free cash flow growth, which might pose risks to future cash flow stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.66B	3.66B	3.59B	3.09B	2.43B	2.32B
Gross Profit	2.94B	2.93B	2.87B	2.39B	1.76B	1.69B
EBITDA	137.97M	147.36M	144.32M	-211.73M	64.31M	-691.54M
Net Income	135.51M	143.88M	177.38M	-238.72M	13.73M	-740.94M
Balance Sheet
Total Assets	1.18B	1.07B	1.05B	1.05B	1.29B	1.60B
Cash, Cash Equivalents and Short-Term Investments	342.36M	317.24M	321.03M	338.69M	477.85M	733.34M
Total Debt	100.00M	100.00M	183.16M	184.67M	124.67M	1.17B
Total Liabilities	674.03M	576.76M	662.50M	805.24M	813.51M	1.93B
Stockholders Equity	505.37M	497.71M	385.82M	240.44M	481.05M	-332.68M
Cash Flow
Free Cash Flow	0.00	101.15M	-1.89M	-231.85M	-1.65M	-409.08M
Operating Cash Flow	0.00	121.44M	14.98M	-216.07M	12.96M	-389.78M
Investing Cash Flow	0.00	-10.08M	874.00K	24.58M	4.33M	4.51M
Financing Cash Flow	0.00	-115.16M	-33.52M	52.34M	-272.79M	776.34M

SLD Entertainment, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1109.00
• 50DMA: Negative
• 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:3223, the sentiment is Negative. The current price of 1109 is above the 20-day moving average (MA) of 1106.00, above the 50-day MA of 1089.14, and above the 200-day MA of 990.82, indicating a neutral trend. The MACD of 3.45 indicates Positive momentum. The RSI at 40.37 is Neutral, neither overbought nor oversold. The STOCH value of 25.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3223.

SLD Entertainment, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3223	75 Outperform	¥1.67B	13.19	―	―	-0.53%	-17.97%
8181	75 Outperform	¥2.86B	6.70	―	1.33%	5.03%	129.14%
3077	72 Outperform	¥3.63B	10.66	―	―	6.16%	86.76%
2789	70 Neutral	¥2.96B	9.61	―	1.01%	5.70%	-12.36%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3370	55 Neutral	¥1.16B	11.61	―	0.60%	4.19%	87.44%
8209	38 Underperform	¥855.59M	-8.03	―	―	7.45%	-46.31%

SLD Entertainment, Inc. Corporate Events

SLD Entertainment Posts Lower Nine-Month Profit but Keeps Full-Year Outlook Intact

SLD Entertainment Inc. reported largely flat non-consolidated net sales of ¥2.76 billion for the nine months ended November 30, 2025, with modest declines in operating profit, ordinary profit, and net profit compared with the same period a year earlier, leading to lower earnings per share. Despite the profit contraction, total assets and net assets both increased, improving the equity-to-asset ratio to 47.5%, and the company maintained its policy of not paying interim or year-end dividends for the current fiscal year. Management left its full-year forecast unchanged, projecting a 4.4% rise in net sales and a sharp recovery in profits, signaling expectations of stronger performance in the final quarter even as shareholders continue to face a no-dividend stance.

The most recent analyst rating on (JP:3223) stock is a Buy with a Yen1189.00 price target. To see the full list of analyst forecasts on SLD Entertainment, Inc. stock, see the JP:3223 Stock Forecast page.