SLD Entertainment, Inc. (3223) AI Stock Analysis

• Market Cap: ¥1.54B
• Dividend Yield: N/A
• Average Volume (3M): 3.42K
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.51
• Revenue Growth: 2.16%
• EPS Growth: -18.26%
• Country: JP
• Employees: 127
• Sector: Consumer Cyclical
• Sector Strength: 75
• Industry: Restaurants
• EPS (TTM): 20.25
• Shares Outstanding: 1,560,864
• 10 Day Avg. Volume: 2,420
• 30 Day Avg. Volume: 3,423
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,127.00
• Price Target Upside: 13.84% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: ¥1,127.00 ▲(13.84% 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

Cash Flow Generation

Strong cash flow generation indicates efficient operations and provides the company with the flexibility to invest in growth opportunities and manage debt effectively.

Debt Management

Effective debt management with low leverage enhances financial stability and reduces risk, allowing the company to navigate economic fluctuations more resiliently.

Profitability

High profitability margins reflect strong pricing power and cost management, which are crucial for sustaining long-term competitive advantages in the entertainment industry.

Negative Factors

Declining Net Income

A decline in net income can signal underlying issues in cost control or revenue generation, potentially affecting future profitability and investment capacity.

Stockholders' Equity Decline

A declining stockholders' equity may indicate financial strain or insufficient reinvestment in the business, impacting long-term growth prospects and shareholder value.

Fluctuating Free Cash Flow

Volatility in free cash flow can affect the company's ability to fund operations and strategic initiatives, posing risks to financial stability and growth potential.

SLD Entertainment, Inc. Business Overview & Revenue Model

Company Description

SLD Entertainment, Inc. (3223) is a dynamic player in the entertainment industry, focused on creating and distributing innovative content across various platforms. The company operates in sectors such as film production, television programming, and digital media, offering a diverse range of products that cater to a wide audience. SLD Entertainment is known for its high-quality productions and strategic collaborations, which enhance its presence in both traditional and emerging media landscapes.

How the Company Makes Money

SLD Entertainment generates revenue through multiple channels, primarily by producing and distributing films and television shows, which earn income from box office sales, licensing agreements, and syndication rights. Additionally, the company capitalizes on digital streaming platforms by licensing its content for online distribution, thus tapping into the growing demand for on-demand entertainment. Key revenue streams also include merchandise sales related to popular franchises and partnerships with brands for product placements within its productions. Collaborations with other media entities and participation in co-production agreements further bolster its financial performance, allowing SLD Entertainment to diversify its income sources and reach a broader audience.

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	146.15M	147.36M	144.32M	-211.73M	64.31M	-691.54M
Net Income	144.42M	143.88M	177.38M	-238.72M	13.73M	-740.94M
Balance Sheet
Total Assets	1.07B	1.07B	1.05B	1.05B	1.29B	1.60B
Cash, Cash Equivalents and Short-Term Investments	317.24M	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	576.76M	576.76M	662.50M	805.24M	813.51M	1.93B
Stockholders Equity	497.71M	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: Positive
• Last Price: 990.00
• 50DMA: Positive
• 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 Positive. The current price of 990 is below the 20-day moving average (MA) of 994.55, above the 50-day MA of 989.72, and above the 200-day MA of 942.61, indicating a neutral trend. The MACD of 1.75 indicates Positive momentum. The RSI at 50.76 is Neutral, neither overbought nor oversold. The STOCH value of 27.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	¥1.54B	12.14		―	2.16%	-18.26%
8181	75 Outperform	¥2.72B	5.92		1.46%	3.77%	205.69%
2789	73 Outperform	¥2.85B	8.59		1.05%	5.85%	-26.82%
3077	67 Neutral	¥2.51B	10.88		―	4.26%	73.63%
Sector *	61 Neutral	$17.83B	12.89	-1.60%	3.03%	1.39%	-14.45%
3370	60 Neutral	¥1.21B	9.72		0.57%	7.79%	242.23%
8209	39 Underperform	¥1.02B	―		―	5.14%	-102.46%