MEDIA DO Co., Ltd. (3678) AI Stock Analysis

• Market Cap: ¥26.51B
• Dividend Yield: 1.62%
• Average Volume (3M): 70.55K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 0.65
• Revenue Growth: 6.52%
• EPS Growth: N/A
• Country: JP
• Employees: 583
• Sector: Communication Services
• Sector Strength: 76
• Industry: Publishing
• EPS (TTM): 53.99
• Shares Outstanding: 15,205,174
• 10 Day Avg. Volume: 123,590
• 30 Day Avg. Volume: 70,546
• PEG Ratio: 0.03
• Price to Book (P/B): 1.44
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥2,087.00
• Price Target Upside: 21.98% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: ¥1,920.00 ▲(12.22%Upside)

MEDIA DO Co., Ltd. receives a solid score due to its strong financial performance and reasonable valuation. Technical analysis shows moderate trends, suggesting stability in the stock price. The absence of earnings call data or notable corporate events limits the impact of these components.

MEDIA DO Co., Ltd. Business Overview & Revenue Model

Company Description

MEDIA DO Co., Ltd. is a leading Japanese company headquartered in Tokyo, specializing in the digital distribution of eBooks and other digital content. The company operates in the digital publishing and content distribution sectors, providing comprehensive solutions for publishers, authors, and readers. Its core services include the distribution of eBooks, digital comics, and other forms of digital media through a robust network of online retailers and platforms.

How the Company Makes Money

MEDIA DO Co., Ltd. generates revenue primarily through its digital content distribution services. The company acts as an intermediary between publishers and online retailers, facilitating the distribution of eBooks and digital comics to consumers. It earns money through distribution fees, which are a percentage of the sales price of each digital product sold. Additionally, MEDIA DO may enter into partnerships with publishers and content creators to expand its digital catalog, enhance its distribution capabilities, and drive sales growth. Its revenue model is heavily reliant on the increasing consumer demand for digital content and the continuous expansion of its distribution network.

MEDIA DO Co., Ltd. Financial Statement Overview

Summary

MEDIA DO Co., Ltd. is in a strong financial position with solid revenue growth, improving profitability, and a robust balance sheet. The net profit margin improvement and low financial leverage are positive, despite some volatility in net income.

Income Statement

MEDIA DO Co., Ltd. has demonstrated solid revenue growth with a 8.4% increase in the latest year, despite a slight dip from the previous year. The gross profit margin is healthy at 10.23%, and the net profit margin has improved significantly, moving from a negative value to 1.34%, showcasing a recovery in profitability. The EBITDA margin is at 3.17%, indicating efficient cost management. However, fluctuations in net income over the years suggest some volatility.

Balance Sheet

The company's balance sheet is strong with a solid equity ratio of 33.11%, indicating a stable financial position. The debt-to-equity ratio is low at 0.22, suggesting low financial leverage and prudent financial management. Return on equity stands at 7.75%, highlighting efficient use of shareholders' funds. The consistent improvement in stockholders' equity suggests robust financial health.

Cash Flow

Operating cash flow has increased, and the free cash flow shows a robust growth of 62.1% over the past year, reflecting effective cash management. The operating cash flow to net income ratio is strong at 2.88, indicating good cash conversion. However, the free cash flow to net income ratio of 2.82 suggests that while net income recovery is underway, further improvements could be made.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	101.91B	94.04B	101.67B	104.72B	83.54B
Gross Profit	10.43B	10.85B	10.96B	9.87B	7.73B
EBITDA	3.23B	1.80B	3.04B	3.51B	3.29B
Net Income	1.36B	-319.00M	1.06B	1.58B	1.52B
Balance Sheet
Total Assets	53.16B	51.61B	50.88B	52.51B	43.19B
Cash, Cash Equivalents and Short-Term Investments	13.59B	11.00B	10.13B	11.40B	12.70B
Total Debt	3.87B	5.38B	6.62B	5.57B	6.65B
Total Liabilities	35.45B	35.41B	34.11B	35.60B	31.02B
Stockholders Equity	17.60B	16.18B	16.69B	16.81B	12.12B
Cash Flow
Free Cash Flow	3.85B	2.37B	564.00M	3.79B	2.09B
Operating Cash Flow	3.93B	3.17B	1.92B	4.63B	2.54B
Investing Cash Flow	309.00M	-688.00M	-3.07B	-7.83B	-1.27B
Financing Cash Flow	-1.71B	-1.65B	-276.00M	2.09B	3.35B

MEDIA DO Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1711.00
• 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:3678, the sentiment is Positive. The current price of 1711 is below the 20-day moving average (MA) of 1718.60, below the 50-day MA of 1719.08, and above the 200-day MA of 1542.23, indicating a bullish trend. The MACD of -4.85 indicates Positive momentum. The RSI at 51.92 is Neutral, neither overbought nor oversold. The STOCH value of 37.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3678.

MEDIA DO Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7849	82 Outperform	¥16.13B	9.54		2.85%	2.87%	2.74%
6176	77 Outperform	¥10.47B	16.33		―	9.65%	-6.84%
3678	72 Outperform	¥26.51B	13.64		1.62%	6.52%	―
Sector *	62 Neutral	$42.18B	-1.56	-12.06%	2.81%	2.10%	-71.01%
9468	61 Neutral	¥511.78B	69.51		0.80%	7.67%	-34.27%
9479	55 Neutral	¥6.06B	―		1.93%	-0.55%	89.02%
3641	52 Neutral	¥7.55B	―		1.15%	-7.72%	-105.91%

MEDIA DO Co., Ltd. Corporate Events

MEDIA DO Forms Strategic Alliance with SHIFT Inc. to Expand Japanese Content Globally

MEDIA DO Co., Ltd. has announced a business and capital alliance with SHIFT Inc. to enhance the global reach of Japanese content, particularly targeting the Middle East market. This strategic partnership involves SHIFT acquiring a 3.08% stake in MEDIA DO from Credit Saison and aims to leverage SHIFT’s expertise in software quality assurance and its network to accelerate MEDIA DO’s growth in international markets.

MEDIA DO Reports Strong Q1 Financial Performance

MEDIA DO Co., Ltd. reported a positive financial performance for the first quarter of the fiscal year ending February 2026, with net sales increasing by 3.6% year-on-year to ¥26,011 million. The company saw significant growth in its operating profit and profit attributable to owners of the parent, indicating strong operational efficiency and market positioning. This performance underscores MEDIA DO’s robust business model and its ability to adapt to market demands, potentially enhancing its stakeholder value and competitive edge in the digital content distribution sector.

MEDIA DO Co., Ltd. Announces New Restricted Stock Issuance for Directors and Employees

MEDIA DO Co., Ltd. has resolved to issue new shares of common stock as part of a restricted stock compensation plan for its directors and employees. This initiative is designed to align the interests of directors and shareholders, promoting sustainable corporate growth and value sharing. The plan includes a restriction period for the shares, with conditions for lifting these restrictions based on continued service, and provisions for automatic acquisition without compensation if conditions are not met.

MEDIA DO Enhances Investor Transparency with Financial Results FAQs

MEDIA DO Co., Ltd. has released a FAQ document addressing investor inquiries regarding its financial results for the fiscal year ending February 28, 2025. This initiative is part of the company’s commitment to enhance transparency and ensure fair disclosure to investors. The company plans to regularly update these responses following each quarterly financial announcement, which may influence investor relations and market perception.

MEDIA DO Finalizes Details for Performance-Linked Stock Options

MEDIA DO Co., Ltd. has finalized the issuance details for its 19th Paid Stock Acquisition Rights, which are performance-linked stock options intended for its directors, executive officers, and employees. This move is part of the company’s strategy to align the interests of its key personnel with its performance goals, potentially enhancing its operational efficiency and market competitiveness.