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MEDIA DO Co., Ltd. (JP:3678)
:3678
Japanese Market

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

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JP

MEDIA DO Co., Ltd.

(3678)

Rating:75Outperform
Price Target:
MEDIA DO Co., Ltd. demonstrates robust financial health with solid revenue growth and a strong balance sheet. The technical indicators show positive market momentum, while the valuation is fair with a reasonable P/E ratio and an attractive dividend yield. These factors contribute to a solid overall stock score.

MEDIA DO Co., Ltd. (3678) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionMEDIA 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 MoneyMEDIA 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. Some volatility in net income presents a potential risk, but strong cash flow and low leverage indicate stability.
Income Statement
78
Positive
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
82
Very Positive
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
74
Positive
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
TTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
100.16B101.91B94.04B101.67B104.72B83.54B
Gross Profit
10.52B10.43B10.85B10.96B9.87B7.73B
EBIT
2.29B2.48B2.07B2.39B2.81B2.66B
EBITDA
1.83B3.23B1.80B3.04B3.51B3.29B
Net Income Common Stockholders
-267.00M1.36B-319.00M1.06B1.58B1.52B
Balance SheetCash, Cash Equivalents and Short-Term Investments
11.56B13.59B11.00B10.13B11.40B12.70B
Total Assets
51.29B53.16B51.61B50.88B52.51B43.19B
Total Debt
4.25B3.87B5.38B6.62B5.57B6.65B
Net Debt
-7.30B-9.73B-5.62B-3.51B-5.83B-6.05B
Total Liabilities
34.44B35.45B35.41B34.11B35.60B31.02B
Stockholders Equity
16.84B17.60B16.18B16.69B16.81B12.12B
Cash FlowFree Cash Flow
0.003.85B2.37B564.00M3.79B2.09B
Operating Cash Flow
0.003.93B3.17B1.92B4.63B2.54B
Investing Cash Flow
0.00309.00M-688.00M-3.07B-7.83B-1.27B
Financing Cash Flow
0.00-1.71B-1.65B-276.00M2.09B3.35B

MEDIA DO Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1728.00
Price Trends
50DMA
1668.62
Positive
100DMA
1599.16
Positive
200DMA
1470.97
Positive
Market Momentum
MACD
9.16
Positive
RSI
49.14
Neutral
STOCH
25.46
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3678, the sentiment is Neutral. The current price of 1728 is above the 20-day moving average (MA) of 1698.50, above the 50-day MA of 1668.62, and above the 200-day MA of 1470.97, indicating a neutral trend. The MACD of 9.16 indicates Positive momentum. The RSI at 49.14 is Neutral, neither overbought nor oversold. The STOCH value of 25.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3678.

MEDIA DO 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
82
Outperform
¥14.71B8.68
2.87%2.87%2.74%
76
Outperform
¥8.50B12.81
9.65%-6.84%
75
Outperform
¥25.87B18.94
2.11%8.38%
67
Neutral
¥503.45B68.45
0.80%9.87%86.42%
60
Neutral
$14.21B6.47-3.76%3.69%2.48%-35.46%
53
Neutral
¥5.97B
1.97%-3.27%-81.64%
52
Neutral
¥7.53B
1.14%-7.72%-105.91%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3678
MEDIA DO Co., Ltd.
1,686.00
354.17
26.59%
JP:3641
PAPYLESS CO., LTD.
876.00
-8.53
-0.96%
JP:6176
Brangista, Inc.
590.00
-8.00
-1.34%
JP:7849
Starts Publishing Corporation
3,830.00
463.48
13.77%
JP:9468
Kadokawa Corporation
3,757.00
643.74
20.68%
JP:9479
Impress Holdings, Inc.
203.00
49.19
31.98%

MEDIA DO Co., Ltd. Corporate Events

MEDIA DO Finalizes Details for Performance-Linked Stock Options
May 1, 2025

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.

MEDIA DO Announces Dividend and Shareholder Return Policy Updates
Apr 24, 2025

MEDIA DO Co., Ltd. has announced a dividend of surplus for the fiscal year ending February 28, 2025, with a dividend per share of 36 yen, which includes a commemorative dividend for the company’s 30th anniversary. The company also outlined its shareholder return policy for the fiscal year ending February 28, 2026, aiming for a total return ratio of 30% or more, with an increased annual dividend forecast of 40 yen per share, reflecting its commitment to profit distribution and financial performance.

MEDIA DO Issues Performance-Linked Stock Options to Drive Growth
Apr 14, 2025

MEDIA DO Co., Ltd. has announced the issuance of its 19th Stock Acquisition Rights to directors, executive officers, and employees, aiming to boost motivation and commitment towards achieving business growth. The stock options are performance-linked, with exercise contingent upon meeting specific profit targets, signifying a strategic move to enhance corporate and shareholder value, while maintaining reasonable dilution for existing shareholders.

MEDIA DO Co., Ltd. Announces Board and Executive Nominations
Apr 14, 2025

MEDIA DO Co., Ltd. announced the nomination of candidates for its Board of Directors and Auditors, to be confirmed at the upcoming Annual General Meeting of Shareholders on May 29, 2025. The company plans to reappoint its current leadership team, including Yasushi Fujita as President and CEO, and Hiroshi Kanda as Vice President and CFO, indicating stability in its executive structure. This decision reflects the company’s commitment to maintaining its strategic direction and operational continuity, which could reassure stakeholders about its future performance.

MEDIA DO Achieves Compliance with TSE Prime Market Criteria
Apr 14, 2025

MEDIA DO Co., Ltd. announced that it has successfully met all the listing maintenance criteria for the Tokyo Stock Exchange Prime Market as of February 28, 2025. This compliance was achieved through various initiatives aimed at increasing the market capitalization of tradable shares, reflecting the company’s commitment to maintaining its market position and ensuring shareholder confidence.

MEDIA DO Co., Ltd. Revises Dividend Forecast for Fiscal Year 2025
Apr 14, 2025

MEDIA DO Co., Ltd. has announced a revision to its dividend forecast for the fiscal year ending February 28, 2025. The company has increased its year-end dividend per share from the initially planned ¥35 to ¥36, including an ¥8 commemorative dividend for its 30th anniversary. This revision reflects the company’s commitment to returning profits to shareholders while maintaining financial health and supporting sustainable growth. The total return ratio is expected to reach 40%, demonstrating a strong performance and a strategic focus on shareholder returns.

MEDIA DO Co., Ltd. Reports Strong Financial Performance for FY 2025
Apr 14, 2025

MEDIA DO Co., Ltd. reported a significant improvement in its financial performance for the fiscal year ended February 28, 2025, with net sales increasing by 8.4% and operating profit rising by 19.8% compared to the previous year. This positive trend reflects the company’s strategic initiatives to enhance its market position and operational efficiency, which are expected to continue driving growth in the upcoming fiscal year.

MEDIA DO Transfers MyAnimeList Shares to Gaudiy, Anticipates Financial Gain
Mar 26, 2025

MEDIA DO Co., Ltd. has announced the transfer of all its shares in MyAnimeList, Inc. to Gaudiy Inc., a company known for its advanced technology in enhancing IP ecosystems through fandom engagement. This strategic move is expected to result in an extraordinary gain for MEDIA DO in the fiscal year ending February 28, 2026, and may lead to a business alliance with Gaudiy to further expand MEDIA DO’s business operations.

MEDIA DO Launches MANGA MIRAI: A New Digital Manga Platform
Mar 5, 2025

MEDIA DO Co., Ltd. has announced the launch of MANGA MIRAI, a new digital manga platform developed in collaboration with NTT DOCOMO, MyAnimeList, and Akatsuki Group. The platform aims to cater to English-speaking anime and comic fans by offering over 11,000 volumes from more than 780 titles, including popular anime adaptations and original manga. This initiative is expected to enhance the global reach of Japanese manga culture, providing a seamless experience for users and new opportunities for authors to connect with readers worldwide.

MEDIA DO Co., Ltd. Releases Investor Q&A for Q3 Financial Results
Feb 28, 2025

MEDIA DO Co., Ltd. has disclosed the main questions and answers from investors regarding its financial results for the third quarter of the fiscal year ending February 28, 2025. The company plans to release this information regularly to maintain transparency and provide the latest policy updates, which could impact investor relations and market positioning.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.