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

• Market Cap: ¥25.93B
• Dividend Yield: 1.64%
• Average Volume (3M): 55.31K
• Price to Earnings (P/E): 19.0
• Beta (1Y): 0.65
• Revenue Growth: 8.38%
• EPS Growth: N/A
• Country: JP
• Employees: 583
• Sector: Communication Services
• Sector Strength: 84
• Industry: Publishing
• EPS (TTM): 29.79
• Shares Outstanding: 15,172,972
• 10 Day Avg. Volume: 36,590
• 30 Day Avg. Volume: 55,306
• PEG Ratio: -0.69
• Price to Book (P/B): 1.38
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 40.94
• 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

• Rating: 78 Outperform
• Price Target: ¥2,087.00 ▲(22.40%Upside)

MEDIA DO Co., Ltd. demonstrates strong financial health with solid revenue growth and efficient cash management, which is the most significant factor in its overall score. The stock's bullish technical indicators also contribute positively. Valuation is reasonable but does not suggest substantial undervaluation. No earnings call or corporate event data was available to influence the score further.

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 and improving profitability. The balance sheet is robust with low financial leverage and strong cash flow. However, fluctuations in net income present a potential risk.

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	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	100.16B	101.91B	94.04B	101.67B	104.72B	83.54B
Gross Profit	10.52B	10.43B	10.85B	10.96B	9.87B	7.73B
EBITDA	1.83B	3.23B	1.80B	3.04B	3.51B	3.29B
Net Income	-267.00M	1.36B	-319.00M	1.06B	1.58B	1.52B
Balance Sheet
Total Assets	51.29B	53.16B	51.61B	50.88B	52.51B	43.19B
Cash, Cash Equivalents and Short-Term Investments	11.56B	13.59B	11.00B	10.13B	11.40B	12.70B
Total Debt	4.25B	3.87B	5.38B	6.62B	5.57B	6.65B
Total Liabilities	34.44B	35.45B	35.41B	34.11B	35.60B	31.02B
Stockholders Equity	16.84B	17.60B	16.18B	16.69B	16.81B	12.12B
Cash Flow
Free Cash Flow	0.00	3.85B	2.37B	564.00M	3.79B	2.09B
Operating Cash Flow	0.00	3.93B	3.17B	1.92B	4.63B	2.54B
Investing Cash Flow	0.00	309.00M	-688.00M	-3.07B	-7.83B	-1.27B
Financing Cash Flow	0.00	-1.71B	-1.65B	-276.00M	2.09B	3.35B

MEDIA DO Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1705.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 1705 is below the 20-day moving average (MA) of 1736.00, below the 50-day MA of 1714.82, and above the 200-day MA of 1514.88, indicating a neutral trend. The MACD of 13.90 indicates Positive momentum. The RSI at 50.33 is Neutral, neither overbought nor oversold. The STOCH value of 19.29 is Positive, 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	¥16.20B	9.57		1.90%	2.87%	2.74%
6176	79 Outperform	¥8.91B	13.90		―	9.65%	-6.84%
3678	78 Outperform	¥25.93B	18.98		1.64%	8.38%	―
Sector *	66 Neutral	¥372.81B	13.63	2.32%	2.51%	5.41%	-17.67%
9468	64 Neutral	¥526.94B	71.64		0.78%	7.67%	-34.27%
9479	55 Neutral	¥6.03B	―		1.95%	-0.55%	89.02%
3641	52 Neutral	¥7.68B	―		1.12%	-7.72%	-105.91%

MEDIA DO Co., Ltd. Corporate Events

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.

MEDIA DO Announces Dividend and Shareholder Return Policy Updates

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

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

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

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

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

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.