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

• Market Cap: ¥26.24B
• Dividend Yield: 2.11%
• Average Volume (3M): 42.56K
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.57
• Revenue Growth: 6.10%
• EPS Growth: N/A
• Country: JP
• Employees: 583
• Sector: Communication Services
• Sector Strength: 97
• Industry: Publishing
• EPS (TTM): 33.51
• Shares Outstanding: 15,205,174
• 10 Day Avg. Volume: 44,340
• 30 Day Avg. Volume: 42,556
• PEG Ratio: -0.03
• Price to Book (P/B): 1.36
• Price to Sales (P/S): 0.24
• P/FCF Ratio: 6.24
• 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: 72 Outperform
• Price Target: ¥1,909.00 ▲(3.64% Upside)

MEDIA DO Co., Ltd. exhibits strong financial performance, with solid revenue growth and a robust balance sheet. Technical analysis indicates a stable short-term trend, although recent momentum indicators suggest caution. The stock's valuation is reasonable, offering both growth and income potential. No recent earnings call or corporate events data were available to further influence the score.

Positive Factors

Strategic Alliance

The strategic alliance with SHIFT Inc. aims to expand MEDIA DO's global reach, particularly in the Middle East, enhancing its market position and growth potential in international markets.

Cash Flow Management

Effective cash flow management with significant growth in free cash flow enhances financial stability, providing resources for strategic investments and reducing financial risk.

Financial Performance

Strong Q1 financial performance with increased net sales and operating profit indicates robust operational efficiency and a solid market position, supporting long-term growth.

Negative Factors

Restricted Stock Issuance

Issuing restricted stock can dilute existing shareholders and may indicate challenges in retaining talent without equity incentives, impacting shareholder value.

Net Profit Margin

While improving, the low net profit margin suggests limited profitability, which could constrain the company's ability to reinvest in growth and withstand competitive pressures.

Net Income Volatility

Volatility in net income can indicate instability in earnings, potentially affecting investor confidence and the company's ability to plan long-term investments.

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

Company Description

MEDIA DO Co., Ltd. (3678) is a prominent player in the digital content distribution sector, primarily focusing on the publishing and distribution of e-books and digital media. The company operates within the rapidly evolving digital landscape, catering to a diverse audience by providing a platform for authors, publishers, and content creators to reach consumers effectively. MEDIA DO offers a range of services, including digital rights management, content delivery, and analytics, enabling clients to optimize their digital distribution strategies.

How the Company Makes Money

MEDIA DO generates revenue through several key streams, primarily by charging fees for its digital distribution services, which include e-book and digital content delivery to various platforms. The company also earns revenue from digital rights management services, enabling publishers to protect and monetize their intellectual property. Additionally, MEDIA DO engages in partnerships with publishers and content creators, which often involve revenue-sharing agreements that contribute to its earnings. The company's focus on expanding its content library and enhancing its distribution capabilities positions it to capitalize on the growing demand for digital media, further driving its revenue growth.

MEDIA DO Co., Ltd. Financial Statement Overview

Summary

MEDIA DO Co., Ltd. demonstrates solid revenue growth and improving profitability, with a healthy balance sheet. The cash flow is robust, although net income fluctuations present some 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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	102.81B	101.91B	94.04B	101.67B	104.72B	83.54B
Gross Profit	10.38B	10.43B	10.85B	10.96B	9.87B	7.73B
EBITDA	3.91B	3.23B	1.80B	3.04B	3.51B	3.29B
Net Income	1.94B	1.36B	-319.00M	1.06B	1.58B	1.52B
Balance Sheet
Total Assets	53.40B	53.16B	51.61B	50.88B	52.51B	43.19B
Cash, Cash Equivalents and Short-Term Investments	13.43B	13.59B	11.00B	10.13B	11.40B	12.70B
Total Debt	3.35B	3.87B	5.38B	6.62B	5.57B	6.65B
Total Liabilities	35.47B	35.45B	35.41B	34.11B	35.60B	31.02B
Stockholders Equity	17.79B	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	137.00M	-688.00M	-3.07B	-7.83B	-1.27B
Financing Cash Flow	0.00	-1.53B	-1.65B	-276.00M	2.09B	3.35B

MEDIA DO Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1842.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 1842 is above the 20-day moving average (MA) of 1769.70, above the 50-day MA of 1817.02, and above the 200-day MA of 1753.17, indicating a bearish trend. The MACD of -26.53 indicates Positive momentum. The RSI at 34.21 is Neutral, neither overbought nor oversold. The STOCH value of 11.96 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥15.30B	10.07	―	3.11%	-7.41%	-17.57%
6176	73 Outperform	¥11.08B	15.98	―	―	7.76%	12.15%
3678	72 Outperform	¥26.24B	12.07	―	2.11%	6.10%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
9479	55 Neutral	―	―	―	―	-0.55%	89.02%
3641	52 Neutral	¥8.05B	-26.64	―	1.01%	-8.03%	―
9468	47 Neutral	¥438.32B	76.18	―	0.95%	1.96%	-45.28%

MEDIA DO Co., Ltd. Corporate Events

MEDIA DO Enhances Investor Communication with Financial Results FAQs

MEDIA DO Co., Ltd. has released a document addressing investor inquiries about its financial results for the first half of the fiscal year ending February 2026. The company aims to strengthen communication with investors by regularly publishing these responses, reflecting its latest policies and ensuring transparency.

MEDIA DO Co., Ltd. Reports Strong Financial Performance for H1 2025

MEDIA DO Co., Ltd. reported its consolidated financial results for the six months ending August 31, 2025, showing a significant increase in profits compared to the previous year. The company experienced a 5.5% rise in net sales and a notable 154.6% increase in profit attributable to owners of the parent, indicating strong operational performance and effective cost management. The positive financial results reflect the company’s robust market positioning and its ability to capitalize on the growing demand for digital content.