IG Port, Inc. (3791) AI Stock Analysis

• Market Cap: ¥26.03B
• Dividend Yield: 1.11%
• Average Volume (3M): 184.69K
• Price to Earnings (P/E): 124.2
• Beta (1Y): 0.63
• Revenue Growth: -4.66%
• EPS Growth: -56.66%
• Country: JP
• Employees: 461
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): N/A
• Shares Outstanding: 20,221,600
• 10 Day Avg. Volume: 108,560
• 30 Day Avg. Volume: 184,686
• PEG Ratio: -1.51
• Price to Book (P/B): 4.59
• Price to Sales (P/S): 2.46
• P/FCF Ratio: -14.29
• 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: 59 Neutral
• Price Target: ¥1,187.00 ▼(-9.39% Downside)
• Action: Reiterated Date: 01/04/26
• Date: Action: Reiterated 01/04/26

The score is driven primarily by solid fundamentals and a strong, low-leverage balance sheet, offset by FY2025’s sharp deterioration in cash flow and a step-down in net margin. Technicals are notably weak (below key moving averages with negative MACD), and valuation is only average due to a high P/E with a modest dividend yield.

Positive Factors

Low leverage / strong balance sheet

Effectively zero debt and growing equity provide durable financial flexibility: IG Port can fund content production cycles, absorb episodic revenue swings, pursue licensing or M&A, and maintain capital allocation without heavy interest burden, supporting long-term strategic optionality.

IP-driven, multi-channel business model

A diversified IP monetization model (production fees, licensing/royalties, publishing) creates recurring and non-linear revenue streams. Durable content rights and library exploitation reduce revenue concentration risk and allow long-lived cash generation from hits over several years.

Strong FY2025 revenue and operating margins

Robust top-line growth paired with solid operating margins indicates improving production traction and pricing power. Sustained operating profitability supports reinvestment in content, funds ongoing licensing efforts, and provides a buffer vs. below-the-line volatility over the medium term.

Negative Factors

Negative operating & free cash flow in FY2025

Sharp cash conversion deterioration raises durable execution risk: working-capital outflows or heavier investments can strain liquidity, potentially forcing slower content cadence or external financing. If negative cash flow persists, it undermines the balance-sheet advantage.

Net and gross margin erosion

Declining gross and net margins reduce retained earnings and long-term reinvestment capacity. This deterioration may reflect cost pressure, mix changes, or one-offs; if structural, it weakens ability to monetize IP and sustain returns across production cycles.

Earnings quality & volatility concerns

Volatile earnings and cash generation lower predictability for multi-year content investment decisions, raise execution risk, and can increase cost of capital. Management must stabilize conversion metrics to ensure durable funding of production pipelines and licensing activities.

IG Port, Inc. Business Overview & Revenue Model

Company Description

IG Port, Inc., together with its subsidiaries, operates as an animation production company in Japan and internationally. It operates through Video Production Business, Publishing Business, and Copyright Business segments. The company produces comics in terms of content, video, and music. It also involved in the work of theaters, videos, and television. In addition, the company produces gaming software, as well as acquires, manages, and sells copyrighted work, comic magazine publishing, web comic publications, and character licenses. Further, the company produces full digital animation and technical development of applications for smart devices, etc. Additionally, it is involved in electronic content delivery service business. IG Port, Inc. was founded in 1987 and is based in Musashino, Japan.

How the Company Makes Money

IG Port, Inc. generates revenue through multiple streams primarily centered around its subsidiaries. The company earns money from the production and distribution of animated films and TV series, which are often sold to broadcasters, streaming services, and home entertainment markets both domestically and internationally. Additionally, IG Port benefits from licensing and merchandising deals related to its popular anime titles. The company also derives income from its manga publishing division, which includes sales of manga books and related publications. Furthermore, partnerships with other media companies and participation in co-production projects contribute to its revenue.

IG Port, Inc. Financial Statement Overview

Summary

Strong revenue growth (FY2025 +29.3%) and solid operating profitability are supported by a very low-debt balance sheet, but the sharp swing to negative operating and free cash flow in FY2025 and a lower net margin meaningfully weaken earnings quality and near-term confidence.

Income Statement

Revenue growth has been solid overall, including a strong +29.3% in FY2025 after mid-single-digit growth in FY2024, showing improving demand/production traction. Profitability is generally healthy at the operating level (FY2025 EBIT margin ~9.7%, EBITDA margin ~20.0%), but net margin fell to ~5.7% in FY2025 from ~9.8% in FY2024, indicating higher below-the-line costs or mix/one-offs. Gross margin also declined in FY2025 (~20.9% vs ~22.6% prior year), which is a watch item despite still-positive earnings.

Balance Sheet

The balance sheet is conservatively financed with minimal leverage: total debt is effectively zero in FY2025 and was very low in prior years (debt-to-equity near ~0–4%). Equity has grown over time, and returns on equity have been attractive in most years (roughly ~10–16% recently, with FY2025 ~10.6%). The main weakness is that total assets dipped versus FY2024, and profitability can be somewhat cyclical (e.g., very weak net income in FY2022), but overall financial flexibility looks strong.

Cash Flow

Cash generation is the key concern: FY2025 operating cash flow turned sharply negative (-¥1.86B) and free cash flow was also negative (-¥2.59B) despite positive net income, suggesting working-capital outflows and/or heavier investment spending. This is a notable swing from FY2024 when operating cash flow was strong (+¥3.06B) and free cash flow was positive (+¥1.83B). The volatility reduces confidence in near-term cash conversion and raises execution risk if negative cash flow persists.

Breakdown	May 2024	May 2023	May 2022	May 2021	May 2020
Income Statement
Total Revenue	14.60B	11.84B	11.16B	11.87B	9.95B
Gross Profit	3.06B	2.68B	2.73B	2.11B	2.06B
EBITDA	2.94B	1.83B	1.88B	2.31B	1.79B
Net Income	828.02M	1.16B	766.82M	5.75M	582.37M
Balance Sheet
Total Assets	13.09B	14.00B	12.54B	11.42B	11.85B
Cash, Cash Equivalents and Short-Term Investments	4.65B	7.76B	6.13B	5.31B	4.51B
Total Debt	16.65M	234.30M	209.08M	218.20M	28.80M
Total Liabilities	5.26B	6.68B	6.34B	5.96B	6.07B
Stockholders Equity	7.83B	7.29B	6.13B	5.38B	5.62B
Cash Flow
Free Cash Flow	-2.52B	2.60B	1.25B	1.48B	1.51B
Operating Cash Flow	-1.86B	3.06B	1.82B	2.50B	2.15B
Investing Cash Flow	-722.86M	-1.23B	-966.75M	-1.44B	-913.64M
Financing Cash Flow	-514.55M	-201.45M	-33.26M	-255.96M	-360.56M

IG Port, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1310.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3791, the sentiment is Negative. The current price of 1310 is below the 20-day moving average (MA) of 1320.00, above the 50-day MA of 1281.96, and below the 200-day MA of 1519.28, indicating a neutral trend. The MACD of 14.20 indicates Positive momentum. The RSI at 47.84 is Neutral, neither overbought nor oversold. The STOCH value of 40.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3791.

IG Port, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9605	75 Outperform	¥411.05B	15.93	―	0.33%	6.38%	38.69%
9602	69 Neutral	¥1.41T	28.41	11.19%	1.12%	10.99%	2.35%
4816	66 Neutral	¥527.26B	28.18	―	1.12%	5.90%	17.39%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
3791	59 Neutral	¥26.03B	124.21	―	1.11%	-4.66%	-56.66%
7860	52 Neutral	¥54.14B	6.12	4.10%	4.16%	11.52%	162.04%
3686	46 Neutral	¥4.87B	-42.70	―	―	-2.84%	36.23%