Media Kobo, Inc. (3815) AI Stock Analysis

• Market Cap: ¥6.08B
• Dividend Yield: 0.5%
• Average Volume (3M): 13.61K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.39
• Revenue Growth: -7.03%
• EPS Growth: -182.41%
• Country: JP
• Employees: 61
• Sector: Communication Services
• Sector Strength: 91
• Industry: Internet Content & Information
• EPS (TTM): -12.24
• Shares Outstanding: 11,300,000
• 10 Day Avg. Volume: 16,210
• 30 Day Avg. Volume: 13,613
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• 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: ¥625.00
• Price Target Upside: 3.99% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 56 Neutral
• Price Target: ¥625.00 ▲(3.99% Upside)

Media Kobo, Inc.'s overall stock score is driven by financial challenges, highlighted by declining revenues and profitability. Despite strong technical indicators showing bullish momentum, valuation concerns with a negative P/E ratio and modest dividend yield weigh on the stock. While strong cash reserves and improved free cash flow offer some stability, investors should be cautious of potential overvaluation risks given the overbought technical indicators.

Media Kobo, Inc. Business Overview & Revenue Model

Company Description

Media Kobo, Inc. (3815) is a Japanese company that specializes in digital content and mobile solutions. The company operates primarily in the technology and media sectors, offering a range of services including mobile applications, e-books, and online content distribution. Media Kobo is recognized for its innovative approach to digital media, focusing on creating engaging and interactive content experiences for users across various platforms.

How the Company Makes Money

Media Kobo, Inc. generates revenue through a diversified model centered around its digital content offerings. Key revenue streams include the sale of mobile applications and digital content, such as e-books and online subscriptions. The company collaborates with content creators and publishers to distribute a wide array of digital media, which it monetizes through direct sales, in-app purchases, and subscription fees. Additionally, Media Kobo leverages advertising partnerships to further enhance its revenue, utilizing its digital platforms to deliver targeted advertising to its user base. These combined strategies enable the company to capitalize on the growing demand for digital content and mobile solutions.

Media Kobo, Inc. Financial Statement Overview

Summary

Media Kobo, Inc. is experiencing financial difficulties with declining revenues and profitability, as evidenced by negative income metrics. However, the company has a moderate leverage level and strong cash reserves, offering some stability. The improvement in free cash flow is a positive development, although significant operational challenges remain.

Income Statement

Media Kobo, Inc. has seen a decline in revenue over the past year, with a negative revenue growth rate of -2.94%. The net profit margin has also turned negative, from a positive 1.70% last year to -13.47% this year, indicating profitability challenges. Additionally, EBIT and EBITDA margins have decreased significantly, indicating operational difficulties.

Balance Sheet

The company's debt-to-equity ratio stands at 1.23, reflecting moderate leverage. Stockholders' equity has decreased, leading to a reduced equity ratio of 39.41%, down from 49.60% last year. Despite these challenges, the company maintains a strong cash position relative to its total liabilities, which aids in financial stability.

Cash Flow

Free cash flow has improved to a positive figure this year, showing a growth from last year's negative free cash flow. However, the operating cash flow to net income ratio indicates a disparity given the negative net income, which may signal inefficiencies. The company has managed to maintain positive operating cash flow, which is a positive indicator.

Breakdown	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	1.96B	2.01B	2.07B	2.20B	1.93B	1.80B
Gross Profit	967.09M	1.00B	1.07B	1.12B	889.64M	836.82M
EBITDA	-254.19M	-202.37M	80.83M	228.27M	128.47M	-19.08M
Net Income	-305.44M	-270.99M	35.33M	153.80M	7.18M	-149.47M
Balance Sheet
Total Assets	2.33B	2.65B	2.71B	3.01B	3.12B	3.23B
Cash, Cash Equivalents and Short-Term Investments	1.61B	1.96B	2.03B	2.38B	2.41B	2.50B
Total Debt	1.09B	1.29B	1.13B	1.41B	1.65B	1.82B
Total Liabilities	1.33B	1.61B	1.37B	1.65B	1.92B	2.04B
Stockholders Equity	1.00B	1.05B	1.35B	1.36B	1.20B	1.19B
Cash Flow
Free Cash Flow	0.00	41.92M	-40.86M	228.12M	79.88M	-110.49M
Operating Cash Flow	0.00	44.17M	75.60M	290.13M	148.54M	56.26M
Investing Cash Flow	0.00	-238.77M	-104.46M	-74.83M	-68.56M	-166.59M
Financing Cash Flow	0.00	127.51M	-327.80M	-239.93M	-172.84M	307.53M

Media Kobo, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 601.00
• 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:3815, the sentiment is Positive. The current price of 601 is above the 20-day moving average (MA) of 597.80, above the 50-day MA of 581.82, and above the 200-day MA of 514.24, indicating a bullish trend. The MACD of 7.07 indicates Positive momentum. The RSI at 65.12 is Neutral, neither overbought nor oversold. The STOCH value of 45.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3815.

Media Kobo, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3930	76 Outperform	¥4.25B	14.85		―	19.99%	4285.55%
3770	72 Outperform	¥4.29B	31.92		1.15%	-1.29%	-4.45%
5571	68 Neutral	¥6.23B	65.70		2.34%	21.54%	-76.78%
Sector *	60 Neutral	$43.46B	1.72	-13.06%	4.00%	2.36%	-37.95%
3815	56 Neutral	¥6.08B	―		0.50%	-7.03%	-182.41%
3674	51 Neutral	¥3.98B	51.40		―	0.72%	-130.43%
2454	45 Neutral	¥5.44B	76.80		0.78%	6.36%	―