Media Kobo, Inc. (3815) AI Stock Analysis

• Market Cap: ¥5.21B
• Dividend Yield: N/A
• Average Volume (3M): 8.95K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.40
• Revenue Growth: -6.92%
• EPS Growth: -86.77%
• Country: JP
• Employees: 61
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): -31.04
• Shares Outstanding: 11,300,000
• 10 Day Avg. Volume: 5,610
• 30 Day Avg. Volume: 8,953
• PEG Ratio: 0.02
• Price to Book (P/B): 4.66
• Price to Sales (P/S): 2.42
• P/FCF Ratio: 116.12
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: ¥512.00 ▼(-1.73% Downside)

Media Kobo, Inc. faces significant financial and technical challenges. The most impactful factor is the company's declining financial performance, with negative revenue growth and profitability issues. Technical analysis indicates bearish momentum, further weighing on the stock. Valuation concerns are also present due to negative earnings and a low dividend yield. These factors collectively result in a below-average stock score.

Positive Factors

Cash Reserves

Strong cash reserves provide financial stability and flexibility, allowing the company to invest in growth opportunities and weather economic downturns.

Free Cash Flow Improvement

Improved free cash flow indicates better cash management and operational efficiency, which can support future investments and debt reduction.

Diversified Revenue Model

A diversified revenue model reduces dependency on a single income stream, enhancing resilience against market fluctuations and supporting long-term growth.

Negative Factors

Revenue Decline

Declining revenue suggests challenges in market demand or competitive positioning, which could hinder long-term growth and profitability.

Negative Profit Margins

Negative profit margins indicate operational inefficiencies and profitability challenges, potentially impacting the company's ability to reinvest in its business.

Decreased Equity Ratio

A decreased equity ratio suggests increased financial risk and reduced shareholder equity, which may limit the company's ability to raise capital.

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 facing financial headwinds with declining revenues and profitability, as evidenced by negative income metrics. However, the company maintains a reasonable leverage level and strong cash reserves, offering some stability. The improvement in free cash flow is a positive development, although operational challenges remain significant.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.92B	2.01B	2.07B	2.20B	1.93B	1.80B
Gross Profit	958.94M	1.00B	1.07B	1.12B	889.64M	836.82M
EBITDA	-202.39M	-202.37M	80.83M	228.27M	128.47M	-19.08M
Net Income	-326.25M	-270.99M	35.33M	153.80M	7.18M	-149.47M
Balance Sheet
Total Assets	2.00B	2.65B	2.71B	3.01B	3.12B	3.23B
Cash, Cash Equivalents and Short-Term Investments	1.27B	1.96B	2.03B	2.38B	2.41B	2.50B
Total Debt	942.57M	1.29B	1.13B	1.41B	1.65B	1.82B
Total Liabilities	1.14B	1.61B	1.37B	1.65B	1.92B	2.04B
Stockholders Equity	851.89M	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: Neutral
• Last Price: 521.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Neutral. The current price of 521 is above the 20-day moving average (MA) of 518.20, above the 50-day MA of 518.62, and below the 200-day MA of 536.74, indicating a neutral trend. The MACD of 0.25 indicates Negative momentum. The RSI at 51.25 is Neutral, neither overbought nor oversold. The STOCH value of 40.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥2.92B	12.21	―	―	14.67%	267.69%
3770	72 Outperform	¥4.16B	24.76	―	1.19%	-0.86%	-29.61%
5571	68 Neutral	¥6.03B	―	―	2.34%	23.91%	-101.16%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
3674	49 Neutral	¥3.63B	-65.71	―	―	-3.79%	-272.95%
3815	45 Neutral	¥5.21B	-10.30	―	―	-6.92%	-86.77%
2454	45 Neutral	¥5.40B	76.21	―	0.78%	4.75%	―