Broadmedia Corporation (4347) AI Stock Analysis

• Market Cap: ¥15.71B
• Dividend Yield: 1.96%
• Average Volume (3M): 18.87K
• Price to Earnings (P/E): 21.0
• Beta (1Y): 0.41
• Revenue Growth: 0.16%
• EPS Growth: 116.15%
• Country: JP
• Employees: 790
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): 34.42
• Shares Outstanding: 7,500,000
• 10 Day Avg. Volume: 21,120
• 30 Day Avg. Volume: 18,866
• PEG Ratio: -0.72
• Price to Book (P/B): 2.60
• Price to Sales (P/S): 0.77
• P/FCF Ratio: 19.98
• 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): 106.7
• Revenue Forecast (FY): ¥15.70B

• Rating: 72 Outperform
• Price Target: ¥2,261.00 ▲(8.70% Upside)
• Action: Upgraded Date: 02/05/26
• Date: Action: Upgraded 02/05/26

The score is primarily supported by strong financial performance—especially rapid TTM revenue growth, conservative leverage, and positive/rebounding free cash flow. Offsetting factors include margin compression and some historical cash flow volatility. Technically the trend is positive versus moving averages, but momentum indicators are mixed, and valuation looks fair (mid-range P/E with a modest dividend yield).

Positive Factors

Revenue Growth

Very strong trailing-twelve-month revenue growth (~133%) indicates the company can scale sales and capture demand momentum across its offerings. Sustained top-line expansion provides room to absorb costs, invest in product development and distribution, and improve long-term profitability if maintained.

Conservative Leverage

A low debt/equity ratio (~0.18) signals conservative capital structure, giving Broadmedia financial flexibility to fund growth initiatives, withstand cyclical industry downturns, and avoid distress. This balance sheet strength supports capital allocation decisions without excessive refinancing risk.

Positive Free Cash Flow

Positive and rebounding free cash flow (~¥701M TTM) demonstrates the company's ability to convert sales into discretionary cash. Strong FCF supports reinvestment, dividends or debt reduction and provides a durable source of funding for strategic initiatives when conversion remains aligned with earnings.

Negative Factors

Margin Compression

Margins have compressed materially versus 2022–2023 (net and operating margins around 4.8% now versus ~8–9% prior). Lower margins reduce earnings resiliency, limit internal funding capacity, and make long-term returns more sensitive to cost inflation or competitive pricing pressure if structural drivers persist.

Cash Flow Volatility

Historical year-to-year volatility in operating and free cash flow undermines predictability of capital allocation. Even with a TTM rebound, inconsistent cash generation complicates planning for capex, dividends or M&A and raises execution risk if volatility recurs during weaker demand periods.

Return Variability

Although ROE is currently healthy (~16%), it has been below peak levels and returns have varied historically. This inconsistency signals cyclicality or uneven operational leverage, which can hinder sustained shareholder value creation and complicate long-term forecasting and investor confidence.

Broadmedia Corporation Business Overview & Revenue Model

Company Description

Broadmedia Corporation engages in information technology and content distribution business in Japan. The company operates through five segments: Studio/Contents, Broadcasting, Technology, Education, and Others. The Studio/Contents segment produces and distributes feature films; sells DVDs and Blu-ray discs; sells TV broadcasting rights; and produces video and audio for related subtitles, dubbing, trailers, and program advertisements. This segment also operates Crank In!, an entertainment information site; Crank In! Trend; Crank In! Video that provides video content; and Crank In! Comic, a digital comic service. The Broadcast segment produces broadcasts, and distributes programs; and delivers Fishing Vision VOD, a video distribution service. The Technology segment offers technology services, including the delivery of content through CDN; security services; CM online services that imports commercial materials online; electronic delivery services for digital cinema; and cloud gaming platforms and apps. This segment also engages in the provision of internet service to hotel guest rooms and conference rooms; monitoring of equipment; provision of maintenance services; provision of private network; provision of AI solutions; and developing software. The Education segment operates online and credit-based e-learning high schools with various courses for students comprising of eSports, entertainment, and beauty care; and provides Japanese language education program for non-Japanese people. The Others segment manages the CYCLOPS athlete gaming, a professional eSports team and promotes eSports business; and sells communication products for communication carriers. The company was incorporated in 1973 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Broadmedia Corporation generates revenue primarily through subscription fees for its broadcasting and content services, including digital cable and satellite television. Additional revenue streams include advertising sales on its platforms, licensing fees for content distribution, and partnerships with content creators for original programming. The company has established significant partnerships with other media firms, enabling it to enhance its content library and expand its audience reach. Additionally, Broadmedia may earn revenue from technology services related to its broadcasting infrastructure and systems, further diversifying its income sources.

Broadmedia Corporation Financial Statement Overview

Summary

Strong TTM revenue growth (~133%) with positive profitability (net and operating margins ~4.8%). Balance sheet is a clear strength with low leverage (debt/equity ~0.18) and healthy ROE (~16%). Free cash flow is positive (~¥701M) and rebounded sharply, but margin compression versus 2022–2023 and historical cash flow/profitability variability temper the score.

Income Statement

In TTM (Trailing-Twelve-Months), revenue growth is very strong (up ~133%), while profitability is positive but modest with net margin around 4.8% and operating margin around 4.8%. Margins have generally compressed versus earlier years (when net margin was ~8–9% in 2022–2023), but earnings momentum improved meaningfully versus FY2025, indicating better conversion of sales into profit despite thinner margins.

Balance Sheet

Leverage looks conservative with low debt relative to equity in TTM (Trailing-Twelve-Months) (~0.18), improving versus the FY2024–FY2025 period. Equity is solid relative to the asset base, and return on equity is healthy in TTM (Trailing-Twelve-Months) (~16%), though below the peak levels seen in 2022–2023. Overall, the balance sheet supports stability, with the main watch item being the historical variability in returns.

Cash Flow

Cash generation is solid: TTM (Trailing-Twelve-Months) free cash flow is positive (~¥701M) and up sharply (strong growth), and free cash flow is reasonably aligned with earnings (free cash flow is ~82% of net income). However, cash flow conversion versus the business base is not particularly strong in TTM (Trailing-Twelve-Months) as indicated by the relatively low operating cash flow coverage, and cash flow has shown year-to-year volatility (declines in FY2023–FY2025 before the TTM rebound).

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	15.42B	15.53B	14.18B	13.02B	12.34B	10.99B
Gross Profit	5.95B	6.06B	5.68B	5.03B	4.65B	4.06B
EBITDA	1.01B	785.85M	1.08B	1.15B	1.55B	630.63M
Net Income	742.46M	335.27M	680.12M	1.11B	1.01B	151.08M
Balance Sheet
Total Assets	10.35B	11.30B	11.89B	9.95B	8.94B	6.99B
Cash, Cash Equivalents and Short-Term Investments	4.11B	5.62B	5.83B	5.87B	5.30B	3.37B
Total Debt	877.49M	1.20B	1.50B	829.71M	924.05M	575.64M
Total Liabilities	4.71B	5.52B	5.98B	4.50B	4.33B	3.29B
Stockholders Equity	4.79B	4.63B	4.77B	4.30B	3.47B	2.75B
Cash Flow
Free Cash Flow	700.82M	601.54M	983.65M	1.15B	1.78B	372.50M
Operating Cash Flow	850.29M	710.59M	1.18B	1.43B	1.93B	558.50M
Investing Cash Flow	-123.71M	-30.80M	-915.92M	-331.46M	42.25M	-136.84M
Financing Cash Flow	-1.01B	-882.39M	-320.84M	-564.12M	-118.58M	-432.61M

Broadmedia Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2080.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4347, the sentiment is Positive. The current price of 2080 is above the 20-day moving average (MA) of 2077.95, above the 50-day MA of 2055.06, and above the 200-day MA of 1849.24, indicating a bullish trend. The MACD of 29.79 indicates Negative momentum. The RSI at 62.10 is Neutral, neither overbought nor oversold. The STOCH value of 79.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4347.

Broadmedia Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4347	72 Outperform	¥15.71B	21.04	―	1.96%	0.16%	116.15%
4308	67 Neutral	¥10.10B	23.76	―	3.92%	2.87%	27.30%
4816	66 Neutral	¥508.67B	20.21	―	1.12%	5.90%	17.39%
4772	62 Neutral	¥11.24B	29.91	―	0.91%	8.13%	275.53%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
3791	59 Neutral	¥26.51B	41.90	―	1.11%	-4.66%	-56.66%
7860	52 Neutral	¥55.10B	25.12	0.69%	4.16%	11.52%	162.04%