Broadmedia Corporation (4347) AI Stock Analysis

• Market Cap: ¥14.75B
• Dividend Yield: 1.96%
• Average Volume (3M): 18.87K
• Price to Earnings (P/E): 25.8
• Beta (1Y): 0.34
• Revenue Growth: 0.16%
• EPS Growth: 116.15%
• Country: JP
• Employees: 790
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): 18.97
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ¥2,180.00 ▲(4.81% Upside)

The overall stock score of 67.5 reflects a mixed outlook for Broadmedia Corporation. The most significant factor is the company's financial performance, which shows stable profitability but concerning declines in revenue and cash flow. Technical analysis indicates strong bullish momentum, although the stock may be overbought. Valuation metrics suggest the stock could be overvalued, limiting upside potential.

Positive Factors

Cash Flow Generation

Strong free cash flow growth indicates efficient cash generation, providing the company with flexibility for reinvestment and debt reduction.

Financial Leverage

Low financial leverage suggests prudent management of debt, reducing risk and enhancing the company's ability to navigate economic fluctuations.

Operational Efficiency

Improved operational efficiency through better EBIT and EBITDA margins can lead to enhanced profitability and competitive positioning over time.

Negative Factors

Revenue Growth Challenges

Negative revenue growth indicates potential issues in market demand or operational execution, which may hinder long-term business expansion.

Profitability Concerns

Declining net profit margins highlight challenges in maintaining profitability, which could impact shareholder returns and investment capacity.

Return on Equity

Reduced return on equity suggests declining efficiency in generating profits from shareholders' equity, potentially affecting 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

Broadmedia Corporation demonstrates a stable financial position with strong cash flow generation and prudent leverage. However, challenges in revenue growth and declining net profit margins indicate areas for improvement. The company should focus on enhancing profitability and sustaining revenue growth to strengthen its financial performance further.

Income Statement

The company's income statement shows a mixed performance. The gross profit margin is stable around 39%, indicating consistent cost management. However, the net profit margin has decreased to 2.16% in the TTM, reflecting challenges in maintaining profitability. Revenue growth has been negative in the TTM, suggesting potential market or operational challenges. EBIT and EBITDA margins have slightly improved, indicating better operational efficiency.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.25, indicating prudent financial leverage. Return on equity has decreased to 7.52% in the TTM, showing reduced profitability for shareholders. The equity ratio remains healthy, suggesting a strong capital structure.

Cash Flow

Cash flow analysis reveals a strong free cash flow growth of 37.89% in the TTM, highlighting improved cash generation. The operating cash flow to net income ratio is stable, indicating efficient conversion of income to cash. The free cash flow to net income ratio is high at 84.74%, reflecting robust cash flow relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.21B	15.53B	14.18B	13.02B	12.34B	10.99B
Gross Profit	5.90B	6.06B	5.68B	5.03B	4.65B	4.06B
EBITDA	888.43M	785.85M	1.08B	1.15B	1.55B	630.63M
Net Income	567.19M	335.27M	680.12M	1.11B	1.01B	151.08M
Balance Sheet
Total Assets	10.16B	11.30B	11.89B	9.95B	8.94B	6.99B
Cash, Cash Equivalents and Short-Term Investments	4.08B	5.62B	5.83B	5.87B	5.30B	3.37B
Total Debt	862.82M	1.20B	1.50B	829.71M	924.05M	575.64M
Total Liabilities	4.79B	5.52B	5.98B	4.50B	4.33B	3.29B
Stockholders Equity	4.55B	4.63B	4.77B	4.30B	3.47B	2.75B
Cash Flow
Free Cash Flow	523.40M	601.54M	983.65M	1.15B	1.78B	372.50M
Operating Cash Flow	644.91M	710.59M	1.18B	1.43B	1.93B	558.50M
Investing Cash Flow	-81.13M	-30.80M	-915.92M	-331.46M	42.25M	-136.84M
Financing Cash Flow	-1.06B	-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: Positive
• 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 2058.60, above the 50-day MA of 1836.96, and above the 200-day MA of 1780.19, indicating a bullish trend. The MACD of 67.77 indicates Positive momentum. The RSI at 68.86 is Neutral, neither overbought nor oversold. The STOCH value of 33.58 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
4712	75 Outperform	¥13.51B	6.15	―	1.40%	26.47%	55.11%
4347	68 Neutral	¥14.75B	25.84	―	1.96%	0.16%	116.15%
4308	67 Neutral	¥9.47B	18.80	―	3.92%	2.87%	27.30%
4772	62 Neutral	¥12.05B	12.81	―	0.91%	8.13%	275.53%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
4650	52 Neutral	¥2.75B	54.91	―	―	20.86%	-58.07%
3686	46 Neutral	¥5.56B	-12.37	―	―	-2.84%	36.23%