SD Entertainment, Inc. (4650) AI Stock Analysis

• Market Cap: ¥2.70B
• Dividend Yield: N/A
• Average Volume (3M): 42.68K
• Price to Earnings (P/E): 684.1
• Beta (1Y): 0.29
• Revenue Growth: 17.90%
• EPS Growth: -96.58%
• Country: JP
• Employees: 303
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): -12.09
• Shares Outstanding: 8,997,000
• 10 Day Avg. Volume: 84,470
• 30 Day Avg. Volume: 42,683
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥298.00
• Price Target Upside: -2.61% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 62 Neutral
• Price Target: ¥298.00 ▼(-2.61% Downside)

SD Entertainment, Inc.'s overall stock score is primarily influenced by its mixed financial performance and valuation concerns. While technical indicators show stability, the company's high leverage and inconsistent cash flow generation pose significant risks. The stock's overvaluation further impacts its attractiveness.

SD Entertainment, Inc. Business Overview & Revenue Model

Company Description

SD Entertainment, Inc. (4650) is a dynamic company operating in the entertainment sector, specializing in the production and distribution of multimedia content, including films, television programs, and digital media. The company leverages innovative storytelling and cutting-edge technology to engage audiences across various platforms, including streaming services, theaters, and television networks. With a focus on both original content creation and strategic partnerships, SD Entertainment aims to be a leader in the rapidly evolving entertainment landscape.

How the Company Makes Money

SD Entertainment generates revenue through multiple streams, primarily by producing and distributing content across various media formats. Key revenue streams include box office sales from theatrical releases, subscription and licensing fees from streaming platforms that feature their content, and advertising revenue from television broadcasts. Additionally, the company may enter into partnerships with other entertainment entities and brands to co-produce content or cross-promote products, further enhancing its earning potential. Merchandise and ancillary revenue from related products can also contribute to the overall financial performance of the company.

SD Entertainment, Inc. Financial Statement Overview

Summary

SD Entertainment, Inc. demonstrates a mixed financial performance. Strong gross margins and operational efficiency are overshadowed by challenges in revenue growth and profitability. High leverage and inconsistent cash flow generation further underline potential financial instability.

Income Statement

SD Entertainment, Inc. has shown a mixed performance in its income statement. The gross profit margin remains strong, indicating effective cost management, but the net profit margin has fluctuated, reflecting inconsistent profitability. Revenue growth has been modest, with some years showing decline, which could be a concern for future growth prospects. EBIT and EBITDA margins are positive, suggesting operational efficiency, but the decline in EBIT over the years indicates potential challenges in maintaining profitability.

Balance Sheet

The balance sheet of SD Entertainment, Inc. reveals a stable equity base, but the debt-to-equity ratio is relatively high, indicating significant leverage. This could pose a risk if revenue growth does not accelerate. The return on equity has been inconsistent, reflecting fluctuating net income. The equity ratio suggests a moderate reliance on equity financing, which is positive, but the high total liabilities highlight potential financial risk.

Cash Flow

Cash flow analysis shows that SD Entertainment, Inc. has struggled with free cash flow, with negative figures in recent years, indicating challenges in generating cash from operations after capital expenditures. The operating cash flow to net income ratio suggests that cash generation from operations is not consistently aligned with reported net income, which could be a concern for liquidity. The free cash flow to net income ratio also highlights potential issues in sustaining cash flow from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.20B	4.20B	3.74B	3.77B	3.99B	3.66B
Gross Profit	3.91B	3.73B	3.50B	3.50B	3.65B	3.31B
EBITDA	420.63M	420.63M	432.97M	180.46M	548.52M	-161.51M
Net Income	93.65M	93.82M	117.94M	-197.70M	64.64M	-590.51M
Balance Sheet
Total Assets	4.21B	4.21B	4.24B	4.42B	5.50B	6.98B
Cash, Cash Equivalents and Short-Term Investments	486.64M	486.64M	858.38M	996.85M	1.46B	900.90M
Total Debt	1.89B	1.89B	2.05B	2.27B	2.87B	4.26B
Total Liabilities	2.62B	2.62B	2.75B	3.05B	3.93B	5.47B
Stockholders Equity	1.58B	1.58B	1.49B	1.37B	1.57B	1.51B
Cash Flow
Free Cash Flow	0.00	-42.17M	-38.64M	-227.93M	8.82M	-364.90M
Operating Cash Flow	0.00	85.00M	27.82M	-105.80M	174.63M	-34.79M
Investing Cash Flow	0.00	-216.86M	52.57M	265.98M	1.84B	-349.68M
Financing Cash Flow	0.00	-239.88M	-218.87M	-626.37M	-1.45B	386.51M

SD Entertainment, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 306.00
• 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:4650, the sentiment is Positive. The current price of 306 is above the 20-day moving average (MA) of 297.85, above the 50-day MA of 288.38, and above the 200-day MA of 283.73, indicating a bullish trend. The MACD of 6.04 indicates Negative momentum. The RSI at 58.88 is Neutral, neither overbought nor oversold. The STOCH value of 42.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4650.

SD Entertainment, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4317	82 Outperform	9.72B	9.17	10.97%	2.30%	0.83%	23.88%
4308	74 Outperform	9.95B	18.17	5.21%	3.51%	5.98%	87.95%
3929	71 Outperform	3.17B	14.07	11.02%	―	-10.99%	0.00%
5125	66 Neutral	2.89B	12.21	0.00%	―	-2.75%	-3.29%
4650	62 Neutral	¥2.70B	684.10		―	17.90%	-96.58%
3686	43 Neutral	6.30B	-16.40	-40.26%	―	1.74%	51.02%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%