SD Entertainment, Inc. (4650) AI Stock Analysis

• Market Cap: ¥2.63B
• Dividend Yield: N/A
• Average Volume (3M): 16.18K
• Price to Earnings (P/E): 657.3
• Beta (1Y): 0.26
• Revenue Growth: 17.90%
• EPS Growth: -96.58%
• Country: JP
• Employees: 303
• Sector: Communication Services
• Sector Strength: 90
• Industry: Entertainment
• EPS (TTM): -12.09
• Shares Outstanding: 8,997,000
• 10 Day Avg. Volume: 32,540
• 30 Day Avg. Volume: 16,180
• 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: ¥298.00
• Price Target Upside: 1.36% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 62 Neutral
• Price Target: ¥298.00 ▲(1.36% Upside)

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 shows moderate financial health with strengths in revenue growth and gross profit margins, but profitability is constrained by low net and EBIT margins. The high debt-to-equity ratio raises leverage concerns, and negative free cash flow indicates cash management challenges.

Income Statement

SD Entertainment has shown a moderate financial performance with a gross profit margin of approximately 88.8% for 2025, indicating efficient cost management. The net profit margin for 2025 is around 2.2%, reflecting limited profitability growth. Revenue growth rate from 2024 to 2025 is 12.5%, showing a positive trend, but the EBIT margin is a modest 2.3%, suggesting operational challenges. EBITDA margin stands at 10%, supporting cash flow generation.

Balance Sheet

The company's balance sheet reveals a high debt-to-equity ratio of 1.19, signifying potential financial leverage risks. Return on equity for 2025 is low at 5.9%, indicating limited returns to shareholders. The equity ratio is 37.7%, showing a moderate reliance on equity financing. Overall, the balance sheet shows average stability with room for improvement in leverage management.

Cash Flow

SD Entertainment experienced a negative free cash flow growth rate with a decline to -42.2 million in 2025, highlighting cash management challenges. The operating cash flow to net income ratio is 0.91, suggesting decent cash conversion efficiency. However, the free cash flow to net income ratio is negative, indicating challenges in maintaining positive free cash flow.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	3.98B	4.20B	3.74B	3.77B	3.99B	3.66B
Gross Profit	3.69B	3.73B	3.50B	3.50B	3.65B	3.31B
EBITDA	446.08M	420.63M	432.97M	180.46M	548.52M	-161.51M
Net Income	139.24M	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	727.00M	486.64M	858.38M	996.85M	1.46B	900.90M
Total Debt	1.98B	1.89B	2.05B	2.27B	2.87B	4.26B
Total Liabilities	2.71B	2.62B	2.75B	3.05B	3.93B	5.47B
Stockholders Equity	1.50B	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: 294.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 294 is above the 20-day moving average (MA) of 284.80, above the 50-day MA of 282.56, and above the 200-day MA of 281.97, indicating a bullish trend. The MACD of 2.93 indicates Negative momentum. The RSI at 72.55 is Negative, neither overbought nor oversold. The STOCH value of 21.38 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	¥7.94B	7.53		2.70%	0.83%	23.88%
4308	75 Outperform	¥9.20B	16.95		3.78%	5.98%	87.95%
5125	66 Neutral	¥3.02B	12.86		―	-2.75%	-3.29%
3929	64 Neutral	¥2.94B	12.84		―	-10.99%	―
4650	62 Neutral	¥2.63B	657.28		―	17.90%	-96.58%
Sector *	60 Neutral	$43.56B	3.79	-13.01%	4.09%	1.89%	-42.25%
3686	41 Neutral	¥6.26B	―		―	1.74%	51.02%