SD Entertainment, Inc. (4650) AI Stock Analysis

• Market Cap: ¥2.56B
• Dividend Yield: N/A
• Average Volume (3M): 28.11K
• Price to Earnings (P/E): 27.3
• Beta (1Y): 0.27
• Revenue Growth: 12.50%
• EPS Growth: -20.45%
• Country: JP
• Employees: 303
• Sector: Communication Services
• Sector Strength: 82
• Industry: Entertainment
• EPS (TTM): 9.90
• Shares Outstanding: 8,997,000
• 10 Day Avg. Volume: 62,310
• 30 Day Avg. Volume: 28,106
• PEG Ratio: 0.03
• Price to Book (P/B): 1.78
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -10.76
• 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

• Rating: 67 Neutral
• Price Target: ¥318.00 ▲(11.19%Upside)

SD Entertainment's stock is moderately positioned with strengths in revenue growth and technical indicators suggesting positive momentum. However, high leverage and negative free cash flow present financial risks. The stock's high P/E ratio could indicate overvaluation, which, combined with the lack of a dividend yield, may limit its appeal.

SD Entertainment, Inc. Business Overview & Revenue Model

Company Description

SD Entertainment, Inc. (4650) is a company operating in the entertainment industry, focusing on the production, distribution, and marketing of films, television programs, and related media content. The company engages in creating compelling content across various genres and platforms, catering to a broad audience. SD Entertainment aims to deliver high-quality entertainment experiences through its diverse portfolio of offerings.

How the Company Makes Money

SD Entertainment, Inc. generates revenue through multiple streams, primarily from the production and distribution of films and television programs. The company earns money by licensing its content to broadcasters, streaming platforms, and other media outlets. Additionally, SD Entertainment capitalizes on box office sales for its theatrical releases and earns revenue from home entertainment sales, including DVDs and digital downloads. The company may also receive income from merchandising and partnerships with other entertainment entities. Furthermore, SD Entertainment might engage in co-production deals and international sales, which contribute to its financial performance.

SD Entertainment, Inc. Financial Statement Overview

Summary

SD Entertainment shows moderate financial health with strong revenue growth and high gross profit margins. However, profitability is limited by low net and EBIT margins, and there are significant concerns regarding high leverage, indicated by a high debt-to-equity ratio. The negative free cash flow suggests challenges in cash management.

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
	EBIT
157.05M	98.11M	122.97M	66.56M	-74.69M	-270.68M
	EBITDA
446.08M	420.63M	432.97M	180.46M	548.52M	-161.51M
	Net Income Common Stockholders
139.24M	93.82M	117.94M	-197.70M	64.64M	-590.51M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
727.00M	486.64M	858.38M	996.85M	1.46B	900.90M
	Total Assets
4.21B	4.21B	4.24B	4.42B	5.50B	6.98B
	Total Debt
1.98B	1.89B	2.05B	2.27B	2.87B	4.26B
	Net Debt
1.26B	1.40B	1.19B	1.27B	1.40B	3.35B
	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: 286.00
• 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 286 is above the 20-day moving average (MA) of 274.70, above the 50-day MA of 272.28, and above the 200-day MA of 279.91, indicating a bullish trend. The MACD of 2.40 indicates Negative momentum. The RSI at 57.42 is Neutral, neither overbought nor oversold. The STOCH value of 53.01 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
4308	80 Outperform	¥9.25B	16.79		3.76%	4.74%	84.68%
4317	77 Outperform	¥6.45B	8.32		3.33%	-6.82%	-4.67%
3929	71 Outperform	¥2.77B	14.25		―	-20.82%	―
4650	67 Neutral	¥2.56B	27.30		―	12.50%	-20.45%
5125	66 Neutral	¥2.49B	11.35		―	-4.07%	-45.34%
Sector *	61 Neutral	$14.74B	5.90	-4.02%	6.40%	2.72%	-31.67%
3686	47 Neutral	¥6.33B	―		―	16.03%	-27.98%