SD Entertainment, Inc. (4650) AI Stock Analysis

• Market Cap: ¥2.38B
• Dividend Yield: N/A
• Average Volume (3M): 7.23K
• Price to Earnings (P/E): 8.0
• Beta (1Y): 0.28
• Revenue Growth: 20.86%
• EPS Growth: -58.07%
• Country: JP
• Employees: 303
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): 9.47
• Shares Outstanding: 8,997,000
• 10 Day Avg. Volume: 10,840
• 30 Day Avg. Volume: 7,230
• PEG Ratio: -1.29
• Price to Book (P/B): 1.56
• Price to Sales (P/S): 0.59
• P/FCF Ratio: -58.81
• 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: 50 Neutral
• Price Target: ¥269.00 ▼(-11.22% Downside)
• Action: Reiterated Date: 03/31/26
• Date: Action: Reiterated 03/31/26

The score is held back primarily by weak cash-flow quality (negative free cash flow) and still-meaningful leverage, despite improved revenue growth and positive earnings. Technicals also point to a weak trend with the stock below major moving averages. Valuation is a partial offset due to the low P/E, but income support is absent without a dividend yield.

Positive Factors

Revenue recovery

FY2025 revenue reversal to +5.63% signals recovering demand and improved monetization. Sustained top-line growth over the next 2–6 months improves operating leverage potential, helps stabilize earnings, and creates a clearer path to normalize cash generation if maintained.

Negative Factors

Negative free cash flow

Persistent negative free cash flow (~-42.2M in FY2025) implies the company does not consistently convert earnings into distributable cash. Over months this pressures liquidity, forces external financing for capex or working capital, and limits reinvestment without improving margins or reducing capex.

SD Entertainment, Inc. Business Overview & Revenue Model

Company Description

SD ENTERTAINMENT,Inc. engages in the fitness, childcare, online crane game, EC, and real estate leasing businesses in Japan. It operates 12 fitness clubs and 4 nursery schools. The company was founded in 1952 and is headquartered in Sapporo, Japan....

SD Entertainment, Inc. Financial Statement Overview

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	4.40B	4.20B	3.74B	3.77B	3.99B	3.66B
Gross Profit	4.03B	3.73B	3.32B	3.32B	3.41B	3.10B
EBITDA	203.68M	310.68M	322.03M	282.16M	210.11M	-592.00K
Net Income	4.00M	93.82M	117.94M	-197.70M	64.64M	-590.51M
Balance Sheet
Total Assets	4.05B	4.21B	4.24B	4.42B	5.50B	6.98B
Cash, Cash Equivalents and Short-Term Investments	547.23M	486.64M	858.38M	996.85M	1.46B	900.90M
Total Debt	1.82B	1.89B	2.05B	2.27B	2.87B	4.26B
Total Liabilities	2.58B	2.62B	2.75B	3.05B	3.93B	5.47B
Stockholders Equity	1.48B	1.58B	1.49B	1.37B	1.57B	1.51B
Cash Flow
Free Cash Flow	0.00	-42.17M	-32.25M	-227.93M	22.75M	-345.51M
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: Negative
• Last Price: 303.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 303 is above the 20-day moving average (MA) of 281.30, above the 50-day MA of 289.16, and above the 200-day MA of 288.51, indicating a bearish trend. The MACD of -6.67 indicates Positive momentum. The RSI at 31.64 is Neutral, neither overbought nor oversold. The STOCH value of 34.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4650.

SD Entertainment, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5032	77 Outperform	¥185.70B	16.53	―	1.17%	53.21%	65.83%
4816	66 Neutral	¥572.17B	28.18	―	1.12%	5.90%	17.39%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
3791	59 Neutral	¥26.97B	124.21	―	1.11%	-4.66%	-56.66%
4650	50 Neutral	¥2.38B	7.99	―	―	20.86%	-58.07%
7860	49 Neutral	¥54.46B	6.12	4.10%	4.16%	11.52%	162.04%
3686	42 Neutral	¥4.82B	-42.70	―	―	-2.84%	36.23%