Stream Media Corporation (4772) AI Stock Analysis

• Market Cap: ¥13.10B
• Dividend Yield: 0.88%
• Average Volume (3M): 193.38K
• Price to Earnings (P/E): 15.1
• Beta (1Y): 0.70
• Revenue Growth: 1.62%
• EPS Growth: 188.00%
• Country: JP
• Employees: 91
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): 2.79
• Shares Outstanding: 115,904,830
• 10 Day Avg. Volume: 132,860
• 30 Day Avg. Volume: 193,383
• 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: ¥129.00
• Price Target Upside: 10.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 66 Neutral
• Price Target: ¥123.00 ▲(5.13% Upside)

The overall stock score of 66 reflects strong financial performance, driven by significant revenue and profit growth, improved margins, and financial stability with zero debt. However, the technical analysis indicates short-term bearish momentum, which tempers the overall score. The valuation is reasonable, with a fair P/E ratio and a modest dividend yield, supporting the stock's attractiveness.

Stream Media Corporation Business Overview & Revenue Model

Company Description

SM Entertainment Japan Co., Ltd. engages in the digital communications business. Its operations are carried out through the following segments: Rights and Media Communications, Broadcasting, and Others. The Rights and Media Communications segment acquires and commercializes distribution rights for dramas and films, manages talents, operates fan clubs, and merchandises goods through the Internet and convenience stores. The Broadcasting segment offers television programs through communications satellite broadcasting. The Others segment includes digital content distribution and music contents business. The company was founded on December 24, 1971 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Stream Media Corporation generates revenue through multiple streams, primarily from subscription-based services, advertising revenue, and content licensing agreements. The subscription model allows users to access premium content on a recurring basis, providing a steady income. Advertising revenue comes from partnerships with brands and advertisers who pay to display their ads on Stream Media’s platforms, leveraging the company's audience reach. Additionally, the company earns money through licensing its proprietary technology and content to other media entities, further diversifying its revenue portfolio. Significant partnerships with major content creators and platforms bolster its market presence and contribute to its earnings, ensuring a robust financial performance.

Stream Media Corporation Financial Statement Overview

Summary

Stream Media Corporation demonstrates strong financial performance, marked by significant revenue and profit growth, improved margins, and financial stability with zero debt. Although cash flow from operations is negative, the trend shows improvement, and the overall liquidity position is strong due to substantial cash reserves.

Income Statement

The company shows a strong revenue growth rate, increasing from 4,270 million JPY in 2020 to 9,716 million JPY in 2024, with a noticeable improvement in gross profit margin from 8.34% in 2020 to 21.23% in 2024. Net profit margin has improved significantly, turning from losses in earlier years to a positive 8.10% in 2024. EBIT and EBITDA margins have also improved, reaching 3.75% and 3.90% in 2024, respectively. These improvements reflect enhanced profitability and operational efficiency.

Balance Sheet

The company maintains a robust financial structure with zero debt since 2022 and a high equity ratio of over 50% consistently, which indicates financial stability. The return on equity (ROE) improves significantly, reaching 10.67% in 2024, indicating effective management of shareholder funds. The strong cash position with negative net debt suggests a high level of liquidity.

Cash Flow

Despite negative free cash flow, there is an improving trend in operating cash flow, which narrowed its deficit from -1,228 million JPY in 2020 to -562 million JPY in 2024. The free cash flow growth rate is positive from 2023 to 2024, and there is a healthy operating cash flow to net income ratio of -0.71 in 2024. While cash flow from financing activities is negative, it reflects a reduction in debt obligations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.84B	9.72B	8.91B	7.08B	5.63B	4.27B
Gross Profit	1.91B	2.06B	1.88B	1.40B	1.04B	356.20M
EBITDA	810.00M	379.00M	223.31M	-220.68M	-414.59M	-1.16B
Net Income	627.63M	787.66M	261.86M	-303.30M	-286.29M	-1.24B
Balance Sheet
Total Assets	14.64B	14.41B	12.68B	10.07B	12.22B	9.00B
Cash, Cash Equivalents and Short-Term Investments	3.86B	2.45B	2.41B	3.42B	3.76B	3.49B
Total Debt	15.03M	4.39M	5.65M	0.00	3.91M	9.55M
Total Liabilities	6.88B	6.62B	5.46B	3.37B	3.16B	2.95B
Stockholders Equity	7.34B	7.38B	6.82B	6.36B	7.84B	5.97B
Cash Flow
Free Cash Flow	0.00	-594.52M	-1.05B	-218.22M	-8.22M	-1.24B
Operating Cash Flow	0.00	-562.30M	-1.04B	-113.38M	155.69M	-1.23B
Investing Cash Flow	0.00	598.93M	39.77M	-222.02M	-29.27M	-5.02M
Financing Cash Flow	0.00	-1.26M	-463.00K	-17.35M	148.04M	2.73B

Stream Media Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 117.00
• 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:4772, the sentiment is Positive. The current price of 117 is above the 20-day moving average (MA) of 116.60, above the 50-day MA of 116.00, and above the 200-day MA of 113.37, indicating a bullish trend. The MACD of -0.35 indicates Positive momentum. The RSI at 54.39 is Neutral, neither overbought nor oversold. The STOCH value of 56.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4772.

Stream Media Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4308	74 Outperform	9.95B	18.17	5.21%	3.51%	5.98%	87.95%
4712	72 Outperform	14.07B	6.11	10.39%	1.34%	22.92%	65.63%
6879	66 Neutral	35.11B	-10.21	-10.76%	1.90%	3.29%	-321.34%
4772	66 Neutral	¥13.10B	15.08		0.88%	1.62%	188.00%
4347	62 Neutral	12.22B	32.44	8.49%	2.32%	2.98%	-22.92%
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%