Stream Media Corporation (4772) AI Stock Analysis

• Market Cap: ¥11.24B
• Dividend Yield: 0.91%
• Average Volume (3M): 171.76K
• Price to Earnings (P/E): 29.9
• Beta (1Y): 0.66
• Revenue Growth: 8.13%
• EPS Growth: 275.53%
• Country: JP
• Employees: 91
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): -0.73
• Shares Outstanding: 115,904,830
• 10 Day Avg. Volume: 168,520
• 30 Day Avg. Volume: 171,760
• PEG Ratio: -0.61
• Price to Book (P/B): 1.61
• Price to Sales (P/S): 1.18
• P/FCF Ratio: 8.52
• 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: 62 Neutral
• Price Target: ¥104.00 ▲(0.00% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by improving fundamentals and a very conservative balance sheet, but is held back by 2025 margin compression and historically volatile cash flow. Technicals are weak with price below major moving averages and negative MACD, while valuation is somewhat demanding at ~30.5x earnings despite a ~2% dividend yield.

Positive Factors

Conservative balance sheet

Near-zero debt materially lowers financial risk and gives management durable flexibility to fund operations, absorb shocks, or pursue strategic investments without refinancing pressure. Over the next several months this protects liquidity and reduces insolvency risk versus peers.

Sustained profitability and revenue growth

A multi-year recovery to consistent profitability and recurring revenue growth indicates underlying business model improvement and demand stability. This trend supports durable operating cash generation and provides a foundation for margin recovery or reinvestment over the next 2–6 months.

Strong FCF in 2025

Free cash flow matching earnings in 2025 signals quality of reported profits and immediate capacity to fund capex, dividends, or strategic initiatives. This demonstrated cash conversion gives the company structural financial optionality and reduces near-term refinancing or liquidity concerns.

Negative Factors

Margin compression

A sharp drop in net margin suggests diminishing operating leverage or rising costs that erode the company's ability to convert revenue into profit. If structural (costs, pricing, or mix), this will constrain reinvestment capacity and weaken earnings durability over coming quarters.

Volatile cash generation

Large swings in cash flow across years reduce predictability of funding for capex, dividends or growth. This volatility may reflect working-capital timing or cyclical revenue drivers, making it harder to rely on 2025's strong FCF as a steady baseline in the near term.

Weak and falling ROE

Declining ROE indicates the company is generating lower profit per unit of shareholder capital, suggesting inefficiencies or margin pressure. Persistently low ROE limits long-term shareholder value creation and may push management toward riskier strategies to boost returns.

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

Turnaround to sustained profitability (2023–2025) and steady revenue growth (2025: +8.58% YoY) are positives, supported by an essentially debt-free balance sheet. Offsetting this, 2025 profitability stepped down sharply versus 2024 (net margin ~3.7% vs ~8.1%) and cash flow has been inconsistent with negative operating/free cash flow in 2023–2024 before a strong rebound in 2025.

Income Statement

Revenue has grown steadily from 2023–2025 (2025: +8.58% YoY) and profitability has recovered materially from losses in 2020–2022 to positive net income in 2023–2025. That said, 2025 saw a sharp step-down in profitability versus 2024 (net margin fell to ~3.7% from ~8.1%, and operating margins also compressed), suggesting weaker operating leverage and/or higher costs despite higher sales.

Balance Sheet

The balance sheet appears very conservative with essentially no debt (debt-to-equity near 0 across the period), which reduces financial risk and provides flexibility. Equity is sizable relative to assets, but returns are only moderate (2025 return on equity ~5.0%, down from ~10.7% in 2024), indicating the company is not currently generating strong profit efficiency on its capital base.

Cash Flow

Cash generation is volatile: operating and free cash flow were negative in 2023 and 2024, then rebounded strongly in 2025 (operating cash flow ~1.42B and free cash flow ~1.42B). The 2025 free cash flow closely matched reported earnings, which is a positive quality signal; however, the prior-year cash burn introduces uncertainty around consistency and working-capital or timing effects.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	9.39B	10.20B	9.72B	8.91B	7.08B	5.63B
Gross Profit	1.95B	2.02B	2.06B	1.88B	1.40B	1.04B
EBITDA	1.03B	185.34M	379.00M	223.31M	-220.68M	-414.59M
Net Income	868.30M	375.84M	787.66M	261.86M	-303.30M	-286.29M
Balance Sheet
Total Assets	15.54B	14.53B	14.41B	12.68B	10.07B	12.22B
Cash, Cash Equivalents and Short-Term Investments	4.38B	3.70B	2.45B	2.41B	3.42B	3.76B
Total Debt	14.71M	0.00	4.39M	5.65M	0.00	3.91M
Total Liabilities	7.10B	6.61B	6.62B	5.46B	3.37B	3.16B
Stockholders Equity	7.79B	7.47B	7.38B	6.82B	6.36B	7.84B
Cash Flow
Free Cash Flow	0.00	1.42B	-594.52M	-1.05B	-218.22M	-8.22M
Operating Cash Flow	0.00	1.42B	-562.30M	-1.04B	-113.38M	155.69M
Investing Cash Flow	0.00	-54.11M	598.93M	39.77M	-222.02M	-29.27M
Financing Cash Flow	0.00	-116.81M	-1.26M	-463.00K	-17.35M	148.04M

Stream Media Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 104.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Negative. The current price of 104 is above the 20-day moving average (MA) of 99.50, above the 50-day MA of 102.79, and below the 200-day MA of 108.75, indicating a bearish trend. The MACD of -1.72 indicates Negative momentum. The RSI at 45.84 is Neutral, neither overbought nor oversold. The STOCH value of 57.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4772.

Stream Media Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4347	72 Outperform	¥15.71B	21.04	―	1.96%	0.16%	116.15%
4308	67 Neutral	¥10.10B	23.76	―	3.92%	2.87%	27.30%
4816	66 Neutral	¥508.67B	20.21	―	1.12%	5.90%	17.39%
4772	62 Neutral	¥11.24B	29.91	―	0.91%	8.13%	275.53%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
3791	59 Neutral	¥26.51B	41.90	―	1.11%	-4.66%	-56.66%
7860	52 Neutral	¥55.10B	25.12	0.69%	4.16%	11.52%	162.04%

Stream Media Corporation Corporate Events

SM ENTERTAINMENT JAPAN Sees Profit Slump in 2025 but Targets Margin Recovery in 2026

SM ENTERTAINMENT JAPAN reported a 4.9% rise in net sales to ¥10.2 billion for the year ended December 31, 2025, but operating profit dropped 52.2% to ¥173 million and profit attributable to owners of parent fell 52.3% to ¥375 million, reflecting margin pressure despite modest top-line growth. The equity ratio improved to 49.8% and operating cash flow swung to a positive ¥1.4 billion, while the company doubled its annual dividend to ¥2.00 per share, signaling a continued commitment to shareholder returns even as profitability weakened.

Looking ahead to 2026, the company forecasts an 10.8% decline in net sales to ¥9.1 billion but expects operating profit to climb 42.4% to ¥247 million and ordinary profit to rise 32.4%, indicating a focus on profitability and cost control over revenue expansion. Profit attributable to owners of parent is projected to fall 32.5% to ¥253 million, with lower earnings per share, suggesting stakeholders should brace for softer bottom-line results despite anticipated efficiency gains and a planned reduction of the year-end dividend to ¥1.00 per share.

The most recent analyst rating on (JP:4772) stock is a Hold with a Yen107.00 price target. To see the full list of analyst forecasts on Stream Media Corporation stock, see the JP:4772 Stock Forecast page.