Toei Animation Co., Ltd. (4816) AI Stock Analysis

• Market Cap: ¥586.17B
• Dividend Yield: 1.21%
• Average Volume (3M): 577.72K
• Price to Earnings (P/E): 23.5
• Beta (1Y): 0.28
• Revenue Growth: 5.90%
• EPS Growth: 17.39%
• Country: JP
• Employees: 911
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): 37.92
• Shares Outstanding: 210,000,000
• 10 Day Avg. Volume: 290,370
• 30 Day Avg. Volume: 577,720
• PEG Ratio: 1.05
• Price to Book (P/B): 4.14
• Price to Sales (P/S): 6.29
• P/FCF Ratio: 23.96
• 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: ¥4,070.00
• Price Target Upside: 58.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: ¥2,829.00 ▲(10.25% Upside)

Toei Animation Co., Ltd. has a strong financial foundation with robust revenue growth and profitability. However, the technical analysis indicates bearish momentum, which is a significant risk. The valuation is neutral, offering neither a strong discount nor premium. These factors collectively result in a moderate overall stock score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective monetization strategies, enhancing long-term business sustainability.

Profitability Margins

High profitability margins reflect operational efficiency and pricing power, supporting sustained financial health and competitive advantage.

Balance Sheet Health

A strong balance sheet with low leverage provides financial flexibility and resilience, enabling strategic investments and growth opportunities.

Negative Factors

Free Cash Flow Volatility

Volatility in cash flow can impact the company's ability to fund operations and investments consistently, posing a risk to financial stability.

Technical Analysis

While not a fundamental factor, persistent bearish trends can affect investor perception and access to capital, impacting long-term growth.

Valuation Concerns

High valuation ratios can limit upside potential and increase risk of correction, affecting long-term investor returns and company valuation.

Toei Animation Co., Ltd. Business Overview & Revenue Model

Company Description

Toei Animation Co.,Ltd. produces, markets, and licenses animation products worldwide. It operates through three segments, Video Production and Sales Business, Copyright Business, and Product Sales Business. The company plans and produces various animation works for theaters and television, terrestrial broadcasting, CS broadcasting, and packaging, and sells in various media forms such as game software, mobile terminals, and the internet. It also develops and sells character products. As of March 2020, it owns 246 theater works, 223 TV works, and 12,867 episodes of content. The company was founded in 1948 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Toei Animation generates revenue through several key streams. Primarily, it earns income from the production and licensing of its animated content, including television series and films, which are sold to broadcasters and streaming services worldwide. Merchandising is another significant revenue source, as the company capitalizes on its popular franchises by selling related products, such as toys, clothing, and collectibles. Additionally, Toei Animation benefits from international distribution deals and partnerships with various media companies that help expand its reach. The company also engages in co-productions and collaborations with other animation studios, enhancing its portfolio and revenue potential. Overall, its diverse range of income sources and strong brand presence in the global market contribute to its financial success.

Toei Animation Co., Ltd. Financial Statement Overview

Summary

Toei Animation Co., Ltd. demonstrates strong financial health with robust revenue growth, high profitability margins, and a solid balance sheet with minimal leverage. Effective cash flow management supports financial stability, though volatility in free cash flow growth warrants monitoring.

Income Statement

Toei Animation Co., Ltd. has demonstrated strong revenue growth with a 7% increase in the latest year, supported by robust gross and net profit margins of 48% and 23.4%, respectively. The EBIT and EBITDA margins are also healthy at 32.5% and 33.3%, indicating efficient operations. The consistent improvement in profitability metrics over the years highlights the company's ability to capitalize on its revenue growth effectively.

Balance Sheet

The company maintains a solid balance sheet with a negligible debt-to-equity ratio, indicating minimal leverage and financial risk. The return on equity stands at 15.4%, reflecting efficient use of shareholder funds to generate profits. The equity ratio of 80.2% suggests a strong capital structure, providing stability and resilience against market fluctuations.

Cash Flow

Toei Animation's cash flow performance is commendable, with a significant increase in free cash flow, albeit from a low base. The operating cash flow to net income ratio of 0.80 and free cash flow to net income ratio of 0.97 demonstrate effective cash conversion. However, the high free cash flow growth rate indicates potential volatility in cash generation.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	97.27B	100.84B	88.65B	87.46B	57.02B	51.59B
Gross Profit	48.61B	48.42B	37.45B	40.97B	26.69B	22.94B
EBITDA	33.90B	33.59B	27.50B	30.41B	18.71B	16.64B
Net Income	23.55B	23.62B	18.80B	20.90B	12.82B	11.07B
Balance Sheet
Total Assets	184.36B	190.98B	162.74B	150.51B	126.88B	105.48B
Cash, Cash Equivalents and Short-Term Investments	78.07B	82.57B	79.09B	67.01B	60.30B	43.09B
Total Debt	4.22B	106.00M	112.00M	82.00M	598.00M	92.00M
Total Liabilities	34.52B	37.78B	31.02B	36.05B	30.84B	20.36B
Stockholders Equity	149.84B	153.20B	131.71B	114.50B	96.04B	85.12B
Cash Flow
Free Cash Flow	0.00	26.46B	15.66B	14.34B	14.55B	7.71B
Operating Cash Flow	0.00	27.16B	16.28B	15.26B	15.07B	8.05B
Investing Cash Flow	0.00	-5.54B	-4.54B	-2.95B	-15.39B	298.00M
Financing Cash Flow	0.00	-6.44B	-6.41B	-4.54B	-2.47B	-2.94B

Toei Animation Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2566.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4816, the sentiment is Negative. The current price of 2566 is below the 20-day moving average (MA) of 2712.05, below the 50-day MA of 2871.52, and below the 200-day MA of 3127.46, indicating a bearish trend. The MACD of -97.30 indicates Positive momentum. The RSI at 38.43 is Neutral, neither overbought nor oversold. The STOCH value of 16.17 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4816.

Toei Animation Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9605	75 Outperform	¥403.90B	17.49	―	0.32%	6.38%	38.69%
5032	71 Outperform	¥369.49B	25.41	―	1.17%	53.21%	65.83%
3791	69 Neutral	¥27.67B	33.35	―	1.08%	-4.66%	-56.66%
9602	62 Neutral	$1.43T	29.05	10.28%	1.10%	10.99%	2.35%
4816	61 Neutral	¥586.17B	23.53	―	1.21%	5.90%	17.39%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
9601	46 Neutral	¥168.10B	41.32	―	0.25%	14.49%	―