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Toei Animation Co., Ltd. (JP:4816)
:4816
Japanese Market
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Toei Animation Co., Ltd. (4816) AI Stock Analysis

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JP:4816

Toei Animation Co., Ltd.

(4816)

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Neutral 69 (OpenAI - 4o)
Rating:69Neutral
Price Target:
¥3,405.00
▲(9.49% Upside)
Toei Animation Co., Ltd. scores well due to its strong financial performance, characterized by robust revenue growth and high profitability margins. However, the technical analysis indicates neutral to bearish momentum, and the valuation suggests moderate pricing with limited dividend appeal. These factors collectively result in a balanced overall stock score.
Positive Factors
Revenue Growth
Consistent revenue growth indicates expanding market reach and effective monetization of popular franchises, supporting long-term business stability.
Profitability Margins
High profitability margins reflect efficient operations and strong pricing power, enhancing financial resilience and shareholder value.
Balance Sheet Health
Minimal leverage reduces financial risk and enhances the company's ability to invest in growth opportunities without compromising stability.
Negative Factors
Free Cash Flow Volatility
Volatility in free cash flow can impact the company's ability to consistently fund operations and strategic initiatives, posing a risk to financial planning.
Dividend Yield
A low dividend yield may deter income-focused investors, potentially limiting the stock's attractiveness compared to peers with higher yields.
Cash Flow Management
While effective, the cash flow management ratio suggests room for improvement in converting income into cash, which is crucial for sustaining operations and growth.

Toei Animation Co., Ltd. (4816) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionToei Animation Co., Ltd. is a prominent Japanese animation studio established in 1948, known for producing a wide array of animated films, television series, and feature-length animations. The company operates primarily in the animation and entertainment sectors, and is famous for iconic franchises such as 'Dragon Ball', 'One Piece', and 'Sailor Moon'. Toei Animation engages in various facets of the animation industry, including production, distribution, and licensing, while also collaborating with international partners to expand its global reach.
How the Company Makes MoneyToei Animation generates revenue through multiple channels, primarily from the production and licensing of anime series and films. Key revenue streams include television broadcasting rights, merchandise sales, and home media sales (such as DVDs and Blu-rays). The company also earns income through theatrical releases of its films, both domestically and internationally. Additionally, Toei Animation benefits from strategic partnerships with various distribution companies and streaming platforms, which allow for broader global distribution of its content, thereby enhancing its earnings potential. Licensing agreements for merchandise related to its popular franchises provide a significant boost to the company’s revenue, as fans of its series often purchase branded products. Overall, Toei Animation's diversified revenue model and strong brand recognition contribute significantly to its financial success.

Toei Animation Co., Ltd. Financial Statement Overview

Summary
Toei Animation Co., Ltd. exhibits 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
85
Very Positive
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
80
Positive
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
78
Positive
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue97.27B100.84B88.65B87.46B57.02B51.59B
Gross Profit48.61B48.42B37.45B40.97B26.69B22.94B
EBITDA33.90B33.59B27.50B30.41B18.71B16.64B
Net Income23.55B23.62B18.80B20.90B12.82B11.07B
Balance Sheet
Total Assets184.36B190.98B162.74B150.51B126.88B105.48B
Cash, Cash Equivalents and Short-Term Investments78.07B82.57B79.09B67.01B60.30B43.09B
Total Debt4.22B106.00M112.00M82.00M598.00M92.00M
Total Liabilities34.52B37.78B31.02B36.05B30.84B20.36B
Stockholders Equity149.84B153.20B131.71B114.50B96.04B85.12B
Cash Flow
Free Cash Flow0.0026.46B15.66B14.34B14.55B7.71B
Operating Cash Flow0.0027.16B16.28B15.26B15.07B8.05B
Investing Cash Flow0.00-5.54B-4.54B-2.95B-15.39B298.00M
Financing Cash Flow0.00-6.44B-6.41B-4.54B-2.47B-2.94B

Toei Animation Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3110.00
Price Trends
50DMA
3093.72
Positive
100DMA
3185.76
Negative
200DMA
3217.28
Negative
Market Momentum
MACD
-9.49
Negative
RSI
55.21
Neutral
STOCH
75.45
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4816, the sentiment is Positive. The current price of 3110 is above the 20-day moving average (MA) of 3039.15, above the 50-day MA of 3093.72, and below the 200-day MA of 3217.28, indicating a neutral trend. The MACD of -9.49 indicates Negative momentum. The RSI at 55.21 is Neutral, neither overbought nor oversold. The STOCH value of 75.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4816.

Toei Animation Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
¥356.62B24.531.04%67.99%90.86%
¥376.74B21.000.33%5.14%12.51%
¥28.06B33.811.08%-4.66%-56.66%
¥632.96B26.321.00%5.92%12.22%
$1.49T30.0010.28%1.05%10.99%2.35%
$48.67B4.58-11.27%4.14%2.83%-41.78%
¥178.26B43.120.23%14.49%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4816
Toei Animation Co., Ltd.
3,110.00
-320.62
-9.35%
JP:9602
Toho Co
8,917.00
3,148.79
54.59%
JP:3791
IG Port, Inc.
1,434.00
-314.74
-18.00%
JP:5032
ANYCOLOR Inc.
6,100.00
3,965.86
185.83%
JP:9601
Shochiku Co., Ltd.
12,910.00
2,297.05
21.64%
JP:9605
Toei Company, Ltd.
5,530.00
661.54
13.59%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 28, 2025