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

• Market Cap: ¥688.32B
• Dividend Yield: 0.94%
• Average Volume (3M): 258.03K
• Price to Earnings (P/E): 28.6
• Beta (1Y): 0.30
• Revenue Growth: 5.92%
• EPS Growth: 12.22%
• Country: JP
• Employees: 911
• Sector: Communication Services
• Sector Strength: 93
• Industry: Entertainment
• EPS (TTM): 25.57
• Shares Outstanding: 210,000,000
• 10 Day Avg. Volume: 308,790
• 30 Day Avg. Volume: 258,030
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥4,320.00
• Price Target Upside: 31.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 67 Neutral
• Price Target: ―

Toei Animation Co., Ltd. demonstrates robust financial performance with strong revenue and profit growth and a solid capital structure, making it a stable investment in the entertainment industry. However, the stock's technical indicators suggest caution due to its current price trends. Additionally, the high P/E ratio indicates that much of the company's future growth may already be priced in, and the low dividend yield provides limited appeal for income-focused investors.

Positive Factors

Financial Performance

Toei Animation raised sales and operating profit guidance due to stronger-than-expected licensing and streaming revenues and positive foreign exchange impacts.

Licensing and Distribution

The revised operating profit guidance beats both consensus and previous estimates, attributed to continued royalty income from Dragon Ball: Sparking! Zero, overseas sales expansion of the ONE PIECE card game, and a substantial viewership bonus from streaming platforms.

Strategic Investments

Toei Animation announced its investment in Preferred Network's ¥5bn round and plans for a JV focused on AI-driven production, seen as a positive strategic move to address labor constraints and rising costs by enhancing anime production efficiency.

Negative Factors

Film Business

Film business OP did not meet the market's expectation due to high production cost of Dragon Ball DAIMA, followed by a share price fall.

Market Expectations

The company's revised earnings per share guidance was increased due to better performance in domestic and overseas distribution rights and licensing business, but the risk/reward remains attractive based on the new guidance and upcoming results.

Operational Performance

FY3/26 guidance appears conservative with a projected 20% decline in operational performance year over year.

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 Co., Ltd. generates revenue through multiple streams. The primary source of income comes from the production and distribution of animated television series and films. The company licenses its content to broadcasters and streaming platforms, both in Japan and overseas, which provides a steady stream of revenue from licensing fees. Additionally, Toei Animation earns money through the sales of home entertainment products, such as DVDs and Blu-rays, as well as digital downloads. Merchandising is another significant revenue stream, with the company licensing its popular characters for use in toys, clothing, and other consumer products. Furthermore, Toei Animation engages in partnerships and collaborations with other media companies to expand its reach and enhance its brand presence globally.

Toei Animation Co., Ltd. Financial Statement Overview

Summary

Toei Animation Co., Ltd. exhibits strong financial health with robust revenue and profit growth, efficient capital structure, and significant margins. While the income statement and balance sheet reflect excellent performance and stability, the absence of current cash flow data presents a slight uncertainty regarding liquidity. Overall, the company is well-positioned within the entertainment industry with a solid financial foundation.

Income Statement

Toei Animation Co., Ltd. demonstrates strong financial performance with impressive profit margins. The gross profit margin for the TTM (Trailing-Twelve-Months) is approximately 46.9%, and the net profit margin is approximately 22.4%, indicating efficient cost management and profitability. The revenue growth rate from the previous annual period is approximately 6.6%, showcasing a solid upward trajectory. EBIT and EBITDA margins are also robust at 30.7% and 31.7%, respectively, reinforcing the company's operational efficiency.

Balance Sheet

The company maintains a strong financial position with significant equity and zero debt, resulting in an excellent debt-to-equity ratio of 0. The return on equity (ROE) is approximately 14.6% TTM, indicating effective use of shareholder funds. The equity ratio stands at an impressive 81.4%, highlighting financial stability and low leverage risk.

Cash Flow

While detailed cash flow figures for the TTM are unavailable, historical data indicates strong free cash flow generation. However, potential concerns arise from the lack of current operating cash flow, which is a critical metric for evaluating ongoing liquidity. The free cash flow to net income ratio from the last annual report was approximately 83.3%, demonstrating efficient cash conversion in prior periods.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	100.84B	88.65B	87.46B	57.02B	51.59B
Gross Profit	48.42B	37.45B	40.97B	26.69B	22.94B
EBITDA	33.59B	27.50B	29.27B	18.71B	16.11B
Net Income	23.62B	18.80B	20.90B	12.82B	11.07B
Balance Sheet
Total Assets	190.98B	162.74B	150.51B	126.88B	105.48B
Cash, Cash Equivalents and Short-Term Investments	82.57B	79.09B	67.01B	60.30B	43.09B
Total Debt	0.00	112.00M	82.00M	598.00M	92.00M
Total Liabilities	37.78B	31.02B	36.05B	30.84B	20.36B
Stockholders Equity	153.20B	131.71B	114.50B	96.04B	85.12B
Cash Flow
Free Cash Flow	26.46B	15.66B	14.34B	14.55B	7.71B
Operating Cash Flow	27.16B	16.28B	15.26B	15.07B	8.05B
Investing Cash Flow	-5.54B	-4.54B	-2.95B	-15.39B	298.00M
Financing Cash Flow	-6.44B	-6.41B	-4.54B	-2.47B	-2.94B

Toei Animation Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3295.00
• 50DMA: Positive
• 100DMA: Positive
• 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:4816, the sentiment is Neutral. The current price of 3295 is below the 20-day moving average (MA) of 3331.25, above the 50-day MA of 3288.50, and below the 200-day MA of 3316.02, indicating a neutral trend. The MACD of 29.14 indicates Positive momentum. The RSI at 47.36 is Neutral, neither overbought nor oversold. The STOCH value of 31.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
4816	67 Neutral	¥688.32B	28.62		0.94%	5.92%	12.22%
Sector *	60 Neutral	$44.16B	2.09	-11.99%	4.01%	2.29%	-39.41%
TKCOF	―	$11.11B	44.07	8.33%	2.16%	―	―
5032	78 Outperform	¥295.50B	25.67		1.34%	34.01%	34.65%
9605	70 Neutral	¥378.88B	21.12		0.51%	5.14%	12.51%
3791	69 Neutral	¥33.15B	38.07		0.91%	23.28%	-57.08%
9601	50 Neutral	¥194.61B	209.09		0.21%	5.41%	-28.32%