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

• Market Cap: ¥632.96B
• Dividend Yield: 1%
• Average Volume (3M): 577.72K
• Price to Earnings (P/E): 26.3
• Beta (1Y): 0.34
• Revenue Growth: 5.92%
• EPS Growth: 12.22%
• Country: JP
• Employees: 911
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): 25.57
• 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: ¥4,320.00
• Price Target Upside: 38.91% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• 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. Business Overview & Revenue Model

Company Description

Toei 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 Money

Toei 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

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: Positive
• Last Price: 3110.00
• 50DMA: Positive
• 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: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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5032	―	¥356.62B	24.53	―	1.04%	67.99%	90.86%
9605	―	¥376.74B	21.00	―	0.33%	5.14%	12.51%
3791	―	¥28.06B	33.81	―	1.08%	-4.66%	-56.66%
4816	―	¥632.96B	26.32	―	1.00%	5.92%	12.22%
9602	―	$1.49T	30.00	10.28%	1.05%	10.99%	2.35%
Sector *	―	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
9601	―	¥178.26B	43.12	―	0.23%	14.49%	―