WOWOW INC. (4839) AI Stock Analysis

• Market Cap: ¥34.24B
• Dividend Yield: 2.17%
• Average Volume (3M): 243.40K
• Price to Earnings (P/E): 5.8
• Beta (1Y): 0.41
• Revenue Growth: 1.78%
• EPS Growth: 1067.85%
• Country: JP
• Employees: 730
• Sector: Communication Services
• Sector Strength: 97
• Industry: Broadcasting
• EPS (TTM): 62.08
• Shares Outstanding: 28,844,400
• 10 Day Avg. Volume: 88,730
• 30 Day Avg. Volume: 243,403
• PEG Ratio: -1.06
• Price to Book (P/B): 0.42
• Price to Sales (P/S): 0.37
• P/FCF Ratio: 12.21
• 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: 57 Neutral
• Price Target: ¥1,308.00 ▼(-12.16% Downside)
• Action: Reiterated Date: 10/30/25
• Date: Action: Reiterated 10/30/25

WOWOW INC.'s overall stock score is primarily influenced by its stable financial position and strong cash flow management. However, the high P/E ratio suggests potential overvaluation, and mixed technical indicators reflect uncertain market momentum. The absence of earnings call data and notable corporate events limits additional insights.

Positive Factors

Strong Balance Sheet

Very low leverage and a robust equity ratio provide lasting financial resilience. Over 2-6 months this supports steady financing for content rights, cushions cyclical ad/sales swings, and enables strategic investments or buybacks without raising costly external capital, improving operational stability.

Free Cash Flow Strength

Sustained free cash flow growth delivers durable funding for programming, technology, and shareholder returns. Reliable FCF reduces refinancing risk, allows reinvestment in original content and distribution, and gives management flexibility to pursue strategic initiatives over the medium term.

Healthy Gross Margin

A gross margin above 30% indicates structural pricing power or efficient content economics. Combined with stable subscription revenue, this margin backdrop supports sustained investments in originals and licensing while providing a buffer against cost inflation, underpinning medium-term profitability potential.

Negative Factors

Declining Net Margin

Falling net margins signal that rising costs or weaker monetization are eroding bottom-line returns. If persistent over several quarters, margin compression can limit reinvestment in content, constrain dividend capacity, and require restructuring or pricing changes to restore long-term profitability.

Very Low ROE

ROE below 1% indicates the company is generating minimal returns on shareholder capital. This weak capital efficiency may reduce investor support and constrains internal funding for growth; over months the company may need to improve operations or alter capital allocation to drive sustainable shareholder value.

Reduced Cash Conversion Efficiency

A declining conversion of net income into operating cash flow points to timing or working-capital strains and weaker cash quality. Persisting deterioration reduces liquidity available for licensing, capex, and content production, limiting operational flexibility despite healthy headline free cash flow metrics.

WOWOW INC. Business Overview & Revenue Model

Company Description

Wowow Inc. provides broadcasting and related services in Japan. It procures and produces programs through satellite broadcasting, as well as offers services through cable television, satellite communication broadcasting, and IPTV. In addition, it operates three broadcasting channels that broadcast movies, musics, and documentaries, as well as offers telemarketing services. The company was formerly known as Satellite Broadcasting, Inc. and changed its name to Wowow Inc. in December 2000. Wowow Inc. was founded in 1984 and is headquartered in Tokyo, Japan.

How the Company Makes Money

WOWOW primarily makes money through subscription fees paid by customers who sign up for its premium pay-TV service. These recurring subscriptions (typically billed monthly) grant access to WOWOW’s channels and programming slate, including original content and licensed content such as films, series, and sports. In addition to subscription revenue, the company earns income from ancillary activities connected to operating a broadcaster, which can include selling or licensing content and program rights to third parties and generating advertising/sponsorship revenue where applicable; however, the specific contribution, structure, or named partnerships for these additional streams is null.

WOWOW INC. Financial Statement Overview

Summary

WOWOW INC. presents a stable financial position with strong cash flow management and a solid balance sheet. However, declining profitability margins and return on equity indicate potential areas for improvement. The company should focus on enhancing operational efficiency and profitability to sustain growth and shareholder value.

Income Statement

WOWOW INC. has shown a modest revenue growth rate of 1.02% in the latest year, indicating stability in revenue generation. However, the net profit margin has decreased to 0.83% from 1.46% the previous year, suggesting a decline in profitability. The gross profit margin remains healthy at 32.17%, but the EBIT and EBITDA margins have also decreased, reflecting potential challenges in cost management.

Balance Sheet

The company maintains a strong balance sheet with a very low debt-to-equity ratio, indicating minimal leverage risk. The equity ratio is robust, showing a solid capital structure. However, the return on equity has decreased to 0.94%, highlighting a need for improved profitability to enhance shareholder returns.

Cash Flow

WOWOW INC. has demonstrated strong free cash flow growth, although the operating cash flow to net income ratio has decreased, suggesting less efficient cash generation relative to net income. The free cash flow to net income ratio remains healthy, indicating good cash conversion despite fluctuations.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	76.66B	76.76B	74.87B	77.10B	79.66B	79.17B
Gross Profit	24.22B	24.69B	24.42B	25.90B	30.75B	34.36B
EBITDA	3.06B	4.31B	5.48B	6.95B	8.77B	7.93B
Net Income	527.00M	637.00M	1.09B	2.40B	4.24B	2.94B
Balance Sheet
Total Assets	96.57B	100.50B	89.15B	97.20B	99.65B	90.59B
Cash, Cash Equivalents and Short-Term Investments	27.39B	28.75B	28.33B	28.68B	30.74B	25.89B
Total Debt	297.00M	254.00M	197.00M	63.00M	95.00M	115.00M
Total Liabilities	28.02B	32.46B	20.92B	30.37B	32.70B	28.84B
Stockholders Equity	68.54B	68.03B	68.22B	66.83B	66.96B	61.76B
Cash Flow
Free Cash Flow	0.00	2.31B	1.41B	940.00M	3.52B	-1.41B
Operating Cash Flow	0.00	4.34B	4.29B	3.22B	6.42B	5.96B
Investing Cash Flow	0.00	-3.63B	-2.75B	-2.30B	-2.11B	-9.95B
Financing Cash Flow	0.00	-927.00M	-1.43B	-2.52B	852.00M	-2.20B

WOWOW INC. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1489.00
• 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:4839, the sentiment is Negative. The current price of 1489 is above the 20-day moving average (MA) of 1291.55, above the 50-day MA of 1373.08, and above the 200-day MA of 1392.15, indicating a bearish trend. The MACD of -25.97 indicates Negative momentum. The RSI at 41.88 is Neutral, neither overbought nor oversold. The STOCH value of 58.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4839.

WOWOW INC. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9401	70 Outperform	¥908.25B	21.98	5.45%	1.30%	4.55%	-7.49%
9404	69 Neutral	¥786.23B	11.82	6.38%	1.03%	7.90%	54.01%
9412	68 Neutral	¥793.40B	24.11	7.76%	1.67%	0.97%	12.23%
9414	68 Neutral	¥16.66B	16.20	―	3.04%	-3.50%	-7.58%
9409	64 Neutral	¥328.44B	6.57	7.48%	1.79%	6.63%	80.44%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
4839	57 Neutral	¥34.24B	5.84	―	2.17%	1.78%	1067.85%

WOWOW INC. Corporate Events

WOWOW posts February net subscriber decline despite large installed base

WOWOW INC. reported February 2026 subscription figures showing 38,662 gross new subscriptions against 54,423 cancellations, resulting in a net decline of 15,761 contracts and leaving the company with 2,180,488 net cumulative subscriptions at month-end. Within this base, multi-subscriptions reached 292,333 and hotel subscriptions totaled 90,878, while the company reiterated that it will continue to publish monthly subscription data on the second business day of each month, providing investors with regular visibility into subscriber trends and the health of its recurring revenue model.

The negative net additions in February highlight ongoing churn pressure in WOWOW’s subscriber base, underscoring competitive and structural challenges in Japan’s pay-TV market and the need to stabilize or grow subscriptions to support earnings. Still, the sizeable multi-subscription and hotel segments illustrate diversified contract structures that may help partially offset weakness in core individual accounts and remain a key metric for stakeholders monitoring usage across households and lodging facilities.

The most recent analyst rating on (JP:4839) stock is a Hold with a Yen1494.00 price target. To see the full list of analyst forecasts on WOWOW INC. stock, see the JP:4839 Stock Forecast page.

WOWOW Revamps Executive Lineup to Drive Digital and Content Strategy

WOWOW INC. announced a series of management changes effective April 1, 2026, promoting Tetsu Kuchigochi and Tadashi Suzuki to managing executive officer roles and redefining responsibilities across its top executive team. The reshuffle assigns clear mandates for corporate management, risk management, marketing, entertainment content and creative, digital transformation, engineering, and human capital strategy, signaling a push to strengthen operational oversight and align leadership with growth areas such as digital platforms and media services.

The company also outlined updates to its corporate officer structure across key subsidiaries WOWOW Communications, WOWOW Entertainment, BS Conditional Access Systems, and Broadcasting Satellite System Corporation. These appointments, some pending approval by respective subsidiary boards, are designed to tighten group governance and coordination, potentially enhancing execution in content production, communications services, and satellite broadcasting infrastructure within its broader media ecosystem.

The most recent analyst rating on (JP:4839) stock is a Hold with a Yen1494.00 price target. To see the full list of analyst forecasts on WOWOW INC. stock, see the JP:4839 Stock Forecast page.

WOWOW Announces April 2026 Organizational and Personnel Restructuring

WOWOW INC. has announced a series of organizational and personnel changes scheduled to take effect on April 1, 2026. The restructuring, which includes a new organization chart, is aimed at realigning internal functions and leadership roles, signaling a potential shift in the company’s operational structure and future strategic direction.

Details of the reorganization suggest WOWOW is positioning itself to respond more effectively to industry dynamics and competitive pressures in the media sector. Stakeholders may view these changes as an effort to enhance management efficiency and support longer-term growth initiatives, although the company has not yet disclosed the full scope of the new framework.

The most recent analyst rating on (JP:4839) stock is a Hold with a Yen1494.00 price target. To see the full list of analyst forecasts on WOWOW INC. stock, see the JP:4839 Stock Forecast page.

WOWOW Reports Net Decline in January 2026 Subscriber Base

WOWOW INC. reported that in January 2026 it recorded 40,316 gross new subscriptions but 56,134 cancellations, resulting in a net decline of 15,818 subscriptions and bringing its total net cumulative subscriptions to 2,196,249 at month-end. Within this base, 293,508 were discounted multi-subscriptions and 90,811 were hotel subscriptions, and the company reiterated that it will continue to disclose monthly subscription data on the second business day of each month, underscoring its focus on transparency for investors amid ongoing fluctuations in subscriber numbers.

The most recent analyst rating on (JP:4839) stock is a Hold with a Yen1494.00 price target. To see the full list of analyst forecasts on WOWOW INC. stock, see the JP:4839 Stock Forecast page.

WOWOW Delivers Strong Profit Rebound and Confirms Stable Dividend for FY2025

WOWOW reported consolidated results for the nine months ended 31 December 2025 showing modest top-line growth but a sharp recovery in profitability, with net sales up 1.2% year on year to ¥57.1 billion and profit attributable to owners of parent surging more than four-fold to ¥3.2 billion, alongside significant improvements in operating and ordinary profit. The company’s financial position also strengthened, with the equity-to-asset ratio rising to 72.6%, and it confirmed a stable dividend policy of ¥30 per share for the fiscal year ending March 2026 while maintaining its full-year forecast, which anticipates essentially flat sales but further gains in profit, underscoring management’s focus on earnings improvement and shareholder returns.

The most recent analyst rating on (JP:4839) stock is a Hold with a Yen1494.00 price target. To see the full list of analyst forecasts on WOWOW INC. stock, see the JP:4839 Stock Forecast page.

WOWOW Reports December Subscriber Decline and Weaker 3Q Subscription Trends

WOWOW INC. reported that in December 2025 it recorded 29,061 gross new subscriptions but 64,370 cancellations, resulting in a net decrease of 35,309 subscribers and leaving the company with 2,212,067 net cumulative subscriptions at month-end. Within this total, 294,958 were multi-subscriptions and 90,803 were hotel subscriptions, underscoring the importance of discounted additional household contracts and lodging-facility viewing agreements to its business model. For the third quarter of fiscal 2025, gross new subscriptions fell to 444,653, about 82.4% of the prior-year level, while net cumulative subscriptions declined to 92.1% of the previous year’s level, signaling ongoing subscriber contraction pressures; the company plans to continue monthly disclosure of subscription data, giving investors and other stakeholders regular visibility into these trends.

The most recent analyst rating on (JP:4839) stock is a Hold with a Yen1501.00 price target. To see the full list of analyst forecasts on WOWOW INC. stock, see the JP:4839 Stock Forecast page.