WOWOW INC. (4839) AI Stock Analysis

• Market Cap: ¥38.60B
• Dividend Yield: 2.17%
• Average Volume (3M): 243.40K
• Price to Earnings (P/E): 12.8
• Beta (1Y): 0.38
• 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: ¥1,501.00 ▲(0.81% Upside)

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

A strong balance sheet with low leverage risk enhances financial stability and provides flexibility for strategic investments.

Cash Flow Management

Strong free cash flow growth indicates efficient cash management, enabling reinvestment in growth opportunities and shareholder returns.

Stable Revenue Generation

Stable revenue growth reflects consistent demand for services, supporting long-term business sustainability and market presence.

Negative Factors

Declining Profitability Margins

Decreasing profitability margins suggest challenges in cost management, potentially impacting future earnings and shareholder value.

Decreased Return on Equity

A lower return on equity indicates reduced efficiency in generating profits from shareholders' equity, which may affect investor confidence.

Operating Cash Flow Efficiency

Decreased cash flow efficiency suggests potential issues in converting income into cash, which could limit operational flexibility.

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 INC. generates revenue primarily through subscription fees for its pay-TV services, where customers pay a monthly fee to access a wide array of premium content. This subscription model is complemented by additional revenue streams such as advertising sales on certain channels, licensing agreements for its original content to other broadcasters, and partnerships with streaming platforms that allow for wider distribution of its programming. Furthermore, WOWOW capitalizes on special events and exclusive broadcasts, such as live sports and concerts, which can attract higher viewership and, in turn, boost subscription sign-ups and advertising revenue.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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	97.05B	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	30.22B	32.70B	28.84B
Stockholders Equity	68.54B	68.03B	68.22B	66.83B	66.95B	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: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 1463.95, above the 50-day MA of 1421.18, and above the 200-day MA of 1344.30, indicating a neutral trend. The MACD of -2.69 indicates Positive momentum. The RSI at 41.97 is Neutral, neither overbought nor oversold. The STOCH value of 17.22 is Positive, 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
9405	74 Outperform	¥34.47B	6.08	―	1.67%	7.33%	―
9413	69 Neutral	¥125.53B	13.17	―	1.71%	7.01%	72.94%
9414	68 Neutral	¥16.78B	13.53	―	3.04%	-3.50%	-7.58%
9409	64 Neutral	¥363.46B	11.06	7.18%	1.79%	6.63%	80.44%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
4839	57 Neutral	¥38.60B	12.80	―	2.17%	1.78%	1067.85%
4676	45 Neutral	¥873.16B	-41.53	-1.72%	1.40%	-6.29%	-141.32%

WOWOW INC. Corporate Events

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.

WOWOW INC. Reports Strong Financial Performance for H1 2025

WOWOW INC. reported its consolidated financial results for the six months ended September 30, 2025, showing a slight increase in net sales and significant growth in operating and ordinary profits compared to the previous year. The company’s comprehensive income improved substantially, reflecting a robust financial position with an increased equity-to-asset ratio, indicating strong operational performance and potential positive implications for stakeholders.

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.