COVER Corporation (JP:5253)
:5253
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COVER Corporation
(5253)
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Rating:69Neutral
Price Target:
¥1,854.00
▼(-2.73% Downside)
Action:Downgraded
Date:05/16/26
The score is primarily supported by strong financial quality (rapid growth, debt-free balance sheet, and solid recent free cash flow). Offsetting this, technical indicators remain mixed with longer-term trend weakness, and valuation (P/E ~29) is demanding given the recent margin/ROE decline.
Positive Factors
Debt-free Balance Sheet
A zero-debt balance sheet materially reduces financial risk and preserves capital flexibility. Over the medium term this allows COVER to fund content, live events, and IP initiatives from internal resources, withstand revenue variability, and pursue opportunistic investments without interest burdens.
Negative Factors
Margin Compression
A sharp decline in net margin reduces return on invested capital and signals higher cost intensity or reinvestment pressure. If structural, compressed margins will force the company to deliver faster revenue growth or improve unit economics to sustain ROE and finance ongoing content and talent investment.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt-free Balance Sheet
A zero-debt balance sheet materially reduces financial risk and preserves capital flexibility. Over the medium term this allows COVER to fund content, live events, and IP initiatives from internal resources, withstand revenue variability, and pursue opportunistic investments without interest burdens.
Read all positive factors
COVER Corporation (5253) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥102.68B
Dividend YieldN/A
Average Volume (3M)1.51M
Price to Earnings (P/E)35.4
Beta (1Y)0.86
Revenue Growth13.66%
EPS Growth-48.15%
CountryJP
Employees537
SectorTechnology
Sector Strength88
IndustryMedia & Entertainment
Share Statistics
EPS (TTM)88.94
Shares Outstanding65,650,100
10 Day Avg. Volume1,165,330
30 Day Avg. Volume1,509,356
Financial Highlights & Ratios
PEG Ratio-0.60
Price to Book (P/B)4.39
Price to Sales (P/S)1.78
P/FCF Ratio12.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥1,650.00Price Target Upside-13.43% Downside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)109.18
Revenue Forecast (FY)¥58.39B
COVER Corporation Business Overview & Revenue Model
Company Description
COVER Corporation is a Japanese technology and entertainment company primarily known for its virtual YouTuber agency, Hololive Production. The company operates in the digital entertainment, virtual reality, and live streaming sectors, providing in...
How the Company Makes Money
COVER Corporation primarily makes money by monetizing its VTuber talent and associated intellectual property through multiple revenue streams: (1) Merchandise sales: selling official goods tied to hololive talent and brands, including both physica...
COVER Corporation Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
92
Very Positive
Cash Flow
72
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 46.61B | 49.33B | 43.40B | 30.17B | 20.45B | 13.66B |
| Gross Profit | 23.39B | 23.51B | 21.80B | 13.99B | 9.40B | 5.27B |
| EBITDA | 8.74B | 8.57B | 8.41B | 6.01B | 3.53B | 1.95B |
| Net Income | 5.63B | 3.02B | 5.56B | 4.14B | 2.51B | 1.24B |
Balance Sheet | ||||||
| Total Assets | 31.39B | 34.91B | 33.33B | 22.71B | 15.90B | 8.24B |
| Cash, Cash Equivalents and Short-Term Investments | 11.75B | 16.01B | 11.50B | 8.67B | 7.79B | 4.64B |
| Total Debt | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 13.75B | 14.94B | 16.38B | 11.57B | 8.89B | 4.78B |
| Stockholders Equity | 17.64B | 19.96B | 16.95B | 11.14B | 7.01B | 3.46B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 6.80B | 4.66B | 1.07B | 2.50B | 3.05B |
| Operating Cash Flow | 0.00 | 7.20B | 5.29B | 4.76B | 4.87B | 3.54B |
| Investing Cash Flow | 0.00 | -2.70B | -2.70B | -3.89B | -2.76B | -793.94M |
| Financing Cash Flow | 0.00 | 0.00 | 244.00M | 0.00 | 1.04B | 0.00 |
COVER Corporation Technical Analysis
Neutral
1906.00
Price Trends
1478.40
Positive
1566.73
Positive
1723.86
Negative
Market Momentum
51.82
Negative
54.58
Neutral
42.41
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5253, the sentiment is Neutral. The current price of 1906 is above the 20-day moving average (MA) of 1518.60, above the 50-day MA of 1478.40, and above the 200-day MA of 1723.86, indicating a neutral trend. The MACD of 51.82 indicates Negative momentum. The RSI at 54.58 is Neutral, neither overbought nor oversold. The STOCH value of 42.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5253.
COVER Corporation Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | ¥113.25B | 12.20 | 22.46% | 4.06% | -4.92% | 94.42% | |
78 Outperform | ¥57.46B | 13.64 | ― | 3.34% | 3.30% | 2.50% | |
74 Outperform | ¥52.29B | 7.81 | ― | 3.07% | -0.28% | 9.21% | |
70 Outperform | ¥39.84B | 52.83 | ― | ― | 27.05% | 495.56% | |
69 Neutral | ¥102.68B | 35.35 | ― | ― | 13.66% | -48.15% | |
63 Neutral | ¥52.70B | 26.61 | ― | 2.06% | 14.88% | 22.38% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
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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.