COVER Corporation (5253) AI Stock Analysis

• Market Cap: ¥101.30B
• Dividend Yield: N/A
• Average Volume (3M): 1.48M
• Price to Earnings (P/E): 18.2
• Beta (1Y): 0.81
• Revenue Growth: 37.31%
• EPS Growth: 13.66%
• Country: JP
• Employees: 537
• Sector: Technology
• Sector Strength: 88
• Industry: Media & Entertainment
• EPS (TTM): 19.89
• Shares Outstanding: 65,650,100
• 10 Day Avg. Volume: 1,288,790
• 30 Day Avg. Volume: 1,484,016
• PEG Ratio: 0.87
• Price to Book (P/B): 8.87
• Price to Sales (P/S): 3.46
• P/FCF Ratio: 32.23
• 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: ¥2,350.00
• Price Target Upside: 23.29% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 99.04
• Revenue Forecast (FY): ¥53.62B

• Rating: 62 Neutral
• Price Target: ―

COVER Corporation's financial performance is strong, marked by robust revenue growth and a debt-free balance sheet. However, the technical indicators show a bearish trend, which could pose short-term risks. The moderate valuation implies room for growth, but with caution due to current market conditions.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market presence and successful monetization of digital entertainment offerings, supporting long-term business sustainability.

Debt-Free Balance Sheet

A debt-free balance sheet enhances financial flexibility, allowing the company to invest in growth opportunities and withstand economic fluctuations.

Operational Efficiency

Improved margins reflect strong operational efficiency, enabling the company to maximize profitability and reinvest in strategic initiatives.

Negative Factors

Lack of Current Cash Flow Data

Limited visibility into current cash flows can hinder accurate assessment of liquidity and cash generation capabilities, affecting strategic planning.

Bearish Technical Trend

A prolonged bearish trend may impact investor sentiment and limit the company's ability to raise capital through equity markets if needed.

Absence of Dividend Yield

Without a dividend yield, the company may struggle to attract income-focused investors, potentially limiting its investor base and market appeal.

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 innovative virtual experiences through its roster of virtual talents. These digital talents use advanced motion capture technology to engage with audiences worldwide, creating a unique blend of entertainment and technology.

How the Company Makes Money

COVER Corporation generates revenue through multiple streams, primarily driven by its Hololive Production agency. The company earns money from super chats, memberships, and subscriptions on platforms like YouTube, where fans financially support their favorite virtual talents. Merchandise sales, including apparel, figures, and other branded items, contribute significantly to revenue. Additionally, COVER Corporation collaborates with other companies for sponsorships and partnerships, further enhancing its income through brand collaborations and promotional content. The company also organizes live events, both virtual and physical, which serve as another revenue stream through ticket sales and exclusive event merchandise. These diverse income sources enable COVER Corporation to capitalize on the growing popularity of virtual entertainers and digital content.

COVER Corporation Financial Statement Overview

Summary

COVER Corporation exhibits strong financial health with impressive revenue and profit growth, a robust balance sheet free of debt, and efficient cash flow management. The absence of current cash flow data slightly dampens the otherwise outstanding financial performance.

Income Statement

COVER Corporation shows impressive revenue growth, with a TTM revenue of ¥39.8 billion compared to ¥30.2 billion annually. Gross profit margins are robust, and both EBIT and EBITDA margins have improved significantly, reflecting strong operational efficiency. Net profit margin also increased, demonstrating effective cost management.

Balance Sheet

The company's balance sheet is strong, with zero debt and a solid equity position. The equity ratio is high, indicating a well-capitalized structure. Return on equity has improved, supported by rising net income and efficient asset utilization.

Cash Flow

Cash flow metrics show a stable free cash flow, although no recent data is available for TTM. The operating cash flow to net income ratio is sound, indicating good cash generation capability. However, the lack of current operating and free cash flow data limits a more comprehensive analysis.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	46.61B	43.40B	30.17B	20.45B	13.66B	5.72B
Gross Profit	23.39B	21.80B	13.99B	9.40B	5.27B	2.78B
EBITDA	8.74B	8.41B	6.01B	3.53B	1.95B	1.72B
Net Income	5.63B	5.56B	4.14B	2.51B	1.24B	1.22B
Balance Sheet
Total Assets	31.39B	33.06B	22.71B	15.89B	8.24B	3.52B
Cash, Cash Equivalents and Short-Term Investments	11.75B	11.50B	8.67B	7.79B	4.64B	1.90B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	13.75B	16.11B	11.57B	8.88B	4.78B	1.30B
Stockholders Equity	17.64B	16.95B	11.14B	7.00B	3.46B	2.21B
Cash Flow
Free Cash Flow	0.00	4.66B	1.07B	2.50B	3.05B	1.19B
Operating Cash Flow	0.00	5.29B	4.76B	4.87B	3.54B	1.42B
Investing Cash Flow	0.00	-2.70B	-3.89B	-2.76B	-793.94M	-402.59M
Financing Cash Flow	0.00	244.00M	0.00	1.04B	0.00	526.88M

COVER Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1906.00
• 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:5253, the sentiment is Negative. The current price of 1906 is above the 20-day moving average (MA) of 1597.75, above the 50-day MA of 1759.38, and below the 200-day MA of 2104.47, indicating a bearish trend. The MACD of -64.38 indicates Negative momentum. The RSI at 40.20 is Neutral, neither overbought nor oversold. The STOCH value of 41.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5253.

COVER Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2317	76 Outperform	¥193.15B	18.58	―	2.23%	13.82%	37.07%
6966	75 Outperform	¥153.51B	16.45	―	2.30%	4.60%	-21.64%
4776	72 Outperform	¥131.44B	20.71	―	1.05%	26.47%	142.77%
6871	67 Neutral	¥245.83B	24.40	―	1.09%	29.60%	24.39%
4180	66 Neutral	¥128.74B	41.43	―	0.18%	25.88%	80.30%
5253	62 Neutral	¥101.30B	18.17	―	―	37.31%	13.66%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%