Universal Entertainment (6425) AI Stock Analysis

• Market Cap: ¥75.55B
• Dividend Yield: 3.08%
• Average Volume (3M): 362.92K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.04
• Revenue Growth: -33.01%
• EPS Growth: -191.81%
• Country: JP
• Employees: 7,437
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Leisure
• EPS (TTM): -97.36
• Shares Outstanding: 80,195,000
• 10 Day Avg. Volume: 252,810
• 30 Day Avg. Volume: 362,920
• PEG Ratio: 0.54
• Price to Book (P/B): 0.78
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 236.52
• 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

• Rating: 44 Neutral
• Price Target: ¥946.00 ▼(-2.97%Downside)

Universal Entertainment has a low overall stock score driven primarily by its poor financial performance and bearish technical indicators. The negative cash flow and declining profitability are significant concerns. Although the dividend yield offers some value, the negative P/E ratio and weak market momentum overshadow this benefit.

Universal Entertainment Business Overview & Revenue Model

Company Description

Universal Entertainment Corporation, headquartered in Japan, is a prominent player in the entertainment and gaming industry. The company primarily operates in two sectors: the manufacture and sale of gaming machines and the development and operation of integrated resorts. Universal Entertainment is widely recognized for its innovative pachinko and pachislot machines, which are popular in the Japanese market, as well as its ventures in casino resorts, most notably the Okada Manila integrated resort in the Philippines.

How the Company Makes Money

Universal Entertainment generates revenue through several key streams. The primary source of income is from the sale and leasing of gaming machines, including pachinko and pachislot machines, which are a staple in the Japanese gaming sector. Additionally, the company earns significant revenue from its integrated resort operations, particularly through the Okada Manila, which includes casino gaming, hotels, dining, and entertainment facilities. The resort attracts both local and international visitors, contributing to a diverse income stream. Partnerships with other gaming technology firms and strategic investments in the gaming and resort sectors also play a role in Universal Entertainment's earnings.

Universal Entertainment Financial Statement Overview

Summary

Universal Entertainment faces significant financial challenges, with declining revenues and profitability impacting its overall financial health. The net profit margin has turned negative, and cash flow concerns are prominent. Despite a stable equity position, the overall financial performance is weak.

Income Statement

Universal Entertainment has shown a significant decline in revenue from 2023 to 2024, with revenue dropping by approximately 29.4%. The Gross Profit Margin decreased from 55.5% in 2023 to 59.5% in 2024, indicating a slight improvement in cost efficiency. However, the Net Profit Margin has turned negative at -12.3% in 2024, from 15.9% in 2023, reflecting a decline in profitability. The EBIT and EBITDA margins have also deteriorated substantially over the year.

Balance Sheet

The company's Debt-to-Equity Ratio has increased slightly, indicating higher leverage, but remains manageable. The Return on Equity (ROE) has turned negative in 2024, from 7.3% in 2023, due to negative net income. The Equity Ratio improved slightly to 58.4% in 2024, suggesting a solid equity base relative to total assets.

Cash Flow

Universal Entertainment's cash flow situation is concerning, with Free Cash Flow turning negative at -7.04 billion in 2024 from a positive 16.28 billion in 2023. The Operating Cash Flow to Net Income ratio indicates challenges in converting profits into cash, as operating cash flow decreased significantly. The Free Cash Flow to Net Income ratio also reflects the company's struggle to maintain positive cash flows.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
126.33B	179.00B	141.00B	90.44B	90.87B
	Gross Profit
75.10B	99.33B	78.34B	46.54B	50.09B
	EBIT
3.02B	30.48B	17.86B	9.09B	925.00M
	EBITDA
30.64B	71.25B	30.33B	14.06B	8.59B
	Net Income Common Stockholders
-15.57B	28.44B	11.51B	-19.05B	-19.22B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
24.07B	46.75B	38.07B	31.22B	37.35B
	Total Assets
632.79B	628.01B	596.18B	572.38B	568.50B
	Total Debt
187.43B	174.93B	173.53B	171.84B	158.07B
	Net Debt
163.64B	130.63B	137.63B	141.06B	120.72B
	Total Liabilities
263.06B	239.62B	246.86B	233.46B	210.93B
	Stockholders Equity
369.73B	388.39B	349.31B	338.92B	357.58B
Cash Flow		Free Cash Flow
-7.04B	16.28B	16.43B	-6.92B	-8.78B
	Operating Cash Flow
1.52B	28.02B	24.46B	1.75B	3.11B
	Investing Cash Flow
-13.37B	-10.12B	-9.00B	-7.04B	-18.50B
	Financing Cash Flow
-9.80B	-11.33B	-11.25B	-1.82B	14.44B

Universal Entertainment Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 975.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6425, the sentiment is Negative. The current price of 975 is below the 20-day moving average (MA) of 1039.35, below the 50-day MA of 1035.80, and below the 200-day MA of 1148.37, indicating a bearish trend. The MACD of -18.96 indicates Positive momentum. The RSI at 35.16 is Neutral, neither overbought nor oversold. The STOCH value of 2.85 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6425.

Universal Entertainment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7944	76 Outperform	¥83.54B	12.85		5.32%	-1.74%	-11.79%
4680	71 Outperform	¥359.74B	20.89	22.21%	1.28%	11.23%	2.86%
6412	67 Neutral	€202.00B	15.46	5.27%	3.91%	6.96%	-21.35%
7458	66 Neutral	¥173.28B	9.19		3.66%	4.28%	47.50%
7867	66 Neutral	¥281.50B	17.23		1.78%	20.12%	69.15%
Sector *	62 Neutral	$6.82B	11.05	2.80%	4.32%	2.67%	-24.92%
6425	44 Neutral	¥75.55B	―	-7.04%	3.08%	-33.01%	-191.81%