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Imagica Group, Inc. (JP:6879)
:6879
Japanese Market
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Imagica Group, Inc. (6879) AI Stock Analysis

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JP:6879

Imagica Group, Inc.

(6879)

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Neutral 66 (OpenAI - 4o)
Rating:66Neutral
Price Target:
¥856.00
▲(8.22% Upside)
The overall stock score is primarily influenced by strong technical analysis indicators, showing bullish momentum. However, this is tempered by financial performance challenges, including negative profitability and cash flow concerns. Valuation metrics further highlight profitability issues, despite a moderate dividend yield.

Imagica Group, Inc. (6879) vs. iShares MSCI Japan ETF (EWJ)

Imagica Group, Inc. Business Overview & Revenue Model

Company DescriptionImagica Group, Inc. (6879) is a Japanese company primarily engaged in the media and entertainment sectors. The company offers a wide range of services including video production, post-production, visual effects, and content distribution. Imagica Group also provides solutions for digital imaging and content management, catering to both domestic and international markets. Their innovative approaches in media technology and comprehensive service offerings make them a key player in the industry.
How the Company Makes MoneyImagica Group, Inc. generates revenue through various streams, primarily by providing services in video production and post-production, including editing, color grading, and visual effects for films, television, and commercials. Additionally, the company earns from content distribution and licensing, leveraging its extensive network to distribute media content across different platforms. They also offer digital imaging solutions and content management services, which contribute to their earnings. Partnerships with film studios, broadcasters, and digital media companies further enhance their revenue potential by expanding their service reach and client base.

Imagica Group, Inc. Financial Statement Overview

Summary
Imagica Group faces challenges with profitability and cash flow generation amidst stable revenue and capital structure. The income statement reveals pressure on margins and revenue growth, while the balance sheet reflects a sturdy equity position with moderate leverage. Cash flow concerns highlight potential liquidity issues, necessitating improved operational efficiency and cost management to bolster profitability and cash reserves.
Income Statement
65
Positive
The company has shown a mixed performance in recent years. The gross profit margin has been relatively stable, with the most recent year showing a margin of approximately 30.02%. However, net profit margin has been negative recently, indicating challenges in maintaining profitability. The decline in revenue growth rate in the most recent period is concerning, but historical data shows variability in revenue growth. EBIT and EBITDA margins have been fluctuating, which suggests potential instability in operational efficiency.
Balance Sheet
70
Positive
Imagica Group's balance sheet reflects moderate leverage with a debt-to-equity ratio of approximately 0.42 in the most recent year, indicating manageable debt levels relative to equity. The return on equity has been negative recently due to net losses, but the equity ratio remains strong at 42.78%, suggesting a solid capital structure. The balance sheet portrays a good asset base and equity position, which supports financial stability despite recent profitability issues.
Cash Flow
60
Neutral
The cash flow analysis shows a reduction in free cash flow growth and a declining operating cash flow, which could impact liquidity. The operating cash flow to net income ratio is favorable, highlighting efficient cash generation relative to earnings, though recent net income losses affect this positively skewed metric. The free cash flow to net income ratio remains strong due to effective capital management despite declining profitability.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue96.91B96.91B99.68B94.15B80.18B86.73B
Gross Profit29.09B29.09B28.59B26.72B23.39B20.58B
EBITDA3.05B3.75B9.40B11.96B6.87B7.52B
Net Income-3.72B-3.72B2.37B3.86B2.73B3.45B
Balance Sheet
Total Assets80.72B80.72B78.69B81.89B73.38B60.45B
Cash, Cash Equivalents and Short-Term Investments6.52B6.52B5.24B7.81B6.42B6.91B
Total Debt14.55B14.55B13.26B13.18B8.69B12.79B
Total Liabilities44.57B44.57B38.79B41.58B39.36B30.61B
Stockholders Equity34.54B34.54B37.83B36.11B31.15B27.46B
Cash Flow
Free Cash Flow0.002.42B2.66B2.60B2.81B-2.80B
Operating Cash Flow0.003.89B5.73B6.11B7.41B-592.48M
Investing Cash Flow0.00-2.86B-4.46B-2.38B-3.93B-1.36B
Financing Cash Flow0.00-236.17M-4.12B-2.59B-4.18B1.47B

Imagica Group, Inc. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price791.00
Price Trends
50DMA
791.46
Negative
100DMA
768.88
Positive
200DMA
639.67
Positive
Market Momentum
MACD
0.15
Positive
RSI
51.83
Neutral
STOCH
0.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6879, the sentiment is Neutral. The current price of 791 is below the 20-day moving average (MA) of 791.10, below the 50-day MA of 791.46, and above the 200-day MA of 639.67, indicating a neutral trend. The MACD of 0.15 indicates Positive momentum. The RSI at 51.83 is Neutral, neither overbought nor oversold. The STOCH value of 0.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6879.

Imagica Group, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
14.04B6.1210.39%1.35%22.92%65.63%
70
Outperform
13.56B15.2210.67%0.85%1.62%188.00%
69
Neutral
30.71B36.480.00%0.98%23.28%-57.08%
66
Neutral
¥35.11B34.55
1.90%3.29%-321.34%
62
Neutral
12.42B32.848.49%2.31%2.98%-22.92%
60
Neutral
57.82B787.802.27%3.93%9.39%-37.75%
60
Neutral
$48.67B4.58-11.27%4.14%2.83%-41.78%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6879
Imagica Group, Inc.
791.00
306.46
63.25%
DE:AX8
Avex Inc.
7.05
-1.73
-19.70%
JP:3791
IG Port, Inc.
1,527.00
-617.42
-28.79%
JP:4347
Broadmedia Corporation
1,733.00
186.05
12.03%
JP:4712
KeyHolder, Inc.
741.00
-0.13
-0.02%
JP:4772
Stream Media Corporation
117.00
-3.92
-3.24%

Imagica Group, Inc. Corporate Events

Imagica Group Announces Share Consolidation and Delisting Plans
Jul 31, 2025

Imagica Group, Inc. has announced plans for a share consolidation and delisting from the Tokyo Stock Exchange to enable more flexible decision-making and implement significant structural reforms. The company aims to enhance its medium- to long-term corporate value by allowing shareholders to sell their shares without short-term market impact, ultimately making Mikaduki, Inc. and Creato the sole shareholders.

Imagica Group Reports Q1 Sales Growth Amidst Strategic Delisting
Jul 31, 2025

Imagica Group, Inc. reported an 11% increase in net sales for the first quarter of the fiscal year ending March 31, 2026, compared to the same period last year. Despite the rise in sales, the company experienced a net loss attributable to owners of the parent. A significant development for the company is the successful completion of a tender offer by Mikaduki, Inc., which will result in the delisting of Imagica Group’s shares from the Tokyo Stock Exchange, marking a major shift in its shareholder structure and market presence.

Imagica Group Finalizes Treasury Stock Disposal for Director Compensation
Jul 25, 2025

Imagica Group, Inc. has completed the disposal of treasury stock as restricted stock compensation for its directors and executive officers, a move resolved by its Board of Directors. This disposal involved 36,185 shares at a price of 792 yen per share, totaling 28,658,520 yen, with restrictions on transfer until the submission of a semi-annual report.

Imagica Group Sets Record Date for Crucial Shareholders’ Meeting
Jun 26, 2025

Imagica Group, Inc. has announced the setting of a record date for an upcoming extraordinary shareholders’ meeting scheduled for early September 2025. This meeting is crucial as it will address the aftermath of a tender offer by Mikaduki, Inc., which failed to acquire all the company’s common shares. The agenda includes a proposed share consolidation and amendments to the articles of incorporation, with key stakeholders expected to support these changes.

Imagica Group Announces Treasury Stock Disposal for Director Compensation
Jun 26, 2025

Imagica Group, Inc. has announced the disposal of treasury stock as restricted stock compensation for its directors and executive officers. This move, part of a broader compensation plan introduced in 2018, aims to align the interests of the directors with those of the shareholders by incentivizing the continuous improvement of corporate and shareholder value. The disposal involves 36,185 shares at a price of 792 yen per share, with restrictions on transfer until 2028, ensuring long-term commitment from the involved parties.

Imagica Group Announces Board of Directors Changes
Jun 26, 2025

Imagica Group, Inc. announced a change in its board of directors following its 52nd Ordinary General Meeting of Shareholders. Fumio Nagase has been appointed as Chairman and Representative Director, while Shunjiro Nagase continues as Representative Director, President, and CEO. The changes, including the appointment of Eiji Umeda as a new director, are part of the company’s ongoing management restructuring efforts.

Imagica Group Announces Dividend Distribution
May 29, 2025

Imagica Group, Inc. has announced a dividend distribution from retained earnings, with a record date of March 31, 2025, and an effective date of June 12, 2025. The dividend per share is set at 15.00 yen, consistent with previous forecasts and results. This decision aligns with the company’s policy of maintaining stable dividends and targeting a consolidated dividend payout ratio of 30%, reflecting their commitment to shareholder returns while considering future business development and internal reserves.

Mikaduki, Inc. Announces Tender Offer for IMAGICA GROUP Shares
May 12, 2025

Mikaduki, Inc. has announced its decision to acquire the common shares of IMAGICA GROUP Inc. through a tender offer. This move is aimed at taking IMAGICA GROUP private, with the approval of its board of directors, and is part of a series of transactions to consolidate ownership under Mikaduki, Inc. and non-tendering shareholders.

Imagica Group Reports Extraordinary Losses Amid Strong Sales Performance
May 9, 2025

Imagica Group, Inc. has reported extraordinary losses for the fiscal year ended March 31, 2025, primarily due to an impairment loss on goodwill in its overseas E2E service business and costs associated with withdrawing from its TV post-production business. Despite these losses, the company’s net sales and operating income exceeded forecasts due to strong performance in content creation and production technology services. However, the net income fell short due to the recorded impairment loss. The dividend forecast remains unchanged.

Imagica Group Reports Financial Loss and Upcoming Delisting
May 9, 2025

Imagica Group, Inc. reported a decrease in net sales and significant declines in operating and ordinary income for the fiscal year ended March 31, 2025. The company experienced a net loss attributable to owners of the parent, contrasting with the previous year’s profit. The company’s shares are set to be delisted from the Tokyo Stock Exchange following a tender offer by Mikaduki, Inc., which will impact its market presence and shareholder value.

Imagica Group Backs MBO for Strategic Realignment
May 9, 2025

Imagica Group, Inc. has announced its Board of Directors’ support for a Management Buyout (MBO) initiated by Mikaduki, Inc. The MBO aims to delist the company from the Tokyo Stock Exchange, consolidating ownership under Mikaduki, Creato Ltd., and Creato Holdings Ltd. This strategic move is driven by the need to adapt to significant external changes and pursue aggressive growth strategies, including large-scale M&A and new business model development.

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.Date of analysis: May 27, 2025