Bushiroad, Inc. (7803) AI Stock Analysis

• Market Cap: ¥39.17B
• Dividend Yield: 0.74%
• Average Volume (3M): 570.99K
• Price to Earnings (P/E): 7.7
• Beta (1Y): 0.76
• Revenue Growth: 22.82%
• EPS Growth: 811.76%
• Country: US
• Employees: 853
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 12.27
• Shares Outstanding: 137,321,100
• 10 Day Avg. Volume: 451,260
• 30 Day Avg. Volume: 570,990
• PEG Ratio: 0.05
• Price to Book (P/B): 2.17
• Price to Sales (P/S): 0.94
• P/FCF Ratio: 9.90
• 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: 67 Neutral
• Price Target: ¥329.00 ▲(8.58% Upside)

Bushiroad, Inc. has a solid financial foundation with strong revenue growth and profitability. The valuation is attractive with a low P/E ratio, indicating potential undervaluation. However, technical indicators suggest a bearish trend, which tempers the overall score. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a successful business model and expanding market presence, which supports long-term financial stability.

Cash Flow Management

Improved cash flow management enhances financial flexibility, enabling the company to invest in growth opportunities and manage debt effectively.

Profitability Metrics

Solid profitability metrics reflect efficient operations and the ability to generate profits, which are crucial for sustaining long-term business growth.

Negative Factors

Equity Ratio

A lower equity ratio may limit the company's ability to leverage equity for growth, potentially impacting financial stability in the long term.

Net Margin Improvement

While profitability is solid, improving net margins is essential for maximizing shareholder value and ensuring competitive advantage.

Cash Flow Volatility

Volatility in cash flow growth can affect the company's ability to plan and invest in long-term projects, posing a risk to financial stability.

Bushiroad, Inc. Business Overview & Revenue Model

Company Description

Bushiroad, Inc. is a Japanese company primarily engaged in the development and distribution of trading card games, mobile games, and various entertainment products. Established in 2007, the company operates in sectors such as media, gaming, and merchandise, with notable franchises including 'Cardfight!! Vanguard', 'BanG Dream!', and 'Love Live!'. Bushiroad also organizes events and tournaments to promote its games and engage its community.

How the Company Makes Money

Bushiroad generates revenue through multiple streams, primarily from the sale of trading card game products, mobile game in-app purchases, and merchandise related to its popular franchises. The company earns significant income from the sale of physical card sets and expansions, catering to both casual and competitive players. In addition, Bushiroad monetizes its mobile games through in-app purchases that enhance gameplay and user experience. Merchandise sales, including apparel, figures, and accessories based on its franchises, also contribute to revenue. The company benefits from strategic partnerships with various distributors and content creators, which help to expand its market reach and enhance its brand visibility. Furthermore, Bushiroad organizes events and tournaments, generating ticket sales and sponsorships that add to its earnings.

Bushiroad, Inc. Financial Statement Overview

Summary

Bushiroad, Inc. exhibits strong revenue growth and profitability metrics. The balance sheet reflects moderate leverage and effective equity utilization, while cash flow management shows improvement. Continued focus on enhancing net margins and stabilizing cash flow growth will further strengthen the company's financial health.

Income Statement

Bushiroad, Inc. has demonstrated strong revenue growth of 12.68% in the latest year, indicating a positive trajectory. The gross profit margin of 35.62% and net profit margin of 6.08% reflect solid profitability, although there is room for improvement in net margins. The EBIT and EBITDA margins of 8.78% and 9.94%, respectively, suggest efficient operations but could be enhanced further.

Balance Sheet

The company maintains a healthy debt-to-equity ratio of 0.48, indicating moderate leverage and financial stability. The return on equity (ROE) of 14.13% is commendable, showcasing effective use of equity to generate profits. However, the equity ratio of 48.58% suggests a balanced capital structure but could benefit from a higher equity base.

Cash Flow

Bushiroad, Inc. has shown a significant improvement in free cash flow, moving from negative to positive territory, with a free cash flow to net income ratio of 0.91, indicating strong cash generation relative to net income. The operating cash flow to net income ratio of 1.70 suggests robust cash flow management, although past fluctuations in cash flow growth highlight potential volatility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	56.17B	56.18B	46.26B	48.80B	41.97B	0.00
Gross Profit	20.01B	20.01B	15.40B	16.91B	14.66B	0.00
EBITDA	5.18B	5.58B	2.80B	5.31B	5.71B	0.00
Net Income	3.42B	3.42B	804.85M	2.05B	3.51B	0.00
Balance Sheet
Total Assets	49.80B	49.80B	50.61B	46.34B	43.72B	37.52B
Cash, Cash Equivalents and Short-Term Investments	25.04B	25.04B	25.81B	26.11B	26.61B	24.46B
Total Debt	11.59B	11.59B	15.30B	13.49B	16.51B	17.84B
Total Liabilities	24.58B	24.58B	27.33B	23.94B	27.53B	23.62B
Stockholders Equity	24.19B	24.19B	22.40B	21.74B	15.58B	13.24B
Cash Flow
Free Cash Flow	0.00	5.31B	-362.68M	1.99B	6.87B	-1.91B
Operating Cash Flow	0.00	5.82B	-362.68M	1.98B	6.87B	-1.52B
Investing Cash Flow	0.00	894.05M	-46.60M	-2.27B	-4.44B	-280.22M
Financing Cash Flow	0.00	-5.03B	-190.29M	716.64M	-2.30B	4.25B

Bushiroad, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 303.00
• 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:7803, the sentiment is Negative. The current price of 303 is above the 20-day moving average (MA) of 300.40, below the 50-day MA of 304.46, and below the 200-day MA of 319.84, indicating a bearish trend. The MACD of -3.57 indicates Positive momentum. The RSI at 36.30 is Neutral, neither overbought nor oversold. The STOCH value of 12.49 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7803.

Bushiroad, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2432	78 Outperform	¥277.87B	6.34	17.98%	2.52%	34.16%	―
7803	67 Neutral	¥39.17B	7.75	―	0.74%	22.82%	811.76%
3765	64 Neutral	¥141.41B	33.03	3.38%	2.38%	-3.12%	-63.07%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
3932	60 Neutral	¥37.15B	17.78	―	4.06%	-15.30%	39.61%
3632	54 Neutral	¥71.82B	17.54	4.14%	2.09%	-2.61%	116.80%
3903	46 Neutral	¥18.55B	6.19	―	―	-37.68%	―