Kadokawa Corporation (9468) AI Stock Analysis

• Market Cap: ¥473.14B
• Dividend Yield: 0.87%
• Average Volume (3M): 808.99K
• Price to Earnings (P/E): 71.6
• Beta (1Y): 0.15
• Revenue Growth: 4.44%
• EPS Growth: -40.32%
• Country: JP
• Employees: 6,269
• Sector: Communication Services
• Sector Strength: 90
• Industry: Publishing
• EPS (TTM): 19.51
• Shares Outstanding: 148,990,300
• 10 Day Avg. Volume: 919,280
• 30 Day Avg. Volume: 808,993
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥3,560.00
• Price Target Upside: 2.74% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 61 Neutral
• Price Target: ¥3,796.00 ▲(9.55% Upside)

Kadokawa Corporation's overall stock score is driven primarily by its solid financial performance, which provides a strong foundation for stability and growth. However, technical analysis indicates potential bearish momentum, and the high P/E ratio suggests overvaluation, which could limit upside potential. The lack of earnings call data and notable corporate events means these factors do not influence the score.

Positive Factors

Anime Business Growth

The company expects 10% sales/OP growth in the Anime business.

Pipeline Development

FromSoftware announced two titles for Switch 2, indicating an improved pipeline.

Upcoming Titles

The announcement of Elden Ring Tarnished Edition and The Duskbloods highlights a denser pipeline post-Elden Ring.

Negative Factors

Cost Management

FromSoftware stock option costs persist with a gradual decrease.

Intellectual Property Challenges

FY3/26 lacks major anime IPs.

Return Rate Issues

Publishing saw a high return rate due to system issues and weak titles.

Kadokawa Corporation Business Overview & Revenue Model

Company Description

Kadokawa Corporation, listed under the ticker symbol 9468, is a prominent Japanese media conglomerate. The company operates across multiple sectors, including publishing, film, and digital content. Its core products and services encompass a wide range of media and entertainment offerings, such as books, magazines, anime, films, and video games. Kadokawa is known for its strong presence in the publishing industry and is a key player in the production and distribution of anime and related content worldwide.

How the Company Makes Money

Kadokawa Corporation generates revenue through diverse channels, primarily stemming from its extensive publishing operations, which include books and magazines. The company also earns significant income from its film and digital content divisions, producing and distributing anime, films, and other multimedia content. Video game development and sales contribute to its earnings as well. Kadokawa leverages its intellectual property across various platforms, enhancing its revenue streams through licensing and merchandising deals. Key partnerships with other media companies and distribution networks further bolster its financial performance, enabling it to reach a global audience.

Kadokawa Corporation Financial Statement Overview

Summary

Kadokawa Corporation demonstrates solid financial performance with robust income growth and a strong balance sheet. Despite a dip in net profit margin, the company maintains healthy margins and strong equity backing. Cash flow improvements in recent years are promising, although historical volatility necessitates careful cash management.

Income Statement

Kadokawa Corporation's income statement shows a positive trajectory in revenue growth with a 7.68% increase from 2024 to 2025. Gross Profit Margin remains strong at 35.64% for 2025, although slightly declining over the years. Despite a drop in net income in 2025, the company maintains a reasonable EBIT margin of 5.99%. However, the decline in net profit margin from 4.41% in 2024 to 2.66% in 2025 indicates potential pressure on profitability.

Balance Sheet

The balance sheet reflects a strong equity position with an equity ratio of 61.49% in 2025. Debt-to-equity ratio is low at 0.11, indicating prudent financial leverage. Return on Equity (ROE) decreased to 2.93% in 2025, which may raise concerns about the efficient use of equity. Nevertheless, the overall balance sheet stability and low leverage provide a solid foundation.

Cash Flow

Cash flow analysis shows a significant improvement in free cash flow from a deficit in 2024 to a positive 7,202 million yen in 2025. Operating Cash Flow to Net Income Ratio is robust at 1.87, highlighting strong cash generation relative to net income. Free Cash Flow to Net Income Ratio improved to 0.97, signifying better cash utilization. However, fluctuations in free cash flow over the years suggest some volatility in cash management.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	277.92B	258.11B	255.43B	221.21B	209.95B
Gross Profit	99.08B	86.61B	90.86B	75.59B	73.69B
EBITDA	25.53B	26.68B	32.06B	24.62B	18.16B
Net Income	7.39B	11.38B	12.68B	14.08B	9.58B
Balance Sheet
Total Assets	410.03B	340.31B	382.90B	325.32B	269.65B
Cash, Cash Equivalents and Short-Term Investments	146.30B	105.35B	167.22B	123.93B	79.04B
Total Debt	26.69B	25.35B	65.27B	65.28B	65.46B
Total Liabilities	132.62B	127.75B	159.73B	149.58B	140.13B
Stockholders Equity	252.22B	190.59B	202.55B	171.90B	127.34B
Cash Flow
Free Cash Flow	7.20B	-654.00M	10.45B	16.45B	-4.70B
Operating Cash Flow	13.84B	8.30B	17.52B	21.71B	15.59B
Investing Cash Flow	-8.37B	3.49B	-16.26B	-7.94B	-5.93B
Financing Cash Flow	44.04B	-65.80B	30.73B	26.69B	7.93B

Kadokawa Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3465.00
• 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:9468, the sentiment is Negative. The current price of 3465 is below the 20-day moving average (MA) of 3587.15, below the 50-day MA of 3756.76, and below the 200-day MA of 3652.71, indicating a bearish trend. The MACD of -80.27 indicates Positive momentum. The RSI at 37.17 is Neutral, neither overbought nor oversold. The STOCH value of 11.91 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9468.

Kadokawa Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7849	82 Outperform	¥16.51B	10.79		2.81%	-6.61%	-17.50%
6176	77 Outperform	¥9.97B	14.88		―	11.53%	-0.28%
3678	72 Outperform	¥28.63B	14.41		1.60%	6.52%	―
9468	61 Neutral	¥473.14B	71.58		0.87%	4.44%	-40.32%
Sector *	60 Neutral	$43.56B	3.79	-13.01%	4.09%	1.89%	-42.25%
9479	55 Neutral		―		―	-0.55%	89.02%
3641	52 Neutral	¥7.60B	―		1.13%	-8.78%	-191.76%

Kadokawa Corporation Corporate Events

Kadokawa Corporation Reports Decline in Q1 2025 Earnings but Maintains Positive Full-Year Outlook

Kadokawa Corporation reported a decline in its consolidated financial results for the three months ended June 30, 2025, with net sales decreasing by 1.5% and operating profit dropping significantly by 61.5% compared to the same period last year. Despite the downturn, the company remains optimistic about its full-year forecast, expecting a 5% increase in net sales and a slight improvement in operating profit, indicating a strategic focus on recovery and growth in the coming quarters.

The most recent analyst rating on (JP:9468) stock is a Hold with a Yen3060.00 price target. To see the full list of analyst forecasts on Kadokawa Corporation stock, see the JP:9468 Stock Forecast page.

Kadokawa Completes Treasury Share Disposal for Stock Compensation

Kadokawa Corporation has completed the payment for the disposal of 204,576 treasury shares as restricted stock compensation, with a total disposal amount of 824,032,128 yen. This strategic move is part of the company’s efforts to align management incentives with shareholder interests, potentially impacting its financial structure and stakeholder relations.

The most recent analyst rating on (JP:9468) stock is a Hold with a Yen3060.00 price target. To see the full list of analyst forecasts on Kadokawa Corporation stock, see the JP:9468 Stock Forecast page.

Kadokawa Corporation Announces Disposal of Treasury Shares for Executive Incentives

Kadokawa Corporation has announced the disposal of its treasury shares as part of a restricted stock compensation plan aimed at incentivizing its directors and executives. This move is intended to align the interests of the company’s leadership with shareholders and drive sustained corporate value improvement, with a transfer restriction period set until March 31, 2028.

The most recent analyst rating on (JP:9468) stock is a Hold with a Yen3060.00 price target. To see the full list of analyst forecasts on Kadokawa Corporation stock, see the JP:9468 Stock Forecast page.

Kadokawa Corporation Announces Leadership Changes

Kadokawa Corporation announced changes in its board and executive leadership following the 11th General Meeting of Shareholders. The restructuring includes new appointments and roles for board members, chief officers, and corporate officers, which are expected to enhance the company’s strategic direction and operational efficiency.

The most recent analyst rating on (JP:9468) stock is a Hold with a Yen3060.00 price target. To see the full list of analyst forecasts on Kadokawa Corporation stock, see the JP:9468 Stock Forecast page.