Kadokawa Corporation (9468) AI Stock Analysis

• Market Cap: ¥473.27B
• Dividend Yield: 0.89%
• Average Volume (3M): 553.58K
• Price to Earnings (P/E): 71.1
• Beta (1Y): 0.16
• Revenue Growth: 4.44%
• EPS Growth: -40.32%
• Country: JP
• Employees: 6,269
• Sector: Communication Services
• Sector Strength: 97
• Industry: Publishing
• EPS (TTM): 19.51
• Shares Outstanding: 148,990,300
• 10 Day Avg. Volume: 524,610
• 30 Day Avg. Volume: 553,583
• PEG Ratio: -1.86
• Price to Book (P/B): 1.93
• Price to Sales (P/S): 1.75
• P/FCF Ratio: 67.72
• 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: 5.17% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 54 Neutral
• Price Target: ¥3,609.00 ▲(6.62% Upside)

Kadokawa Corporation's overall stock score is primarily influenced by its mixed financial performance and high valuation. The financial stability from a strong balance sheet is offset by declining revenue and profit margins, as well as liquidity concerns. The technical analysis suggests a neutral trend, while the high P/E ratio indicates potential overvaluation.

Positive Factors

Strong Balance Sheet

A low debt-to-equity ratio indicates financial stability and conservative leverage, providing a solid foundation for long-term strategic investments and resilience against economic fluctuations.

Diverse Revenue Streams

Diversification across multiple media sectors reduces dependency on a single revenue stream, enhancing resilience and potential for growth in various market conditions.

Global Reach

Global distribution partnerships expand market reach and audience, supporting long-term revenue growth and brand recognition in international markets.

Negative Factors

Declining Revenue Growth

A significant decline in revenue growth suggests potential challenges in market demand or competitive positioning, which could impact long-term profitability and market share.

Negative Free Cash Flow Growth

Negative free cash flow growth highlights liquidity concerns and may limit the company's ability to invest in growth opportunities or manage financial obligations effectively.

Pressure on Profit Margins

Decreasing profit margins suggest operational inefficiencies or increased costs, which could erode profitability and affect long-term financial health if not addressed.

Kadokawa Corporation Business Overview & Revenue Model

Company Description

Kadokawa Corporation (9468) is a prominent Japanese media and publishing company, primarily engaged in the production and distribution of books, magazines, and digital content. The company operates in various sectors, including publishing, film, animation, and video games. Kadokawa is well-known for its extensive portfolio of light novels, manga, and anime, as well as its involvement in film production and distribution, making it a key player in the Japanese entertainment industry.

How the Company Makes Money

Kadokawa generates revenue through multiple channels. Its primary revenue streams include sales of printed and digital books, manga, and magazines, with a significant focus on popular light novels and graphic novels. The company also earns substantial income from its anime and film production, including licensing deals and distribution rights. Additionally, Kadokawa monetizes its intellectual properties through merchandise sales and collaborations with other companies in the gaming and entertainment sectors. Partnerships with content creators and platforms enhance its reach and profitability, allowing Kadokawa to capitalize on the growing demand for multimedia entertainment.

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. The company is positioned well for stability and growth in the publishing industry.

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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	276.90B	277.92B	258.11B	255.43B	221.21B	209.95B
Gross Profit	97.26B	99.08B	86.61B	90.86B	75.59B	73.69B
EBITDA	22.21B	25.53B	26.68B	27.60B	25.66B	18.16B
Net Income	6.80B	7.39B	11.38B	12.68B	14.08B	9.58B
Balance Sheet
Total Assets	399.89B	410.03B	340.31B	382.90B	325.32B	269.65B
Cash, Cash Equivalents and Short-Term Investments	134.70B	146.30B	105.35B	167.22B	123.93B	79.04B
Total Debt	26.58B	26.69B	25.35B	65.27B	65.28B	65.46B
Total Liabilities	122.82B	132.62B	127.75B	159.73B	149.58B	140.13B
Stockholders Equity	250.86B	252.22B	190.59B	202.55B	171.90B	127.34B
Cash Flow
Free Cash Flow	6.72B	7.20B	-654.00M	10.45B	16.45B	-4.70B
Operating Cash Flow	13.11B	13.84B	8.30B	17.52B	21.71B	15.59B
Investing Cash Flow	-18.35B	-8.37B	3.49B	-16.26B	-7.94B	-5.93B
Financing Cash Flow	43.59B	44.04B	-65.80B	30.73B	26.69B	7.93B

Kadokawa Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3385.00
• 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 3385 is below the 20-day moving average (MA) of 3516.40, below the 50-day MA of 3479.64, and below the 200-day MA of 3588.75, indicating a bearish trend. The MACD of -21.66 indicates Positive momentum. The RSI at 38.68 is Neutral, neither overbought nor oversold. The STOCH value of 13.51 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	―	¥15.72B	10.18	―	2.93%	-6.61%	-17.50%
3678	―	¥27.39B	12.99	―	1.88%	6.10%	―
6176	―	¥10.72B	16.00	―	―	11.53%	-0.28%
Sector *	―	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
9479	―	―	―	―	―	-0.55%	89.02%
9468	―	¥473.27B	71.06	―	0.89%	4.44%	-40.32%
3641	―	¥8.08B	-26.75	―	1.07%	-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.