Kadokawa Corporation (9468) AI Stock Analysis

• Market Cap: ¥414.83B
• Dividend Yield: 0.98%
• Average Volume (3M): 553.58K
• Price to Earnings (P/E): 189.6
• Beta (1Y): 0.10
• Revenue Growth: 1.96%
• EPS Growth: -45.28%
• Country: JP
• Employees: 6,269
• Sector: Communication Services
• Sector Strength: 97
• Industry: Publishing
• EPS (TTM): N/A
• 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: 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: 52 Neutral
• Price Target: ¥2,953.00 ▼(-5.99% Downside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is held up by a very strong, low-leverage balance sheet and stabilizing (positive) free cash flow, but pressured by deteriorating TTM revenue/margins, a clearly bearish technical trend, and an extremely high P/E with only a modest dividend yield.

Positive Factors

Low leverage / strong balance sheet

An extremely low debt-to-equity (~0.05 TTM) and sizable equity mean the company has durable financial flexibility to fund multi-year content investments, absorb cyclical revenue swings, pursue selective M&A or partnerships, and protect cash flow during weaker operating periods.

Positive free cash flow rebound

Free cash flow has recovered to positive in the TTM and FY2025 and converts about half of net income. That sustainable cash generation supports ongoing production cycles, licensing activity, and working capital for publishing/games without relying on external financing.

Integrated IP-driven business model

Owning and monetizing IP across publishing, anime/film and games creates multiple durable revenue streams and franchise leverage. Cross-media adaptation increases lifetime value of successful titles and reduces dependence on any single format over the medium term.

Negative Factors

TTM revenue contraction

Trailing revenue contraction signals weaker title performance or demand headwinds. For an IP-driven firm, falling top-line reduces resources to invest in new franchises, weakens bargaining power with partners, and can slow back-catalog monetization over several quarters.

Compressed operating and net margins

Material margin compression to low single digits limits internal funding for content and marketing, reduces resilience to higher production costs, and makes profitable scale harder to achieve. Persistent low margins would impair returns on new IP investments.

Declining return on equity / efficiency

ROE dropping to low-single-digits indicates the sizable equity base is producing weak profit generation. Low capital efficiency constrains shareholder value creation and suggests the company must improve monetization or reduce capital intensity to drive durable profitability gains.

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

Strong balance sheet (very low leverage, sizable equity) supports stability, but recent operating performance is weak: TTM revenue contracted and operating/net margins compressed materially. Cash flow has turned positive again, though conversion remains only moderate.

Income Statement

Revenue growth has weakened meaningfully, with the latest TTM (Trailing-Twelve-Months) showing a sharp contraction versus the prior year despite solid historical growth in FY2022–FY2023. Profitability has also compressed: gross margin remains fairly steady (~35%), but operating and net margins fell materially in TTM (operating margin ~3% and net margin ~2%) versus FY2024–FY2025 levels. The business still generates profit, but the recent earnings deterioration is a clear near-term overhang.

Balance Sheet

The balance sheet is a key strength: leverage is low in the latest period, with debt to equity improving materially from FY2021–FY2023 levels to ~0.05 in TTM (Trailing-Twelve-Months). Equity is sizable relative to total assets, providing financial flexibility and downside protection. Return on equity, however, has stepped down sharply in TTM (low-single-digits), indicating weaker efficiency/profit generation on the capital base despite the conservative balance sheet.

Cash Flow

Cash generation is mixed but improving: free cash flow is positive in TTM (Trailing-Twelve-Months) and FY2025, rebounding from negative free cash flow in FY2024 and FY2021. Free cash flow is roughly half of net income in both TTM and FY2025, suggesting profits are converting to cash at a reasonable (though not strong) rate. A watch item is that operating cash flow is modest relative to revenue (low-single-digit), which can limit flexibility if profitability remains pressured.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	274.32B	277.92B	258.11B	255.43B	221.21B	209.95B
Gross Profit	93.56B	99.08B	86.61B	90.86B	75.59B	73.69B
EBITDA	16.97B	25.53B	26.68B	27.60B	25.66B	18.16B
Net Income	2.24B	7.39B	11.38B	12.68B	14.08B	9.58B
Balance Sheet
Total Assets	394.72B	410.03B	340.31B	382.90B	325.32B	269.65B
Cash, Cash Equivalents and Short-Term Investments	115.38B	146.30B	105.35B	167.22B	123.93B	79.04B
Total Debt	11.24B	26.69B	25.35B	65.27B	65.28B	65.46B
Total Liabilities	117.84B	132.62B	127.75B	159.73B	149.58B	140.13B
Stockholders Equity	248.80B	252.22B	190.59B	202.55B	171.90B	127.34B
Cash Flow
Free Cash Flow	8.91B	7.20B	-654.00M	10.45B	16.45B	-4.70B
Operating Cash Flow	11.42B	13.84B	8.30B	17.52B	21.71B	15.59B
Investing Cash Flow	-39.98B	-8.37B	3.49B	-16.26B	-7.94B	-5.93B
Financing Cash Flow	27.66B	44.04B	-65.80B	30.73B	26.69B	7.93B

Kadokawa Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3141.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9468, the sentiment is Neutral. The current price of 3141 is above the 20-day moving average (MA) of 2984.57, above the 50-day MA of 3120.95, and below the 200-day MA of 3442.87, indicating a neutral trend. The MACD of -85.68 indicates Negative momentum. The RSI at 52.42 is Neutral, neither overbought nor oversold. The STOCH value of 65.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:9468.

Kadokawa Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7849	74 Outperform	¥15.24B	11.14	―	3.16%	-7.41%	-17.57%
6176	73 Outperform	¥10.43B	15.63	―	―	7.76%	12.44%
3678	72 Outperform	¥25.74B	12.02	―	2.01%	6.10%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
9468	52 Neutral	¥414.83B	189.56	―	0.98%	1.96%	-45.28%
3641	48 Neutral	¥9.32B	64.79	―	1.02%	-8.03%	―

Kadokawa Corporation Corporate Events

Kadokawa Profit Slumps Despite Stable Sales as Group Expands Overseas Reach

Kadokawa Corporation reported net sales of ¥202.99 billion for the nine months to December 31, 2025, down 1.7% year-on-year, with operating profit plunging 59.7% to ¥6.38 billion and profit attributable to owners of parent falling 70.0% to ¥2.21 billion. Profitability deterioration sharply reduced EBITDA by 39.0% and compressed comprehensive income, while total assets declined to ¥394.72 billion and equity capital slipped to ¥246.13 billion.

Despite weaker earnings, Kadokawa maintained its full-year forecast, projecting marginal net sales growth of 0.1% to ¥278.2 billion but anticipating a steep year-on-year decline in profits, including a 38.1% drop in operating profit and 33.7% fall in net profit. The company kept its dividend plan unchanged at ¥30 per share for the fiscal year and expanded its consolidation scope with the addition of Italian publisher Edizioni BD S.r.l. and Singapore-based SOZO Pte. Ltd., moves that underscore its ongoing international content expansion amid a tougher profit environment.

The most recent analyst rating on (JP:9468) stock is a Hold with a Yen3172.00 price target. To see the full list of analyst forecasts on Kadokawa Corporation stock, see the JP:9468 Stock Forecast page.

Kadokawa to Allocate Treasury Shares for Performance-Based Executive Stock Plan

Kadokawa Corporation will dispose of 903,100 treasury shares via a third-party allotment to a trust bank for use in its performance-based stock compensation plan for chief officers and executive officers of the company and key subsidiaries. Priced at ¥3,250 per share for a total of about ¥2.94 billion, the issuance represents roughly 0.61% dilution of outstanding shares and voting rights, which the company deems limited in market impact while reinforcing the alignment of management incentives with shareholder value and supporting its medium- to long-term corporate value strategy.

The most recent analyst rating on (JP:9468) stock is a Hold with a Yen3172.00 price target. To see the full list of analyst forecasts on Kadokawa Corporation stock, see the JP:9468 Stock Forecast page.

Kadokawa Injects ¥2.9 Billion Into Trust for Performance-Based Stock Compensation Plan

Kadokawa Corporation’s board has approved an additional cash contribution to an existing trust used to operate a performance-based stock compensation plan for its chief officers, executive officers, and directors (excluding outside directors) at the parent and key subsidiaries. The trustee will acquire up to 903,100 Kadokawa common shares, worth about ¥2.94 billion, via disposal of treasury stock on February 18, 2026, with the trust period extended to August 31, 2027, reinforcing a long-running equity incentive scheme designed to align management compensation more closely with company performance and shareholder value.

The most recent analyst rating on (JP:9468) stock is a Hold with a Yen3172.00 price target. To see the full list of analyst forecasts on Kadokawa Corporation stock, see the JP:9468 Stock Forecast page.

Kadokawa to Book Billions of Yen in Donations for New School, Aiming to Expand Education/EdTech Business

Kadokawa Corporation, together with its subsidiaries Vantan Inc. and DWANGO Co., Ltd., has resolved to make significant donations to support the establishment of a new school to be created by the Bunri Sato Gakuen Educational Institution, contingent on regulatory approval. Vantan will help set up a structure for the new school corporation, including changing the founders of some existing Bunri Sato Gakuen schools to the new entity and assisting in their management, with the aim of expanding educational opportunities and reinforcing the group’s Education/EdTech strategy. The group expects to recognize non-operating expenses in the form of donations totaling approximately ¥200 million in the fiscal year ending March 31, 2027 and approximately ¥3.584 billion in the fiscal year ending March 31, 2028, to fund the new school’s establishment and enhance its education, research, and facilities. While these donations will temporarily weigh on earnings as non-operating costs, Kadokawa anticipates future revenue from supporting the new school corporation’s operations from April 2028 and business synergies with Vantan’s existing vocational schools, which are expected to strengthen the group’s position in the education sector and enhance the value of its Education/EdTech business over the medium to long term.

The most recent analyst rating on (JP:9468) stock is a Hold with a Yen3172.00 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 announced the completion of payment for the disposal of 5,894 treasury shares as part of a restricted stock compensation plan. This strategic move is aimed at aligning the interests of the company’s director with its long-term performance, potentially enhancing corporate governance and stakeholder value.

The most recent analyst rating on (JP:9468) stock is a Hold with a Yen2995.00 price target. To see the full list of analyst forecasts on Kadokawa Corporation stock, see the JP:9468 Stock Forecast page.