Kadokawa Corporation (9468) AI Stock Analysis

• Market Cap: ¥491.98B
• Dividend Yield: 0.83%
• Average Volume (3M): 566.77K
• Price to Earnings (P/E): 73.4
• Beta (1Y): 0.14
• 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: 588,740
• 30 Day Avg. Volume: 566,770
• 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: ¥3,579.00
• Price Target Upside: -0.67% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 56 Neutral
• Price Target: ¥3,617.00 ▲(0.39% Upside)

Kadokawa Corporation's overall stock score reflects a mixed financial performance with strong balance sheet stability but challenges in revenue growth and cash flow generation. Technical analysis provides a cautiously optimistic outlook, while high valuation metrics suggest potential overvaluation. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage provides financial stability and flexibility, allowing the company to invest in growth opportunities and weather economic downturns.

Diverse Revenue Streams

Diverse revenue streams across publishing, film, and digital content reduce dependency on a single market, enhancing resilience against sector-specific downturns.

Intellectual Property Leverage

Leveraging intellectual property for licensing and merchandising strengthens revenue potential and brand presence, supporting long-term growth and market influence.

Negative Factors

Declining Revenue Growth

Declining revenue growth indicates potential operational challenges and market pressures, which may affect the company's ability to sustain long-term profitability and expansion.

Negative Free Cash Flow Growth

Negative free cash flow growth suggests liquidity concerns and inefficient cash management, potentially limiting the company's ability to invest in new opportunities and manage debt.

Decreasing Profit Margins

Decreasing profit margins reflect operational inefficiencies or increased costs, which could hinder the company's ability to maintain competitive pricing and invest in growth initiatives.

Kadokawa Corporation Business Overview & Revenue Model

Company Description

Kadokawa Corporation operates in publishing, film, publishing rights, and digital content businesses in Japan. The company also engages in the planning, development, and operation of network entertainment service and contents; and operates video-sharing website. It also offers animation, videos, games, rights, and merchandising. The company was formerly known as Kadokawa Dwango Corporation. Kadokawa Corporation was founded in 1945 and is headquartered in Tokyo, Japan.

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. 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: Positive
• Last Price: 3603.00
• 50DMA: Positive
• 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 Positive. The current price of 3603 is above the 20-day moving average (MA) of 3499.95, above the 50-day MA of 3526.24, and below the 200-day MA of 3606.13, indicating a neutral trend. The MACD of 25.28 indicates Negative momentum. The RSI at 54.37 is Neutral, neither overbought nor oversold. The STOCH value of 58.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	¥16.78B	10.74	―	2.82%	-6.61%	-17.50%
6176	77 Outperform	¥10.48B	15.65	―	―	11.53%	-0.28%
3678	72 Outperform	¥28.22B	14.52	―	1.94%	6.52%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
9468	56 Neutral	¥491.98B	73.38	―	0.83%	4.44%	-40.32%
9479	55 Neutral	―	―	―	―	-0.55%	89.02%
3641	52 Neutral	¥7.90B	―	―	1.10%	-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.