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Kadokawa Corporation (JP:9468)
:9468
Japanese Market
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Kadokawa Corporation (9468) AI Stock Analysis

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JP:9468

Kadokawa Corporation

(9468)

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Neutral 54 (OpenAI - 4o)
Rating:54Neutral
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 (9468) vs. iShares MSCI Japan ETF (EWJ)

Kadokawa Corporation Business Overview & Revenue Model

Company DescriptionKadokawa 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 MoneyKadokawa 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
55
Neutral
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
70
Positive
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
50
Neutral
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue276.90B277.92B258.11B255.43B221.21B209.95B
Gross Profit97.26B99.08B86.61B90.86B75.59B73.69B
EBITDA22.21B25.53B26.68B27.60B25.66B18.16B
Net Income6.80B7.39B11.38B12.68B14.08B9.58B
Balance Sheet
Total Assets399.89B410.03B340.31B382.90B325.32B269.65B
Cash, Cash Equivalents and Short-Term Investments134.70B146.30B105.35B167.22B123.93B79.04B
Total Debt26.58B26.69B25.35B65.27B65.28B65.46B
Total Liabilities122.82B132.62B127.75B159.73B149.58B140.13B
Stockholders Equity250.86B252.22B190.59B202.55B171.90B127.34B
Cash Flow
Free Cash Flow6.72B7.20B-654.00M10.45B16.45B-4.70B
Operating Cash Flow13.11B13.84B8.30B17.52B21.71B15.59B
Investing Cash Flow-18.35B-8.37B3.49B-16.26B-7.94B-5.93B
Financing Cash Flow43.59B44.04B-65.80B30.73B26.69B7.93B

Kadokawa Corporation Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3385.00
Price Trends
50DMA
3479.64
Negative
100DMA
3635.47
Negative
200DMA
3588.75
Negative
Market Momentum
MACD
-21.66
Positive
RSI
38.68
Neutral
STOCH
13.51
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

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
¥15.72B10.182.93%-6.61%-17.50%
¥27.39B12.991.88%6.10%
¥10.72B16.0011.53%-0.28%
$48.67B4.58-11.27%4.14%2.83%-41.78%
-0.55%89.02%
¥473.27B71.060.89%4.44%-40.32%
¥8.08B-26.751.07%-8.78%-191.76%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:9468
Kadokawa Corporation
3,385.00
43.63
1.31%
JP:3641
PAPYLESS CO., LTD.
932.00
41.53
4.66%
JP:3678
MEDIA DO Co., Ltd.
1,802.00
538.46
42.62%
JP:6176
Brangista, Inc.
770.00
150.68
24.33%
JP:7849
Starts Publishing Corporation
4,075.00
1,047.22
34.59%
JP:9479
Impress Holdings, Inc.
207.00
74.60
56.34%

Kadokawa Corporation Corporate Events

Kadokawa Corporation Reports Decline in Q1 2025 Earnings but Maintains Positive Full-Year Outlook
Aug 7, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 11, 2025