Kadokawa Corporation (9468) AI Stock Analysis

• Market Cap: ¥473.41B
• Dividend Yield: 0.88%
• Average Volume (3M): 553.58K
• Price to Earnings (P/E): 71.1
• Beta (1Y): 0.14
• Revenue Growth: 1.96%
• EPS Growth: -45.28%
• Country: JP
• Employees: 6,269
• Sector: Communication Services
• Sector Strength: 97
• Industry: Publishing
• EPS (TTM): -9.34
• 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: ¥3,375.00
• Price Target Upside: 6.30% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: ¥2,995.00 ▼(-5.67% Downside)

Kadokawa Corporation's overall stock score is primarily influenced by its mixed financial performance and bearish technical indicators. The high P/E ratio suggests overvaluation, while the low dividend yield offers limited income potential. The lack of earnings call data and corporate events further limits positive influences on the score.

Positive Factors

Strong Balance Sheet

A low debt-to-equity ratio suggests financial stability and lower risk, providing Kadokawa with flexibility to invest in growth opportunities.

Diverse Revenue Streams

Diversified revenue channels reduce dependency on a single market, enhancing resilience against sector-specific downturns and supporting long-term growth.

Healthy Gross Profit Margin

A strong gross profit margin indicates effective cost management and pricing power, contributing to sustainable profitability over the long term.

Negative Factors

Declining Revenue Growth

Falling revenue growth suggests challenges in market demand or competitive positioning, potentially impacting future earnings and market share.

Negative Free Cash Flow Growth

Negative free cash flow growth indicates potential liquidity issues, limiting the company's ability to fund operations and invest in strategic initiatives.

Declining Profit Margins

Reduced profit margins can signal cost pressures or pricing challenges, affecting the company's ability to generate sustainable profits.

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 exhibits a mixed financial performance. The income statement shows declining revenue and profit margins, indicating potential operational challenges. The balance sheet is strong with low leverage, providing financial stability. However, cash flow analysis reveals liquidity concerns with negative free cash flow growth. The company needs to address revenue growth and improve cash generation to enhance its financial health.

Income Statement

Kadokawa Corporation's income statement shows a mixed performance. The TTM data indicates a decline in revenue growth, with a negative growth rate of -36.6%, which is concerning. Gross profit margin remains healthy at 35.1%, but net profit margin has decreased to 2.5%, indicating pressure on profitability. The EBIT and EBITDA margins have also declined, reflecting operational challenges. Overall, while the company maintains a solid gross margin, the declining revenue and profit margins suggest potential issues in cost management or market conditions.

Balance Sheet

The balance sheet of Kadokawa Corporation is relatively strong. The debt-to-equity ratio is low at 0.11, indicating conservative leverage and financial stability. Return on equity is modest at 3.05%, suggesting limited profitability on shareholders' equity. The equity ratio is healthy, showing that a significant portion of the company's assets is financed by equity. Overall, the balance sheet reflects a stable financial position with low leverage, though profitability could be improved.

Cash Flow

Cash flow analysis reveals some challenges for Kadokawa Corporation. The free cash flow growth rate is negative at -6.6%, indicating a decline in cash generation. The operating cash flow to net income ratio is low at 0.11, suggesting limited cash conversion from profits. The free cash flow to net income ratio is 0.51, showing that not all earnings are translating into free cash flow. Overall, the cash flow situation highlights potential liquidity concerns and the need for better 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: 3175.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 3175 is below the 20-day moving average (MA) of 3331.50, below the 50-day MA of 3434.44, and below the 200-day MA of 3596.14, indicating a bearish trend. The MACD of -79.10 indicates Positive momentum. The RSI at 38.32 is Neutral, neither overbought nor oversold. The STOCH value of 47.40 is Neutral, 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	¥15.30B	10.07	―	3.41%	-7.41%	-17.57%
3678	72 Outperform	¥26.68B	12.27	―	2.03%	6.10%	―
6176	72 Outperform	¥11.48B	16.57	―	―	7.76%	12.15%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
9479	55 Neutral	―	―	―	―	-0.55%	89.02%
3641	52 Neutral	¥8.05B	-26.64	―	1.06%	-8.03%	―
9468	47 Neutral	¥473.41B	71.08	―	0.88%	1.96%	-45.28%

Kadokawa Corporation Corporate Events

Kadokawa Corporation Revises Earnings Forecast Amid Extraordinary Losses

Kadokawa Corporation has announced an extraordinary loss due to the amortization of goodwill related to its subsidiary, Doga Kobo Inc., amounting to 2,700 million yen. This financial adjustment, coupled with underperformance in the Publication/IP Creation and Animation/Film segments, has led to a downward revision of the company’s full-year consolidated earnings forecast for the fiscal year ending March 2026. Despite the successful sales of the new game title ELDEN RING NIGHTREIGN, increased costs and lower-than-expected revenue from new IPs have impacted the company’s financial outlook.

The most recent analyst rating on (JP:9468) stock is a Hold with a Yen3609.00 price target. To see the full list of analyst forecasts on Kadokawa Corporation stock, see the JP:9468 Stock Forecast page.

Kadokawa Corporation Reports Decline in Earnings and Revises Forecast

Kadokawa Corporation reported a decline in its consolidated earnings for the six months ending September 30, 2025, with net sales falling by 1.8% and significant drops in operating and ordinary profits. The company also revised its full-year earnings forecast, anticipating a slight increase in net sales but a substantial decrease in profits, signaling potential challenges in maintaining its market position.

The most recent analyst rating on (JP:9468) stock is a Hold with a Yen3609.00 price target. To see the full list of analyst forecasts on Kadokawa Corporation stock, see the JP:9468 Stock Forecast page.

Kadokawa Corporation Announces Treasury Share Disposal for Executive Incentives

Kadokawa Corporation announced the disposal of its treasury shares as part of a restricted stock compensation plan aimed at incentivizing directors and executives to enhance corporate value and align their interests with shareholders. The plan involves allocating shares to an eligible director, with restrictions on transfer until March 31, 2028, to ensure long-term commitment and performance alignment.

The most recent analyst rating on (JP:9468) stock is a Hold with a Yen3609.00 price target. To see the full list of analyst forecasts on Kadokawa Corporation stock, see the JP:9468 Stock Forecast page.