Kadokawa Corporation (9468) AI Stock Analysis

• Market Cap: ¥524.07B
• Dividend Yield: 0.81%
• Average Volume (3M): 627.05K
• Price to Earnings (P/E): 71.3
• Beta (1Y): 0.28
• Revenue Growth: 9.87%
• EPS Growth: 86.42%
• Country: JP
• Employees: 6,269
• Sector: Communication Services
• Sector Strength: 86
• Industry: Publishing
• EPS (TTM): -0.92
• Shares Outstanding: 148,990,300
• 10 Day Avg. Volume: 775,240
• 30 Day Avg. Volume: 627,050
• PEG Ratio: 2.01
• Price to Book (P/B): 2.39
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 149.83
• 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: ¥3,900.00
• Price Target Upside: 5.78% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 67 Neutral
• Price Target: ―

Kadokawa Corporation demonstrates strong financial performance with robust revenue growth and profitability, supported by a solid balance sheet and improving cash flows. However, the stock's technical indicators provide limited clarity due to missing momentum metrics, and the high P/E ratio suggests a premium valuation. These factors combined result in a moderate overall stock score.

Positive Factors

Business Alliance

KADOKAWA's business alliance with Kakao piccoma will help in the creation and distribution of KADOKAWA's intellectual property.

Business Pipeline

FromSoftware announced two titles for Switch 2, indicating an improved pipeline.

Earnings

Kadokawa Corporation reported a third-quarter operating profit of ¥5.2 billion, exceeding market expectations.

Negative Factors

Acquisition Uncertainty

If the acquisition by Sony does not materialize and no other companies make a tender offer, share price will likely fall significantly.

Deal Risk

Risks for the breaking of the deal include differences in governance levels and failure to reach an agreement on the treatment of the web services and education businesses.

Share Price Volatility

The share price plummeted to the level before the media report on acquisition by Sony.

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 multiple streams, primarily from its publishing and film segments. The publishing division is a major contributor, earning money from the sales of books, manga, and magazines both in physical and digital formats. The film segment generates income through the production and distribution of movies and anime. Additionally, Kadokawa capitalizes on its intellectual properties through licensing and merchandising deals. The digital content segment also contributes to the company's earnings by offering online content, mobile games, and e-books. Strategic partnerships and collaborations, particularly in the film and digital media sectors, further enhance its revenue potential by expanding its reach and content offerings.

Kadokawa Corporation Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
277.67B	258.11B	255.43B	221.21B	209.95B	204.65B
	Gross Profit
100.83B	86.61B	90.86B	75.59B	73.69B	64.86B
	EBIT
20.96B	18.45B	25.93B	18.52B	13.63B	8.09B
	EBITDA
28.79B	25.37B	32.06B	24.62B	18.16B	12.95B
	Net Income Common Stockholders
12.44B	11.38B	12.68B	14.08B	9.58B	8.10B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
93.99B	105.35B	167.22B	123.93B	79.04B	74.88B
	Total Assets
353.08B	340.31B	382.90B	325.32B	269.65B	243.00B
	Total Debt
26.59B	25.35B	65.27B	65.28B	65.46B	65.52B
	Net Debt
-62.54B	-80.00B	-101.95B	-58.65B	-13.58B	-9.36B
	Total Liabilities
131.20B	127.75B	159.73B	149.58B	140.13B	135.62B
	Stockholders Equity
197.31B	190.59B	202.55B	171.90B	127.34B	105.30B
Cash Flow		Free Cash Flow
3.19B	-654.00M	10.45B	16.45B	-4.70B	1.14B
	Operating Cash Flow
11.75B	8.30B	17.52B	21.71B	15.59B	16.52B
	Investing Cash Flow
6.28B	3.49B	-16.26B	-7.94B	-5.93B	-29.91B
	Financing Cash Flow
-5.43B	-65.80B	30.73B	26.69B	7.93B	-4.36B

Kadokawa Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3687.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 3687 is below the 20-day moving average (MA) of 3733.95, above the 50-day MA of 3663.50, and above the 200-day MA of 3402.20, indicating a neutral trend. The MACD of 24.69 indicates Negative momentum. The RSI at 47.96 is Neutral, neither overbought nor oversold. The STOCH value of 50.34 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
9468	67 Neutral	¥524.07B	71.25		0.81%	9.87%	86.42%
Sector *	60 Neutral	$14.12B	6.43	-3.57%	3.69%	2.49%	-35.43%
KNM		¥2.62T	34.16	16.43%	0.88%	―	―
CYAGF		$4.90B	27.55	14.25%	1.33%	―	―
DNACF		$2.19B	16.06	10.56%	1.86%	―	―
SGAMF		$3.73B	14.93	11.92%	1.73%	―	―
SNEJF		$155.21B	20.65	14.32%	0.52%	―	―