Shobunsha Holdings, Inc. (9475) AI Stock Analysis

• Market Cap: ¥9.00B
• Dividend Yield: 1.06%
• Average Volume (3M): 9.02K
• Price to Earnings (P/E): 39.6
• Beta (1Y): 0.29
• Revenue Growth: 0.02%
• EPS Growth: -88.78%
• Country: JP
• Employees: 228
• Sector: Communication Services
• Sector Strength: 97
• Industry: Publishing
• EPS (TTM): 4.45
• Shares Outstanding: 18,178,171
• 10 Day Avg. Volume: 14,280
• 30 Day Avg. Volume: 9,023
• PEG Ratio: -0.19
• Price to Book (P/B): 0.56
• Price to Sales (P/S): 1.17
• P/FCF Ratio: 15.84
• 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: 58 Neutral
• Price Target: ¥515.00 ▲(22.91% Upside)

Shobunsha Holdings' overall stock score is primarily influenced by its improving financial performance and positive cash flow trajectory. However, the high P/E ratio raises concerns about overvaluation, which is a significant risk factor. Technical indicators suggest mild bullish momentum, but the valuation concerns weigh heavily on the overall score.

Positive Factors

Balance sheet strength

A very high equity ratio and minimal leverage provide durable financial resilience. Low debt reduces solvency and interest burden, giving the firm flexibility to fund digital investment or educational initiatives internally and tolerate revenue cycles without needing external financing.

Positive free cash flow turnaround

The shift to positive free cash flow signals sustainable cash generation from operations. That improves capacity to reinvest in digital platforms and education services, support capex or shareholder returns, and lowers refinancing risk, strengthening long-term funding independence.

Improving margins

Higher gross and recovered net margins suggest better cost structure and pricing power across publishing and digital offerings. Sustained margin improvement supports profitability resilience as revenue normalizes and enables incremental investment in product development and content monetization.

Negative Factors

Low and volatile revenue growth

Subdued ~2% growth and a history of a multi-year revenue decline indicate structural demand challenges in core publishing. Limited top-line momentum constrains scale benefits, making long-term margin and profitability improvements harder unless new digital/education revenue streams reliably expand.

Modest return on equity

A low ROE implies the company is generating limited returns on shareholder capital. Persistently modest ROE can indicate suboptimal capital allocation, low asset turnover, or margin limitations and may constrain the firm's ability to deliver attractive long-term shareholder returns absent strategic change.

Earnings volatility

Severe EPS contraction historically highlights earnings instability and sensitivity to cyclical pressures or one-off items. High earnings volatility undermines forecasting reliability, increases perceived operational risk, and complicates planning for reinvestment or consistent shareholder distributions over time.

Shobunsha Holdings, Inc. Business Overview & Revenue Model

Company Description

Shobunsha Holdings, Inc. (9475) is a diversified company based in Japan, primarily engaged in the publishing and information services sectors. The company specializes in producing and distributing various types of content, including magazines, books, and digital media. Additionally, Shobunsha Holdings has expanded its portfolio to include educational services and software development, catering to a wide range of audiences across different demographics.

How the Company Makes Money

Shobunsha Holdings generates revenue through multiple streams, primarily from its publishing activities, which include sales of magazines, books, and digital content. The company also earns income from educational services, offering courses and materials that cater to both individual learners and institutional clients. Additionally, Shobunsha Holdings has established partnerships with various organizations to provide tailored content and services, further expanding its revenue base. The integration of digital platforms has also allowed the company to monetize its content through subscriptions and advertising, enhancing its overall profitability.

Shobunsha Holdings, Inc. Financial Statement Overview

Summary

Shobunsha Holdings is showing signs of recovery and improving financial health. The income statement reflects better margins and revenue recovery. The balance sheet is robust with low debt levels, providing financial flexibility. Cash flows have turned positive, which bodes well for future investment and growth opportunities. However, sustaining profitability and enhancing return on equity is necessary for continued success.

Income Statement

Shobunsha Holdings has shown a fluctuating revenue trend over the years with a noticeable drop from 2020 to 2022, followed by a recovery. Despite this, the company managed to improve its gross profit margin over the years, reaching 38.6% in 2025. However, the net profit margin has been volatile, with significant losses in earlier years and recovery to a positive 8.65% in 2025. The EBIT and EBITDA margins have also shown improvements, indicating enhanced operational efficiency.

Balance Sheet

The company's balance sheet indicates strong equity with an equity ratio of 70.7% in 2025, suggesting financial stability. The debt-to-equity ratio remains low at 0.05, highlighting a conservative leverage approach. The return on equity, however, is modest at 4.16%, reflecting room for improvement in generating returns from equity.

Cash Flow

Shobunsha Holdings has demonstrated a remarkable turnaround in cash flow management. The operating cash flow has improved significantly, leading to a positive free cash flow in 2025. The free cash flow to net income ratio indicates efficient cash generation relative to profit. Despite past negative cash flows, the current trajectory is positive.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.25B	6.26B	6.41B	5.55B	4.62B	6.49B
Gross Profit	2.37B	2.41B	2.62B	2.03B	737.14M	1.42B
EBITDA	214.78M	806.09M	2.17B	229.23M	-1.30B	-1.91B
Net Income	81.96M	541.40M	1.77B	30.14M	-1.58B	-2.37B
Balance Sheet
Total Assets	18.32B	18.42B	18.88B	15.58B	15.25B	16.87B
Cash, Cash Equivalents and Short-Term Investments	6.94B	6.46B	6.28B	4.74B	3.97B	4.63B
Total Debt	640.00M	640.00M	770.00M	770.00M	770.00M	770.00M
Total Liabilities	5.42B	5.40B	6.19B	5.07B	4.79B	3.59B
Stockholders Equity	12.90B	13.02B	12.69B	10.51B	10.46B	13.29B
Cash Flow
Free Cash Flow	0.00	461.44M	-797.20M	316.57M	-655.59M	-457.00M
Operating Cash Flow	0.00	700.28M	-664.17M	495.77M	-485.60M	39.16M
Investing Cash Flow	0.00	-279.79M	2.19B	275.14M	-82.19M	-386.09M
Financing Cash Flow	0.00	-220.10M	-18.00K	0.00	-1.38M	-643.00K

Shobunsha Holdings, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 419.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9475, the sentiment is Positive. The current price of 419 is below the 20-day moving average (MA) of 484.90, below the 50-day MA of 463.44, and below the 200-day MA of 424.36, indicating a bullish trend. The MACD of 8.49 indicates Positive momentum. The RSI at 62.30 is Neutral, neither overbought nor oversold. The STOCH value of 64.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9475.

Shobunsha Holdings, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6176	73 Outperform	¥9.81B	14.12	―	―	7.76%	12.44%
9478	73 Outperform	¥6.64B	16.89	―	0.87%	-3.02%	-30.86%
7875	70 Outperform	¥9.42B	6.92	―	3.40%	3.71%	78.87%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
9475	58 Neutral	¥9.00B	39.60	―	1.06%	0.02%	-88.78%
3641	48 Neutral	¥8.85B	82.05	―	1.02%	-8.03%	―