Shochiku Co., Ltd. (9601) AI Stock Analysis

• Market Cap: ¥156.56B
• Dividend Yield: 0.26%
• Average Volume (3M): 44.79K
• Price to Earnings (P/E): 52.7
• Beta (1Y): 0.14
• Revenue Growth: 14.49%
• EPS Growth: N/A
• Country: JP
• Employees: 1,421
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): 190.07
• Shares Outstanding: 13,937,857
• 10 Day Avg. Volume: 27,640
• 30 Day Avg. Volume: 44,790
• PEG Ratio: 1.97
• Price to Book (P/B): 1.71
• Price to Sales (P/S): 1.90
• P/FCF Ratio: -36.28
• 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: ¥15,900.00
• Price Target Upside: 33.95% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 298.5
• Revenue Forecast (FY): ¥95.92B

• Rating: 46 Neutral
• Price Target: ¥11,172.00 ▼(-5.88% Downside)
• Action: Reiterated Date: 09/03/25
• Date: Action: Reiterated 09/03/25

Shochiku Co., Ltd. faces significant financial and valuation challenges, with declining revenues, high leverage, and overvaluation concerns. Technical indicators suggest weak market momentum, further impacting the stock's attractiveness.

Positive Factors

Recent Revenue Growth

A reported revenue growth metric above 20% indicates the company can produce periods of strong top-line performance likely driven by successful releases or productions. Sustained revenue growth supports reinvestment in content and theaters, improving long-term scale and bargaining power across distribution and licensing channels.

Content IP and Diversified Revenue

Owning both film and theater IP and monetizing via box office, live performances, licensing, packaged media and merchandising creates multiple revenue streams. A content library yields recurring licensing opportunities and lower incremental cost to monetize existing titles, supporting durable cash generation over time.

Equity Cushion

A reasonable equity ratio and reported growth in shareholders' equity provide a buffer against liabilities and cyclical revenue shocks. Improved equity strengthens solvency metrics, giving management more flexibility to refinance, invest in productions, or absorb losses without immediate reliance on costly external funding.

Negative Factors

High Leverage

Significant leverage increases refinancing and liquidity risk for a content and venue operator with lumpy revenues. High debt raises interest burden and restricts capital allocation to productions or venue investment, leaving the business exposed if box office or ticket sales soften or interest rates rise.

Negative Free Cash Flow

Persistent negative free cash flow and volatile operating cash flows undermine the firm's ability to self-fund film/theater production, reduce debt, or build reserves. Reliance on external financing increases financing costs and execution risk when producing and marketing new content, compressing long-term resilience.

Declining Revenues and Profitability

A trend of declining revenues alongside a recent negative net income signals structural profitability challenges. Weak EBIT/EBITDA margins limit retained earnings and constrain the company's ability to invest in new IP or venues, making recovery dependent on consistent hits or successful cost restructuring.

Shochiku Co., Ltd. Business Overview & Revenue Model

Company Description

Shochiku Co., Ltd. engages in audio and video, theatre, real estate, and other businesses in Japan and internationally. The company's audio and video division is involved production, publicity, and distribution of live-action, animation, and motion pictures; audio and video rights to domestic and international parties; develops audio and video content; manages theatres and cinema complexes; arrangement of programming at theatres; production and editing of content for satellite and cable channels; basic satellite broadcasting and general broadcasting; and production, purchase, and sales of video content. The company's Theater division plans, produces, and promotes kabuki presentations and general theatre productions on tour and overseas performances; and operates Shochiku theatres. It is also involved in theatrical rights; kabuki related events; the development of theatre-related businesses; and actor and talent promotion business. The company's Real Estate division develops, manages, and leases properties. The Other Business division engages in the editing, production, and sale of motion picture pamphlets; planning, production, and sale of character merchandise; management of mobile and computer shopping websites; distribution of official content for mobile devices; operation of restaurants, parking lots, and other businesses; provision of property management and cleaning services; and development and licensing of music copyrights. The company was formerly known as Shochiku Kinema Co., Ltd. and changed its name to Shochiku Co., Ltd. in 1937. Shochiku Co., Ltd. was founded in 1895 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Shochiku generates revenue mainly through (1) film-related income and (2) theater-related income, supplemented by secondary monetization of intellectual property (IP). In its film business, it makes money by developing and producing content and then earning returns from theatrical distribution and related rights, including receipts tied to domestic box office performance and fees/royalties from licensing and distribution to third parties. It also monetizes film and content libraries through sales and licensing for secondary uses (e.g., packaged media and other forms of distribution where applicable), and through merchandising and other IP-related income when tied to its titles. In its theater business, it earns revenue from staging and presenting productions (including kabuki and other performances), primarily through ticket sales, as well as associated venue and performance-related income (e.g., program/ancillary sales and other event-linked revenues where applicable). Across both segments, its earnings are influenced by the performance of individual titles/productions, the utilization of its library IP, and the scale and cadence of its release and performance slate. null

Shochiku Co., Ltd. Financial Statement Overview

Summary

Shochiku Co., Ltd. faces financial challenges with declining revenues, negative net income, and cash flow issues. High debt levels pose additional risks, though some equity growth is a positive aspect.

Income Statement

Shochiku Co., Ltd. has experienced declining revenues in recent years, with a noticeable decrease from 2020 to 2025. The company reported a negative net income in the most recent year, indicating profitability challenges. Gross profit margin has been relatively stable but insufficient to prevent overall losses. EBIT and EBITDA margins have also been weak, reflecting operational inefficiencies.

Balance Sheet

The company's balance sheet shows a reasonable equity ratio, but high levels of debt are a concern. The debt-to-equity ratio suggests significant leverage, posing potential risks if not managed carefully. Stockholders' equity has shown some growth, which is a positive aspect, yet the pressure from liabilities remains high.

Cash Flow

Shochiku Co., Ltd. has struggled with negative free cash flow in recent years, indicating cash flow challenges. Operating cash flow has shown volatility, with a significant decline in 2025. The company's ability to maintain healthy cash flow to support operations and manage debt is a crucial concern.

Breakdown	TTM	Feb 2024	Feb 2023	Feb 2022	Feb 2022	Feb 2021
Income Statement
Total Revenue	86.15B	83.97B	85.43B	78.21B	71.83B	52.43B
Gross Profit	37.17B	33.67B	34.02B	29.61B	23.01B	17.14B
EBITDA	7.75B	6.41B	8.20B	4.37B	1.61B	214.00M
Net Income	930.00M	-665.00M	3.02B	5.48B	-1.76B	-11.41B
Balance Sheet
Total Assets	213.52B	208.90B	211.14B	178.80B	188.78B	191.21B
Cash, Cash Equivalents and Short-Term Investments	14.55B	14.91B	20.79B	16.11B	16.79B	18.31B
Total Debt	66.73B	71.21B	71.27B	58.28B	73.22B	78.25B
Total Liabilities	117.58B	115.74B	116.67B	92.32B	107.94B	110.59B
Stockholders Equity	95.85B	93.06B	94.37B	86.39B	80.03B	80.18B
Cash Flow
Free Cash Flow	0.00	-4.40B	-7.34B	5.20B	2.54B	-10.26B
Operating Cash Flow	0.00	-586.00M	8.13B	6.06B	4.81B	-8.14B
Investing Cash Flow	0.00	-3.66B	-15.24B	11.51B	-868.00M	-3.11B
Financing Cash Flow	0.00	-1.53B	11.78B	-15.31B	-5.78B	8.02B

Shochiku Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11870.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9601, the sentiment is Negative. The current price of 11870 is above the 20-day moving average (MA) of 11300.01, above the 50-day MA of 11555.41, and below the 200-day MA of 12570.71, indicating a neutral trend. The MACD of 3.10 indicates Negative momentum. The RSI at 53.80 is Neutral, neither overbought nor oversold. The STOCH value of 83.76 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9601.

Shochiku Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9605	77 Outperform	¥407.48B	15.93	―	0.33%	6.38%	38.69%
9602	69 Neutral	¥1.39T	28.41	11.19%	1.12%	10.99%	2.35%
4816	66 Neutral	¥522.46B	28.18	―	1.12%	5.90%	17.39%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
3791	59 Neutral	¥25.58B	124.21	―	1.11%	-4.66%	-56.66%
7860	49 Neutral	¥53.37B	6.12	4.10%	4.16%	11.52%	162.04%
9601	46 Neutral	¥156.56B	52.66	―	0.26%	14.49%	―

Shochiku Co., Ltd. Corporate Events

Shochiku Raises Full-Year Profit Outlook on Strong Box Office and Theatre Performance

Shochiku has revised upward its consolidated full-year earnings forecast for the fiscal year ending February 2026, keeping net sales unchanged at ¥97 billion but lifting operating profit by 27.9% to ¥5.5 billion, ordinary profit to ¥5.7 billion, and profit attributable to owners of parent to ¥5.0 billion, reflecting robust box office performance in its motion picture operations and continued strength at the Kabukiza-led theatre business. On a non-consolidated basis, the company now expects slightly lower net sales of ¥55.1 billion but higher profits, with ordinary profit and net profit forecast to rise to ¥3.5 billion and ¥3.2 billion, respectively, driven by strong theatre demand and high-margin broadcasting rights sales, marking a sharp turnaround from last year’s losses and underscoring an improving earnings structure across its core entertainment segments.

The most recent analyst rating on (JP:9601) stock is a Hold with a Yen12632.00 price target. To see the full list of analyst forecasts on Shochiku Co., Ltd. stock, see the JP:9601 Stock Forecast page.

Shochiku Swings Back to Profit and Raises Full-Year Outlook on Strong Nine-Month Results

Shochiku reported a sharp turnaround in performance for the nine months ended November 30, 2025, with consolidated net sales rising 25.8% year on year to ¥74.8 billion and profit attributable to owners of parent swinging from a loss of ¥1.0 billion a year earlier to a profit of ¥5.0 billion. Operating profit surged to ¥5.5 billion from virtually breakeven, and the equity-to-asset ratio improved to 46.8%, reflecting stronger profitability and a healthier balance sheet; basic earnings per share rose to ¥361.20 from a loss per share in the previous period. The company maintained its annual dividend forecast of ¥30 per share for the fiscal year ending February 28, 2026, and revised its full-year earnings outlook, now projecting ¥97.0 billion in net sales and ¥5.0 billion in profit attributable to owners of parent, signaling confidence in sustained recovery and improved earnings power after prior-year weakness.

The most recent analyst rating on (JP:9601) stock is a Hold with a Yen12632.00 price target. To see the full list of analyst forecasts on Shochiku Co., Ltd. stock, see the JP:9601 Stock Forecast page.