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Shochiku Co., Ltd. (JP:9601)
:9601
Japanese Market

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

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JP

Shochiku Co., Ltd.

(9601)

Rating:53Neutral
Price Target:
Shochiku Co., Ltd. faces significant financial challenges, particularly with profitability and cash flow management. While there are some positive technical indicators suggesting short-term price momentum, the valuation metrics reflect underlying financial difficulties. The stock's performance is hindered by high leverage and a low dividend yield, necessitating careful risk management.

Shochiku Co., Ltd. (9601) vs. iShares MSCI Japan ETF (EWJ)

Shochiku Co., Ltd. Business Overview & Revenue Model

Company DescriptionShochiku Co., Ltd. (9601) is a renowned Japanese entertainment company, primarily engaged in the production and distribution of films, theatrical performances, and television programs. The company is deeply rooted in the traditional kabuki theater and has expanded its operations to include modern cinema and digital content. Shochiku operates a network of cinemas across Japan and is involved in the production and distribution of anime and other entertainment content. It is recognized for its historical contributions to Japanese entertainment and continues to innovate in the industry.
How the Company Makes MoneyShochiku Co., Ltd. generates revenue through multiple streams, primarily focusing on the production and distribution of films and theatrical performances. A significant portion of its income comes from box office sales and distribution rights for movies and television programs. Additionally, the company earns from its extensive network of cinemas, which provide consistent revenue through ticket sales and concessions. Shochiku also profits from licensing its content for digital platforms and partnerships with other entertainment companies for collaborative projects. The company continues to leverage its historical expertise in traditional kabuki theater while expanding into modern and digital media to sustain its financial performance.

Shochiku Co., Ltd. Financial Statement Overview

Summary
Shochiku Co., Ltd. faces financial challenges with declining revenues and negative net income. The balance sheet shows high debt levels, posing significant risks, and cash flow issues further exacerbate these challenges. Some positive aspects include stable gross profit margins and equity growth.
Income Statement
45
Neutral
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
60
Neutral
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
50
Neutral
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.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue82.38B83.97B85.43B78.21B71.83B52.43B
Gross Profit35.08B33.67B35.98B31.92B25.43B19.14B
EBITDA3.58B6.07B10.54B4.37B3.19B-4.94B
Net Income-507.00M-665.00M3.02B5.48B-1.76B-11.41B
Balance Sheet
Total Assets206.72B208.90B211.14B178.80B188.78B191.21B
Cash, Cash Equivalents and Short-Term Investments19.07B14.91B20.20B16.11B16.79B18.31B
Total Debt68.47B71.21B71.27B58.28B73.22B78.25B
Total Liabilities114.66B115.74B116.67B92.32B107.95B110.60B
Stockholders Equity91.96B93.06B94.37B86.39B80.03B80.18B
Cash Flow
Free Cash Flow0.00-4.40B-7.57B5.00B2.41B-10.45B
Operating Cash Flow0.00-586.00M8.13B6.06B4.81B-8.14B
Investing Cash Flow0.00-1.43B-15.24B9.71B-1.67B-3.11B
Financing Cash Flow0.00-3.76B11.78B-13.51B-4.98B8.02B

Shochiku Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price13190.00
Price Trends
50DMA
13375.60
Negative
100DMA
12916.28
Positive
200DMA
11864.69
Positive
Market Momentum
MACD
-35.00
Positive
RSI
41.67
Neutral
STOCH
9.97
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9601, the sentiment is Neutral. The current price of 13190 is below the 20-day moving average (MA) of 13598.00, below the 50-day MA of 13375.60, and above the 200-day MA of 11864.69, indicating a neutral trend. The MACD of -35.00 indicates Positive momentum. The RSI at 41.67 is Neutral, neither overbought nor oversold. The STOCH value of 9.97 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:9601.

Shochiku Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$1.34T31.659.09%1.24%10.53%-1.92%
70
Neutral
¥356.72B19.65
0.24%5.01%12.53%
67
Neutral
¥675.79B28.00
0.96%5.28%11.13%
66
Neutral
¥35.33B34.55
1.89%-2.78%-256.53%
66
Neutral
¥373.55B13.582.32%2.51%5.41%-17.67%
65
Neutral
¥55.58B46.942.03%4.08%-1.27%10.18%
53
Neutral
¥181.56B
0.23%-1.70%-122.01%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:9601
Shochiku Co., Ltd.
13,220.00
4,132.16
45.47%
JP:4816
Toei Animation Co., Ltd.
3,285.00
816.08
33.05%
JP:6879
Imagica Group, Inc.
796.00
266.70
50.39%
JP:9605
Toei Company, Ltd.
5,040.00
1,283.50
34.17%
JP:7860
Avex Inc.
1,223.00
-192.30
-13.59%
JP:9602
Toho Co
8,232.00
3,692.98
81.36%

Shochiku Co., Ltd. Corporate Events

Shochiku Completes Treasury Share Disposal for Executive Remuneration
Jun 27, 2025

Shochiku Co., Ltd. has successfully completed the payment for the disposal of treasury shares as part of a restricted share-based remuneration plan. This move, decided by the Board of Directors, involves the disposal of 3,592 common shares at a price of ¥13,430 per share, totaling ¥48,240,560, and aims to align the interests of directors and executive officers with the company’s performance.

Shochiku Co., Ltd. Exits BS Broadcasting Business with Strategic Share Transfer
Jun 18, 2025

Shochiku Co., Ltd. has decided to exit the BS broadcasting business by transferring its shares in BS Shochiku Tokyu Co., Ltd. to JCOM Co., Ltd. This strategic move involves acquiring all shares of BS Shochiku Tokyu from existing shareholders and waiving claims against the company. This decision marks a significant shift in Shochiku’s business strategy, potentially impacting its market positioning and stakeholder relationships as it refocuses its operations away from broadcasting.

Shochiku Co., Ltd. Announces Disposal of Treasury Shares for Executive Incentives
May 27, 2025

Shochiku Co., Ltd. has announced the disposal of 3,592 treasury shares as part of a restricted share-based remuneration plan aimed at aligning the interests of its Directors and Executive Officers with those of shareholders. This move is expected to enhance corporate value and promote value sharing, with the shares being allotted to five Directors and eight Executive Officers, reinforcing the company’s commitment to incentivizing its leadership team.

Shochiku Co., Ltd. Announces Strategic Personnel Changes
May 27, 2025

Shochiku Co., Ltd. has announced a series of personnel changes within its Board of Directors and executive team. These changes include the appointment of new directors and executive officers, which are expected to enhance the company’s strategic operations in various divisions, including imaging, theatrical, and business development. The restructuring aims to strengthen Shochiku’s market positioning and operational efficiency, potentially impacting its stakeholders positively by driving innovation and expanding its global reach.

Shochiku Co., Ltd. Announces Changes in Board of Directors
Apr 24, 2025

Shochiku Co., Ltd. has announced a planned change in its board of directors, which will be finalized at the upcoming annual general meeting. The proposed changes include the appointment of new outside directors, Masahiro Horie and Yoriko Noma, while current directors Kazuo Takahashi and Sanae Tanaka will be retiring. This restructuring is expected to bring new perspectives to the company’s governance and potentially impact its strategic direction.

Shochiku Co., Ltd. Announces Stable Dividend Payout
Apr 24, 2025

Shochiku Co., Ltd. has announced a dividend of ¥30 per share, with a record date of February 28, 2025, to be paid from retained earnings. This decision aligns with the company’s policy of maintaining stable dividends while considering its earnings and internal reserves, and will be presented at the upcoming Annual General Meeting.

Shochiku Co., Ltd. Evaluates Investment Unit Reduction to Enhance Market Activity
Apr 14, 2025

Shochiku Co., Ltd. is considering reducing its investment unit to boost stock market activity by attracting more individual investors and improving share liquidity. This move is being evaluated for its potential effects on existing shareholders and aligns with Tokyo Stock Exchange regulations due to the current high price of the company’s investment units.

Shochiku Co., Ltd. Faces Financial Challenges but Forecasts Recovery
Apr 14, 2025

Shochiku Co., Ltd. reported a challenging fiscal year ending February 28, 2025, with a decline in net sales by 1.7% and a significant drop in operating profit by 53.6%. The company faced a net loss of ¥664 million, reflecting a difficult period for its operations. Despite these setbacks, Shochiku forecasts a recovery in the upcoming fiscal year, projecting a 13.1% increase in net sales and a substantial improvement in profitability, with operating profit expected to rise by 86.2%. This optimistic outlook suggests potential positive impacts on the company’s market positioning and stakeholder confidence.

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: May 01, 2025