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

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JP:9601

Shochiku Co., Ltd.

(9601)

Rating:48Neutral
Price Target:
¥12,933.00
▼(-1.20%Downside)
The overall stock score is significantly impacted by weak financial performance, characterized by declining revenues, profitability challenges, and cash flow difficulties. Technical analysis suggests bearish momentum with the stock trading below several key moving averages. The high P/E ratio further indicates overvaluation concerns. These factors combined result in a low overall score, reflecting the need for improved stability and financial management.

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

Shochiku Co., Ltd. Business Overview & Revenue Model

Company DescriptionShochiku 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 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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue83.97B85.43B78.21B71.83B52.43B
Gross Profit33.67B35.98B31.92B25.43B19.14B
EBITDA6.07B10.54B4.37B3.19B-4.94B
Net Income-665.00M3.02B5.48B-1.76B-11.41B
Balance Sheet
Total Assets208.90B211.14B178.80B188.78B191.21B
Cash, Cash Equivalents and Short-Term Investments14.91B20.20B16.11B16.79B18.31B
Total Debt71.21B71.27B58.28B73.22B78.25B
Total Liabilities115.74B116.67B92.32B107.95B110.60B
Stockholders Equity93.06B94.37B86.39B80.03B80.18B
Cash Flow
Free Cash Flow-4.40B-7.57B5.00B2.41B-10.45B
Operating Cash Flow-586.00M8.13B6.06B4.81B-8.14B
Investing Cash Flow-1.43B-15.24B9.71B-1.67B-3.11B
Financing Cash Flow-3.76B11.78B-13.51B-4.98B8.02B

Shochiku Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price13090.00
Price Trends
50DMA
13356.80
Negative
100DMA
13085.80
Positive
200DMA
12051.85
Positive
Market Momentum
MACD
-147.39
Positive
RSI
45.81
Neutral
STOCH
29.92
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9601, the sentiment is Positive. The current price of 13090 is below the 20-day moving average (MA) of 13200.50, below the 50-day MA of 13356.80, and above the 200-day MA of 12051.85, indicating a neutral trend. The MACD of -147.39 indicates Positive momentum. The RSI at 45.81 is Neutral, neither overbought nor oversold. The STOCH value of 29.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9601.

Shochiku Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
56
Neutral
HK$68.29B-1.90-3.62%5.43%-4.09%-17.08%
48
Neutral
¥179.77B193.16
0.23%5.41%-28.32%
$11.14B44.128.33%<0.01%
€332.07M44.862.03%4.19%
70
Neutral
¥375.31B20.67
0.23%5.01%12.53%
67
Neutral
¥681.01B28.22
0.95%5.28%11.13%
66
Neutral
¥35.16B34.55
1.89%-2.78%-256.53%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:9601
Shochiku Co., Ltd.
13,090.00
3,681.98
39.14%
TKCOF
Toho Co
67.04
32.67
95.05%
DE:AX8
Avex Inc.
7.15
-1.39
-16.28%
JP:4816
Toei Animation Co., Ltd.
3,260.00
980.49
43.01%
JP:6879
Imagica Group, Inc.
792.00
271.46
52.15%
JP:9605
Toei Company, Ltd.
5,250.00
1,463.60
38.65%

Shochiku Co., Ltd. Corporate Events

Shochiku Co., Ltd. Revises Earnings Forecast Following Extraordinary Income
Jul 15, 2025

Shochiku Co., Ltd. announced an extraordinary income due to a gain on the reversal of a provision for loss on business withdrawal, following the transfer of shares of its affiliate to JCOM Co., Ltd. This financial maneuver has led to an upward revision of the company’s full-year earnings forecast for the fiscal year ending February 2026, significantly increasing the profit attributable to owners of the parent company. The revision reflects a 45% increase in profit per share, highlighting improved financial performance and potentially enhancing shareholder value.

Shochiku Co., Ltd. Reports Strong Financial Recovery in Q1 2025
Jul 15, 2025

Shochiku Co., Ltd. reported a significant improvement in its financial performance for the three months ended May 31, 2025, with net sales increasing by 11.2% year-on-year to ¥21,657 million. The company also saw a substantial rise in operating profit and ordinary profit, indicating a strong recovery from the previous year’s downturn. This positive financial outcome suggests a robust market position and potential for future growth, benefiting stakeholders and enhancing the company’s competitive edge in the entertainment industry.

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.

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: Jul 26, 2025