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

• Market Cap: ¥194.61B
• Dividend Yield: 0.2%
• Average Volume (3M): 52.33K
• Price to Earnings (P/E): 209.1
• Beta (1Y): 0.27
• Revenue Growth: 5.41%
• EPS Growth: -28.32%
• Country: JP
• Employees: 1,421
• Sector: Communication Services
• Sector Strength: 92
• Industry: Entertainment
• EPS (TTM): -24.47
• Shares Outstanding: 13,937,857
• 10 Day Avg. Volume: 77,170
• 30 Day Avg. Volume: 52,326
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥13,170.00
• Price Target Upside: -10.41% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 50 Neutral
• Price Target: ¥13,170.00 ▼(-10.41% Downside)

Shochiku Co., Ltd. scores a 50 due to financial challenges and valuation concerns. The high P/E ratio suggests potential overvaluation, while financial performance issues such as declining revenues and high leverage pose risks. Technical indicators provide mixed signals, with no significant short-term trends.

Shochiku Co., Ltd. Business Overview & Revenue Model

Company Description

Shochiku Co., Ltd. (9601) is a leading Japanese entertainment company with a rich history dating back to 1895. The company is primarily engaged in the production and distribution of films, theater productions, and the management of Kabuki theaters. Shochiku is renowned for its contributions to the Japanese film industry, including the production and distribution of both domestic and international films. Additionally, it is a key player in the promotion and preservation of traditional Japanese performing arts, particularly Kabuki, through its ownership of theaters and production of performances.

How the Company Makes Money

Shochiku Co., Ltd. generates revenue through a diverse range of activities within the entertainment sector. Its primary revenue streams include the production and distribution of films, which encompass both box office sales and licensing fees from domestic and international markets. Shochiku also earns significant income from its theater operations, including ticket sales from Kabuki performances and other theatrical productions. Furthermore, the company benefits from merchandising and concessions related to its theatrical and film productions. Partnerships with other media companies and collaborations on film projects serve as additional revenue sources, enhancing its earnings. The company's involvement in various entertainment segments and its strategic position in the industry contribute significantly to 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

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	83.97B	85.43B	78.21B	71.83B	52.43B
Gross Profit	33.67B	35.98B	31.92B	25.43B	19.14B
EBITDA	6.07B	10.54B	4.37B	3.19B	-4.94B
Net Income	-665.00M	3.02B	5.48B	-1.76B	-11.41B
Balance Sheet
Total Assets	208.90B	211.14B	178.80B	188.78B	191.21B
Cash, Cash Equivalents and Short-Term Investments	14.91B	20.20B	16.11B	16.79B	18.31B
Total Debt	71.21B	71.27B	58.28B	73.22B	78.25B
Total Liabilities	115.74B	116.67B	92.32B	107.95B	110.60B
Stockholders Equity	93.06B	94.37B	86.39B	80.03B	80.18B
Cash Flow
Free Cash Flow	-4.40B	-7.57B	5.00B	2.41B	-10.45B
Operating Cash Flow	-586.00M	8.13B	6.06B	4.81B	-8.14B
Investing Cash Flow	-1.43B	-15.24B	9.71B	-1.67B	-3.11B
Financing Cash Flow	-3.76B	11.78B	-13.51B	-4.98B	8.02B

Shochiku Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14700.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 14700 is above the 20-day moving average (MA) of 13423.50, above the 50-day MA of 13468.40, and above the 200-day MA of 12324.26, indicating a bullish trend. The MACD of 321.51 indicates Negative momentum. The RSI at 73.43 is Negative, neither overbought nor oversold. The STOCH value of 89.03 is Negative, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9602	77 Outperform	$1.64T	43.09	8.33%	0.84%	5.73%	-19.25%
9605	70 Neutral	¥378.88B	21.12		0.51%	5.14%	12.51%
4816	67 Neutral	¥688.32B	28.62		0.92%	5.92%	12.22%
6879	66 Neutral	¥35.11B	34.55		1.90%	3.29%	-321.34%
Sector *	66 Neutral	¥496.21B	16.68	1.07%	2.18%	6.46%	-14.78%
7860	61 Neutral	€57.50B	786.56	0.09%	3.96%	9.39%	-37.75%
9601	50 Neutral	¥194.61B	209.09		0.20%	5.41%	-28.32%

Shochiku Co., Ltd. Corporate Events

Shochiku Co., Ltd. Revises Earnings Forecast Following Extraordinary Income

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

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

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

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

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

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.