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

• Market Cap: ¥179.77B
• Dividend Yield: 0.23%
• Average Volume (3M): 32.75K
• Price to Earnings (P/E): 193.2
• Beta (1Y): 0.25
• Revenue Growth: 5.41%
• EPS Growth: -28.32%
• Country: JP
• Employees: 1,421
• Sector: Communication Services
• Sector Strength: 73
• Industry: Entertainment
• EPS (TTM): -24.47
• Shares Outstanding: 13,937,857
• 10 Day Avg. Volume: 42,250
• 30 Day Avg. Volume: 32,750
• PEG Ratio: 8.78
• Price to Book (P/B): 1.93
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 48 Neutral
• 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. 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 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

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: 13090.00
• 50DMA: Negative
• 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: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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	56 Neutral	HK$68.29B	-1.90	-3.62%	5.43%	-4.09%	-17.08%
9601	48 Neutral	¥179.77B	193.16		0.23%	5.41%	-28.32%
TKCOF	―	$11.14B	44.12	8.33%	<0.01%	―	―
AX8	―	€332.07M	44.86	2.03%	4.19%	―	―
9605	70 Neutral	¥375.31B	20.67		0.23%	5.01%	12.53%
4816	67 Neutral	¥681.01B	28.22		0.95%	5.28%	11.13%
6879	66 Neutral	¥35.16B	34.55		1.89%	-2.78%	-256.53%

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.