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

• Market Cap: ¥168.10B
• Dividend Yield: 0.25%
• Average Volume (3M): 44.79K
• Price to Earnings (P/E): 41.3
• Beta (1Y): 0.20
• Revenue Growth: 14.49%
• EPS Growth: N/A
• Country: JP
• Employees: 1,421
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): -24.47
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: ¥13,152.00 ▲(10.24% Upside)

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

Market Position

Shochiku's strong market position in the Japanese entertainment industry, particularly in film and traditional arts, provides a durable competitive advantage and supports long-term revenue potential.

Diverse Revenue Streams

Shochiku's diverse revenue streams from films, theater, and partnerships mitigate risk and enhance financial stability, supporting sustainable growth over time.

Cultural Heritage

Shochiku's role in preserving traditional Japanese arts like Kabuki strengthens its brand and ensures a loyal customer base, contributing to long-term business sustainability.

Negative Factors

Declining Revenues

The trend of declining revenues over recent years indicates potential challenges in maintaining market share and profitability, impacting long-term financial health.

High Leverage

Shochiku's high leverage poses a risk to financial flexibility and increases vulnerability to economic downturns, potentially affecting its ability to invest in growth opportunities.

Negative Cash Flow

Persistent negative cash flow indicates operational challenges and limits Shochiku's capacity to fund new projects or reduce debt, threatening long-term financial stability.

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 through multiple streams. The primary source of income comes from its film production and distribution activities, where it earns money from box office sales, licensing fees, and home entertainment sales such as DVDs and digital streaming. Additionally, the company profits from its theater operations by selling tickets for kabuki performances and other live shows. Shochiku also benefits from partnerships with television networks for content distribution, as well as merchandise sales related to its productions. The company's diverse portfolio allows it to capitalize on various aspects of the entertainment industry, thus contributing to its overall financial performance.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	86.15B	83.97B	85.43B	78.21B	71.83B	52.43B
Gross Profit	37.17B	33.67B	35.98B	31.92B	25.43B	19.14B
EBITDA	6.94B	6.07B	8.20B	13.10B	3.19B	214.00M
Net Income	929.00M	-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	20.20B	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	107.95B	110.60B
Stockholders Equity	95.85B	93.06B	94.37B	86.39B	80.03B	80.18B
Cash Flow
Free Cash Flow	0.00	-4.40B	-7.57B	5.00B	2.41B	-10.45B
Operating Cash Flow	0.00	-586.00M	8.13B	6.06B	4.81B	-8.14B
Investing Cash Flow	0.00	-3.66B	-15.24B	9.71B	-1.67B	-3.11B
Financing Cash Flow	0.00	-1.53B	11.78B	-13.51B	-4.98B	8.02B

Shochiku Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11930.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 11930 is below the 20-day moving average (MA) of 12588.50, below the 50-day MA of 12598.40, and below the 200-day MA of 12998.66, indicating a bearish trend. The MACD of -158.03 indicates Positive momentum. The RSI at 36.48 is Neutral, neither overbought nor oversold. The STOCH value of 5.02 is Positive, 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	75 Outperform	¥401.04B	17.36	―	0.32%	6.38%	38.69%
9602	62 Neutral	$1.43T	29.05	10.28%	1.10%	10.99%	2.35%
4816	61 Neutral	¥586.17B	23.53	―	1.21%	5.90%	17.39%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
6879	55 Neutral	―	―	―	―	3.29%	-321.34%
7860	52 Neutral	€55.45B	758.56	0.69%	4.30%	11.52%	162.04%
9601	46 Neutral	¥168.10B	41.32	―	0.25%	14.49%	―

Shochiku Co., Ltd. Corporate Events

Shochiku Co., Ltd. Revises Earnings Forecasts Upward Amid Strong Performance

Shochiku Co., Ltd. has revised its full-year earnings forecasts upward for the fiscal year ending February 28, 2026, due to stronger-than-expected performance in its theater and movie theater businesses. The success of kabuki performances and summer movies has led to increased sales, operating profit, and ordinary profit, positively impacting both consolidated and non-consolidated earnings forecasts.

Shochiku Co., Ltd. Reports Strong Financial Growth and Positive Outlook

Shochiku Co., Ltd. reported significant financial growth for the six months ending August 31, 2025, with a 25.4% increase in net sales and a substantial rise in operating profit by 494.3%. The company has revised its earnings forecasts for the fiscal year ending February 28, 2026, indicating a positive outlook, which may enhance its market position and stakeholder confidence.