Toho Co (9602) AI Stock Analysis

• Market Cap: $1.56T
• Dividend Yield: 0.99%
• Average Volume (3M): 689.48K
• Price to Earnings (P/E): 41.0
• Beta (1Y): 0.04
• Revenue Growth: 5.73%
• EPS Growth: -19.25%
• Country: JP
• Employees: 3,617
• Sector: Communication Services
• Sector Strength: 94
• Industry: Entertainment
• EPS (TTM): 45.27
• Shares Outstanding: 176,000,000
• 10 Day Avg. Volume: 646,140
• 30 Day Avg. Volume: 689,476
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.67
• Enterprise Value/Revenue: 3.35
• Enterprise Value/Gross Profit: 7.39
• Enterprise Value/Ebitda: 14.18
• 1Y Price Target: $8,599.85
• Price Target Upside: -8.35% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 62 Neutral
• Price Target: ¥9,972.00 ▲(6.28% Upside)

Toho Co's overall stock score is driven primarily by its strong financial performance, characterized by solid profitability and a robust balance sheet. However, the high P/E ratio and modest dividend yield suggest valuation concerns, while technical indicators show mixed momentum.

Toho Co Business Overview & Revenue Model

Company Description

Toho Co., Ltd. is a prominent Japanese entertainment company, headquartered in Tokyo, Japan. It is best known for its film production and distribution, particularly of the Godzilla franchise and various anime films. Toho operates across several sectors, including film, theater, and real estate. Its core products and services revolve around film production, distribution, and exhibition, managing a network of cinemas, and owning and leasing real estate properties.

How the Company Makes Money

Toho Co. makes money through a diversified revenue model primarily centered around its entertainment and real estate operations. The company's key revenue streams include box office sales from its cinema chain, revenue from film production and distribution, and income from its real estate holdings. Toho benefits significantly from its iconic franchises, such as Godzilla, which generate substantial box office revenues and merchandise sales. Additionally, the company partners with major studios for co-productions and distribution agreements, enhancing its revenue potential. Toho's real estate segment contributes to its earnings through leasing and managing commercial properties, providing a stable income source to complement its entertainment ventures.

Toho Co Financial Statement Overview

Summary

Toho Co demonstrates strong financial health with solid profitability, low leverage, and improving cash flow generation. Despite a recent decline in revenue growth, the company's efficient operations and strong balance sheet position it well to navigate industry challenges.

Income Statement

Toho Co's income statement shows strong profitability with a consistent gross profit margin around 46% and a net profit margin of approximately 13.8% in the TTM period. However, the revenue growth rate has turned negative in the TTM, indicating a potential slowdown in revenue generation. Despite this, EBIT and EBITDA margins remain healthy, reflecting efficient cost management.

Balance Sheet

The balance sheet is robust with a very low debt-to-equity ratio, indicating minimal leverage and financial risk. Return on equity is solid at around 9.5% in the TTM, showcasing effective use of shareholder funds. The equity ratio is strong, reflecting a stable financial position with a high proportion of assets funded by equity.

Cash Flow

Cash flow analysis reveals a significant improvement in free cash flow growth in the TTM, suggesting enhanced cash generation capabilities. The operating cash flow to net income ratio is moderate, indicating a reasonable conversion of income into cash. However, the free cash flow to net income ratio is lower, suggesting some room for improvement in cash flow efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	312.07B	313.17B	283.35B	244.29B	228.37B	191.95B
Gross Profit	141.26B	138.71B	130.57B	108.63B	94.84B	68.46B
EBITDA	73.66B	81.18B	77.80B	61.84B	54.32B	33.28B
Net Income	38.77B	43.36B	45.28B	33.43B	29.57B	14.69B
Balance Sheet
Total Assets	667.99B	653.07B	615.83B	534.10B	502.53B	473.80B
Cash, Cash Equivalents and Short-Term Investments	88.62B	81.94B	79.93B	105.24B	133.05B	125.02B
Total Debt	1.83B	1.91B	3.35B	438.00M	104.00M	175.00M
Total Liabilities	164.80B	158.25B	131.07B	110.41B	93.35B	84.80B
Stockholders Equity	486.42B	478.39B	458.89B	409.31B	395.72B	375.82B
Cash Flow
Free Cash Flow	32.19B	19.09B	21.66B	28.48B	26.52B	3.00B
Operating Cash Flow	50.18B	51.62B	43.35B	45.40B	53.46B	12.51B
Investing Cash Flow	-22.27B	-18.46B	-62.71B	-9.18B	-36.03B	-27.23B
Financing Cash Flow	-36.01B	-39.30B	-11.63B	-19.13B	-12.48B	-17.22B

Toho Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9383.00
• 50DMA: Positive
• 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:9602, the sentiment is Positive. The current price of 9383 is below the 20-day moving average (MA) of 9525.72, above the 50-day MA of 9225.86, and above the 200-day MA of 7662.16, indicating a neutral trend. The MACD of -5.29 indicates Positive momentum. The RSI at 50.08 is Neutral, neither overbought nor oversold. The STOCH value of 55.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9602.

Toho Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9602	62 Neutral	$1.56T	41.03	8.33%	0.99%	5.73%	-19.25%
Sector *	60 Neutral	$47.13B	4.38	-11.40%	4.21%	1.87%	-42.87%
AX8	―	€344.01M	1,006.94	0.09%	―	―	―
3791	69 Neutral	¥30.97B	35.58		0.97%	23.28%	-57.08%
9605	69 Neutral	¥374.59B	20.88		0.51%	5.14%	12.51%
4816	60 Neutral	¥629.83B	26.19		1.03%	5.92%	12.22%
9601	46 Neutral	¥174.42B	187.40		0.24%	5.41%	-28.32%

Toho Co Corporate Events

TOHO Co. Revises Earnings Forecast Following Securities Sale

TOHO Co., Ltd. announced an anticipated gain of 8.9 billion yen from the sale of investment securities, recorded as extraordinary income, as part of its strategy to reduce cross-shareholdings. This financial maneuver has prompted the company to revise its full-year earnings forecast for the fiscal year ending February 2026, projecting an increase in net profit attributable to owners of the parent by 6 billion yen, reflecting a 16% rise.

The most recent analyst rating on (JP:9602) stock is a Hold with a Yen7600.00 price target. To see the full list of analyst forecasts on Toho Co stock, see the JP:9602 Stock Forecast page.

Toho Co., Ltd. Reports Decline in Q1 2025 Financial Performance

Toho Co., Ltd. reported a decrease in its financial performance for the three months ending May 31, 2025, with operating revenue slightly declining by 1.3% year-on-year. The company also experienced significant drops in operating profit and profit attributable to owners of the parent, indicating challenges in maintaining profitability amid market conditions.

The most recent analyst rating on (JP:9602) stock is a Hold with a Yen7600.00 price target. To see the full list of analyst forecasts on Toho Co stock, see the JP:9602 Stock Forecast page.

TOHO Co., Ltd. to Sell Marui Group Shares in Strategic Move

TOHO Co., Ltd. has announced its decision to sell its entire holdings of 3,779,300 shares of Marui Group Co., Ltd. as part of a secondary offering. This move is aimed at reducing cross-shareholdings and is expected to result in an extraordinary profit for TOHO in the second quarter of the fiscal year ending February 2026.

The most recent analyst rating on (JP:9602) stock is a Hold with a Yen7600.00 price target. To see the full list of analyst forecasts on Toho Co stock, see the JP:9602 Stock Forecast page.

Toho Co. Completes Treasury Share Disposition for Executive Remuneration

Toho Co., Ltd. has completed the payment for the disposition of treasury shares as restricted share remuneration, as resolved in the Board of Directors meeting on May 29, 2025. This move involves the allocation of 15,603 common shares to directors and executive officers, with a total disposition value of 119,550,186 Yen, potentially impacting the company’s governance and executive compensation structure.

The most recent analyst rating on (JP:9602) stock is a Hold with a Yen7600.00 price target. To see the full list of analyst forecasts on Toho Co stock, see the JP:9602 Stock Forecast page.

Toho Co. Announces Treasury Share Disposition for Executive Incentives

Toho Co., Ltd. has announced a resolution to dispose of 15,603 treasury shares as restricted share remuneration for its directors and executive officers. This move is part of a plan to incentivize medium-to-long-term growth in corporate value and shareholder value, with a negligible dilution rate of 0.01%, reflecting the company’s strategic focus on aligning management interests with those of shareholders.

The most recent analyst rating on (JP:9602) stock is a Hold with a Yen7600.00 price target. To see the full list of analyst forecasts on Toho Co stock, see the JP:9602 Stock Forecast page.

TOHO Co., Ltd. Announces Executive Restructuring to Enhance Strategic Operations

TOHO Co., Ltd. announced a restructuring of its executive leadership following its 136th Annual General Meeting. The changes, effective May 29, 2025, involve adjustments in the roles and responsibilities of several key executives, aiming to strengthen the company’s strategic planning and operational efficiency. This restructuring is expected to enhance TOHO’s market positioning and operational capabilities in the entertainment sector.

The most recent analyst rating on (JP:9602) stock is a Hold with a Yen7600.00 price target. To see the full list of analyst forecasts on Toho Co stock, see the JP:9602 Stock Forecast page.

TOHO Co. Announces Dissolution of Subsidiary Following Theater Closure

TOHO CO., LTD. has announced the dissolution of its subsidiary, Kansai Kyouei Kougyo Co., Ltd., which managed the ‘Matsue Toho Five’ movie theater in Matsue City. The decision follows the closure of the theater in January 2025. The dissolution is expected to have a negligible impact on TOHO’s consolidated financial results.

The most recent analyst rating on (JP:9602) stock is a Hold with a Yen7600.00 price target. To see the full list of analyst forecasts on Toho Co stock, see the JP:9602 Stock Forecast page.