Toho Co (9602) AI Stock Analysis

• Market Cap: $1.43T
• Dividend Yield: 1.07%
• Average Volume (3M): 645.54K
• Price to Earnings (P/E): 29.1
• Beta (1Y): <0.01
• Revenue Growth: 10.99%
• EPS Growth: 2.35%
• Country: JP
• Employees: 3,617
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): N/A
• Shares Outstanding: 176,000,000
• 10 Day Avg. Volume: 946,210
• 30 Day Avg. Volume: 645,536
• PEG Ratio: -15.16
• Price to Book (P/B): 2.52
• Price to Sales (P/S): 3.85
• P/FCF Ratio: 63.19
• Enterprise Value/Market Cap: 0.73
• Enterprise Value/Revenue: 3.06
• Enterprise Value/Gross Profit: 6.96
• Enterprise Value/Ebitda: 11.65
• 1Y Price Target: $9,363.94
• Price Target Upside: 10.82% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: ¥9,599.00 ▲(13.60% Upside)

Toho Co's overall stock score is driven by its strong financial performance, characterized by solid profitability and a robust balance sheet. However, technical analysis indicates potential bearish momentum, and the high P/E ratio suggests overvaluation concerns. The lack of earnings call data and notable corporate events limits additional insights.

Positive Factors

Strong Financial Health

Toho's robust balance sheet with low leverage and strong cash flow generation positions it well to handle industry challenges and invest in growth.

Diversified Revenue Model

The diversified revenue streams from entertainment and real estate provide Toho with stability and reduce reliance on any single income source.

Iconic Franchises

Owning iconic franchises like Godzilla ensures a steady stream of revenue from box office sales and merchandise, supporting long-term profitability.

Negative Factors

Decline in Revenue Growth

A decline in revenue growth could indicate challenges in market expansion or competition, potentially impacting future earnings if not addressed.

Negative Revenue Growth Rate

Negative revenue growth suggests potential issues in maintaining sales momentum, which could affect long-term profitability if trends persist.

Free Cash Flow Efficiency

Lower free cash flow efficiency may limit Toho's ability to reinvest in growth opportunities and manage financial obligations effectively.

Toho Co Business Overview & Revenue Model

Company Description

Toho Co., Ltd. (9602) is a prominent Japanese entertainment conglomerate primarily engaged in the film production and distribution sectors. Established in 1932, the company is renowned for its influential role in the Japanese film industry, producing a wide array of films, including popular anime and live-action movies. Toho also operates a significant distribution network for theatrical releases and has interests in television, merchandising, and theme parks, making it a multifaceted player in the entertainment landscape.

How the Company Makes Money

Toho generates revenue through multiple streams, primarily focusing on film production and distribution. The company earns substantial income from box office sales of its films, both domestically and internationally. Additionally, Toho capitalizes on its extensive film catalog by licensing content for television broadcasts and streaming services. Revenues are further bolstered through merchandise sales related to its film franchises, such as toys, apparel, and collectibles. Partnerships with other media companies and collaborations on co-productions also contribute to its earnings. Furthermore, Toho's stake in theme parks and attractions adds a unique revenue stream, attracting visitors and fans of its popular properties, thereby enhancing overall profitability.

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	341.17B	313.17B	283.35B	244.29B	228.37B	191.95B
Gross Profit	150.02B	138.71B	130.57B	108.63B	94.84B	68.46B
EBITDA	89.66B	81.18B	77.80B	61.84B	54.32B	33.28B
Net Income	50.32B	43.36B	45.28B	33.43B	29.57B	14.69B
Balance Sheet
Total Assets	715.72B	653.07B	615.83B	534.10B	502.53B	473.80B
Cash, Cash Equivalents and Short-Term Investments	121.81B	81.94B	79.93B	105.24B	133.05B	125.02B
Total Debt	1.76B	1.91B	3.35B	438.00M	104.00M	175.00M
Total Liabilities	188.23B	158.25B	131.07B	110.41B	93.35B	84.80B
Stockholders Equity	510.37B	478.39B	458.89B	409.31B	395.72B	375.82B
Cash Flow
Free Cash Flow	47.13B	19.09B	21.66B	28.48B	26.52B	3.00B
Operating Cash Flow	66.18B	51.62B	43.35B	45.40B	53.46B	12.51B
Investing Cash Flow	-13.33B	-18.46B	-62.71B	-9.18B	-36.03B	-27.23B
Financing Cash Flow	-35.59B	-39.30B	-11.63B	-19.13B	-12.48B	-17.22B

Toho Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8450.00
• 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:9602, the sentiment is Negative. The current price of 8450 is below the 20-day moving average (MA) of 8897.65, below the 50-day MA of 9152.44, and below the 200-day MA of 8476.23, indicating a bearish trend. The MACD of -174.49 indicates Positive momentum. The RSI at 36.59 is Neutral, neither overbought nor oversold. The STOCH value of 15.71 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9602.

Toho Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9605	75 Outperform	¥398.90B	22.23	―	0.32%	6.38%	38.69%
3791	69 Neutral	¥27.67B	33.35	―	1.08%	-4.66%	-56.66%
9602	62 Neutral	$1.43T	29.05	10.28%	1.07%	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%
7860	52 Neutral	€55.45B	758.56	0.69%	4.24%	11.52%	162.04%
9601	46 Neutral	¥168.10B	41.32	―	0.24%	14.49%	―

Toho Co Corporate Events

Toho Co., Ltd. Completes Treasury Share Acquisition

Toho Co., Ltd. announced the successful completion of its tender offer for treasury shares, which was resolved by the board of directors on October 15, 2025. The tender offer, conducted from October 16 to November 13, 2025, aimed to acquire treasury shares as part of the company’s strategic financial management. This acquisition is expected to impact the company’s capital structure and shareholder value positively.

TOHO Co., Ltd. Reports No Treasury Shares Acquired in October

TOHO Co., Ltd. announced that it has not acquired any treasury shares during the specified period from October 16 to October 31, 2025, despite a board resolution allowing for the acquisition of up to 2,000,100 shares. The lack of acquisition may impact the company’s financial strategies and market perception, as stakeholders were informed of a potential buyback plan.

Toho Co. Announces Treasury Share Acquisition and Tender Offer

Toho Co., Ltd. has announced a resolution to acquire its treasury shares through a tender offer, as part of its strategy to enhance shareholder returns. This move aligns with the company’s mid-term plan to maintain a minimum annual dividend of 85 yen and a dividend payout ratio of 35% or more. The acquisition is also influenced by H2O Retailing Corporation’s decision to sell a portion of its shares in Toho as part of its own financial strategy, potentially impacting Toho’s shareholding structure.

TOHO Co. Revises Earnings Forecast Upwards Amid Strong Film Business Performance

TOHO Co., Ltd. has revised its full-year consolidated earnings forecasts for the fiscal year ending February 2026, reflecting a significant increase in expected operating revenue and profits. The upward revision is driven by the exceptional performance of its Film business, particularly due to the success of films like ‘Demon Slayer: Kimetsu no Yaiba Infinity Castle’ and ‘KOKUHO,’ along with strong results in its IP and Anime, Theatrical, and Real Estate segments. This adjustment indicates a positive outlook for the company’s financial performance, potentially benefiting stakeholders.

Toho Co. Reports Strong Financial Performance and Positive Outlook

Toho Co., Ltd. reported a 17.1% increase in operating revenue for the six months ended August 31, 2025, with a notable 26.3% rise in profit attributable to owners of the parent. The company has revised its earnings forecast for the fiscal year ending February 28, 2026, indicating a positive outlook with expected increases in operating revenue and profit, reflecting strong performance and strategic positioning in the market.

TOHO-TOWA Partners with Warner Bros. for Japanese Film Distribution

Toho-Towa Co., Ltd., a subsidiary of TOHO CO., LTD., has signed a multi-year agreement with Warner Bros. Motion Picture Group to distribute Warner Bros.’ Hollywood films in Japan starting in 2026. The agreement, which involves Towa Pictures Co., Ltd. handling marketing and TOHO CO., LTD. managing sales operations, is expected to have a minor impact on TOHO’s consolidated financial results.

Toho Co. Announces Increased Interim Dividend Payout

Toho Co., Ltd. announced a resolution to distribute an interim dividend from surplus, with a record date of August 31, 2025. The dividend per share is set at ¥42.5, marking an increase from the previous interim period. This decision reflects the company’s strong financial performance and commitment to returning value to shareholders.