Toei Company, Ltd. (9605) AI Stock Analysis

• Market Cap: ¥403.90B
• Dividend Yield: 0.32%
• Average Volume (3M): 71.24K
• Price to Earnings (P/E): 17.5
• Beta (1Y): 0.38
• Revenue Growth: 6.38%
• EPS Growth: 38.69%
• Country: JP
• Employees: 1,098
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): 129.44
• Shares Outstanding: 73,844,540
• 10 Day Avg. Volume: 86,340
• 30 Day Avg. Volume: 71,236
• PEG Ratio: 1.59
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 1.74
• P/FCF Ratio: 12.35
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ¥6,098.00 ▲(7.93% Upside)

Toei Company, Ltd. receives a strong overall stock score driven by its solid financial performance and positive technical analysis. The company's robust revenue growth, profitability, and operational efficiency are significant strengths. However, the high P/E ratio and low dividend yield suggest potential overvaluation, which slightly offsets the positive aspects.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective monetization of content, supporting long-term business sustainability.

Cash Flow Generation

Robust cash flow generation enhances financial flexibility, enabling strategic investments and cushioning against economic downturns.

Balance Sheet Strength

A strong balance sheet with low leverage reduces financial risk, supporting sustainable growth and investment capacity.

Negative Factors

Negative Cash Flow from Investing

Negative cash flow from investing may indicate high capital expenditure, which could strain liquidity if not managed carefully.

Low Dividend Yield

A low dividend yield may deter income-focused investors, potentially impacting stock attractiveness and market perception.

High P/E Ratio

A high P/E ratio may indicate overvaluation, which could lead to market corrections if growth expectations are not met.

Toei Company, Ltd. Business Overview & Revenue Model

Company Description

Toei Company, Ltd. (9605) is a prominent Japanese film, television, and animation production company headquartered in Tokyo. Established in 1951, Toei operates across multiple sectors, including live-action and animated film production, television broadcasting, and licensing. The company is renowned for its extensive catalog of anime series, feature films, and live-action productions, catering to a diverse audience both domestically and internationally. Key franchises include 'Dragon Ball,' 'One Piece,' and 'Sailor Moon,' which have solidified Toei's position as a leader in the entertainment industry.

How the Company Makes Money

Toei Company generates revenue through a multifaceted business model that includes several key streams. Primarily, the company earns significant income from theatrical releases of its films, both animated and live-action, which generate box office revenue. Additionally, Toei produces television content, including anime series and dramas, which are monetized through broadcasting rights, syndication, and advertising revenue. Licensing and merchandising of popular franchises also contribute substantially to Toei's revenue, as the company licenses characters and stories for a wide range of products, from toys to apparel. Furthermore, Toei benefits from international distribution deals, expanding its reach and enhancing revenue opportunities in global markets. Strategic partnerships with streaming platforms and other media companies further bolster its earnings by providing additional channels for content distribution.

Toei Company, Ltd. Financial Statement Overview

Summary

Toei Company, Ltd. demonstrates strong financial performance with robust revenue growth, healthy profitability, and operational efficiency. The balance sheet is stable with low leverage, and cash flow generation is effective despite negative cash flow from investing activities.

Income Statement

Toei Company, Ltd. has demonstrated strong revenue growth with a revenue increase of 4.99% from 2024 to 2025. The gross profit margin stands at 41.84%, and the net profit margin is 8.74%, indicating healthy profitability. There is a consistent increase in both EBIT and EBITDA margins, reflecting operational efficiency in the entertainment industry.

Balance Sheet

The company maintains a robust balance sheet with a low debt-to-equity ratio of 0.07, showcasing financial stability and low leverage risk. ROE is strong at 5.94%, indicating efficient utilization of equity. The equity ratio of 57.07% further highlights a solid capital structure with substantial shareholder equity.

Cash Flow

Toei's cash flow position is strong, with a free cash flow growth rate of 49.34% from 2024 to 2025. The operating cash flow to net income ratio is 2.14, suggesting effective cash generation. The free cash flow to net income ratio of 1.61 indicates significant cash flow generation relative to earnings, although cash flow from investing activities is negative, which may warrant attention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	179.41B	179.92B	171.34B	174.36B	117.54B	107.65B
Gross Profit	75.71B	75.29B	66.89B	71.45B	46.99B	39.90B
EBITDA	41.32B	43.78B	39.16B	42.15B	25.84B	21.51B
Net Income	15.54B	15.72B	13.97B	15.03B	8.98B	7.28B
Balance Sheet
Total Assets	467.91B	463.64B	411.41B	379.89B	348.56B	324.20B
Cash, Cash Equivalents and Short-Term Investments	104.78B	105.45B	105.18B	93.61B	81.63B	68.52B
Total Debt	18.19B	17.41B	14.23B	15.57B	17.92B	18.54B
Total Liabilities	110.06B	109.31B	95.18B	96.72B	87.44B	80.06B
Stockholders Equity	270.49B	264.64B	236.45B	212.62B	200.76B	190.37B
Cash Flow
Free Cash Flow	0.00	25.37B	16.98B	21.79B	6.82B	-1.95B
Operating Cash Flow	0.00	33.65B	22.08B	27.32B	14.48B	1.77B
Investing Cash Flow	0.00	-17.47B	-9.80B	-7.82B	-17.86B	-7.80B
Financing Cash Flow	0.00	-4.62B	-7.54B	-6.60B	-3.40B	5.44B

Toei Company, Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5650.00
• 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:9605, the sentiment is Positive. The current price of 5650 is below the 20-day moving average (MA) of 5692.00, above the 50-day MA of 5578.60, and above the 200-day MA of 5219.40, indicating a neutral trend. The MACD of 22.84 indicates Positive momentum. The RSI at 50.57 is Neutral, neither overbought nor oversold. The STOCH value of 24.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9605.

Toei Company, Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9605	75 Outperform	¥403.90B	17.49	―	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%	1.10%	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%
9601	46 Neutral	¥168.10B	41.32	―	0.25%	14.49%	―

Toei Company, Ltd. Corporate Events

Toei Company Reports Strong First Half Financial Results

Toei Company, Ltd. reported a 4.1% increase in net sales and a significant 57% rise in profit attributable to owners for the first six months of the fiscal year ending March 31, 2026. Despite a slight decline in operating profit forecast for the full year, the company’s strong performance in the first half indicates a positive trajectory, potentially strengthening its market position and benefiting stakeholders.