Toei Company, Ltd. (9605) AI Stock Analysis

• Market Cap: ¥376.74B
• Dividend Yield: 0.32%
• Average Volume (3M): 71.24K
• Price to Earnings (P/E): 21.0
• Beta (1Y): 0.36
• Revenue Growth: 5.14%
• EPS Growth: 12.51%
• Country: JP
• Employees: 1,098
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): 62.31
• 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: ¥6,200.00
• Price Target Upside: 11.51% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 75 Outperform
• Price Target: ¥6,098.00 ▲(9.68% 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.

Toei Company, Ltd. Business Overview & Revenue Model

Company Description

Toei Company, Ltd. engages in the production of movies, TV shows, animation, and various other video products in Japan. The company plans, develops, produces, and distributes theatrical movies and events; engages in online shopping business; manages and operates movie theatres and cinema complexes; offers DVDs and Blu-ray discs; and provides video content distribution services. It also offers content to Toei Channel, a CS broadcasting station, as well as various broadcasting media; and grants videogram rights to stations. In addition, the company provides commoditizing rights for toys, apparel, everyday items, food products, stationeries, publications, CDs, DVDs, games, gaming machines, and theme parks. Further, it operates movie studios; undertakes various cultural events; offers real estate leasing services for office buildings and rental apartment buildings; owns and operates a golf course; and operates hotels. Toei Company, Ltd. was incorporated in 1949 and is based in Tokyo, Japan.

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. shows 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, although negative cash flow from investing activities requires attention.

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: 5560.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 5560 is above the 20-day moving average (MA) of 5488.00, above the 50-day MA of 5356.15, and above the 200-day MA of 5207.61, indicating a bullish trend. The MACD of 44.47 indicates Negative momentum. The RSI at 57.22 is Neutral, neither overbought nor oversold. The STOCH value of 75.00 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	―	¥376.74B	21.00	―	0.32%	5.14%	12.51%
3791	―	¥30.47B	36.72	―	1.06%	-4.66%	-56.66%
4816	―	¥632.96B	26.32	―	1.04%	5.92%	12.22%
9602	―	$1.49T	30.00	10.28%	1.03%	10.99%	2.35%
Sector *	―	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
6879	―	―	―	―	―	3.29%	-321.34%
9601	―	¥175.10B	42.35	―	0.24%	14.49%	―

Toei Company, Ltd. Corporate Events

Toei Company Reports Mixed Financial Results for 1Q FY 2026

Toei Company, Ltd. reported a slight decline in net sales and operating profit for the first quarter of fiscal year 2026, despite achieving the highest ordinary profit for the same period since 2004. The decrease in sales from streaming rights and merchandise, coupled with increased selling, general, and administrative expenses, contributed to the decline in operating profit, highlighting challenges in the company’s film and video business.

The most recent analyst rating on (JP:9605) stock is a Hold with a Yen6100.00 price target. To see the full list of analyst forecasts on Toei Company, Ltd. stock, see the JP:9605 Stock Forecast page.

Toei Company Reports First Quarter Financial Results with Slight Decline in Profits

Toei Company, Ltd. reported a slight decrease in net sales and operating profit for the first quarter of the fiscal year ending March 31, 2026, compared to the previous year. Despite these declines, the company maintained a stable financial position with a slight increase in total assets and net assets. The forecast for the full fiscal year anticipates a decrease in net sales and profits, reflecting challenges in the market environment.

The most recent analyst rating on (JP:9605) stock is a Hold with a Yen6100.00 price target. To see the full list of analyst forecasts on Toei Company, Ltd. stock, see the JP:9605 Stock Forecast page.