Tokyo Theatres Company, Incorporated (9633) AI Stock Analysis

• Market Cap: ¥12.79B
• Dividend Yield: 0.69%
• Average Volume (3M): 18.82K
• Price to Earnings (P/E): 35.0
• Beta (1Y): 0.12
• Revenue Growth: 8.43%
• EPS Growth: -40.48%
• Country: JP
• Employees: 448
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 11.10
• Shares Outstanding: 8,013,000
• 10 Day Avg. Volume: 12,610
• 30 Day Avg. Volume: 18,820
• PEG Ratio: <0.01
• Price to Book (P/B): 0.49
• Price to Sales (P/S): 0.41
• P/FCF Ratio: -2.61
• 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: 73 Outperform
• Price Target: ¥1,889.00 ▲(23.87% Upside)
• Action: Reiterated Date: 10/23/25
• Date: Action: Reiterated 10/23/25

The overall stock score is driven by strong technical analysis and attractive valuation. The stock's upward momentum and low P/E ratio suggest potential for growth. However, financial performance is tempered by cash flow challenges, which slightly offset the positive aspects.

Positive Factors

Steady Revenue Growth

Consistent top-line growth across recent years indicates expanding attendance or per-visit spend, supporting longer-term revenue momentum. Durable revenue expansion improves ability to cover fixed theater costs, fund modest reinvestment, and sustain operational scale over the next several quarters.

Improved Profitability

Material margin improvement and a near-20% ROE signal stronger pricing, cost control, or mix shifts (concessions vs tickets). Higher and sustainable margins enhance cash-earning potential per revenue dollar, support operating leverage and create a more resilient earnings base over the medium term.

Balanced Capital Structure

Moderate leverage and a solid equity ratio provide financial flexibility to fund capex or withstand cyclical attendance swings. A conservative balance sheet reduces refinancing risk and preserves options for selective investments or partnerships without overburdening cash flow.

Negative Factors

Negative Free Cash Flow

Persistent negative free cash flow and weak operating cash conversion limit the firm's ability to self-fund capital needs, dividends or deleveraging. Over months this raises dependence on external financing, constrains strategic flexibility, and heightens vulnerability to shocks in attendance or costs.

Earnings Volatility

Sharp negative EPS growth suggests earnings are volatile and potentially driven by one-offs or margin swings. This unpredictability undermines forecasting, complicates capital allocation decisions, and increases execution risk for multi-quarter plans tied to profitability targets.

Revenue Concentration Risk

Heavy reliance on box office and in-theater concessions ties revenue to film release schedules and discretionary consumer spending. Such structural cyclicality produces persistent quarter-to-quarter variability and limits diversification unless management expands non-ticket revenue or alternative distribution channels.

Tokyo Theatres Company, Incorporated Business Overview & Revenue Model

Company Description

Tokyo Theatres Company, Incorporated engages in the real estate, video related, food, and other businesses in Japan. The company is involved in the real estate leasing and management; rental office and restaurant management; and refurbishment and remodelling of second-hand condominiums. It also engages in the production and distribution of movies and dramas; advertising and event planning business; and movie box office business, as well as manages movie theatres. The company was founded in 1946 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Tokyo Theatres Company, Incorporated makes money primarily by operating movie theaters and selling access to film screenings. Key revenue streams are (1) box office receipts from ticket sales for movie showings and (2) in-theater concession sales (e.g., food and beverages) tied to customer attendance. Other material revenue streams, specific breakdowns, or named partnerships (e.g., with film distributors, theater chains, or property/real-estate partners) are null.

Tokyo Theatres Company, Incorporated Financial Statement Overview

Summary

Tokyo Theatres Company, Incorporated has shown solid revenue growth and improved profitability metrics in recent years. The balance sheet is stable with moderate leverage and strong equity utilization. However, the cash flow position remains challenging, with negative Free Cash Flow indicating potential liquidity issues. Overall, while profitability and balance sheet health have strengthened, cash flow management requires attention.

Income Statement

The company's revenue has shown steady growth over the past few years, with a notable increase of 7.6% from 2023 to 2024 and 13.7% from 2024 to 2025. Gross Profit Margin is strong at approximately 26.9% for 2025, and Net Profit Margin improved significantly to 16.5% in 2025, indicating enhanced profitability. The EBIT and EBITDA margins also show improvement, signaling operational efficiency gains. However, the earlier years showed volatility in profitability, which could be a concern.

Balance Sheet

The company maintains a moderate Debt-to-Equity ratio of about 0.40 in 2025, reflecting a balanced leverage position. The Return on Equity (ROE) has improved significantly to 19.6% in 2025, indicating better utilization of equity. The Equity Ratio stands at about 53.7% in 2025, which suggests a stable capital structure. The balance sheet shows improvements, but earlier years displayed higher leverage and lower equity utilization.

Cash Flow

Free Cash Flow has been negative in recent years, with a significant decline in 2025. The Operating Cash Flow to Net Income ratio is low, indicating potential issues in cash generation relative to income. The Free Cash Flow to Net Income ratio is also negative. While there was some improvement in earlier years, recent performance highlights cash flow challenges that need addressing.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	18.88B	18.39B	17.09B	16.32B	13.06B	13.31B
Gross Profit	5.12B	4.96B	4.64B	4.27B	3.14B	2.52B
EBITDA	1.46B	3.93B	723.26M	601.04M	1.29B	-1.23B
Net Income	1.16B	3.04B	233.49M	188.01M	825.67M	-2.29B
Balance Sheet
Total Assets	29.36B	28.91B	24.56B	23.58B	23.93B	26.11B
Cash, Cash Equivalents and Short-Term Investments	3.81B	3.62B	2.40B	2.34B	3.73B	4.67B
Total Debt	5.99B	6.18B	5.38B	5.10B	5.84B	6.24B
Total Liabilities	13.12B	13.35B	11.83B	11.60B	11.88B	14.81B
Stockholders Equity	16.21B	15.53B	12.69B	11.95B	12.02B	11.27B
Cash Flow
Free Cash Flow	0.00	-2.92B	-99.94M	-317.75M	-1.33B	-774.55M
Operating Cash Flow	0.00	197.30M	252.75M	-103.39M	-1.03B	-582.50M
Investing Cash Flow	0.00	621.76M	-265.05M	-119.67M	678.08M	-548.49M
Financing Cash Flow	0.00	403.89M	173.20M	-1.10B	-474.77M	1.76B

Tokyo Theatres Company, Incorporated Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1525.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9633, the sentiment is Positive. The current price of 1525 is below the 20-day moving average (MA) of 1620.15, below the 50-day MA of 1546.44, and above the 200-day MA of 1376.28, indicating a bullish trend. The MACD of 49.02 indicates Negative momentum. The RSI at 75.05 is Negative, neither overbought nor oversold. The STOCH value of 86.81 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9633.

Tokyo Theatres Company, Incorporated Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9633	73 Outperform	¥12.79B	34.97	―	0.69%	8.43%	-40.48%
9008	72 Outperform	¥439.08B	10.33	9.06%	2.62%	6.97%	8.61%
9042	70 Outperform	¥988.41B	11.74	6.64%	2.07%	11.89%	-3.98%
9024	67 Neutral	¥1.10T	22.55	―	1.05%	85.03%	198.15%
9418	67 Neutral	¥300.32B	20.36	―	0.82%	19.48%	19.77%
9041	64 Neutral	¥608.59B	8.73	8.64%	1.82%	3.90%	5.62%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%