Musashino Kogyo Co., Ltd. (9635) AI Stock Analysis

• Market Cap: ¥2.22B
• Dividend Yield: N/A
• Average Volume (3M): 2.20K
• Price to Earnings (P/E): 34.2
• Beta (1Y): 0.19
• Revenue Growth: 6.39%
• EPS Growth: 1292.63%
• Country: JP
• Employees: 48
• Sector: Real Estate
• Sector Strength: 63
• Industry: Real Estate - Services
• EPS (TTM): 24.61
• Shares Outstanding: 1,050,000
• 10 Day Avg. Volume: 220
• 30 Day Avg. Volume: 2,196
• PEG Ratio: 1.69
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• Rating: 65 Neutral
• Price Target: ¥2,274.00 ▲(6.96%Upside)

Musashino Kogyo Co., Ltd. exhibits solid financial performance with strong profitability improvements and a stable balance sheet, contributing significantly to its overall score. However, technical indicators present a mixed picture, with neutral momentum and an oversold condition potentially limiting short-term gains. The valuation component suggests the stock may be overvalued, which impacts its attractiveness. The absence of earnings call data and corporate events limits additional insights.

Musashino Kogyo Co., Ltd. Business Overview & Revenue Model

Company Description

Musashino Kogyo Co., Ltd. (9635) is a Japanese company primarily engaged in the entertainment and real estate sectors. Its core services include the management and operation of movie theaters and related facilities, as well as the leasing and management of real estate properties. The company is known for providing a wide range of entertainment experiences through its cinema operations while also leveraging its real estate assets to generate additional revenue streams.

How the Company Makes Money

Musashino Kogyo Co., Ltd. generates revenue primarily through its entertainment and real estate operations. In the entertainment sector, the company's theater operations include the sale of movie tickets, concessions, and other related services. This segment benefits from partnerships with film distributors and studios, which enable the company to showcase a variety of films and attract diverse audiences. On the real estate side, Musashino Kogyo earns income through the leasing and management of its properties, which include commercial and residential spaces. The company strategically utilizes its real estate assets to support and complement its entertainment venues, thereby enhancing its overall profitability.

Musashino Kogyo Co., Ltd. Financial Statement Overview

Summary

Musashino Kogyo Co., Ltd. exhibits strong financial stability with low leverage and robust equity, highlighted by an excellent balance sheet. Profitability is improving with increasing margins and revenue growth. However, cash flow challenges, particularly in operating cash generation, present potential liquidity risks that need addressing.

Income Statement

Musashino Kogyo Co., Ltd. has shown a strong recovery in profitability with improvements in gross profit margin and net income over the TTM (Trailing-Twelve-Months). Gross Profit Margin stood at approximately 49.1%, and the Net Profit Margin improved significantly to 3.5% in TTM. Revenue experienced modest growth of 5.5% from the previous period, indicating a stable revenue trajectory. EBIT and EBITDA margins also showed positive trends, indicating operational efficiency.

Balance Sheet

The company maintains a solid financial position with a low Debt-to-Equity Ratio of approximately 0.09, indicating low leverage. The Equity Ratio is strong at 60.2%, reflecting a well-capitalized balance sheet with significant shareholder equity. Return on Equity (ROE) is healthy at 1.3% in TTM, showing effective utilization of equity, although there's room for improvement in maximizing shareholder returns.

Cash Flow

Musashino Kogyo Co., Ltd. shows a lack of operating cash flow in the latest TTM, which raises concerns about cash generation from core operations. Historical free cash flow fluctuations and negative free cash flow in 2021 indicate challenges in cash management. The absence of free cash flow growth highlights potential liquidity risks, warranting a cautious outlook on cash flow sustainability.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
1.35B	1.28B	1.38B	1.29B	1.23B	1.51B
	Gross Profit
664.29M	633.39M	734.27M	687.39M	665.36M	676.00M
	EBIT
56.77M	20.79M	51.77M	79.68M	71.43M	6.00M
	EBITDA
109.08M	87.19M	103.44M	143.83M	-81.14M	117.00M
	Net Income Common Stockholders
47.08M	4.67M	40.58M	50.01M	-216.67M	-51.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
826.00M	758.32M	743.27M	759.25M	835.37M	677.40M
	Total Assets
6.01B	5.98B	5.95B	5.99B	6.06B	6.25B
	Total Debt
331.00M	345.02M	347.44M	411.26M	499.27M	226.56M
	Net Debt
-495.00M	-413.30M	-395.83M	-347.99M	-336.09M	-450.84M
	Total Liabilities
2.40B	2.40B	2.38B	2.45B	2.58B	2.55B
	Stockholders Equity
3.62B	3.58B	3.58B	3.54B	3.49B	3.70B
Cash Flow		Free Cash Flow
0.00	16.80M	48.99M	13.48M	-115.56M	-27.48M
	Operating Cash Flow
0.00	41.57M	91.95M	65.56M	58.04M	95.36M
	Investing Cash Flow
0.00	-20.39M	-44.10M	-47.15M	-172.77M	-122.27M
	Financing Cash Flow
0.00	-6.18M	-63.87M	-94.58M	272.69M	-35.85M

Musashino Kogyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2126.00
• 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:9635, the sentiment is Neutral. The current price of 2126 is equal to the 20-day moving average (MA) of 2126.00, above the 50-day MA of 2113.78, and above the 200-day MA of 2091.42, indicating a neutral trend. The MACD of 6.02 indicates Negative momentum. The RSI at 50.36 is Neutral, neither overbought nor oversold. The STOCH value of 42.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:9635.

Musashino Kogyo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9423	77 Outperform	¥2.57B	29.75		2.43%	6.21%	-22.35%
8946	76 Outperform	¥2.14B	34.34		―	83.91%	―
9816	68 Neutral	¥2.36B	52.25		1.80%	1.41%	-45.84%
9635	65 Neutral	¥2.22B	34.24		―	6.39%	1292.63%
8912	64 Neutral	¥2.70B	25.56		1.66%	5.34%	0.92%
9342	63 Neutral	¥2.43B	15.26		0.22%	21.32%	―
Sector *	61 Neutral	$2.86B	10.96	0.41%	6.08%	5.73%	-21.25%