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

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Musashino Kogyo Co., Ltd.

(9635)

Rating:65Neutral

Price Target:

¥2,274.00

▲(6.91%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. (9635) vs. iShares MSCI Japan ETF (EWJ)

Market Cap

¥2.23B

Dividend YieldN/A

Average Volume (3M)2.19K

Price to Earnings (P/E)34.8

Beta (1Y)0.19

Revenue Growth6.39%

EPS Growth1292.63%

CountryJP

Employees48

SectorReal Estate

Sector Strength60

IndustryReal Estate - Services

Share Statistics

EPS (TTM)24.61

Shares Outstanding1,050,000

10 Day Avg. Volume250

30 Day Avg. Volume2,193

Financial Highlights & Ratios

PEG Ratio1.69

Price to Book (P/B)0.61

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

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

Company DescriptionMusashino 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 MoneyMusashino 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

Positive

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

Positive

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

Neutral

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.

TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Breakdown
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

Positive

Last Price2127.00

Price Trends

50DMA

2114.02

Positive

100DMA

2102.76

Positive

200DMA

2091.38

Positive

Market Momentum

MACD

6.99

Negative

RSI

58.56

Neutral

STOCH

47.71

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9635, the sentiment is Positive. The current price of 2127 is above the 20-day moving average (MA) of 2126.20, above the 50-day MA of 2114.02, and above the 200-day MA of 2091.38, indicating a bullish trend. The MACD of 6.99 indicates Negative momentum. The RSI at 58.56 is Neutral, neither overbought nor oversold. The STOCH value of 47.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9635.

Musashino Kogyo Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9423	77 Outperform	¥2.60B	30.03		2.43%	6.21%	-22.35%
8946	76 Outperform	¥2.14B	25.47		―	83.91%	―
9816	70 Outperform	¥2.21B	48.87		1.92%	1.41%	-45.84%
9635	65 Neutral	¥2.23B	34.76		―	6.39%	1292.63%
8912	64 Neutral	¥2.70B	25.56		1.66%	5.34%	0.92%
9342	63 Neutral	¥2.42B	15.18		0.22%	21.32%	―
Sector *	61 Neutral	$2.83B	10.98	0.41%	8438.90%	5.81%	-21.06%

* Real Estate Sector Average

Performance Comparison

JP:9635

Musashino Kogyo Co., Ltd.

2,158.00

87.00

4.20%

JP:8912

Area Quest Inc.

182.00

7.81

4.48%

JP:8946

Asian Star Co.

89.00

-9.00

-9.18%

JP:9342

Sumasapo, Inc.

1,015.00

-233.00

-18.67%

JP:9423

Forval RealStraight Inc.

107.00

-1.55

-1.43%

JP:9816

Striders Corporation

282.00

58.58

26.22%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.