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Musashino Kogyo Co., Ltd. (JP:9635)
:9635
Japanese Market
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Musashino Kogyo Co., Ltd. (9635) AI Stock Analysis

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JP:9635

Musashino Kogyo Co., Ltd.

(9635)

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Neutral 53 (OpenAI - 5.2)
Rating:53Neutral
Price Target:
¥2,557.00
▲(13.69% Upside)
Action:Reiterated
Date:05/18/26
The score is primarily held back by weak and volatile cash generation (including negative operating cash flow and free cash flow in 2026) and soft technical momentum (negative MACD and trading below short-term moving averages). These are partially offset by a conservative, low-leverage balance sheet and improved profitability in 2026, but valuation metrics are not supportive due to an extreme negative P/E and missing dividend yield.
Positive Factors
Conservative balance sheet
Low leverage and a substantial equity cushion provide durable financial flexibility for a cyclical entertainment operator. This reduces default risk, supports capital spending for theaters or property upkeep, and gives management optionality during demand troughs without forcing distress asset sales.
Negative Factors
Weak, volatile cash generation
Cash-flow swings undermine the company's ability to fund maintenance, upgrades, or strategic initiatives from operations. Persistent volatility raises refinancing or liquidity risk, limits reinvestment capacity, and makes earnings improvements less reliable as a predictor of free-cash generation.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Low leverage and a substantial equity cushion provide durable financial flexibility for a cyclical entertainment operator. This reduces default risk, supports capital spending for theaters or property upkeep, and gives management optionality during demand troughs without forcing distress asset sales.
Read all positive factors

Musashino Kogyo Co., Ltd. (9635) vs. iShares MSCI Japan ETF (EWJ)

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

Company Description
Musashino Kogyo Co., Ltd. engages in the movie entertainment, real estate, and commercial businesses in Japan. It operates through Movie Business, Real Estate Business, Driving Training Business, and Commercial Business segments The company is inv...

Musashino Kogyo Co., Ltd. Financial Statement Overview

Summary
Strong balance sheet with low leverage supports stability, but operating results have been inconsistent (choppy revenue and volatile profitability) and cash flow is the key concern, with operating cash flow turning slightly negative and free cash flow flipping to a sizable outflow in 2026.
Income Statement
64
Positive
Balance Sheet
78
Positive
Cash Flow
41
Neutral
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue1.35B1.33B1.36B1.28B1.38B1.29B
Gross Profit678.49M731.36M680.36M633.39M734.27M687.39M
EBITDA144.80M156.42M154.81M87.19M103.44M143.83M
Net Income58.11M360.38M64.96M4.67M40.58M50.01M
Balance Sheet
Total Assets6.02B6.34B6.07B5.98B5.95B5.99B
Cash, Cash Equivalents and Short-Term Investments815.24M1.17B861.28M758.32M743.27M759.25M
Total Debt305.04M265.12M317.69M345.02M347.44M411.26M
Total Liabilities2.39B2.36B2.46B2.40B2.38B2.45B
Stockholders Equity3.63B3.98B3.62B3.58B3.58B3.54B
Cash Flow
Free Cash Flow0.00-122.24M131.81M16.80M48.99M13.48M
Operating Cash Flow0.00-4.84M200.09M41.57M91.95M65.56M
Investing Cash Flow0.00366.00M-69.37M-20.39M-44.10M-47.15M
Financing Cash Flow0.00-52.79M-27.76M-6.18M-63.87M-94.58M

Musashino Kogyo Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2249.00
Price Trends
50DMA
2559.58
Negative
100DMA
2515.61
Positive
200DMA
2377.78
Positive
Market Momentum
MACD
-4.63
Negative
RSI
50.13
Neutral
STOCH
16.08
Positive
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 2249 is below the 20-day moving average (MA) of 2538.85, below the 50-day MA of 2559.58, and below the 200-day MA of 2377.78, indicating a neutral trend. The MACD of -4.63 indicates Negative momentum. The RSI at 50.13 is Neutral, neither overbought nor oversold. The STOCH value of 16.08 is Positive, 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 (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
¥4.01B5.180.50%4.89%42.80%
65
Neutral
$2.17B12.193.79%4.94%3.15%1.96%
64
Neutral
¥5.06B36.472.51%48.59%
57
Neutral
¥61.84B9.292.89%4.32%11.25%
56
Neutral
¥1.84B25.800.22%-0.86%-54.54%
53
Neutral
¥2.65B7.39-2.48%454.84%
52
Neutral
¥15.26B16.245.27%-1.81%87.08%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:9635
Musashino Kogyo Co., Ltd.
2,546.00
424.00
19.98%
JP:3252
JINUSHI Co.,Ltd.
2,892.00
848.54
41.52%
JP:8944
Land Business Co., Ltd.
251.00
58.92
30.67%
JP:8996
HouseFreedom Co., Ltd.
999.00
222.72
28.69%
JP:8999
Grandy House Corporation
515.00
18.43
3.71%
JP:9342
Sumasapo, Inc.
778.00
-229.00
-22.74%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: May 18, 2026