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

• Market Cap: ¥2.75B
• Dividend Yield: N/A
• Average Volume (3M): 1.27K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.21
• Revenue Growth: 1.57%
• EPS Growth: 892.96%
• Country: JP
• Employees: 48
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): -0.28
• Shares Outstanding: 1,050,000
• 10 Day Avg. Volume: 810
• 30 Day Avg. Volume: 1,266
• PEG Ratio: 0.03
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 1.62
• P/FCF Ratio: 16.75
• 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: 63 Neutral
• Price Target: ¥2,797.00 ▲(24.37% Upside)
• Action: Reiterated Date: 10/01/25
• Date: Action: Reiterated 10/01/25

Musashino Kogyo Co., Ltd. shows solid financial performance with strong profitability and a stable balance sheet, which are the most significant factors. Technical analysis indicates neutral momentum, while valuation suggests the stock is relatively expensive. The absence of earnings call and corporate events data limits additional insights.

Positive Factors

Low leverage / strong balance sheet

A debt-to-equity of 0.09 and a robust equity ratio provide durable financial resilience. Low leverage reduces interest burden, preserves borrowing capacity for capex or refurbishments, and improves the firm's ability to withstand demand shocks in the cyclical cinema business.

High gross margins and improving net margin

Sustained gross margins above 45% signal structural pricing power and efficient cost control in core exhibition operations. The step-up in net margin and positive top-line growth indicate operating leverage that can translate into durable profitability if attendance and concession trends remain stable.

Improved cash generation and positive FCF

Stronger operating cash flow and positive free cash flow demonstrate the company's ability to convert earnings into cash. This supports ongoing reinvestment in theaters, maintenance capex, and balance sheet stability—key for long-term operations in a capital-intensive exhibition business.

Negative Factors

Cash flow and margin volatility

Historical volatility in free cash flow and operating margins raises forecasting risk and constrains strategic planning. For a business dependent on discretionary consumer spending, intermittent swings in cash and margins can limit consistent reinvestment, debt repayment, or shareholder distributions.

Small scale and concentrated business model

A business concentrated on cinema exhibition with limited disclosed diversification implies exposure to localized demand swings, film slate risk, and competitive pressures. Limited scale can reduce bargaining power with distributors and suppliers and constrain cost efficiencies versus larger chains.

Modest ROE despite improvement

ROE of 1.80% remains modest, limiting long-term shareholder returns even after improvement. Coupled with signs of earnings volatility, this suggests the company may struggle to deliver consistently high returns on invested capital absent sustained revenue and margin improvements.

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 involved in the movie distribution and operation of theater concession stands. It also engages in the investing, leasing, operating, and managing tenant buildings; and managing restaurants, as well as operates a driving school. The company was incorporated in 1920 and is headquartered in Tokyo, Japan.

How the Company Makes Money

The company primarily makes money through cinema exhibition operations. Key revenue streams typically include (1) ticket sales from movie screenings, where revenue is driven by attendance volume, pricing, and film lineup; and (2) in-theater ancillary sales associated with customer visits (e.g., concessions and other theater-related services). Additional earnings may come from related entertainment initiatives connected to theater operations. Specific breakdowns by segment, named theater brands/locations, major partnerships (e.g., with film distributors), and the contribution of any non-cinema businesses are null because they are not available in the information provided here.

Musashino Kogyo Co., Ltd. Financial Statement Overview

Summary

Musashino Kogyo Co., Ltd. demonstrates strong profitability improvements with a solid balance sheet. Revenue growth and efficient cost management contribute positively, while low leverage minimizes financial risk. Cash flow analysis shows effective cash generation, though historical volatility in free cash flow warrants attention.

Income Statement

Musashino Kogyo Co., Ltd. shows a strong gross profit margin, consistently above 45% over the years, indicating efficient cost management. The net profit margin improved significantly in 2025 to 4.76% from 0.36% in 2024, showcasing better profitability. Revenue growth from 2024 to 2025 was 6.39%, demonstrating positive growth momentum. However, fluctuating EBIT and EBITDA margins suggest some operational challenges, though they have shown improvement in recent periods.

Balance Sheet

The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.09 in 2025, indicating low leverage and financial stability. The equity ratio remains robust, reflecting a strong equity base relative to total assets. Return on Equity (ROE) improved to 1.80% in 2025 from 0.13% in 2024, showing increased profitability from equity. Overall, the balance sheet indicates a low-risk financial position with strong equity support.

Cash Flow

Operating cash flow improved significantly in 2025, contributing to a positive free cash flow. Free cash flow to net income ratio is favorable, indicating effective cash generation from operations. However, the free cash flow growth rate showed volatility in previous years. The company has maintained a solid operating cash flow to net income ratio, reinforcing its ability to convert earnings into cash flow efficiently.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.35B	1.36B	1.28B	1.38B	1.29B	1.23B
Gross Profit	678.49M	680.36M	633.39M	734.27M	687.39M	665.36M
EBITDA	144.80M	154.81M	87.19M	103.44M	143.83M	-81.14M
Net Income	58.11M	64.96M	4.67M	40.58M	50.01M	-216.67M
Balance Sheet
Total Assets	6.02B	6.07B	5.98B	5.95B	5.99B	6.06B
Cash, Cash Equivalents and Short-Term Investments	815.24M	861.28M	758.32M	743.27M	759.25M	835.37M
Total Debt	305.04M	317.69M	345.02M	347.44M	411.26M	499.27M
Total Liabilities	2.39B	2.46B	2.40B	2.38B	2.45B	2.58B
Stockholders Equity	3.63B	3.62B	3.58B	3.58B	3.54B	3.49B
Cash Flow
Free Cash Flow	0.00	131.81M	16.80M	48.99M	13.48M	-115.56M
Operating Cash Flow	0.00	200.09M	41.57M	91.95M	65.56M	58.04M
Investing Cash Flow	0.00	-69.37M	-20.39M	-44.10M	-47.15M	-172.77M
Financing Cash Flow	0.00	-27.76M	-6.18M	-63.87M	-94.58M	272.69M

Musashino Kogyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2249.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Positive. The current price of 2249 is below the 20-day moving average (MA) of 2618.10, below the 50-day MA of 2511.98, and below the 200-day MA of 2286.95, indicating a bullish trend. The MACD of 41.16 indicates Positive momentum. The RSI at 61.89 is Neutral, neither overbought nor oversold. The STOCH value of 55.73 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9342	72 Outperform	¥2.91B	-185.04	―	0.22%	5.29%	22.75%
8996	67 Neutral	¥4.16B	5.42	―	0.50%	12.29%	139.06%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
9635	63 Neutral	¥2.75B	-1,967.17	―	―	1.57%	892.96%
3252	62 Neutral	¥71.40B	8.53	―	2.89%	-3.09%	-35.66%
8944	60 Neutral	¥5.08B	-4.30	―	2.51%	86.49%	83.40%
8999	60 Neutral	¥17.65B	24.88	―	5.27%	-1.41%	194.28%