Tokyotokeiba Co., Ltd. (9672) AI Stock Analysis

• Market Cap: ¥168.15B
• Dividend Yield: 1.78%
• Average Volume (3M): 52.12K
• Price to Earnings (P/E): 15.8
• Beta (1Y): 0.53
• Revenue Growth: 4.04%
• EPS Growth: 4.80%
• Country: JP
• Employees: 189
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 113.46
• Shares Outstanding: 28,764,854
• 10 Day Avg. Volume: 61,360
• 30 Day Avg. Volume: 52,123
• PEG Ratio: 0.75
• Price to Book (P/B): 1.34
• Price to Sales (P/S): 3.03
• P/FCF Ratio: 21.62
• 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): 390.6
• Revenue Forecast (FY): ¥42.49B

• Rating: 75 Outperform
• Price Target: ¥6,334.00 ▲(7.54% Upside)

Tokyotokeiba Co., Ltd. demonstrates strong financial performance and positive technical indicators, contributing to a solid overall score. The valuation is reasonable, adding to the stock's attractiveness. The absence of earnings call and corporate events data does not impact the score significantly.

Positive Factors

Revenue Growth

Sustained revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability.

Cash Flow Generation

Strong cash flow growth enhances financial flexibility, enabling investment in growth opportunities and reducing reliance on external financing.

Balance Sheet Health

Low leverage and a strong equity position reduce financial risk, providing a stable foundation for future growth and resilience against economic fluctuations.

Negative Factors

Industry Dependence

Heavy reliance on horse racing events exposes the company to industry-specific risks, such as regulatory changes or shifts in consumer preferences, which could impact revenue stability.

Limited Diversification

A narrow focus on horse racing limits diversification, potentially increasing vulnerability to sector downturns and reducing opportunities for revenue growth from other segments.

Market Saturation

While a loyal customer base is beneficial, market saturation in Japan could limit growth potential, necessitating expansion or innovation to capture new revenue streams.

Tokyotokeiba Co., Ltd. Business Overview & Revenue Model

Company Description

Tokyotokeiba Co.,Ltd. engages in the rental of horse racing facilities in Japan. It is involved in the rental of auto racetracks; management of an amusement park; and rental of warehouse facilities, as well as commercial facilities. The company also provides construction management services; and maintenance services for air conditioning equipment, as well as manages and operates shopping mall and office building. In addition, it operates restaurants and parking lots. Tokyotokeiba Co.,Ltd. was founded in 1949 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Tokyotokeiba generates revenue primarily through the operation of horse racing events, which includes betting activities where a significant portion of the total bets placed is retained as revenue. The company also earns money from ticket sales for racecourse entry, food and beverage sales, and merchandise related to horse racing. Additionally, Tokyotokeiba may engage in partnerships with sponsors and advertisers, which contribute to its income through promotional deals and advertising revenues. The company benefits from a loyal customer base and the popularity of horse racing in Japan, which helps to maintain a steady stream of income from betting and associated services.

Tokyotokeiba Co., Ltd. Financial Statement Overview

Summary

Tokyotokeiba Co., Ltd. exhibits strong financial health with robust revenue growth, impressive profit margins, and solid cash flow generation. The balance sheet is strong with low leverage and effective capital management.

Income Statement

The company shows robust revenue growth, with a notable increase of 7.72% from 2023 to 2024. Gross profit margin is strong at 39.77%, and net profit margin is impressive at 24.00%, indicating efficient cost management and profitability. The EBIT margin of 34.43% and EBITDA margin of 50.10% reflect strong operating performance.

Balance Sheet

The balance sheet is solid with a debt-to-equity ratio of 0.21, indicating low leverage. The return on equity is healthy at 10.66%, showing effective use of shareholder capital. Equity ratio stands at 74.37%, reflecting a strong equity position and low risk from liabilities.

Cash Flow

The cash flow statement reveals a turnaround with a free cash flow growth rate of 180.03%, moving from negative to positive. Operating cash flow to net income ratio is 1.66, suggesting strong cash generation relative to income. Additionally, the free cash flow to net income ratio is 0.58, indicating a solid conversion of profits to cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	41.08B	40.44B	37.54B	35.45B	31.80B	28.79B
Gross Profit	16.69B	16.09B	15.42B	15.96B	14.51B	12.92B
EBITDA	20.95B	20.27B	18.92B	19.06B	17.06B	15.56B
Net Income	10.04B	9.71B	8.45B	9.39B	9.08B	5.18B
Balance Sheet
Total Assets	123.58B	122.41B	115.79B	124.65B	110.11B	98.35B
Cash, Cash Equivalents and Short-Term Investments	22.10B	17.44B	17.16B	32.56B	26.85B	20.79B
Total Debt	18.37B	19.17B	18.79B	25.04B	26.02B	17.04B
Total Liabilities	29.51B	31.26B	29.00B	44.36B	37.27B	27.82B
Stockholders Equity	93.91B	91.03B	86.72B	80.29B	72.85B	70.53B
Cash Flow
Free Cash Flow	0.00	5.66B	-7.08B	7.82B	3.45B	9.76B
Operating Cash Flow	0.00	16.10B	12.80B	14.68B	14.37B	13.18B
Investing Cash Flow	0.00	-8.63B	-8.73B	-14.84B	-10.82B	-4.61B
Financing Cash Flow	0.00	-5.36B	-8.28B	-2.76B	2.20B	-2.58B

Tokyotokeiba Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5890.00
• 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:9672, the sentiment is Positive. The current price of 5890 is above the 20-day moving average (MA) of 5655.00, above the 50-day MA of 5548.00, and above the 200-day MA of 4927.18, indicating a bullish trend. The MACD of 119.74 indicates Negative momentum. The RSI at 64.69 is Neutral, neither overbought nor oversold. The STOCH value of 70.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9672.

Tokyotokeiba Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9722	76 Outperform	¥154.50B	16.33	―	0.30%	10.26%	6.31%
9672	75 Outperform	¥168.15B	15.78	―	1.78%	4.04%	4.80%
7504	72 Outperform	¥56.46B	15.75	―	2.88%	12.39%	9.81%
9656	68 Neutral	¥6.43B	15.23	―	2.41%	<0.01%	23.81%
6040	66 Neutral	¥21.27B	15.42	―	0.76%	20.69%	17.46%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
9708	60 Neutral	¥144.01B	50.42	―	0.49%	-1.00%	5.32%

Tokyotokeiba Co., Ltd. Corporate Events

Tokyotokeiba Co., Ltd. Reports Positive Financial Results and Dividend Forecast Revision

Tokyotokeiba Co., Ltd. reported a 3.2% increase in net sales and a 9.0% rise in ordinary profit for the nine months ending September 30, 2025, compared to the same period in 2024. The company also announced a revision in its dividend forecast, reflecting a positive outlook for the fiscal year ending December 31, 2025, which indicates a stable financial position and potential growth opportunities for stakeholders.

Tokyotokeiba Co., Ltd. Revises Financial and Dividend Forecasts Upward

Tokyotokeiba Co., Ltd. has revised its financial and dividend forecasts for the fiscal year ending December 31, 2025, due to higher-than-expected sales from its online betting services and effective cost management. The company anticipates increased profits and has adjusted its dividend forecast to reflect a higher payout, indicating a strong financial performance and commitment to shareholder returns.

TOKYOTOKEIBA Enhances Shareholder Benefits with New Voucher

TOKYOTOKEIBA Co., Ltd. has announced an enhancement to its shareholder benefit program, effective from the end of December 2025. The new benefits include a restaurant voucher for shareholders, aiming to express gratitude and increase the appeal of the company’s stock. This change reflects the company’s strategy to provide better returns and foster a deeper understanding of its business among shareholders.