Kadokawa Corp. (9468) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Seki Co., Ltd.

Shobunsha Holdings, Inc.

Success Holders, Inc.

Kadokawa Corp.

Why is Kadokawa Corp. ?

With a fall in PBT of -28.2%, the company declared Very Negative results in Dec 25

The company has declared negative results for the last 3 consecutive quarters
OPERATING CASH FLOW(Y) Lowest at JPY 11,416 MM
ROCE(HY) Lowest at 1%
INVENTORY TURNOVER RATIO(HY) Lowest at 4.5 times

With ROE of 4.64%, it has a expensive valuation with a 2.20 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -6.27%, its profits have fallen by -24.4%

Underperformed the market in the last 1 year

Even though the market (Japan Nikkei 225) has generated returns of 36.73% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -6.27% returns

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Media & Entertainment)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Kadokawa Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Kadokawa Corp.

-6.27%

0.17

34.49%

Japan Nikkei 225

38.94%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.31%

EBIT Growth (5y)

15.54%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.47

Sales to Capital Employed (avg)

1.13

Tax Ratio

42.19%

Dividend Payout Ratio

55.70%

Pledged Shares

Institutional Holding

ROCE (avg)

16.64%

ROE (avg)

7.93%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.20

EV to EBIT

26.07

EV to EBITDA

17.43

EV to Capital Employed

3.27

EV to Sales

1.56

PEG Ratio

Dividend Yield

ROCE (Latest)

12.56%

ROE (Latest)

4.64%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-26What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at JPY 11,416 MM

ROCE(HY)

Lowest at 1%

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.5 times

INTEREST(Q)

At JPY 22 MM has Grown at 37.5%

PRE-TAX PROFIT(Q)

At JPY 2,291 MM has Fallen at -41.24%

RAW MATERIAL COST(Y)

Grown by 9% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.66 times

OPERATING PROFIT(Q)

Lowest at JPY 3,168 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.59 %

NET PROFIT(Q)

At JPY 758.15 MM has Fallen at -37.02%

Here's what is not working for Kadokawa Corp.

Operating Cash Flow

Lowest at JPY 11,416 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (JPY MM)

Interest

At JPY 22 MM has Grown at 37.5%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

At JPY 2,291 MM has Fallen at -41.24%

over average net sales of the previous four periods of JPY 3,899 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Inventory Turnover Ratio

Lowest at 4.5 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Operating Profit

Lowest at JPY 3,168 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 4.59 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

At JPY 758.15 MM has Fallen at -37.02%

over average net sales of the previous four periods of JPY 1,203.7 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Debtors Turnover Ratio

Lowest at 3.66 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 9% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales