Kadokawa: Initiating Coverage With JPY 2,600 Fair Value Estimate; Shares Overvalued
We initiate coverage of Kadokawa, a Japanese entertainment conglomerate with operations in publishing, animation, games, video, streaming platforms, and education.
Kadokawa Corp 9468
Bulls Say, Bears Say
Bulls
Publishing/IP creation produces several hit franchises, rapidly expanding domestic and overseas licensing revenue and lifting segment margin back toward its double-digit peak (13.1% in fiscal 2021).
Bears
Publishing/IP quality fails to improve despite tighter title control, and Japanese manga and anime lose momentum overseas, keeping segment margin near 3%.
Trading Information
- Previous Close Price
- ¥3,704.00
- Day Range
- ¥3,642.00–3,714.00
- 52-Week Range
- ¥2,701.50–3,967.00
- Bid/Ask
- ¥3,643.00 / ¥3,651.00
- Shares Outstanding
- 146.97M
- Market Cap
- ¥536.28B
- Volume/Avg
- 222,100 / 420,445
Key Statistics
- Price/Earnings (Normalized)
- 86.73
- Price/Sales
- 2.09
- Dividend Yield (Trailing)
- 0.81%
- Dividend Yield (Forward)
- 0.81%
- Dividend Payment Schedule
- Jun
- Total Yield
- 0.81%
Company Profile
Kadokawa Corporation is a comprehensive entertainment company that was founded in 2014 through the merger of and Kadokawa Shoten (one of Japan's leading publishing companies, founded in 1945) and Dwango (Japanese telecommunications and media company founded in 1997 and best known for the Niconico video platform). Currently, the company’s main businesses are publication, animation, film, game, video and streaming platform, and education.
- Sector
- Communication Services
- Industry
- Publishing
- Stock Style Box
- Mid Growth
- Total Number of Employees
- 10,477
- Website
- https://www.kadokawa.co.jp
Competitors
Valuation
|
Metric
|
9468
|
9602
|
4816
|
|---|---|---|---|
Price/Earnings (Normalized) | 86.73 | 33.62 | 24.40 |
Price/Book Value | 2.28 | 2.70 | 3.71 |
Price/Sales | 2.09 | 4.03 | 6.50 |
Price/Cash Flow | 41.30 | 24.70 | 27.99 |
Price/Earnings
9468
9602
4816
Financial Strength
|
Metric
|
9468
|
9602
|
4816
|
|---|---|---|---|
Quick Ratio | 1.68 | 1.75 | 4.37 |
Current Ratio | 2.35 | 2.34 | 5.04 |
Interest Coverage | 37.90 | 462.01 | — |
Quick Ratio
9468
9602
4816
Profitability
|
Metric
|
9468
|
9602
|
4816
|
|---|---|---|---|
Return on Assets (Normalized) | 3.02% | 8.65% | 13.33% |
Return on Equity (Normalized) | 4.76% | 11.88% | 15.96% |
Return on Invested Capital (Normalized) | 3.72% | 10.94% | 15.33% |
Return on Assets
9468
9602
4816
Publishing Industry Comparables
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United States