Initiating Coverage of Kadokawa With JPY 2,600 Fair Value Estimate
Business Strategy and Outlook
Kadokawa’s advantage lies in its large intellectual property, or IP, portfolio and media-mix strategy, which extends IP value across publishing, animation, film, games, streaming, and education. However, operating margins have remained in the low to midsingle digits for nearly two decades, reflecting a declining domestic publishing market and underdeveloped animation capabilities.
