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
- ¥3,632.00
- Day Range
- ¥3,605.00–3,696.00
- 52-Week Range
- ¥2,701.50–3,967.00
- Bid/Ask
- ¥3,665.00 / ¥3,685.00
- Shares Outstanding
- 146.97M
- Market Cap
- ¥540.39B
- Volume/Avg
- 250,700 / 460,048
Key Statistics
- Price/Earnings (Normalized)
- 86.09
- Price/Sales
- 2.08
- Dividend Yield (Trailing)
- 0.82%
- Dividend Yield (Forward)
- 0.82%
- Dividend Payment Schedule
- Jun
- Total Yield
- 0.82%
Company Profile
Kadokawa Corp is a Japan based publisher and digital content platform provider. It is involved in various businesses such as publishing, film, publishing rights, digital contents, planning, development and operation of network entertainment service, and contents and operation of video- sharing website. It's business portfolio also includes Game business, Web services business, Education and EdTech Business and others.
- 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
|
4816
|
9602
|
|---|---|---|---|
Price/Earnings (Normalized) | 86.09 | 22.66 | 62.19 |
Price/Book Value | 2.26 | 3.45 | 2.58 |
Price/Sales | 2.08 | 6.04 | 3.60 |
Price/Cash Flow | 41.00 | 25.99 | 21.88 |
Price/Earnings
9468
4816
9602
Financial Strength
|
Metric
|
9468
|
4816
|
9602
|
|---|---|---|---|
Quick Ratio | 1.68 | 4.37 | 1.65 |
Current Ratio | 2.35 | 5.04 | 2.16 |
Interest Coverage | 37.90 | — | 561.63 |
Quick Ratio
9468
4816
9602
Profitability
|
Metric
|
9468
|
4816
|
9602
|
|---|---|---|---|
Return on Assets (Normalized) | 3.02% | 13.33% | 9.36% |
Return on Equity (Normalized) | 4.76% | 15.96% | 12.86% |
Return on Invested Capital (Normalized) | 3.72% | 15.33% | 12.05% |
Return on Assets
9468
4816
9602
Publishing Industry Comparables
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
| Informa PLC ADR
IFJPY
| — | LOCK|!K& | $16B | |||
| Informa PLC
IFPJF
| — | LOCK|$kY | $16B | |||
| New York Times Co Class A
NYT
| LOCK|&rwlD># | LOCK|V&lF% | $11B | |||
| Pearson PLC
PSORF
| — | LOCK|&ST | $10B | |||
| Pearson PLC ADR
PSO
| LOCK|!<%st& | LOCK|QT | $10B | |||
| Springer Nature AG & Co KGaA ADR
SPGNY
| — | LOCK|$$qB | $5B | |||
| Springer Nature AG & Co KGaA
SPGDF
| — | LOCK|n^qK | $5B | |||
| John Wiley & Sons Inc Class A
WLY
| LOCK|rC^p<rR | LOCK|$#K^l | $2B | |||
| John Wiley & Sons Inc Class B
WLYB
| — | LOCK|!Y!s% | $2B | |||
| USA Today Co Inc
TDAY
| — | LOCK|F? | $1B |
United States