SLD Entertainment, Inc. (3223) AI Stock Analysis

SLD Entertainment, Inc.

(TSE/TYO:3223)

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Rating:59.6Neutral

Price Target:JPY 963.00▼(-4.18% Downside)

Action:downgraded

Date:08/19/26

The overall score reflects a repaired but still fragile financial profile, where a strong, debt-free balance sheet and positive earnings are offset by thin margins and uneven cash generation; technical signals are neutral to mildly weak rather than clearly bullish, and a relatively rich valuation based on a high P/E ratio without supporting dividend yield further restrains upside.

Positive Factors

Debt elimination and rebuilt equityA debt-free balance sheet and restored positive equity materially improve financial flexibility. Lower interest and refinancing risk give the company greater capacity to withstand volatility and fund operations, provided profitability remains sustainable.

Negative Factors

Revenue contractionA sharp annual revenue decline signals weakening demand, reduced customer traffic, or execution pressure in the restaurant business. If sustained, lower sales would dilute fixed-cost absorption and could undermine the recent profitability turnaround.

SLD Entertainment, Inc. (3223) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 1.57B
Dividend Yield: ―
Average Volume (3M): 2,098
Price to Earnings (P/E): -37.4
Beta (1Y): 0.04
Revenue Growth: -2.79%
EPS Growth: -107.63%
Country: Japan
Employees: 137
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Restaurants

SLD Entertainment, Inc. Business Overview & Revenue Model

Company Description

SLD Entertainment, Inc. operates stores and other outlets in Japan. The company also involved in operating a collaboration event-specialized, store production services, and event planning, etc.; and Collabo_Index, a business format, which planning an...

SLD Entertainment, Inc. Financial Statement Overview

Summary

Financial performance is moderately strong, with revenue growth over time, a debt-free and robust balance sheet, and positive earnings, but thin margins, only moderate cash conversion, and a history of volatile profits and cash flows limit the overall score.

Income Statement

60Neutral

Balance Sheet

78Positive

Cash Flow

58Neutral

Financial statement breakdown
Breakdown	TTM	Feb 2026	Feb 2025	Feb 2024	Feb 2023	Feb 2022
Income Statement
Total Revenue	3.52B	3.66B	3.66B	3.59B	3.09B	2.43B
Gross Profit	2.80B	2.92B	231.35M	2.87B	2.39B	1.76B
EBITDA	97.61M	151.69M	147.36M	144.32M	-211.73M	64.31M
Net Income	-9.96M	87.42M	143.88M	177.38M	-238.72M	13.73M
Balance Sheet
Total Assets	1.08B	1.01B	1.09B	1.05B	1.05B	1.29B
Cash, Cash Equivalents and Short-Term Investments	338.20M	224.39M	317.24M	321.03M	338.69M	477.85M
Total Debt	91.67M	0	100.00M	183.16M	184.67M	124.67M
Total Liabilities	572.60M	455.12M	589.06M	666.12M	805.24M	813.51M
Stockholders Equity	505.07M	552.13M	497.71M	385.82M	240.44M	481.05M
Cash Flow
Free Cash Flow	23.01M	52.24M	101.15M	-1.89M	-231.85M	-1.65M
Operating Cash Flow	24.60M	87.52M	121.44M	14.98M	-216.07M	12.96M
Investing Cash Flow	1.33M	-48.36M	-10.08M	874.00K	24.58M	4.33M
Financing Cash Flow	29.17M	-132.00M	-115.16M	-33.52M	52.34M	-272.79M

SLD Entertainment, Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:3223 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:3221	72Outperform	JPY 30.80B	14.46	―	1.08%	13.65%	21.68%
JP:2798	63Neutral	JPY 9.98B	21.34	―	―	8.44%	54.69%
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
JP:3223	60Neutral	JPY 1.57B	-37.39	―	―	-2.79%	-107.63%
JP:5891	59Neutral	JPY 9.38B	-62.14	―	1.39%	51.13%	-127.84%
JP:3053	49Neutral	JPY 12.78B	75.94	―	―	9.99%	―
JP:3224	44Neutral	JPY 3.49B	-26.76	―	1.53%	19.74%	-140.62%

* Consumer Cyclical Sector Average

Performance Comparison

JP:3223 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:3223	SLD Entertainment, Inc.	1005.00	5.00	0.50%
JP:2798	Y's table corporation	3025.00	108.00	3.70%
JP:3053	Pepper Food Service Co., Ltd.	208.00	28.00	15.56%
JP:3221	Yossix Holdings Co.Ltd.	2973.00	466.84	18.63%
JP:3224	General Oyster, Inc.	654.00	91.28	16.22%
JP:5891	Kairikiya Co.,Ltd.	1656.00	43.41	2.69%

SLD Entertainment, Inc. Corporate Events

SLD Entertainment First‑Quarter Profit Slides, Full‑Year Outlook Held Steady

Jul 14, 2026

SLD Entertainment reported non‑consolidated net sales of ¥878 million for the three months ended May 31, 2026, down 7.0% year on year, with operating profit falling 40.3% to ¥24 million and quarterly profit dropping 40.0% to ¥23...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 04, 2026

SLD Entertainment, Inc. AI Stock Analysis