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MEDIA DO Co., Ltd. (3678) AI Stock Analysis

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JP:3678

MEDIA DO Co., Ltd.

(TSE/TYO:3678)

Select Model
Rating:65Neutral
Price Target:JPY 1,284.00â–²(3.05% Upside)
Action:reiterated
Date:10/16/26

The score is primarily driven by improving financial performance—solid cash generation and a stronger, deleveraged balance sheet—offset by modest and historically volatile profitability. Technical signals are mixed with negative MACD and a weak long-term trend versus the 200-day average. Valuation is fair, supported by a relatively attractive dividend yield.

Positive Factors
Deleveraged balance sheetMeaningful deleveraging has strengthened the capital structure and reduced financial pressure on the business. Combined with growing equity, the lower debt burden should improve resilience, preserve borrowing capacity, and give management greater flexibility to support operations and future investment.
Negative Factors
Thin, volatile profitabilityThin margins leave limited protection if revenue growth weakens or operating costs rise, while the 2024 loss demonstrates that profitability can fluctuate materially. Although earnings improved afterward, sustained margin expansion remains important for making cash generation and returns more durable.

MEDIA DO Co., Ltd. (3678) vs. iShares MSCI Japan ETF (EWJ)

-40%-30%-20%-10%0%10%20%30%JP:3678-27.26%EWJ+16.06%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 18.95B
Dividend Yield
3.21%
Average Volume (3M)
42.53K
Price to Earnings (P/E)
18.9
Beta (1Y)
0.24
Revenue Growth
7.90%
EPS Growth
-53.96%
Country
Japan
Employees
507
Sector
General
Sector Strength
55
Industry
Publishing

MEDIA DO Co., Ltd. Business Overview & Revenue Model

Company Description

MEDIA DO Co., Ltd. operates primarily in the digital book distribution sector, offering a comprehensive suite of services. These include summarizing flier content, assisting with digital comic coloring and production, and providing expertise in web d...

How the Company Makes Money

MEDIA DO’s earnings are primarily generated through digital content distribution and related services. Its main revenue model centers on acting as an intermediary between content rights holders (such as publishers) and downstream channels (such as on...

MEDIA DO Co., Ltd. Financial Statement Overview

Summary

Financials are improving: strong and generally consistent operating/free cash flow (notably in 2025–2026) supports flexibility, and the balance sheet has strengthened through meaningful deleveraging and growing equity. The key constraint is still thin and historically volatile profitability, including a net loss in 2024, though earnings recovered in 2025 and improved further in 2026.

Income Statement

62Positive

Balance Sheet

74Positive

Cash Flow

78Positive
Financial statement breakdown
BreakdownTTMFeb 2026Feb 2026Feb 2025Feb 2024Feb 2023
Income Statement
Total Revenue106.98B101.91B108.54B94.04B101.67B104.72B
Gross Profit9.78B10.43B9.36B10.85B10.96B9.87B
EBITDA4.04B3.23B3.75B1.80B3.04B3.51B
Net Income2.08B1.36B1.82B-319.00M1.06B1.58B
Balance Sheet
Total Assets55.51B53.16B56.93B51.61B50.88B52.51B
Cash, Cash Equivalents and Short-Term Investments12.11B13.59B14.01B11.00B10.13B11.40B
Total Debt2.66B3.90B2.70B5.38B6.62B5.57B
Total Liabilities36.58B35.45B37.70B35.40B34.10B35.59B
Stockholders Equity18.75B17.60B19.06B16.18B16.70B16.82B
Cash Flow
Free Cash Flow03.85B2.42B2.37B564.00M3.79B
Operating Cash Flow03.93B2.45B3.17B1.92B4.63B
Investing Cash Flow0137.00M-364.00M-688.00M-3.07B-7.83B
Financing Cash Flow0-1.53B-1.66B-1.65B-276.00M2.09B

MEDIA DO Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative
Last Price1246.00

Price Trends

50DMA1245.28Positive
100DMA1269.56Negative
200DMA1372.43Negative

Market Momentum

MACD-2.05Positive
RSI49.38Neutral
STOCH60.61Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3678, the sentiment is Negative. The current price of 1246.00 is below the 20-day moving average (MA) of 1271.35, above the 50-day MA of 1245.28, and below the 200-day MA of 1372.43, indicating a neutral trend. The MACD of -2.05 indicates Positive momentum. The RSI at 49.38 is Neutral, neither overbought nor oversold. The STOCH value of 60.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3678.

MEDIA DO Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:3678 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:2481JP:248184OutperformJPY 3.85B8.10―3.15%7.82%20.13%
JP:7849JP:784977OutperformJPY 11.15B9.41―4.46%6.11%-17.91%
JP:9475JP:947576OutperformJPY 13.61B12.19―0.67%10.24%394.02%
JP:3678JP:367865NeutralJPY 19.08B18.92―3.21%7.90%-53.96%
JP:3641JP:364159NeutralJPY 7.43B-29.47―1.05%-2.80%-358.64%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:9468JP:946846NeutralJPY 486.24B-102.30―0.88%5.50%-179.52%

* General Sector Average

Performance Comparison

-25%0%25%50%75%JP:3678JP:2481JP:3641JP:7849JP:9468JP:9475Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:3678 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:3678MEDIA DO Co., Ltd.1246.00-466.91-27.26%
JP:2481Townnews-Sha Co., Ltd.698.0043.336.62%
JP:3641PAPYLESS CO., LTD.956.0023.802.55%
JP:7849Starts Publishing Corporation2914.00-475.73-14.03%
JP:9468Kadokawa Corporation3428.00202.506.28%
JP:9475Shobunsha Holdings, Inc.749.00321.0075.00%

MEDIA DO Co., Ltd. Corporate Events

MEDIA DO outlines earnings trends and growth strategy in Q2 and H1 briefing

Oct 14, 2026

MEDIA DO Co., Ltd. has released materials for its financial results briefing covering the second quarter and first half of the fiscal year ending February 2027. The agenda highlights consolidated earnings, trends in its eBook distribution operations,...

MEDIA DO appoints veteran executive to strengthen administrative leadership

Oct 14, 2026

MEDIA DO Co., Ltd. has appointed former director Yoshiyuki Suzuki as Senior Executive Officer, effective October 15, 2026, following a resolution by its Board of Directors based on recommendations from the Nomination and Remuneration Advisory Committ...

MEDIA DO Boosts Earnings Outlook and Ups Dividend on Subsidiary Sale Gain

Oct 14, 2026

MEDIA DO Co., Ltd. has revised upward its full-year earnings forecast for the fiscal year ending February 28, 2027, driven by extraordinary income from the sale of several consolidated subsidiaries. While net sales, operating profit and ordinary prof...

MEDIA DO Sees Higher Sales but Profit Slide, Lifts Full-Year Dividend Forecast

Oct 14, 2026

MEDIA DO reported consolidated net sales of ¥58.3 billion for the six months ended August 31, 2026, up 8.3% year on year, but operating profit fell 15.0% and interim profit attributable to owners of the parent dropped 61.6%. Total assets expanded to...

MEDIA DO Adjusts Contract Date for Subsidiary Share Transfer Without Altering Terms

Oct 6, 2026

MEDIA DO Co., Ltd. has announced a partial amendment to its previously disclosed plan to transfer shares and equity interests in certain consolidated subsidiaries, which is tied to the recognition of extraordinary income. The company clarified that a...

MEDIA DO to Divest Firebrand Group to Valsoft in Strategic Portfolio Shift

Sep 30, 2026

MEDIA DO Co., Ltd. has agreed to transfer all shares and equity interests in its consolidated Firebrand Group subsidiaries, including U.S.-based Quality Solutions, Inc. and NetGalley, LLC, to Canada’s Valsoft Corporation Inc. Following completion, th...

MEDIA DO Enhances Investor Disclosure With Regular Q&A on Quarterly Results

Aug 31, 2026

MEDIA DO Co., Ltd. has released a set of frequently asked questions and answers from investors regarding its financial results for the three months ended May 31, 2026, positioning the document as a key reference on its latest policy. The company inte...

Media Do Secures ¥12.4 Billion Long-Term Loan to Refinance Seven Seas Acquisition Debt

Aug 26, 2026

MEDIA DO Co., Ltd. has approved a new long-term loan agreement totaling ¥12.4 billion with a syndicate of Japanese banks, including Mizuho Bank, MUFG Bank, Resona Bank, The Awa Bank and The Tokushima Taisho Bank. The unsecured facility, maturing in A...

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: Oct 16, 2026