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Ray Corporation
(4317)
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Rating:83Outperform
Price Target:
¥600.00
▼(-7.26% Downside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by strong financial strength (notably low leverage and improved profitability) and very compelling valuation (low P/E and ~4% dividend yield). Technicals are supportive but somewhat stretched (high Stoch and elevated RSI), which modestly tempers the overall rating.
Positive Factors
Low leverage and conservative capital structure
Very low and falling leverage provides durable financial flexibility: the company can fund operations, capex or dividends without stress, withstand downturns, and pursue opportunistic investments or buybacks. This conservatism supports long-term solvency and strategic optionality.
Negative Factors
Uneven cash conversion
FCF materially below net income and declining conversion signals earnings don't consistently translate into cash. That undermines sustainable reinvestment and dividends if the pattern continues, making capital planning and the endurance of margins more uncertain over cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage and conservative capital structure
Very low and falling leverage provides durable financial flexibility: the company can fund operations, capex or dividends without stress, withstand downturns, and pursue opportunistic investments or buybacks. This conservatism supports long-term solvency and strategic optionality.
Read all positive factors
Ray Corporation (4317) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥8.01B
Dividend Yield3.45%
Average Volume (3M)57.77K
Price to Earnings (P/E)6.0
Beta (1Y)0.35
Revenue Growth23.16%
EPS Growth30.68%
CountryJP
Employees424
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)98.66
Shares Outstanding14,328,976
10 Day Avg. Volume61,760
30 Day Avg. Volume57,773
Financial Highlights & Ratios
PEG Ratio0.09
Price to Book (P/B)1.18
Price to Sales (P/S)0.68
P/FCF Ratio9.61
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Ray Corporation Business Overview & Revenue Model
Company Description
Operating within Japan, Ray Corporation specializes in video content creation. The company's comprehensive services encompass the production of television commercials, event and promotional videos, digital content, and physical media such as DVD a...
Ray Corporation Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
90
Very Positive
Cash Flow
72
Positive
| Breakdown | Feb 2026 | Feb 2025 | Feb 2024 | Feb 2023 | Feb 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 13.42B | 10.46B | 11.22B | 12.45B | 11.05B |
| Gross Profit | 4.94B | 3.55B | 3.79B | 4.15B | 3.65B |
| EBITDA | 2.59B | 1.57B | 1.68B | 1.69B | 1.38B |
| Net Income | 1.30B | 745.58M | 818.49M | 715.54M | 419.47M |
Balance Sheet | |||||
| Total Assets | 10.91B | 9.12B | 9.42B | 9.58B | 9.79B |
| Cash, Cash Equivalents and Short-Term Investments | 3.06B | 2.87B | 2.83B | 3.14B | 3.61B |
| Total Debt | 563.51M | 769.43M | 1.02B | 1.29B | 1.97B |
| Total Liabilities | 3.13B | 2.33B | 2.86B | 3.54B | 4.32B |
| Stockholders Equity | 7.77B | 6.80B | 6.55B | 6.05B | 5.47B |
Cash Flow | |||||
| Free Cash Flow | 954.99M | 844.33M | 384.55M | 551.79M | 941.86M |
| Operating Cash Flow | 2.34B | 1.69B | 1.05B | 721.29M | 1.03B |
| Investing Cash Flow | -1.51B | -836.28M | -668.97M | -170.41M | -49.13M |
| Financing Cash Flow | -637.58M | -813.04M | -686.68M | -1.02B | -388.49M |
Ray Corporation Technical Analysis
Positive
647.00
Price Trends
511.72
Positive
509.02
Positive
581.38
Negative
Market Momentum
16.21
Positive
71.43
Negative
77.93
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4317, the sentiment is Positive. The current price of 647 is above the 20-day moving average (MA) of 551.80, above the 50-day MA of 511.72, and above the 200-day MA of 581.38, indicating a neutral trend. The MACD of 16.21 indicates Positive momentum. The RSI at 71.43 is Negative, neither overbought nor oversold. The STOCH value of 77.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4317.
Ray Corporation Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | ¥8.01B | 6.00 | ― | 2.36% | 23.16% | 30.68% | |
72 Outperform | ¥8.98B | 16.46 | ― | 3.92% | 3.36% | -0.60% | |
71 Outperform | ¥8.34B | 30.83 | ― | 2.41% | 22.46% | -68.41% | |
67 Neutral | ¥12.06B | 13.78 | ― | 1.96% | 0.73% | 129.90% | |
63 Neutral | ¥11.67B | 64.72 | ― | 0.24% | 7.61% | 58.34% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
41 Neutral | ¥2.61B | -3.82 | ― | ― | -24.70% | -80.94% |
* Communication Services Sector Average
JP:4317
Ray Corporation
580.00
-6.09
-1.04%
JP:3686
DLE, Inc.
60.00
-82.00
-57.75%
JP:4308
J-Stream Inc.
360.00
6.59
1.87%
JP:4347
Broadmedia Corporation
1,665.00
6.07
0.37%
JP:4772
Stream Media Corporation
73.00
-43.78
-37.49%
JP:9636
Kin-Ei Corp.
4,195.00
154.55
3.83%
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.