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SD Entertainment, Inc. (JP:4650)
:4650
Japanese Market
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SD Entertainment, Inc. (4650) AI Stock Analysis

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JP:4650

SD Entertainment, Inc.

(4650)

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Neutral 62 (OpenAI - 5.2)
Rating:62Neutral
Price Target:
¥288.00
▼(-4.95% Downside)
Action:Reiterated
Date:08/17/26
The score is driven primarily by an improving financial recovery (strong 2026 revenue rebound, return to profitability, and materially better free cash flow), tempered by meaningful operating-margin compression and still-elevated leverage. Technicals add moderate support (positive momentum but below the 200-day trend), while valuation is a modest positive due to a reasonable P/E.
Positive Factors
Revenue rebound and return to profitability
The return to revenue growth and positive earnings indicates that the business is recovering from weaker prior periods. Sustained demand and renewed profitability could strengthen internal funding capacity, improve resilience, and support continued operational investment.
Negative Factors
Operating-margin compression
The substantial decline in operating margin shows that revenue growth has not translated efficiently into operating profit. Higher costs or weaker operating leverage could limit earnings durability and make future profitability more sensitive to execution and demand changes.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue rebound and return to profitability
The return to revenue growth and positive earnings indicates that the business is recovering from weaker prior periods. Sustained demand and renewed profitability could strengthen internal funding capacity, improve resilience, and support continued operational investment.
Read all positive factors

SD Entertainment, Inc. (4650) vs. iShares MSCI Japan ETF (EWJ)

SD Entertainment, Inc. Business Overview & Revenue Model

Company Description
SD ENTERTAINMENT, Inc. is a Japanese corporation active across several business segments, including fitness, childcare, online crane gaming, e-commerce, and real estate management. The company currently oversees 12 fitness centers and operates fou...

SD Entertainment, Inc. Financial Statement Overview

Summary
Financials are improving but still moderately risky: 2026 revenue re-accelerated (~17% YoY) and net income turned positive with a ~4.2% net margin, while free cash flow rebounded strongly (~444M) after several negative years. Offsetting this, operating margin compressed materially (from ~6.2% in 2024 to ~1.4% in 2026) and leverage remains elevated (debt-to-equity ~1.11), limiting flexibility.
Income Statement
64
Positive
Balance Sheet
56
Neutral
Cash Flow
61
Positive
BreakdownMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue5.16B4.20B3.74B3.77B3.99B
Gross Profit4.49B3.73B3.32B3.32B3.41B
EBITDA302.88M310.68M322.03M282.16M210.11M
Net Income215.78M93.82M117.94M-197.70M64.64M
Balance Sheet
Total Assets4.69B4.21B4.24B4.42B5.50B
Cash, Cash Equivalents and Short-Term Investments1.03B486.64M858.38M996.85M1.46B
Total Debt2.00B1.89B2.05B2.27B2.87B
Total Liabilities2.89B2.62B2.75B3.05B3.93B
Stockholders Equity1.80B1.58B1.49B1.37B1.57B
Cash Flow
Free Cash Flow444.41M-42.17M-32.25M-227.93M22.75M
Operating Cash Flow612.84M85.00M27.82M-105.80M174.63M
Investing Cash Flow-183.65M-216.86M52.57M265.98M1.84B
Financing Cash Flow109.27M-239.88M-218.87M-626.37M-1.45B

SD Entertainment, Inc. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price303.00
Price Trends
50DMA
266.72
Negative
100DMA
267.51
Negative
200DMA
279.00
Negative
Market Momentum
MACD
0.24
Positive
RSI
43.08
Neutral
STOCH
8.33
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4650, the sentiment is Negative. The current price of 303 is above the 20-day moving average (MA) of 270.25, above the 50-day MA of 266.72, and above the 200-day MA of 279.00, indicating a bearish trend. The MACD of 0.24 indicates Positive momentum. The RSI at 43.08 is Neutral, neither overbought nor oversold. The STOCH value of 8.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4650.

SD Entertainment, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
87
Outperform
¥180.95B12.901.17%29.87%22.94%
82
Outperform
¥637.14B23.431.12%-1.08%9.95%
66
Neutral
¥59.32B16.967.05%4.16%7.12%4609.35%
62
Neutral
¥2.39B8.1220.11%7222.11%
62
Neutral
¥22.53B33.091.11%-3.66%-23.02%
60
Neutral
$48.67B4.58-11.27%4.14%2.83%-41.78%
41
Neutral
¥2.56B-3.76-24.70%-80.94%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4650
SD Entertainment, Inc.
266.00
-25.00
-8.59%
JP:7860
Avex Inc.
1,282.00
62.03
5.08%
JP:3686
DLE, Inc.
59.00
-85.00
-59.03%
JP:3791
IG Port, Inc.
1,097.00
-391.65
-26.31%
JP:4816
Toei Animation Co., Ltd.
2,966.00
-120.13
-3.89%
JP:5032
ANYCOLOR Inc.
2,988.00
-1,687.31
-36.09%
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 17, 2026