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SD Entertainment, Inc. (4650) AI Stock Analysis
SD Entertainment, Inc.
(TSE/TYO:4650)
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.
SD Entertainment, Inc. (4650) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 2.42B
- Dividend Yield
- ―
- Average Volume (3M)
- 2,796
- Price to Earnings (P/E)
- 8.2
- Beta (1Y)
- 0.30
- Revenue Growth
- 20.11%
- EPS Growth
- 7222.11%
- Country
- Japan
- Employees
- 381
- Sector
- Communication Services
- Sector Strength
- 60
- Industry
- Media & Entertainment
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 four n...
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
64PositiveBalance Sheet
56NeutralCash Flow
61Positive| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.29B | 5.16B | 4.20B | 3.74B | 3.77B | 3.99B |
| Gross Profit | 4.83B | 4.49B | 3.73B | 3.32B | 3.32B | 3.41B |
| EBITDA | 421.75M | 302.88M | 310.68M | 322.03M | 282.16M | 210.11M |
| Net Income | 293.26M | 215.78M | 93.82M | 117.94M | -197.70M | 64.64M |
Balance Sheet | ||||||
| Total Assets | 4.62B | 4.69B | 4.21B | 4.24B | 4.42B | 5.50B |
| Cash, Cash Equivalents and Short-Term Investments | 1.06B | 1.03B | 486.64M | 858.38M | 996.85M | 1.46B |
| Total Debt | 1.96B | 2.00B | 1.89B | 2.05B | 2.27B | 2.87B |
| Total Liabilities | 2.84B | 2.89B | 2.62B | 2.75B | 3.05B | 3.93B |
| Stockholders Equity | 1.77B | 1.80B | 1.58B | 1.49B | 1.37B | 1.57B |
Cash Flow | ||||||
| Free Cash Flow | 0 | 444.41M | -42.17M | -32.25M | -227.93M | 22.75M |
| Operating Cash Flow | 0 | 612.84M | 85.00M | 27.82M | -105.80M | 174.63M |
| Investing Cash Flow | 0 | -183.65M | -216.86M | 52.57M | 265.98M | 1.84B |
| Financing Cash Flow | 0 | 109.27M | -239.88M | -218.87M | -626.37M | -1.45B |
SD Entertainment, Inc. Technical Analysis
Price Trends
Market Momentum
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 270.00 is below the 20-day moving average (MA) of 271.20, below the 50-day MA of 270.28, and below the 200-day MA of 275.92, indicating a bearish trend. The MACD of 0.07 indicates Positive momentum. The RSI at 46.57 is Neutral, neither overbought nor oversold. The STOCH value of 19.44 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
JP:481682Outperform
JP:503282Outperform
JP:786066Neutral
JP:379164Neutral- JP:465062Neutral
JP:368637Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:4816 | 82Outperform | JPY 632.96B | 25.81 | ― | 1.45% | -1.55% | -1.56% |
| JP:5032 | 82Outperform | JPY 192.45B | 14.03 | ― | 2.25% | 10.40% | -5.83% |
| JP:7860 | 66Neutral | JPY 56.04B | 16.22 | 6.34% | 4.07% | 7.12% | 4609.35% |
| JP:3791 | 64Neutral | JPY 21.52B | 28.54 | ― | 0.79% | 8.53% | -8.74% |
| JP:4650 | 62Neutral | JPY 2.42B | 8.24 | ― | ― | 20.11% | 7222.11% |
| Sector * | 60Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
| JP:3686 | 37Underperform | JPY 2.35B | -3.44 | ― | ― | -24.70% | -80.94% |
* Communication Services Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:4650 | SD Entertainment, Inc. | 270.00 | -19.00 | -6.57% | |
| JP:7860 | Avex Inc. | 1227.00 | 67.18 | 5.79% | |
| JP:3686 | DLE, Inc. | 54.00 | -70.00 | -56.45% | |
| JP:3791 | IG Port, Inc. | 1070.00 | -371.27 | -25.76% | |
| JP:4816 | Toei Animation Co., Ltd. | 3030.00 | 177.18 | 6.21% | |
| JP:5032 | ANYCOLOR Inc. | 3150.00 | -2746.34 | -46.58% |
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