Toei Animation Co., Ltd. (4816) AI Stock Analysis

• Market Cap: ¥632.96B
• Dividend Yield: 1.02%
• Average Volume (3M): 577.72K
• Price to Earnings (P/E): 26.3
• Beta (1Y): 0.34
• Revenue Growth: 5.92%
• EPS Growth: 12.22%
• Country: JP
• Employees: 911
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): 25.57
• Shares Outstanding: 210,000,000
• 10 Day Avg. Volume: 290,370
• 30 Day Avg. Volume: 577,720
• PEG Ratio: 1.05
• Price to Book (P/B): 4.14
• Price to Sales (P/S): 6.29
• P/FCF Ratio: 23.96
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥4,320.00
• Price Target Upside: 42.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 66 Neutral
• Price Target: ¥3,294.00 ▲(8.71% Upside)

Toei Animation Co., Ltd. scores well due to its strong financial performance, characterized by robust revenue growth and profitability. However, technical indicators suggest neutral to slightly bearish momentum, and the stock's valuation appears high, limiting its attractiveness. The absence of earnings call insights and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective monetization of popular franchises, supporting long-term financial health.

Profitability Margins

High profitability margins reflect efficient operations and strong pricing power, enhancing the company's ability to reinvest in growth and innovation.

Balance Sheet Health

Minimal leverage reduces financial risk and provides flexibility to pursue strategic opportunities, ensuring long-term stability.

Negative Factors

Free Cash Flow Volatility

Volatility in free cash flow can impact the company's ability to fund operations and investments consistently, posing a risk to financial planning.

Limited Earnings Call Data

Lack of earnings call data limits transparency and investor insight into management's strategic direction and operational performance.

Technical Indicators

While not a fundamental factor, short-term technical weakness can signal market concerns, potentially affecting investor sentiment and stock performance.

Toei Animation Co., Ltd. Business Overview & Revenue Model

Company Description

Toei Animation Co.,Ltd. produces, markets, and licenses animation products worldwide. It operates through three segments, Video Production and Sales Business, Copyright Business, and Product Sales Business. The company plans and produces various animation works for theaters and television, terrestrial broadcasting, CS broadcasting, and packaging, and sells in various media forms such as game software, mobile terminals, and the internet. It also develops and sells character products. As of March 2020, it owns 246 theater works, 223 TV works, and 12,867 episodes of content. The company was founded in 1948 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Toei Animation generates revenue through multiple channels, primarily from the production and licensing of anime series and films. Key revenue streams include television broadcasting rights, merchandise sales, and home media sales (such as DVDs and Blu-rays). The company also earns income through theatrical releases of its films, both domestically and internationally. Additionally, Toei Animation benefits from strategic partnerships with various distribution companies and streaming platforms, which allow for broader global distribution of its content, thereby enhancing its earnings potential. Licensing agreements for merchandise related to its popular franchises provide a significant boost to the company’s revenue, as fans of its series often purchase branded products. Overall, Toei Animation's diversified revenue model and strong brand recognition contribute significantly to its financial success.

Toei Animation Co., Ltd. Financial Statement Overview

Summary

Toei Animation Co., Ltd. exhibits strong financial health with robust revenue growth, high profitability margins, and a solid balance sheet with minimal leverage. Effective cash flow management supports financial stability, though volatility in free cash flow growth warrants monitoring.

Income Statement

Toei Animation Co., Ltd. has demonstrated strong revenue growth with a 7% increase in the latest year, supported by robust gross and net profit margins of 48% and 23.4%, respectively. The EBIT and EBITDA margins are also healthy at 32.5% and 33.3%, indicating efficient operations. The consistent improvement in profitability metrics over the years highlights the company's ability to capitalize on its revenue growth effectively.

Balance Sheet

The company maintains a solid balance sheet with a negligible debt-to-equity ratio, indicating minimal leverage and financial risk. The return on equity stands at 15.4%, reflecting efficient use of shareholder funds to generate profits. The equity ratio of 80.2% suggests a strong capital structure, providing stability and resilience against market fluctuations.

Cash Flow

Toei Animation's cash flow performance is commendable, with a significant increase in free cash flow, albeit from a low base. The operating cash flow to net income ratio of 0.80 and free cash flow to net income ratio of 0.97 demonstrate effective cash conversion. However, the high free cash flow growth rate indicates potential volatility in cash generation.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	97.27B	100.84B	88.65B	87.46B	57.02B	51.59B
Gross Profit	48.61B	48.42B	37.45B	40.97B	26.69B	22.94B
EBITDA	33.90B	33.59B	27.50B	30.41B	18.71B	16.64B
Net Income	23.55B	23.62B	18.80B	20.90B	12.82B	11.07B
Balance Sheet
Total Assets	184.36B	190.98B	162.74B	150.51B	126.88B	105.48B
Cash, Cash Equivalents and Short-Term Investments	78.07B	82.57B	79.09B	67.01B	60.30B	43.09B
Total Debt	4.22B	106.00M	112.00M	82.00M	598.00M	92.00M
Total Liabilities	34.52B	37.78B	31.02B	36.05B	30.84B	20.36B
Stockholders Equity	149.84B	153.20B	131.71B	114.50B	96.04B	85.12B
Cash Flow
Free Cash Flow	0.00	26.46B	15.66B	14.34B	14.55B	7.71B
Operating Cash Flow	0.00	27.16B	16.28B	15.26B	15.07B	8.05B
Investing Cash Flow	0.00	-5.54B	-4.54B	-2.95B	-15.39B	298.00M
Financing Cash Flow	0.00	-6.44B	-6.41B	-4.54B	-2.47B	-2.94B

Toei Animation Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3030.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4816, the sentiment is Neutral. The current price of 3030 is below the 20-day moving average (MA) of 3038.65, below the 50-day MA of 3106.62, and below the 200-day MA of 3221.53, indicating a neutral trend. The MACD of -18.65 indicates Negative momentum. The RSI at 51.98 is Neutral, neither overbought nor oversold. The STOCH value of 66.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4816.

Toei Animation Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5032	78 Outperform	¥356.62B	24.53	―	1.04%	67.99%	90.86%
9605	75 Outperform	¥376.74B	21.00	―	0.33%	5.14%	12.51%
3791	69 Neutral	¥28.06B	33.81	―	1.08%	-4.66%	-56.66%
9602	67 Neutral	$1.49T	30.00	10.28%	1.05%	10.99%	2.35%
4816	66 Neutral	¥632.96B	26.32	―	1.02%	5.92%	12.22%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
9601	46 Neutral	¥179.77B	43.48	―	0.23%	14.49%	―