WOWOW INC. (4839) AI Stock Analysis

• Market Cap: ¥38.25B
• Dividend Yield: 2.18%
• Average Volume (3M): 386.07K
• Price to Earnings (P/E): 76.2
• Beta (1Y): 0.40
• Revenue Growth: 1.74%
• EPS Growth: -70.13%
• Country: JP
• Employees: 730
• Sector: Communication Services
• Sector Strength: 97
• Industry: Broadcasting
• EPS (TTM): 35.29
• Shares Outstanding: 28,844,400
• 10 Day Avg. Volume: 332,070
• 30 Day Avg. Volume: 386,066
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,539.00
• Price Target Upside: 8.99% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 58 Neutral
• Price Target: ¥1,539.00 ▲(8.99% Upside)

WOWOW INC.'s overall stock score is primarily influenced by its stable financial performance and strong cash flow management. However, the high P/E ratio suggests overvaluation, and technical indicators show mixed signals with potential short-term bearish momentum. The absence of recent earnings call insights and notable corporate events limits additional context for evaluation.

WOWOW INC. Business Overview & Revenue Model

Company Description

Wowow Inc. provides broadcasting and related services in Japan. It procures and produces programs through satellite broadcasting, as well as offers services through cable television, satellite communication broadcasting, and IPTV. In addition, it operates three broadcasting channels that broadcast movies, musics, and documentaries, as well as offers telemarketing services. The company was formerly known as Satellite Broadcasting, Inc. and changed its name to Wowow Inc. in December 2000. Wowow Inc. was founded in 1984 and is headquartered in Tokyo, Japan.

How the Company Makes Money

WOWOW INC. generates revenue primarily through subscription fees paid by its customers for access to its premium television channels and on-demand content. The company's revenue model is anchored in its subscription-based services, which provide a steady stream of income. Additionally, WOWOW monetizes its offerings through advertising revenue, particularly during live broadcasts and major events. The company also engages in partnerships with various content creators and production studios, allowing it to expand its content library and attract more subscribers. Special events, exclusive programming, and collaborations with other media entities further contribute to its earnings, enhancing its competitive edge in the market.

WOWOW INC. Financial Statement Overview

Summary

WOWOW INC. presents a stable financial position with strong cash flow management and a solid balance sheet. However, declining profitability margins and return on equity indicate potential areas for improvement. The company should focus on enhancing operational efficiency and profitability to sustain growth and shareholder value.

Income Statement

WOWOW INC. has shown a modest revenue growth rate of 1.02% in the latest year, indicating stability in revenue generation. However, the net profit margin has decreased to 0.83% from 1.46% the previous year, suggesting a decline in profitability. The gross profit margin remains healthy at 32.17%, but the EBIT and EBITDA margins have also decreased, reflecting potential challenges in cost management.

Balance Sheet

The company maintains a strong balance sheet with a very low debt-to-equity ratio, indicating minimal leverage risk. The equity ratio is robust, showing a solid capital structure. However, the return on equity has decreased to 0.94%, highlighting a need for improved profitability to enhance shareholder returns.

Cash Flow

WOWOW INC. has demonstrated strong free cash flow growth, although the operating cash flow to net income ratio has decreased, suggesting less efficient cash generation relative to net income. The free cash flow to net income ratio remains healthy, indicating good cash conversion despite fluctuations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	76.76B	76.76B	74.87B	77.10B	79.66B	79.17B
Gross Profit	24.69B	24.69B	24.42B	25.90B	30.75B	34.36B
EBITDA	3.53B	4.31B	5.48B	6.95B	8.77B	7.93B
Net Income	637.00M	637.00M	1.09B	2.40B	4.24B	2.94B
Balance Sheet
Total Assets	100.50B	100.50B	89.15B	97.05B	99.65B	90.59B
Cash, Cash Equivalents and Short-Term Investments	28.75B	28.75B	28.33B	28.68B	30.74B	25.89B
Total Debt	254.00M	254.00M	197.00M	63.00M	95.00M	115.00M
Total Liabilities	32.46B	32.46B	20.92B	30.22B	32.70B	28.84B
Stockholders Equity	68.03B	68.03B	68.22B	66.83B	66.95B	61.76B
Cash Flow
Free Cash Flow	0.00	2.31B	1.41B	940.00M	3.52B	-1.41B
Operating Cash Flow	0.00	4.34B	4.29B	3.22B	6.42B	5.96B
Investing Cash Flow	0.00	-3.63B	-2.75B	-2.30B	-2.11B	-9.95B
Financing Cash Flow	0.00	-927.00M	-1.43B	-2.52B	852.00M	-2.20B

WOWOW INC. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1412.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4839, the sentiment is Neutral. The current price of 1412 is below the 20-day moving average (MA) of 1614.55, below the 50-day MA of 1577.54, and above the 200-day MA of 1144.61, indicating a neutral trend. The MACD of -66.15 indicates Positive momentum. The RSI at 37.34 is Neutral, neither overbought nor oversold. The STOCH value of 5.83 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4839.

WOWOW INC. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9414	72 Outperform	18.83B	13.06	6.17%	2.84%	-3.64%	5.78%
9413	69 Neutral	136.89B	17.89	5.93%	1.60%	6.81%	31.52%
9409	69 Neutral	339.10B	12.43	―	1.50%	4.16%	51.14%
9405	66 Neutral	32.78B	6.79	3.27%	1.50%	4.80%	―
4839	58 Neutral	¥38.25B	76.22	―	2.18%	1.74%	-70.13%
4676	45 Neutral	790.65B	-27.81	-2.46%	1.41%	-4.70%	-170.75%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

WOWOW INC. Corporate Events

WOWOW INC. Reports Stable Financial Health Amid Slight Sales Decline

WOWOW INC. reported its consolidated financial results for the three months ending June 30, 2025, showing a slight decline in net sales by 0.5% compared to the previous year. Despite the decrease in sales, the company maintained a strong capital adequacy ratio of 71.0%, indicating stable financial health. The company also announced no changes to its dividend forecast, maintaining a total annual dividend of 30 yen per share, which reflects its commitment to returning value to shareholders.

WOWOW INC. Reports Decline in June 2025 Subscriptions

WOWOW INC. reported its subscription data for June 2025, revealing a net decline in subscriptions with 41,466 new subscriptions and 93,303 cancellations, resulting in a net decrease of 51,837 subscriptions. The company ended the month with 2,282,774 cumulative subscriptions, indicating a challenging period with significant cancellations impacting its subscriber base.

WOWOW INC. Reaffirms Leadership with Key Management Reappointments

WOWOW INC. announced the reappointment of several key management positions following its 41st Ordinary General Meeting of Shareholders. This decision reflects the company’s commitment to maintaining stability and continuity in its leadership team, which is crucial for its strategic initiatives in corporate management, finance, and entertainment content development.

WOWOW INC. Clarifies Shareholder Influence and Management Independence

WOWOW INC. has announced its relationship with controlling shareholders, Fuji Media Holdings, Inc. and TBS HOLDINGS, INC., which are major stakeholders with 20.96% and 16.06% voting rights, respectively. Despite these affiliations, WOWOW INC. maintains independent management capabilities, with less than half of its board directors holding concurrent positions in affiliated companies, ensuring no constraints on its business operations.

WOWOW INC. Announces Treasury Share Disposal for Executive Incentives

WOWOW INC. has announced a resolution to dispose of 74,377 treasury shares as restricted stock compensation. This move is part of a program aimed at incentivizing its board directors and officers to continuously improve corporate value and promote value sharing with shareholders. The disposal, valued at approximately 75 million yen, is set to occur on July 18, 2025, and targets specific company executives, excluding outside board directors and audit committee members.