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WOWOW INC. (4839) AI Stock Analysis
WOWOW INC.
(TSE/TYO:4839)
WOWOW scores below average, driven primarily by severe and persistent profitability erosion — gross margins down over 1,100 basis points in four years, net margin at 0.8%, and ROE under 1% — signalling structural pressure on its broadcasting business. Technicals compound the concern, with the stock trading below all major moving averages and a deeply negative MACD, although extremely oversold RSI and Stochastic readings suggest a possible near-term bounce. Supporting the score are two genuine strengths: a virtually debt-free balance sheet with a 68% equity ratio that provides substantial resilience, and improving free cash flow that exceeds reported earnings. The 3.65% dividend yield and low 0.37 beta offer defensive income appeal, but the 18.1x P/E is unattractive given the earnings trajectory. The projected FY2026 revenue jump of ~60% warrants close monitoring as a potential inflection point.
WOWOW INC. (4839) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 23.99B
- Dividend Yield
- 3.65%
- Average Volume (3M)
- 110.48K
- Price to Earnings (P/E)
- 18.1
- Beta (1Y)
- 0.37
- Revenue Growth
- -2.33%
- EPS Growth
- -63.52%
- Country
- Japan
- Employees
- 801
- Sector
- Communication Services
- Sector Strength
- 60
- Industry
- Broadcasting
WOWOW INC. Business Overview & Revenue Model
Company Description
Based in Tokyo, Japan, Wowow Inc. is a media enterprise specializing in broadcasting and related offerings throughout the country. The company is involved in both acquiring and producing program content, which it disseminates via multiple platforms,...
How the Company Makes Money
WOWOW INC. primarily makes money through recurring subscription fees from customers who pay to access its pay-TV programming services. A secondary source of revenue comes from advertising and sponsorship tied to its programming and channels (includin...
WOWOW INC. Financial Statement Overview
Summary
WOWOW's financials are a study in contrasts. The balance sheet is a fortress — essentially debt-free (debt-to-equity of 0.004x), with a ~68% equity ratio and steadily growing shareholders' equity of ¥68B. However, the income statement is deteriorating badly: gross margin has compressed from 43.4% to 32.2% in four years, net margin has collapsed to 0.8%, and net income of ¥637M is roughly 85% below the FY2022 peak. Cash flow offers partial relief, with free cash flow turning positive and improving to ¥2.3B, exceeding reported earnings — a decent quality-of-earnings signal — but absolute generation remains modest against a ¥100B asset base. Returns on equity have fallen below 1%, indicating a large asset base being underutilized. The projected FY2026 revenue surge of ~60% is an anomaly requiring scrutiny. Financially safe, operationally challenged.
Income Statement
28NegativeBalance Sheet
72PositiveCash Flow
48Neutral| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 76.07B | 77.12B | 76.76B | 74.87B | 77.10B | 79.66B |
| Gross Profit | 22.32B | 22.75B | 24.69B | 24.42B | 25.90B | 30.75B |
| EBITDA | 4.57B | 4.53B | 4.31B | 5.48B | 6.95B | 8.77B |
| Net Income | 1.29B | 1.30B | 637.00M | 1.09B | 2.40B | 4.24B |
Balance Sheet | ||||||
| Total Assets | 109.77B | 94.55B | 100.50B | 89.15B | 97.20B | 99.65B |
| Cash, Cash Equivalents and Short-Term Investments | 26.02B | 29.68B | 28.75B | 28.33B | 28.68B | 30.74B |
| Total Debt | 242.00M | 236.00M | 254.00M | 197.00M | 63.00M | 95.00M |
| Total Liabilities | 40.21B | 25.00B | 32.46B | 20.92B | 30.37B | 32.70B |
| Stockholders Equity | 69.55B | 69.54B | 68.03B | 68.22B | 66.83B | 66.96B |
Cash Flow | ||||||
| Free Cash Flow | 0 | 2.71B | 2.31B | 1.41B | 940.00M | 3.52B |
| Operating Cash Flow | 0 | 5.34B | 4.34B | 4.29B | 3.22B | 6.42B |
| Investing Cash Flow | 0 | -3.72B | -3.63B | -2.75B | -2.30B | -2.11B |
| Financing Cash Flow | 0 | -928.00M | -927.00M | -1.43B | -2.52B | 852.00M |
WOWOW INC. Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4839, the sentiment is Negative. The current price of 823.00 is below the 20-day moving average (MA) of 914.10, below the 50-day MA of 967.50, and below the 200-day MA of 1125.27, indicating a bearish trend. The MACD of -28.06 indicates Positive momentum. The RSI at 18.01 is Positive, neither overbought nor oversold. The STOCH value of 15.61 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4839.
WOWOW INC. Peers Comparison
Overall Rating
JP:940481Outperform
JP:941471Outperform
JP:940167.9Neutral
JP:941266Neutral
JP:940957Neutral- JP:483947Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:9404 | 81Outperform | JPY 768.62B | 11.86 | 6.37% | 1.45% | 2.95% | 30.61% |
| JP:9414 | 71Outperform | JPY 16.78B | 12.92 | ― | 3.19% | 0.92% | -3.55% |
| JP:9401 | 68Neutral | JPY 966.32B | 19.64 | 4.04% | 1.61% | 5.12% | 6.10% |
| JP:9412 | 66Neutral | JPY 512.31B | 19.68 | 8.73% | 2.60% | 6.58% | 32.95% |
| Sector * | 60Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
| JP:9409 | 57Neutral | JPY 345.19B | 12.11 | 6.06% | 2.65% | 4.11% | 4.48% |
| JP:4839 | 47Neutral | JPY 22.97B | 18.09 | ― | 3.65% | -2.33% | -63.52% |
* Communication Services Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:4839 | WOWOW INC. | 823.00 | -597.15 | -42.05% | |
| JP:9404 | Nippon Television Holdings | 3095.00 | -595.06 | -16.13% | |
| JP:9412 | SKY Perfect JSAT Holdings | 1808.00 | 321.24 | 21.61% | |
| JP:9401 | TBS HOLDINGS INC. | 6145.00 | 911.50 | 17.42% | |
| JP:9409 | TV Asahi Holdings Corporation | 3400.00 | 349.70 | 11.46% | |
| JP:9414 | Nippon BS Broadcasting Corp. | 941.00 | 20.88 | 2.27% |
WOWOW INC. Corporate Events
WOWOW Lowers Full-Year Outlook as First-Half Profit Slumps
WOWOW Inc. reported a decline in performance for the six months ended September 30, 2026, with net sales falling 5.2% year-on-year to ¥35.6 billion and profit attributable to owners of parent dropping 32.3% to ¥979 million. Earnings per sha...
WOWOW Completes Third-Party Share Allotment to NTT DOCOMO
WOWOW INC. has completed payment procedures for a third-party allotment of new shares to NTT DOCOMO, issuing 815,800 ordinary shares at ¥1,031 each and raising approximately ¥841 million. The transaction increases WOWOW’s capital stoc...
WOWOW and NTT DOCOMO Finalize Joint Venture for Lemino Streaming Business
WOWOW Inc. has completed the establishment of WOWOW Lemino Inc., a joint venture with NTT DOCOMO that will operate DOCOMO’s entertainment video content distribution business Lemino, following an absorption-type company split. The new entity, in...
WOWOW Renames Subsidiary as Joint Venture with NTT DOCOMO for Lemino Takes Shape
WOWOW Inc. will rename its wholly owned subsidiary, currently called WOWOW Joint Business Preparation Inc., to WOWOW Lemino Inc. as of October 1, 2026, subject to shareholder approval of amendments to the Articles of Incorporation. The move formalize...
WOWOW Revamps Shareholder Benefits, Adds E-Commerce Coupon and Ends QUO Card
WOWOW INC. will revise its shareholder benefits program, maintaining existing eligibility criteria while enhancing rewards to encourage longer-term shareholding and stronger support for its business. The company is discontinuing the WOWOW Original QU...
WOWOW Finalizes Key Agreement in Lemino Joint Venture with NTT DOCOMO
WOWOW Inc. has finalized an absorption-type company split agreement between a wholly owned subsidiary and NTT DOCOMO Inc., advancing a previously announced capital and business alliance centered on DOCOMO’s entertainment video content distribut...
WOWOW and NTT DOCOMO Advance Lemino Streaming Joint Venture, Adjust Split Timeline
WOWOW Inc. has completed the establishment of WOWOW Joint Business Preparation Inc., a new entity created to support a capital and business alliance with NTT DOCOMO around the Lemino entertainment video content distribution business. Initially fully...
WOWOW Posts Softer Q1 Sales But Sticks to 2027 Dividend and Profit Outlook
WOWOW Inc. reported consolidated net sales of ¥17.64 billion for the three months ended June 30, 2026, down 5.6% year on year, with operating profit falling 21.7% to ¥921 million and profit attributable to owners essentially flat at ¥9...
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: Oct 31, 2026