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COVER Corporation
(5253)
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Rating:66Neutral
Price Target:
¥1,777.00
▲(2.72% Upside)
Action:Downgraded
Date:09/26/26
The score is primarily supported by strong financial performance (rapid growth, debt-free balance sheet, and solid recent free cash flow). Offsetting this, technical signals are weak with the stock trading below key moving averages and negative momentum, and valuation is relatively high (P/E ~35), which increases sensitivity to continued margin and ROE compression.
Positive Factors
Rapid Revenue Expansion
Revenue has expanded nearly ninefold over five years, demonstrating strong demand for COVER’s virtual talent IP and content ecosystem. This scale creates a broader base for monetization through digital payments, merchandise, licensing, events, and partnerships over the coming quarters.
Negative Factors
Margin Compression
The sharp decline in net margin shows that recent revenue growth is producing less bottom-line profit. If the pressure reflects higher costs, changing revenue mix, or reinvestment needs, sustained margin weakness could limit earnings growth and reduce the benefits of further scale.
Read all positive and negative factors
Positive Factors
Negative Factors
Rapid Revenue Expansion
Revenue has expanded nearly ninefold over five years, demonstrating strong demand for COVER’s virtual talent IP and content ecosystem. This scale creates a broader base for monetization through digital payments, merchandise, licensing, events, and partnerships over the coming quarters.
Read all positive factors
COVER Corporation (5253) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥99.92B
Dividend YieldN/A
Average Volume (3M)1.11M
Price to Earnings (P/E)36.5
Beta (1Y)0.69
Revenue Growth4.10%
EPS Growth-53.15%
CountryJP
Employees735
SectorGeneral
Sector StrengthN/A
IndustryMedia & Entertainment
Share Statistics
EPS (TTM)41.75
Shares Outstanding65,650,100
10 Day Avg. Volume881,300
30 Day Avg. Volume1,105,706
Financial Highlights & Ratios
PEG Ratio-0.60
Price to Book (P/B)4.39
Price to Sales (P/S)1.78
P/FCF Ratio12.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥2,100.00Price Target Upside21.39% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)111.85
Revenue Forecast (FY)¥53.05B
COVER Corporation Business Overview & Revenue Model
Company Description
COVER Corporation specializes in three core areas: virtual platforms, virtual YouTuber (VTuber) talent management, and diverse media ventures. The company's VTuber Production division acts as an agency, dedicated to creating and overseeing virtual...
How the Company Makes Money
COVER Corporation generates revenue mainly by monetizing its virtual talent IP (intellectual property) through multiple complementary streams. A core driver is digital entertainment monetization from live-streaming and video distribution: revenues...
COVER Corporation Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
92
Very Positive
Cash Flow
72
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 48.53B | 49.33B | 43.40B | 30.17B | 20.45B | 13.66B |
| Gross Profit | 23.09B | 23.51B | 21.80B | 13.99B | 9.40B | 5.27B |
| EBITDA | 8.16B | 8.57B | 8.41B | 6.01B | 3.53B | 1.95B |
| Net Income | 2.74B | 3.02B | 5.56B | 4.14B | 2.51B | 1.24B |
Balance Sheet | ||||||
| Total Assets | 28.09B | 34.91B | 33.33B | 22.71B | 15.90B | 8.24B |
| Cash, Cash Equivalents and Short-Term Investments | 11.88B | 16.01B | 11.50B | 8.67B | 7.79B | 4.64B |
| Total Debt | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 10.71B | 14.94B | 16.38B | 11.57B | 8.89B | 4.78B |
| Stockholders Equity | 17.38B | 19.96B | 16.95B | 11.14B | 7.01B | 3.46B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 6.80B | 4.66B | 1.07B | 2.50B | 3.05B |
| Operating Cash Flow | 0.00 | 7.20B | 5.29B | 4.76B | 4.87B | 3.54B |
| Investing Cash Flow | 0.00 | -2.70B | -2.70B | -3.89B | -2.76B | -793.94M |
| Financing Cash Flow | 0.00 | 0.00 | 244.00M | 0.00 | 1.04B | 0.00 |
COVER Corporation Technical Analysis
Negative
1730.00
Price Trends
1588.90
Negative
1552.01
Negative
1560.42
Negative
Market Momentum
-5.78
Positive
43.01
Neutral
10.47
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5253, the sentiment is Negative. The current price of 1730 is above the 20-day moving average (MA) of 1563.40, above the 50-day MA of 1588.90, and above the 200-day MA of 1560.42, indicating a bearish trend. The MACD of -5.78 indicates Positive momentum. The RSI at 43.01 is Neutral, neither overbought nor oversold. The STOCH value of 10.47 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5253.
COVER Corporation Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | ¥60.12B | 14.31 | ― | 3.54% | 0.70% | -2.66% | |
79 Outperform | ¥115.92B | 11.75 | 27.82% | 3.10% | -2.58% | 145.63% | |
71 Outperform | ¥57.20B | 22.68 | ― | 1.93% | 15.90% | 80.17% | |
68 Neutral | ¥66.98B | 9.33 | ― | 2.53% | 0.95% | 17.19% | |
66 Neutral | ¥99.92B | 36.46 | ― | ― | 4.10% | -53.15% | |
65 Neutral | ¥55.87B | 43.32 | ― | ― | 32.22% | 312.16% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
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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.