U-NEXT HOLDINGS Co.Ltd. (9418) AI Stock Analysis

• Market Cap: ¥332.25B
• Dividend Yield: 0.63%
• Average Volume (3M): 448.48K
• Price to Earnings (P/E): 20.7
• Beta (1Y): 0.59
• Revenue Growth: 22.53%
• EPS Growth: 9.05%
• Country: JP
• Employees: 5,344
• Sector: Industrials
• Sector Strength: 79
• Industry: Conglomerates
• EPS (TTM): 27.00
• Shares Outstanding: 180,375,340
• 10 Day Avg. Volume: 609,080
• 30 Day Avg. Volume: 448,476
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

U-NEXT HOLDINGS Co.Ltd.'s robust financial performance and stable technical indicators contribute to its strong position within the conglomerates industry. While the valuation is fairly typical for the sector, the company's growth potential and financial stability support a positive outlook. The absence of clear momentum indicators and modest dividend yield are minor drawbacks.

U-NEXT HOLDINGS Co.Ltd. Business Overview & Revenue Model

Company Description

U-NEXT HOLDINGS Co., Ltd. (9418) is a Japanese company primarily engaged in the digital content distribution and telecommunication sectors. The company offers a wide range of services, focusing on delivering video streaming, electronic books, and other digital content to consumers. Additionally, U-NEXT provides broadband internet services and related telecommunications solutions, catering to both individual and business clients across Japan.

How the Company Makes Money

U-NEXT HOLDINGS Co., Ltd. generates revenue through multiple streams. The primary source of income is its subscription-based video streaming service, which offers a vast library of movies, TV shows, anime, and more to its users. Customers pay a monthly fee to access this content, providing a steady and recurring revenue stream. In addition to video streaming, the company earns revenue from its electronic book and comic distribution services, where users can purchase or rent digital books and comics. Furthermore, U-NEXT benefits from its telecommunications services, where it charges customers for internet connectivity and value-added services. Partnerships with content providers, publishers, and telecom companies further bolster its offerings and contribute to its revenue by enhancing its content library and service capabilities.

U-NEXT HOLDINGS Co.Ltd. Financial Statement Overview

Summary

U-NEXT HOLDINGS Co.Ltd. exhibits strong financial performance with significant revenue growth and net income improvement. The company shows efficient operational management and cash flow generation. Balanced leverage and healthy equity financing also contribute positively, though some improvement in cash flow ratios could enhance their position further.

Income Statement

U-NEXT HOLDINGS Co.Ltd. demonstrated strong revenue growth with a 18.25% increase from the previous year. Gross profit margin is solid at 35.87%, and net profit margin has improved to 4.70%. The EBIT margin is robust at 8.83%, and EBITDA margin stands at 11.72%, reflecting efficient operational management.

Balance Sheet

The company's debt-to-equity ratio of 0.77 indicates a balanced leverage position. Return on equity has improved to 18.76%, showing strong profitability relative to shareholder equity. The equity ratio is decent at 35.76%, suggesting a healthy proportion of equity financing.

Cash Flow

Free cash flow growth is notable at 346.33%, indicating improved cash generation capacity. The operating cash flow to net income ratio is 1.03, showing that operating cash flows are closely aligned with net income. The free cash flow to net income ratio of 0.62 highlights a positive conversion of net income to free cash flow.

Breakdown
Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
326.75B	276.34B	237.93B	208.35B	193.19B
	Gross Profit
117.16B	96.48B	84.50B	81.58B	76.59B
	EBIT
28.85B	21.57B	17.32B	15.61B	10.88B
	EBITDA
38.30B	29.66B	24.55B	23.63B	17.81B
	Net Income Common Stockholders
15.36B	10.96B	8.69B	8.04B	4.91B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
52.74B	52.13B	26.39B	21.59B	16.79B
	Total Assets
228.96B	200.52B	153.01B	141.32B	138.37B
	Total Debt
65.58B	65.98B	60.94B	65.09B	70.18B
	Net Debt
12.85B	13.85B	34.55B	43.50B	53.40B
	Total Liabilities
136.93B	122.82B	112.73B	107.98B	112.64B
	Stockholders Equity
81.87B	68.45B	40.28B	33.33B	25.73B
Cash Flow		Free Cash Flow
9.59B	2.15B	10.49B	7.95B	-59.00M
	Operating Cash Flow
15.87B	10.68B	17.66B	15.72B	8.00B
	Investing Cash Flow
-10.63B	-9.44B	-7.41B	-4.20B	-7.75B
	Financing Cash Flow
-4.75B	23.11B	-5.45B	-6.72B	-4.03B

U-NEXT HOLDINGS Co.Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2021.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9418, the sentiment is Positive. The current price of 2021 is above the 20-day moving average (MA) of 1931.60, above the 50-day MA of 1822.43, and above the 200-day MA of 1725.69, indicating a bullish trend. The MACD of 71.49 indicates Negative momentum. The RSI at 62.91 is Neutral, neither overbought nor oversold. The STOCH value of 45.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9418.

U-NEXT HOLDINGS Co.Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4307	75 Outperform	$3.12T	33.58	22.20%	1.09%	3.84%	19.26%
9418	74 Outperform	¥332.25B	20.68		0.63%	22.53%	9.05%
4689	71 Outperform	¥3.75T	33.18		1.31%	6.51%	-0.45%
3791	67 Neutral	¥40.39B	35.96		0.75%	32.27%	-35.94%
4751	65 Neutral	¥621.65B	28.53	14.49%	1.45%	9.13%	120.85%
Sector *	64 Neutral	$4.28B	11.80	5.33%	250.46%	4.10%	-9.26%
4755	46 Neutral	$1.79T	―	-18.23%	―	10.04%	57.36%

U-NEXT HOLDINGS Co.Ltd. Corporate Events

U-NEXT’s Subsidiary U-POWER Acquires Kukoku Energy to Boost Renewable Services

U-NEXT HOLDINGS Co., Ltd. announced that its subsidiary, U-POWER Co., Ltd., will acquire all shares of Kukoku Energy, Inc. from Enellink Holdings, Inc., making it a sub-subsidiary. This strategic acquisition aims to enhance U-POWER’s electricity retail business by providing diverse and high-value services, aligning with the growing demand for renewable energy. Despite Kukoku Energy’s recent financial losses, U-NEXT expects a swift return to profitability through synergies with U-POWER, with minimal impact on its current fiscal year results.

U-NEXT HOLDINGS Announces Interim Dividend Amid Strategic Financial Goals

U-NEXT HOLDINGS Co., Ltd., a company focused on returning profits to shareholders, has announced an interim dividend of 7.0 yen per share, scheduled for payment on May 26, 2025. This decision reflects the company’s commitment to strengthening its financial foundations and increasing its dividend payout ratio to 30%, following a recent 3-for-1 stock split.

U-NEXT HOLDINGS Reports Strong Financial Growth in H1 2025

U-NEXT HOLDINGS Co., Ltd. reported a significant increase in its financial performance for the six months ending February 28, 2025, with net sales rising by 22.7% compared to the previous period. The company’s strategic initiatives and market positioning have contributed to improved profitability, with operating profit and ordinary profit showing notable growth. The company’s equity ratio has also improved, indicating a stronger financial position, which is likely to have positive implications for stakeholders and future growth prospects.

U-NEXT HOLDINGS to Establish New Subsidiaries for Risk Management and Profitability

U-NEXT HOLDINGS Co., Ltd. is set to establish a captive reinsurance subsidiary in the Federated States of Micronesia and a new insurance agency company in Japan. This strategic move aims to strengthen risk management, internalize reinsurance costs, and boost retained earnings, ultimately enhancing the group’s corporate value. The impact on the company’s consolidated operating results for the fiscal year ending August 31, 2025, is expected to be minimal.

U-NEXT HOLDINGS Expands into Halal Food Market with New Malaysian Subsidiary

U-NEXT HOLDINGS Co., Ltd. announced the establishment of a new subsidiary in Malaysia, Amane Sdn.Bhd., to enter the halal food market. This strategic move aims to leverage the company’s expertise in the virtual restaurant business to manufacture and sell halal foods and operate a food delivery brand franchise in Southeast Asia, enhancing the group’s future corporate value.

U-NEXT Secures Exclusive Streaming Rights for Major Golf Tournaments

U-NEXT Co., Ltd., a subsidiary of U-NEXT HOLDINGS, has secured exclusive streaming rights for all four major men’s golf tournaments and the domestic women’s golf tour for the 2025 season, a first in Japan for a single platform. This strategic move is expected to attract new subscribers from golf enthusiasts, enhancing the overall value of their service offerings and potentially impacting the company’s financial results positively.