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

• Market Cap: ¥371.39B
• Dividend Yield: 0.76%
• Average Volume (3M): 504.96K
• Price to Earnings (P/E): 20.3
• Beta (1Y): 0.64
• Revenue Growth: 19.48%
• EPS Growth: 19.77%
• Country: JP
• Employees: 5,344
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 26.77
• Shares Outstanding: 180,375,340
• 10 Day Avg. Volume: 588,190
• 30 Day Avg. Volume: 504,956
• PEG Ratio: 0.56
• Price to Book (P/B): 4.16
• Price to Sales (P/S): 1.04
• P/FCF Ratio: 35.50
• 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: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: ¥2,330.00 ▲(14.72% Upside)

U-NEXT HOLDINGS Co.Ltd. has a strong financial foundation with robust revenue and net income growth, which is the most significant factor in its overall score. Technical analysis indicates a neutral trend, and the valuation suggests the stock is moderately priced. The absence of recent earnings call data and notable corporate events means these factors do not influence the score.

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

Company Description

U-NEXT HOLDINGS Co.,Ltd. offers entertainment services. It operates through five business segments: Content Distribution Business, Store Services Business, Telecommunications Business, Business Systems Business, and Energy Business. It provides and sells the U-NEXT video distribution services; distributes music; provides, sells, and implements store solutions; offers services for restaurants; and manages and develops music copyright, etc. The company also offers USEN IoT PLATFORM that enables providing one-stop services to offer wireless communications and business equipment; the U MUSIC service that combines AI, which provides store BGM services; and the USEN Marutto Store DX, which offers a package service, including the U-Regi cloud POS cash register, the U-Pay payment service, order system, security cameras, and in-store signage and insurances, as well as operates Hitosara and provides Tabelog services for restaurants. In addition, it operates sales agencies for optical internet lines; and proposes and sells services for building ICT environments in offices, and optical internet lines for individual customers. Further, the company provides network-related, cloud, data center, and maintenance and operation services for corporate ICT environments; other services under the USEN GATE 02 brand; and smart works services, as well as develops, manufactures, and sells business management systems and automated payment machines for hotels, hospitals, golf courses, etc. Additionally, it engages in the energy business that provides services for commercial stores and facilities. The company was formerly known as USEN-NEXT HOLDINGS Co.,Ltd. and changed its name to U-NEXT HOLDINGS Co.,Ltd. in April 2024. U-NEXT HOLDINGS Co.,Ltd. was incorporated in 2009 and is based in Tokyo, Japan.

How the Company Makes Money

U-NEXT HOLDINGS Co., Ltd. generates revenue primarily through its subscription-based streaming service. Customers pay a monthly fee to access a wide variety of digital content, including movies, TV series, anime, and e-books. The company also earns revenue through partnerships with content creators and distributors, enabling them to expand their library and offer exclusive content. Additionally, U-NEXT may generate income from pay-per-view events and advertising on its platform. Strategic alliances with telecommunications companies can also play a role in expanding their user base and increasing subscription revenues.

U-NEXT HOLDINGS Co.Ltd. Financial Statement Overview

Summary

U-NEXT HOLDINGS Co.Ltd. exhibits strong financial performance with significant revenue and net income growth, efficient operational management, and improved cash flow generation. The company maintains a balanced leverage position with healthy equity financing, although there is room for improvement in cash flow ratios.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	374.65B	326.75B	276.34B	237.93B	208.35B	193.19B
Gross Profit	125.58B	117.16B	96.48B	84.50B	81.58B	76.59B
EBITDA	40.41B	38.30B	29.66B	24.55B	23.63B	17.81B
Net Income	15.91B	15.36B	10.96B	8.69B	8.04B	4.91B
Balance Sheet
Total Assets	252.72B	228.96B	200.52B	153.01B	141.32B	138.37B
Cash, Cash Equivalents and Short-Term Investments	58.50B	52.74B	52.13B	26.39B	21.59B	16.79B
Total Debt	69.60B	62.89B	65.98B	60.94B	65.09B	70.18B
Total Liabilities	148.97B	136.93B	122.82B	112.73B	107.98B	112.64B
Stockholders Equity	92.76B	81.87B	68.45B	40.28B	33.33B	25.73B
Cash Flow
Free Cash Flow	0.00	9.59B	2.15B	10.49B	7.95B	-59.00M
Operating Cash Flow	0.00	15.87B	10.68B	17.66B	15.72B	8.00B
Investing Cash Flow	0.00	-10.63B	-9.44B	-7.41B	-4.20B	-7.75B
Financing Cash Flow	0.00	-4.75B	23.11B	-5.45B	-6.72B	-4.03B

U-NEXT HOLDINGS Co.Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2031.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• 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 Negative. The current price of 2031 is below the 20-day moving average (MA) of 2091.25, below the 50-day MA of 2114.57, and above the 200-day MA of 1993.01, indicating a neutral trend. The MACD of -14.82 indicates Positive momentum. The RSI at 42.22 is Neutral, neither overbought nor oversold. The STOCH value of 33.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
8053	―	$5.58T	9.21	13.26%	2.82%	4.25%	59.51%
8015	―	$4.52T	12.33	14.15%	2.45%	1.69%	9.10%
9024	―	¥1.53T	5.91	―	0.83%	86.55%	745.06%
9042	―	$1.08T	15.98	6.70%	1.79%	13.87%	-12.38%
9418	―	¥371.39B	20.35	―	0.76%	19.48%	19.77%
9435	―	¥1.87T	19.04	―	1.61%	16.38%	-25.80%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

U-NEXT HOLDINGS Co.Ltd. Corporate Events

U-NEXT HOLDINGS Announces Postponement in Business Succession Date

U-NEXT HOLDINGS Co., Ltd. has announced a further postponement of the effective date for the business succession of its subsidiary, USEN FinTech Co., Ltd., which was set to acquire the business of SBI Sumishin Net Bank through an absorption-type split. The new effective date is scheduled for March 2, 2026, due to delays in obtaining necessary approvals. The company assures that there will be no impact on its consolidated financial results for the current fiscal year.

U-NEXT HOLDINGS Reports Strong Sales Growth and Stock Split Impact

U-NEXT HOLDINGS Co., Ltd. reported a 20.3% increase in net sales for the nine months ending May 31, 2025, compared to the same period last year. The company’s financial performance indicates steady growth in operating and ordinary profits, with a notable stock split that may impact shareholder value.

U-NEXT and Rakuten Mobile Forge Strategic Alliance to Launch New Bundled Service

U-NEXT HOLDINGS Co., Ltd. has announced a business alliance between its subsidiary U-NEXT Co. and Rakuten Mobile, Inc. This partnership aims to enhance subscriber value by launching a new bundled service called ‘Rakuten Saikyo U-NEXT,’ combining U-NEXT’s content distribution with Rakuten Mobile’s ‘Rakuten Saikyo Plan.’ The collaboration seeks to leverage the complementary strengths of both companies to boost corporate value and expand market reach.