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Kadokawa Corporation
(9468)
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Rating:44Neutral
Price Target:
¥3,559.00
▲(13.31% Upside)
Action:Reiterated
Date:05/15/26
The score is held down primarily by weakened profitability and sharply lower free cash flow in TTM, despite a strong low-leverage balance sheet. Technical indicators also point to soft momentum, and the very high P/E with a low dividend yield further pressures the overall rating.
Positive Factors
Conservative balance sheet
Kadokawa’s very low debt-to-equity (~0.05) gives durable financial flexibility and low refinancing risk. That conservatism lets management fund content production, license deals, and periodic strategic investments without immediate liquidity stress, cushioning cyclical media earnings and supporting multi-year IP monetization strategies.
Negative Factors
Eroding profitability
Sharp margin compression to low single-digit operating and net margins materially reduces internal funds for content investment and weakens return scalability. Persistent low operating profitability implies structural cost or mix issues, making it harder to convert revenue growth into durable shareholder returns without margin recovery initiatives.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Kadokawa’s very low debt-to-equity (~0.05) gives durable financial flexibility and low refinancing risk. That conservatism lets management fund content production, license deals, and periodic strategic investments without immediate liquidity stress, cushioning cyclical media earnings and supporting multi-year IP monetization strategies.
Read all positive factors
Kadokawa Corporation (9468) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥500.99B
Dividend Yield0.98%
Average Volume (3M)553.58K
Price to Earnings (P/E)422.5
Beta (1Y)0.05
Revenue Growth1.80%
EPS Growth-84.08%
CountryJP
Employees6,269
SectorGeneral
Sector StrengthN/A
IndustryPublishing
Share Statistics
EPS (TTM)8.74
Shares Outstanding148,990,300
10 Day Avg. Volume524,610
30 Day Avg. Volume553,583
Financial Highlights & Ratios
PEG Ratio-5.21
Price to Book (P/B)2.25
Price to Sales (P/S)1.97
P/FCF Ratio809.11
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥3,000.00Price Target Upside-4.49% Downside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)56.99
Revenue Forecast (FY)¥299.14B
Kadokawa Corporation Business Overview & Revenue Model
Company Description
Kadokawa Corporation is a prominent Japanese media and entertainment conglomerate. Its diverse operations encompass publishing, film production, intellectual property management, and digital content creation. The company further extends its reach ...
How the Company Makes Money
Kadokawa makes money by monetizing intellectual property (IP) across multiple formats and channels. Key revenue streams include: (1) Publishing: sales of print and digital books, manga, light novels, and magazines through bookstores, online retail...
Kadokawa Corporation Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
78
Positive
Cash Flow
34
Negative
| Breakdown | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 282.91B | 277.92B | 258.11B | 255.43B | 221.21B |
| Gross Profit | 96.75B | 99.08B | 86.61B | 90.86B | 75.59B |
| EBITDA | 22.20B | 25.53B | 26.68B | 27.60B | 25.66B |
| Net Income | 1.28B | 7.39B | 11.38B | 12.68B | 14.08B |
Balance Sheet | |||||
| Total Assets | 394.86B | 410.03B | 340.31B | 382.90B | 325.32B |
| Cash, Cash Equivalents and Short-Term Investments | 116.83B | 146.30B | 105.35B | 167.22B | 123.93B |
| Total Debt | 10.93B | 27.28B | 25.83B | 65.89B | 65.70B |
| Total Liabilities | 118.11B | 132.62B | 127.74B | 159.72B | 149.58B |
| Stockholders Equity | 248.04B | 252.22B | 190.59B | 202.55B | 171.90B |
Cash Flow | |||||
| Free Cash Flow | 689.00M | 7.20B | 5.17B | 14.71B | 19.50B |
| Operating Cash Flow | 3.42B | 13.84B | 8.30B | 17.52B | 21.71B |
| Investing Cash Flow | -20.96B | -8.37B | 3.49B | 20.01B | -7.44B |
| Financing Cash Flow | -22.51B | 44.04B | -65.80B | -5.54B | 26.19B |
Kadokawa Corporation Technical Analysis
Positive
3141.00
Price Trends
3365.56
Positive
3324.61
Positive
3309.21
Positive
Market Momentum
72.77
Negative
67.81
Neutral
89.72
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9468, the sentiment is Positive. The current price of 3141 is below the 20-day moving average (MA) of 3345.20, below the 50-day MA of 3365.56, and below the 200-day MA of 3309.21, indicating a bullish trend. The MACD of 72.77 indicates Negative momentum. The RSI at 67.81 is Neutral, neither overbought nor oversold. The STOCH value of 89.72 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9468.
Kadokawa Corporation Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | ¥3.52B | 8.14 | ― | 2.95% | 9.54% | 5.99% | |
71 Outperform | ¥12.67B | 9.96 | ― | 3.16% | -1.07% | -25.73% | |
62 Neutral | ¥20.10B | 10.98 | ― | 2.01% | 6.50% | 33.18% | |
60 Neutral | ¥8.94B | 7.26 | ― | 1.06% | 7.53% | 125.42% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
44 Neutral | ¥500.99B | 422.54 | ― | 0.98% | 1.80% | -84.08% | |
44 Neutral | ¥2.36B | -59.86 | ― | ― | 8.82% | -48.52% |
* General Sector Average
JP:9468
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Kadokawa Corporation Corporate Events
Kadokawa Books ¥5.4 Billion Extraordinary Loss on Special Early Retirement Program
Jul 2, 2026
Kadokawa Corporation has concluded a special early retirement program targeting employees aged 45 and over with at least five years of service, resulting in 154 applicants who will retire effective July 31, 2026 under enhanced retirement and job-p...
Kadokawa revamps board and executive lineup to strengthen governance and operations
Jun 24, 2026
Kadokawa Corporation has overhauled its governance and executive structure following shareholder approval at its 12th Annual General Meeting, appointing a renewed board that includes multiple independent directors and a new independent member, Koj...
Kadokawa Overhauls Board and Executive Lineup to Strengthen Governance and Content Operations
May 14, 2026
Kadokawa Corporation has proposed a 12-member board slate for approval at its June 24 shareholders’ meeting, featuring seven independent directors, with 25 percent women and 8.3 percent non-Japanese members, underscoring a push toward more d...
Kadokawa Seeks Court-Appointed Inspector Amid Activist Bid to Oust CEO
May 14, 2026
Kadokawa Corporation has disclosed that it received a shareholder proposal from Oasis Japan Strategic Fund Y Ltd., seeking the dismissal of Chief Executive Officer Takeshi Natsuno from his position as director at the 12th Annual Shareholders’...
Kadokawa Board Rejects Activist Bid to Oust CEO Natsuno
May 14, 2026
Kadokawa’s board has formally rejected a shareholder proposal from Oasis Japan Strategic Fund Y Ltd. seeking the dismissal of CEO and director Takeshi Natsuno at the June 24 annual general meeting. The board, following its Nominating Committ...
Kadokawa Launches Early Retirement Program, Flags Extraordinary Loss for FY 2026
May 14, 2026
Kadokawa Corporation has approved a special early retirement program as it moves to streamline its organization amid shifting global content demand and increasing pressure for leaner cost structures. The program is positioned as both a structural ...
Kadokawa Maintains ¥30 Year-End Dividend, Reaffirms Stable Payout Policy
May 14, 2026
Kadokawa Corporation’s board has approved a year-end dividend of 30 yen per share for the fiscal year ended March 31, 2026, matching both its prior-year payout and previously announced forecast. The total dividend distribution will be 4,462 ...
Kadokawa Misses Profit Targets as Tax Charge and Impairments Weigh on FY2026 Results
May 14, 2026
Kadokawa Corporation, a major Japanese media and entertainment group listed on the TSE Prime Market, operates in publishing, animation, and gaming, offering books, comics, anime, and games to domestic and overseas markets. Its multi-segment conten...
Kadokawa Unveils FY2026–FY2031 Plan Focused on Transformation and Growth
May 14, 2026
Kadokawa Corporation has outlined a new mid-term management plan covering fiscal years 2026 to 2031 that centers on transformation, growth, and expansion across its core operations. The plan is structured around a review of the current strategy an...
Kadokawa Profit Slumps Despite Higher Sales, Eyes Earnings Rebound in FY2027
May 14, 2026
Kadokawa reported a modest 1.8% rise in consolidated net sales to ¥282.9 billion for the year ended March 31, 2026, but profits fell sharply, with operating profit down 51.3% and net profit attributable to owners plunging 82.7% amid weaker ma...
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.