Musashino Kogyo Co., Ltd. (9635) AI Stock Analysis

Musashino Kogyo Co., Ltd.

(TSE/TYO:9635)

Select Model

Rating:67Neutral

Price Target:JPY 2,772.00▲(19.95% Upside)

Action:reiterated

Date:08/18/26

The overall score of 67 reflects a company with a fortress-like balance sheet that significantly mitigates operational risks. The primary strength is the very low debt and growing equity base. The main concern is the divergence between reported net income and weak operating cash flow, which casts doubt on earnings sustainability. Technicals show a mild uptrend but with a cautionary overbought stochastic signal. Valuation appears low on a P/E basis, but this is distorted by non-recurring income. Investors should monitor the company's ability to convert core profits into cash.

Positive Factors

Conservative Balance SheetLow leverage and a substantial equity base provide financial resilience, reduce dependence on external funding, and give the company flexibility to manage fluctuations in cinema demand and real-estate operations.

Negative Factors

Weak Cash ConversionNegative operating and free cash flow weaken confidence that reported earnings are converting into liquidity. Persistent working-capital swings or spending needs could constrain reinvestment, distributions, and financial flexibility.

Musashino Kogyo Co., Ltd. (9635) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 2.42B
Dividend Yield: ―
Average Volume (3M): 443
Price to Earnings (P/E): 6.6
Beta (1Y): 0.15
Revenue Growth: -2.77%
EPS Growth: 528.67%
Country: Japan
Employees: 43
Sector: General
Sector Strength: 55
Industry: Real Estate - Services

Musashino Kogyo Co., Ltd. Business Overview & Revenue Model

Company Description

Musashino Kogyo Co., Ltd. is a diversified Japanese corporation with core activities in the film entertainment, real estate, and broader commercial sectors. Its operations are organized into four main divisions: Film Business, Property Business, Driv...

How the Company Makes Money

The company primarily generates revenue from (1) cinema operations: ticket sales for movie screenings and related in-theater sales (e.g., concessions such as food and beverages) associated with operating movie theaters; and (2) real-estate-related in...

Musashino Kogyo Co., Ltd. Financial Statement Overview

Summary

The balance sheet is a clear strength with very low leverage (debt-to-equity 0.07) and growing equity, providing excellent financial stability. Income statement shows improving gross margins and a return to profitability, though core operating profitability remains modest and recent net income was boosted by non-operating items. Cash flow is the weak point, turning negative in the latest period despite high reported net income, raising questions about earnings quality. Overall, the strong balance sheet offsets some income and cash flow volatility.

Income Statement

62Positive

Balance Sheet

88Very Positive

Cash Flow

55Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	964.25M	1.33B	1.36B	1.28B	1.38B	1.29B
Gross Profit	557.53M	731.36M	680.36M	633.39M	734.27M	687.39M
EBITDA	515.99M	156.42M	154.81M	87.19M	103.44M	143.83M
Net Income	365.03M	360.38M	64.96M	4.67M	40.58M	50.01M
Balance Sheet
Total Assets	6.32B	6.34B	6.07B	5.98B	5.95B	5.99B
Cash, Cash Equivalents and Short-Term Investments	1.20B	1.17B	861.28M	758.32M	743.27M	759.25M
Total Debt	251.63M	265.12M	317.69M	345.02M	347.44M	411.26M
Total Liabilities	2.33B	2.36B	2.46B	2.40B	2.38B	2.45B
Stockholders Equity	3.99B	3.98B	3.62B	3.58B	3.58B	3.54B
Cash Flow
Free Cash Flow	0	-122.24M	131.81M	16.80M	48.99M	13.48M
Operating Cash Flow	0	-4.84M	200.09M	41.57M	91.95M	65.56M
Investing Cash Flow	0	366.00M	-69.37M	-20.39M	-44.10M	-47.15M
Financing Cash Flow	0	-52.79M	-27.76M	-6.18M	-63.87M	-94.58M

Musashino Kogyo Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price2311.00

Price Trends

50DMA2514.68Negative

100DMA2525.27Negative

200DMA2526.95Negative

Market Momentum

MACD-53.01Positive

RSI13.74Positive

STOCH6.21Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9635, the sentiment is Negative. The current price of 2311.00 is below the 20-day moving average (MA) of 2441.55, below the 50-day MA of 2514.68, and below the 200-day MA of 2526.95, indicating a bearish trend. The MACD of -53.01 indicates Positive momentum. The RSI at 13.74 is Positive, neither overbought nor oversold. The STOCH value of 6.21 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9635.

Musashino Kogyo Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:9635 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:8996	72Outperform	JPY 4.48B	4.60	―	5.00%	18.08%	89.27%
JP:8944	69Neutral	JPY 5.02B	2.78	―	2.38%	65.37%	―
JP:9635	67Neutral	JPY 2.48B	6.63	―	―	-2.77%	528.67%
JP:9342	66Neutral	JPY 1.97B	44.14	―	―	-2.19%	-75.24%
JP:3252	60Neutral	JPY 57.05B	8.23	―	4.69%	36.85%	83.36%
JP:8999	57Neutral	JPY 15.94B	12.57	―	5.95%	0.90%	84.14%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:9635 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:9635	Musashino Kogyo Co., Ltd.	2311.00	147.00	6.79%
JP:3252	JINUSHI Co.,Ltd.	2663.00	-83.31	-3.03%
JP:8944	Land Business Co., Ltd.	252.00	25.50	11.26%
JP:8996	HouseFreedom Co., Ltd.	1101.00	194.07	21.40%
JP:8999	Grandy House Corporation	538.00	1.70	0.32%
JP:9342	Sumasapo, Inc.	810.00	-310.00	-27.68%

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.

Date of analysis: Aug 18, 2026

Musashino Kogyo Co., Ltd. AI Stock Analysis