Announcement • Jun 10
Oasis Management Company Ltd. Provides Information to Kadokawa Corporation On June 9, 2026, Oasis Management Company Ltd. announced that it issued the following statement in response to media reports that the Japan Fair Trade Commission (“JFTC”) intends to issue another recommendation against Kadokawa Corporation for violations of the Act on Ensuring Proper Transactions Involving Specified Entrusted Business Operators, widely known as the Freelance Protection Act. Oasis Management Company Ltd urges the Company’s shareholders to vote against the reappointment of CEO Takeshi Natsuno as a director and to support Oasis’s shareholder proposal to dismiss CEO Takeshi Natsuno at the upcoming AGM on June 24, 2026. Oasis stated the concerns about the Company’s governance, compliance failures, and management oversight, highlighted by repeated investigations and recommendations from the Japan Fair Trade Commission regarding improper treatment of freelance partners. Additionally, Oasis stated that the persistence of these issues under current leadership demonstrates the need for a management change to restore accountability and strengthen governance at the Company. Live News • Jun 08
Oasis Urges Shareholders to Oppose Kadokawa CEO Reappointment Over Performance Concerns Oasis Management, a significant shareholder in Kadokawa, is urging investors to vote against the reappointment of CEO Takeshi Natsuno at the 2026 AGM.
The fund cites what it describes as deteriorated financial performance over the past five years as a key reason for its opposition.
Oasis also criticizes how Kadokawa’s IP and core businesses have been handled and is calling for changes to leadership, governance and capital allocation.
A public challenge from a large shareholder puts Kadokawa’s leadership and board decisions under close scrutiny, particularly regarding how effectively the company is using its intellectual property and managing its main business lines.
Investors may want to monitor how other shareholders respond ahead of the 2026 AGM, as a broader push for change could affect management stability and capital allocation policies. Major Estimate Revision • May 22
Consensus EPS estimates fall by 17%, revenue upgraded The consensus outlook for fiscal year 2027 has been updated. 2027 revenue forecast increased from JP¥294.0b to JP¥297.9b. EPS estimate fell from JP¥81.33 to JP¥67.13 per share. Net income forecast to grow 727% next year vs 6.0% growth forecast for Media industry in Japan. Consensus price target broadly unchanged at JP¥3,151. Share price was steady at JP¥3,289 over the past week. Reported Earnings • May 17
Full year 2026 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2026 results: EPS: JP¥8.71 (down from JP¥53.86 in FY 2025). Revenue: JP¥282.9b (up 1.8% from FY 2025). Net income: JP¥1.28b (down 83% from FY 2025). Profit margin: 0.5% (down from 2.7% in FY 2025). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 1.7%. Earnings per share (EPS) missed analyst estimates by 73%. Revenue is forecast to grow 4.2% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Media industry in Japan. Over the last 3 years on average, earnings per share has fallen by 31% per year but the company’s share price has remained flat, which means it is well ahead of earnings. Announcement • May 15
Kadokawa Corporation, Annual General Meeting, Jun 24, 2026 Kadokawa Corporation, Annual General Meeting, Jun 24, 2026. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥30.00 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 29 June 2026. The company is paying out more than 100% of its earnings and cash flow. Trailing yield: 0.9%. Lower than top quartile of Japanese dividend payers (3.6%). Lower than average of industry peers (2.0%). Price Target Changed • Mar 18
Price target decreased by 7.3% to JP¥3,195 Down from JP¥3,445, the current price target is an average from 6 analysts. New target price is approximately in line with last closing price of JP¥3,166. Stock is down 9.1% over the past year. The company is forecast to post earnings per share of JP¥36.14 for next year compared to JP¥53.86 last year. Reported Earnings • Feb 14
Third quarter 2026 earnings released: EPS: JP¥4.90 (vs JP¥31.76 in 3Q 2025) Third quarter 2026 results: EPS: JP¥4.90 (down from JP¥31.76 in 3Q 2025). Revenue: JP¥69.1b (down 1.7% from 3Q 2025). Net income: JP¥720.0m (down 83% from 3Q 2025). Profit margin: 1.0% (down from 6.1% in 3Q 2025). Revenue is forecast to grow 7.2% p.a. on average during the next 3 years, compared to a 4.8% growth forecast for the Media industry in Japan. Over the last 3 years on average, earnings per share has fallen by 28% per year but the company’s share price has increased by 3% per year, which means it is well ahead of earnings. Announcement • Dec 27
Kadokawa Corporation to Report Q3, 2026 Results on Feb 12, 2026 Kadokawa Corporation announced that they will report Q3, 2026 results on Feb 12, 2026 Announcement • Dec 03
Kadokawa Corporation (TSE:9468) acquired 80% stake in SOZO Pte Ltd. Kadokawa Corporation (TSE:9468) acquired 80% stake in SOZO Pte Ltd on November 2025.
Kadokawa Corporation (TSE:9468) completed the acquisition of 80% stake in SOZO Pte Ltd on November 2025. Declared Dividend • Nov 08
Dividend of JP¥30.00 announced Dividend of JP¥30.00 is the same as last year. Ex-date: 30th March 2026 Payment date: 29th June 2026 Dividend yield will be 1.0%, which is lower than the industry average of 2.3%. Announcement • Sep 27
Kadokawa Corporation to Report Q2, 2026 Results on Nov 06, 2025 Kadokawa Corporation announced that they will report Q2, 2026 results on Nov 06, 2025 Reported Earnings • Aug 08
First quarter 2026 earnings released: EPS: JP¥19.50 (vs JP¥25.69 in 1Q 2025) First quarter 2026 results: EPS: JP¥19.50 (down from JP¥25.69 in 1Q 2025). Revenue: JP¥64.8b (down 1.5% from 1Q 2025). Net income: JP¥2.86b (down 17% from 1Q 2025). Profit margin: 4.4% (down from 5.2% in 1Q 2025). Revenue is forecast to grow 7.0% p.a. on average during the next 3 years, compared to a 6.2% growth forecast for the Media industry in Japan. Over the last 3 years on average, earnings per share has fallen by 25% per year but the company’s share price has increased by 5% per year, which means it is well ahead of earnings. Announcement • Jul 04
GeeXPlus, Inc. Announces the Launch of GeeXProductions with Creator-Led Anime Projects from Gigguk, DillonGoo, and OtakuVS GeeXPlus Inc. announced the new GeeX Productions division, which expands the agency's ability to support creators in fully leveraging their intellectual property (IP). GeeX Productions' projects -- Gigguk'sime short movie Baan -Da Ren noQiang Jie - (Baan -The Boundaries of Adulthood-), DillonGoo's original 12-episode 3D Blender animation Soul Mart, and OtakuVS' long-running indie anime short series Otachan! - were introduced during a panel this evening at Anime Expo (AX). Key visuals for Gigguk's "Baan (Baan -The Boundary of Adulthood-)", DillonGoo Studios' "Soul Mart" and Studio OtakuVersus' "Otachan!Rabbit Season" from GeeX Productions' first three projects are as follows, with more expected as the agency continues to expand its roster of anime-based talent. GeeX Productions Projects "Baan -Da Ren noQiangJie -", created by Gigguk, is set in the fictional world of Euthania, which is connected to Japan via a warp gate. The story follows two protagonists who leave their birthplaces in search of a place where they truly belong. The short anime is directed by Yoshimitsu Ohashi, known for directing CODE GEASS Roze of the Recapture, with music composed by Kevin Penkin, acclaimed for his work on Made in Abyss, and animation by Studio OtakuVersus's mission to revive the lost art of elusive, high-quality OVAs. Exclusive merch from the projects and other GeeXPlus talent is available for purchase at AX booth WH-634 or via online preorder. Reported Earnings • Jul 01
Full year 2025 earnings: EPS misses analyst expectations Full year 2025 results: EPS: JP¥53.86 (down from JP¥83.42 in FY 2024). Revenue: JP¥277.9b (up 7.7% from FY 2024). Net income: JP¥7.39b (down 35% from FY 2024). Profit margin: 2.7% (down from 4.4% in FY 2024). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 24%. Revenue is forecast to grow 6.5% p.a. on average during the next 3 years, compared to a 6.6% growth forecast for the Media industry in Japan. Over the last 3 years on average, earnings per share has fallen by 22% per year but the company’s share price has increased by 10% per year, which means it is well ahead of earnings. Announcement • Jun 27
Kadokawa Corporation to Report Q1, 2026 Results on Aug 07, 2025 Kadokawa Corporation announced that they will report Q1, 2026 results on Aug 07, 2025 Announcement • Jun 26
Kadokawa Corporation Elects Koichi Kusano as Member of the Board and Chairperson of the Audit Committee, Effective June 26, 2025 KADOKAWA CORPORATION announced that a resolution to elect Members of the Board was adopted at the 11th General Meeting of Shareholders held on June 26, 2025, the shareholders elected Koichi Kusano as Member of the Board, Independent and Chairperson of the Audit Committee of the company. Reported Earnings • May 09
Full year 2025 earnings: EPS misses analyst expectations Full year 2025 results: EPS: JP¥53.86 (down from JP¥83.42 in FY 2024). Revenue: JP¥277.9b (up 7.7% from FY 2024). Net income: JP¥7.39b (down 35% from FY 2024). Profit margin: 2.7% (down from 4.4% in FY 2024). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 19%. Revenue is forecast to grow 8.1% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Media industry in Japan. Over the last 3 years on average, earnings per share has fallen by 22% per year but the company’s share price has increased by 11% per year, which means it is well ahead of earnings. Announcement • May 08
Kadokawa Corporation, Annual General Meeting, Jun 26, 2025 Kadokawa Corporation, Annual General Meeting, Jun 26, 2025. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥30.00 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 19 June 2025. Trailing yield: 0.8%. Lower than top quartile of Japanese dividend payers (3.7%). Lower than average of industry peers (2.3%). Announcement • Mar 01
Kadokawa Corporation to Report Fiscal Year 2025 Results on May 08, 2025 Kadokawa Corporation announced that they will report fiscal year 2025 results on May 08, 2025 Reported Earnings • Feb 07
Third quarter 2025 earnings released: EPS: JP¥31.76 (vs JP¥16.25 in 3Q 2024) Third quarter 2025 results: EPS: JP¥31.76 (up from JP¥16.25 in 3Q 2024). Revenue: JP¥70.3b (up 12% from 3Q 2024). Net income: JP¥4.27b (up 95% from 3Q 2024). Profit margin: 6.1% (up from 3.5% in 3Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 7.4% p.a. on average during the next 3 years, compared to a 4.3% growth forecast for the Media industry in Japan. Over the last 3 years on average, earnings per share has fallen by 14% per year but the company’s share price has increased by 13% per year, which means it is well ahead of earnings. Announcement • Jan 03
Kadokawa Corporation to Report Q3, 2025 Results on Feb 06, 2025 Kadokawa Corporation announced that they will report Q3, 2025 results on Feb 06, 2025 Price Target Changed • Dec 27
Price target decreased by 11% to JP¥3,938 Down from JP¥4,405, the current price target is an average from 6 analysts. New target price is 26% above last closing price of JP¥3,124. Stock is up 8.8% over the past year. The company is forecast to post earnings per share of JP¥75.03 for next year compared to JP¥83.42 last year. Valuation Update With 7 Day Price Move • Dec 20
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to JP¥3,689, the stock trades at a forward P/E ratio of 36x. Average forward P/E is 16x in the Media industry in Japan. Total returns to shareholders of 31% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥5,605 per share. Buy Or Sell Opportunity • Dec 17
Now 20% undervalued Over the last 90 days, the stock has risen 48% to JP¥4,454. The fair value is estimated to be JP¥5,570, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 7.2% over the last 3 years. Earnings per share has declined by 16%. For the next 3 years, revenue is forecast to grow by 6.8% per annum. Earnings are also forecast to grow by 24% per annum over the same time period. Price Target Changed • Dec 02
Price target increased by 10% to JP¥4,405 Up from JP¥3,988, the current price target is an average from 6 analysts. New target price is approximately in line with last closing price of JP¥4,384. Stock is up 68% over the past year. The company is forecast to post earnings per share of JP¥79.92 for next year compared to JP¥83.42 last year. Price Target Changed • Nov 27
Price target increased by 10% to JP¥4,155 Up from JP¥3,761, the current price target is an average from 6 analysts. New target price is 5.4% below last closing price of JP¥4,390. Stock is up 64% over the past year. The company is forecast to post earnings per share of JP¥79.92 for next year compared to JP¥83.42 last year. Buy Or Sell Opportunity • Nov 27
Now 21% undervalued Over the last 90 days, the stock has risen 50% to JP¥4,398. The fair value is estimated to be JP¥5,545, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 7.2% over the last 3 years. Earnings per share has declined by 16%. For the next 3 years, revenue is forecast to grow by 7.1% per annum. Earnings are also forecast to grow by 24% per annum over the same time period. Valuation Update With 7 Day Price Move • Nov 21
Investor sentiment improves as stock rises 41% After last week's 41% share price gain to JP¥4,132, the stock trades at a forward P/E ratio of 39x. Average forward P/E is 16x in the Media industry in Japan. Total returns to shareholders of 32% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥5,571 per share. Announcement • Nov 19
Sony Reportedly in Talks to Buy Media Powerhouse Behind 'Elden Ring' Game Sony Group Corporation (TSE:6758) is in talks to acquire Kadokawa Corporation (TSE:9468), the Japanese media powerhouse behind the "Elden Ring" game, two sources familiar with the matter said, as the technology giant looks to add to its entertainment portfolio. The talks between the two sides are ongoing and, if successful, a deal could be signed in the coming weeks, the sources said. Sony declined to comment. Kadokawa said it cannot comment. Sony already has a 2% stake in Kadokawa and a stake in Kadokawa subsidiary FromSoftware Inc., the developer of the hit fantasy role-playing game. Reported Earnings • Nov 09
Second quarter 2025 earnings released: JP¥2.66 loss per share (vs JP¥2.05 profit in 2Q 2024) Second quarter 2025 results: JP¥2.66 loss per share (down from JP¥2.05 profit in 2Q 2024). Revenue: JP¥70.5b (up 7.8% from 2Q 2024). Net loss: JP¥358.0m (down 227% from profit in 2Q 2024). Revenue is forecast to grow 6.8% p.a. on average during the next 3 years, compared to a 3.8% growth forecast for the Media industry in Japan. Over the last 3 years on average, earnings per share has fallen by 16% per year but the company’s share price has only fallen by 5% per year, which means it has not declined as severely as earnings. New Risk • Nov 08
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 6.1% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. This is currently the only risk that has been identified for the company. Announcement • Sep 27
Kadokawa Corporation to Report Q2, 2025 Results on Nov 07, 2024 Kadokawa Corporation announced that they will report Q2, 2025 results on Nov 07, 2024 Major Estimate Revision • Aug 21
Consensus EPS estimates fall by 10% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate fell from JP¥102 to JP¥91.59 per share. Revenue forecast steady at JP¥267.7b. Net income forecast to grow 31% next year vs 8.4% growth forecast for Media industry in Japan. Consensus price target of JP¥3,704 unchanged from last update. Share price rose 18% to JP¥3,007 over the past week. Valuation Update With 7 Day Price Move • Aug 21
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to JP¥3,007, the stock trades at a forward P/E ratio of 29x. Average forward P/E is 15x in the Media industry in Japan. Total returns to shareholders of 24% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥5,630 per share. Reported Earnings • Aug 17
First quarter 2025 earnings released: EPS: JP¥25.69 (vs JP¥27.59 in 1Q 2024) First quarter 2025 results: EPS: JP¥25.69 (down from JP¥27.59 in 1Q 2024). Revenue: JP¥65.9b (up 12% from 1Q 2024). Net income: JP¥3.45b (down 10% from 1Q 2024). Profit margin: 5.2% (down from 6.5% in 1Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 6.0% p.a. on average during the next 3 years, compared to a 4.1% growth forecast for the Media industry in Japan. Over the last 3 years on average, earnings per share has fallen by 14% per year but the company’s share price has increased by 7% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to JP¥2,270, the stock trades at a forward P/E ratio of 22x. Average forward P/E is 13x in the Media industry in Japan. Negligible returns to shareholders over past three years. Announcement • Jun 06
Kadokawa Corporation to Report Q1, 2025 Results on Aug 08, 2024 Kadokawa Corporation announced that they will report Q1, 2025 results on Aug 08, 2024 Reported Earnings • May 11
Full year 2024 earnings: EPS and revenues exceed analyst expectations Full year 2024 results: EPS: JP¥83.42 (down from JP¥90.91 in FY 2023). Revenue: JP¥258.1b (up 1.0% from FY 2023). Net income: JP¥11.4b (down 10% from FY 2023). Profit margin: 4.4% (down from 5.0% in FY 2023). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 2.6%. Earnings per share (EPS) also surpassed analyst estimates by 41%. Revenue is forecast to grow 6.7% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Media industry in Japan. Over the last 3 years on average, earnings per share has fallen by 11% per year but the company’s share price has increased by 18% per year, which means it is well ahead of earnings. Announcement • May 11
Kadokawa Corporation, Annual General Meeting, Jun 18, 2024 Kadokawa Corporation, Annual General Meeting, Jun 18, 2024. Major Estimate Revision • Mar 30
Consensus EPS estimates fall by 26% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from JP¥255.5b to JP¥251.6b. EPS estimate also fell from JP¥81.83 per share to JP¥60.64 per share. Net income forecast to grow 96% next year vs 13% growth forecast for Media industry in Japan. Consensus price target broadly unchanged at JP¥3,838. Share price fell 3.7% to JP¥2,652 over the past week. Announcement • Mar 28
Kadokawa Corporation to Report Fiscal Year 2024 Results on May 09, 2024 Kadokawa Corporation announced that they will report fiscal year 2024 results on May 09, 2024 Upcoming Dividend • Mar 21
Upcoming dividend of JP¥30.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 24 June 2024. Payout ratio is a comfortable 60% but the company is paying out more than the cash it is generating. Trailing yield: 1.1%. Lower than top quartile of Japanese dividend payers (3.2%). Lower than average of industry peers (2.2%). Major Estimate Revision • Mar 02
Consensus EPS estimates fall by 12% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate fell from JP¥92.87 to JP¥81.83 per share. Revenue forecast steady at JP¥255.5b. Net income forecast to grow 110% next year vs 7.2% growth forecast for Media industry in Japan. Consensus price target broadly unchanged at JP¥3,888. Share price fell 6.6% to JP¥2,875 over the past week. Reported Earnings • Feb 10
Third quarter 2024 earnings released: EPS: JP¥16.25 (vs JP¥11.62 in 3Q 2023) Third quarter 2024 results: EPS: JP¥16.25 (up from JP¥11.62 in 3Q 2023). Revenue: JP¥62.8b (down 6.4% from 3Q 2023). Net income: JP¥2.19b (up 35% from 3Q 2023). Profit margin: 3.5% (up from 2.4% in 3Q 2023). Revenue is forecast to grow 7.2% p.a. on average during the next 3 years, compared to a 4.4% growth forecast for the Media industry in Japan. Over the last 3 years on average, earnings per share has fallen by 8% per year but the company’s share price has increased by 15% per year, which means it is well ahead of earnings. Announcement • Dec 28
Kadokawa Corporation to Report Q3, 2024 Results on Feb 08, 2024 Kadokawa Corporation announced that they will report Q3, 2024 results on Feb 08, 2024 Reported Earnings • Nov 04
Second quarter 2024 earnings released: EPS: JP¥2.05 (vs JP¥20.79 in 2Q 2023) Second quarter 2024 results: EPS: JP¥2.05 (down from JP¥20.79 in 2Q 2023). Revenue: JP¥65.4b (up 12% from 2Q 2023). Net income: JP¥282.0m (down 90% from 2Q 2023). Profit margin: 0.4% (down from 5.0% in 2Q 2023). Revenue is forecast to grow 6.6% p.a. on average during the next 3 years, compared to a 4.6% growth forecast for the Media industry in Japan. Over the last 3 years on average, earnings per share has increased by 3% per year but the company’s share price has increased by 21% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Aug 27
Kadokawa Corporation to Report Q2, 2024 Results on Nov 02, 2023 Kadokawa Corporation announced that they will report Q2, 2024 results on Nov 02, 2023 New Risk • Aug 05
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 26% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (3.6% net profit margin). Reported Earnings • Aug 04
First quarter 2024 earnings released: EPS: JP¥27.59 (vs JP¥54.85 in 1Q 2023) First quarter 2024 results: EPS: JP¥27.59 (down from JP¥54.85 in 1Q 2023). Revenue: JP¥58.8b (down 8.4% from 1Q 2023). Net income: JP¥3.84b (down 50% from 1Q 2023). Profit margin: 6.5% (down from 12% in 1Q 2023). Revenue is forecast to grow 5.2% p.a. on average during the next 3 years, compared to a 4.4% growth forecast for the Media industry in Japan. Over the last 3 years on average, earnings per share has increased by 14% per year but the company’s share price has increased by 39% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Jun 28
Kadokawa Corporation to Report Q1, 2024 Results on Aug 03, 2023 Kadokawa Corporation announced that they will report Q1, 2024 results on Aug 03, 2023 Reported Earnings • May 15
Full year 2023 earnings: EPS and revenues exceed analyst expectations Full year 2023 results: EPS: JP¥90.91 (down from JP¥106 in FY 2022). Revenue: JP¥255.4b (up 16% from FY 2022). Net income: JP¥12.7b (down 9.9% from FY 2022). Profit margin: 5.0% (down from 6.4% in FY 2022). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 2.4%. Earnings per share (EPS) also surpassed analyst estimates by 11%. Revenue is forecast to grow 3.6% p.a. on average during the next 3 years, compared to a 4.3% growth forecast for the Media industry in Japan. Over the last 3 years on average, earnings per share has increased by 22% per year but the company’s share price has increased by 56% per year, which means it is tracking significantly ahead of earnings growth. Announcement • May 13
Kadokawa Corporation, Annual General Meeting, Jun 22, 2023 Kadokawa Corporation, Annual General Meeting, Jun 22, 2023. Announcement • May 12
Kadokawa Corporation (TSE:9468) announces an Equity Buyback for 8,000,000 shares, representing 5.64% for ¥20,000 million. Kadokawa Corporation (TSE:9468) announces a share repurchase program. Under the program, the company will repurchase 8,000,000 shares, representing 5.64% of the its issued share capital, for ¥20,000 million. The purpose of the program is to improve capital efficiency and strengthen the return of profits to shareholders. The program will be valid till March 31, 2024. As of March 31, 2023, the company had 141,783,863 shares outstanding and 257 shares in treasury. Buying Opportunity • Apr 07
Now 21% undervalued Over the last 90 days, the stock is up 17%. The fair value is estimated to be JP¥3,480, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 6.7% over the last 3 years. Earnings per share has grown by 30%. For the next 3 years, revenue is forecast to grow by 4.4% per annum. Earnings is also forecast to grow by 19% per annum over the same time period. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥30.00 per share at 1.1% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 27 June 2023. Payout ratio is a comfortable 21% and this is well supported by cash flows. Trailing yield: 1.1%. Lower than top quartile of Japanese dividend payers (3.6%). Lower than average of industry peers (2.6%). Major Estimate Revision • Feb 09
Consensus EPS estimates fall by 19%, revenue upgraded The consensus outlook for fiscal year 2023 has been updated. 2023 revenue forecast increased from JP¥241.8b to JP¥248.9b. EPS estimate fell from JP¥111 to JP¥89.92 per share. Net income forecast to shrink 15% next year vs 12% growth forecast for Media industry in Japan . Consensus price target broadly unchanged at JP¥3,583. Share price rose 11% to JP¥2,635 over the past week. Reported Earnings • Feb 03
Third quarter 2023 earnings released: EPS: JP¥11.62 (vs JP¥18.27 in 3Q 2022) Third quarter 2023 results: EPS: JP¥11.62 (down from JP¥18.27 in 3Q 2022). Revenue: JP¥67.1b (up 27% from 3Q 2022). Net income: JP¥1.62b (down 34% from 3Q 2022). Profit margin: 2.4% (down from 4.6% in 3Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 5.6% p.a. on average during the next 3 years, compared to a 4.7% growth forecast for the Media industry in Japan. Over the last 3 years on average, earnings per share has increased by 30% per year but the company’s share price has increased by 39% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Dec 09
Kadokawa Corporation to Report Q3, 2023 Results on Feb 02, 2023 Kadokawa Corporation announced that they will report Q3, 2023 results on Feb 02, 2023 Board Change • Nov 16
Less than half of directors are independent There are 7 new directors who have joined the board in the last 3 years. Of these new board members, 3 were independent directors. The company's board is composed of: 5 independent directors. 7 non-independent directors. Independent Outside Director Akira Watanabe was the last independent director to join the board, commencing their role in 2022. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Reported Earnings • Nov 04
Second quarter 2023 earnings released: EPS: JP¥20.79 (vs JP¥23.95 in 2Q 2022) Second quarter 2023 results: EPS: JP¥20.79 (down from JP¥23.95 in 2Q 2022). Revenue: JP¥58.4b (up 11% from 2Q 2022). Net income: JP¥2.90b (down 6.3% from 2Q 2022). Profit margin: 5.0% (down from 5.9% in 2Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 6.2% p.a. on average during the next 3 years, compared to a 4.5% growth forecast for the Media industry in Japan. Over the last 3 years on average, earnings per share has increased by 41% per year but the company’s share price has increased by 50% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Jul 31
First quarter 2023 earnings released: EPS: JP¥54.85 (vs JP¥31.21 in 1Q 2022) First quarter 2023 results: EPS: JP¥54.85 (up from JP¥31.21 in 1Q 2022). Revenue: JP¥64.3b (up 24% from 1Q 2022). Net income: JP¥7.64b (up 90% from 1Q 2022). Profit margin: 12% (up from 7.7% in 1Q 2022). The increase in margin was driven by higher revenue. Over the next year, revenue is forecast to grow 2.7%, compared to a 5.4% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 53% per year but the company’s share price has increased by 66% per year, which means it is tracking significantly ahead of earnings growth. Buying Opportunity • Jul 27
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 2.3%. The fair value is estimated to be JP¥4,059, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Meanwhile, the company has become profitable. For the next 3 years, revenue is forecast to grow by 5.6% per annum. Earnings is also forecast to grow by 13% per annum over the same time period. Announcement • Jul 03
Kadokawa Corporation to Report Q1, 2023 Results on Jul 29, 2022 Kadokawa Corporation announced that they will report Q1, 2023 results on Jul 29, 2022 Valuation Update With 7 Day Price Move • May 20
Investor sentiment improved over the past week After last week's 17% share price gain to JP¥3,015, the stock trades at a forward P/E ratio of 29x. Average forward P/E is 14x in the Media industry in Japan. Total returns to shareholders of 321% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥3,543 per share. Announcement • May 14
Kadokawa Corporation, Annual General Meeting, Jun 24, 2022 Kadokawa Corporation, Annual General Meeting, Jun 24, 2022. Buying Opportunity • May 13
Now 29% undervalued Over the last 90 days, the stock is up 4.5%. The fair value is estimated to be JP¥3,614, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Meanwhile, the company has become profitable. For the next 3 years, revenue is forecast to grow by 5.7% per annum. Earnings is also forecast to grow by 18% per annum over the same time period. Board Change • Apr 27
Less than half of directors are independent There are 8 new directors who have joined the board in the last 3 years. Of these new board members, 3 were independent directors. The company's board is composed of: 4 independent directors. 8 non-independent directors. Independent Outside Director Hiroo Unoura was the last independent director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥25.00 per share Eligible shareholders must have bought the stock before 30 March 2022. Payment date: 23 June 2022. Payout ratio is a comfortable 25% and this is well supported by cash flows. Trailing yield: 0.8%. Lower than top quartile of Japanese dividend payers (3.4%). Lower than average of industry peers (2.0%). Reported Earnings • Feb 04
Third quarter 2022 earnings: Revenues miss analyst expectations Third quarter 2022 results: Revenue: JP¥52.8b (down 4.3% from 3Q 2021). Net income: JP¥2.45b (down 35% from 3Q 2021). Profit margin: 4.6% (down from 6.8% in 3Q 2021). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 6.3%. Over the next year, revenue is forecast to grow 9.6% while the industry in Japan is not expected to grow. Over the last 3 years on average, earnings per share has increased by 82% per year but the company’s share price has only increased by 59% per year, which means it is significantly lagging earnings growth. Reported Earnings • Oct 31
Second quarter 2022 earnings released: EPS JP¥47.91 (vs JP¥44.67 in 2Q 2021) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2022 results: Revenue: JP¥52.8b (up 4.4% from 2Q 2021). Net income: JP¥3.09b (up 12% from 2Q 2021). Profit margin: 5.9% (up from 5.4% in 2Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 83% per year but the company’s share price has only increased by 74% per year, which means it is significantly lagging earnings growth. Major Estimate Revision • Aug 19
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 EPS estimate increased from JP¥157 to JP¥186. Revenue forecast steady at JP¥223.0b. Net income forecast to grow 15% next year vs 5.2% growth forecast for Media industry in Japan. Consensus price target up from JP¥4,600 to JP¥5,750. Share price was steady at JP¥4,750 over the past week.