Risk factor
Low price volatility
Profitability factor
Favourable analyst view
About
Shochiku Co., Ltd., a diversified Japanese conglomerate headquartered in Tokyo, was established in 1895, initially operating as Shochiku Kinema Co., Ltd. before adopting its current name in 1937. The company's expansive operations, conducted both domestically and internationally, encompass audio-visual entertainment, live theatrical productions, property management, and a variety of other ventures. Its Audio and Video division is comprehensively engaged in the film and television industry, covering the entire lifecycle from the conception, promotion, and dissemination of live-action films, animated features, and motion pictures, to the global licensing of related rights. This segment is also responsible for developing new content, overseeing its network of theaters and cinema complexes, curating programming, producing and editing material for satellite and cable television, conducting basic and general broadcasting, and facilitating the acquisition and sale of video content. The Theater division is dedicated to the realm of live performances, meticulously planning, producing, and promoting revered kabuki presentations and other general theatrical productions for tours and international engagements. It also manages Shochiku's proprietary performance venues. This division’s activities further extend to managing theatrical rights, orchestrating kabuki-related events, nurturing new business opportunities within the theater sector, and cultivating talent through actor and artist promotion. Shochiku's Real Estate operations are centered on the development, administration, and rental of various properties. Rounding out its portfolio, the Other Business division spans an eclectic mix of activities, including the creation and distribution of motion picture pamphlets; the design, production, and sale of character-based merchandise; the management of e-commerce platforms accessible via mobile and computer; the dissemination of official content for mobile devices; the operation of facilities such as restaurants and parking lots; the provision of property management and janitorial services; and the development and licensing of music copyrights.
Company Valuation
Based on key historical and expected multiples, the stock is overvalued relative to its peers. Specifically, the stock is 'expensive' on P/E, overvalued on EV/EBITD.
Target Price
The average target price of 9601.T is 15900 and suggests 51% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to inc