Stock Analysis & Valuation IG Port, Inc. (3791.T)

• Previous Close: ¥1,206.00
• Sector Valuation Confidence Level: High

Valuation method	Value, ¥	Upside, %
Artificial intelligence (AI)	1137.04	-6
Intrinsic value (DCF)	1870.06	55
Graham-Dodd Method	399.27	-67
Graham Formula	1312.44	9

Strategic Investment Analysis

Company Overview

IG Port, Inc. is a leading Japanese animation production company with a diversified portfolio spanning video production, publishing, and copyright management. Founded in 1987 and headquartered in Musashino, Japan, the company operates through three core segments: Video Production Business, Publishing Business, and Copyright Business. IG Port is renowned for producing high-quality comics, digital animation, gaming software, and electronic content delivery services. The company also engages in theater, video, and television productions, along with managing character licenses and web comic publications. With a strong foothold in Japan and international markets, IG Port leverages its expertise in full digital animation and smart device applications to maintain its competitive edge. The company’s integrated approach—combining content creation, distribution, and monetization—positions it as a key player in the global entertainment and communication services sector.

Investment Summary

IG Port presents a compelling investment opportunity due to its strong position in Japan’s thriving animation industry, diversified revenue streams, and solid financial performance. With a market cap of ¥35.5 billion, the company reported ¥11.8 billion in revenue and ¥1.16 billion in net income for FY 2024, alongside a healthy operating cash flow of ¥3.06 billion. Its low beta (0.534) suggests relative stability compared to broader market volatility. However, risks include exposure to fluctuating demand for entertainment content and competition from global streaming platforms. The company’s robust cash position (¥7.76 billion) and manageable debt (¥200 million) provide financial flexibility, while a dividend yield of ¥15 per share adds appeal for income-focused investors.

Competitive Analysis

IG Port’s competitive advantage lies in its vertically integrated business model, combining animation production, publishing, and copyright management. Unlike pure-play studios, IG Port controls content creation, distribution, and monetization, reducing reliance on third-party platforms. The company’s expertise in digital animation and smart device applications aligns with growing demand for mobile-friendly content. However, it faces intense competition from larger global studios and streaming platforms that dominate content distribution. IG Port’s niche focus on Japanese animation (anime) gives it cultural relevance but may limit scalability in Western markets. Its Copyright Business segment provides steady royalty income, mitigating cyclical risks in production. While the company benefits from Japan’s strong anime export market, it must continuously innovate to compete with tech-savvy rivals investing in AI-driven animation and global IP expansion.

Major Competitors

• Toei Animation Co., Ltd. (4816.T): Toei Animation is a dominant player in anime production, known for iconic franchises like 'Dragon Ball' and 'One Piece.' Its extensive IP library and global brand recognition give it an edge over IG Port in licensing revenue. However, Toei’s reliance on legacy franchises may limit innovation compared to IG Port’s diversified content slate. Toei’s larger scale allows for higher production budgets but comes with higher fixed costs.
• Nippon Telegraph and Telephone Corporation (NTT) (9432.T): NTT’s subsidiary, NTT Docomo, competes indirectly via digital content distribution and streaming services. While not a pure animation producer, NTT’s vast infrastructure and subscriber base pose a threat to IG Port’s electronic content delivery segment. NTT’s weakness lies in its lack of in-house creative capabilities compared to IG Port’s specialized production expertise.
• Rakuten Group, Inc. (4755.T): Rakuten’s streaming platform (Rakuten TV) and e-commerce ecosystem compete with IG Port’s content distribution. Rakuten’s strength is its integrated digital services, but it lacks IG Port’s animation production depth. Rakuten’s global reach could challenge IG Port’s international expansion efforts, though its content library is less specialized in anime.
• Studio Ghibli (TYO): Studio Ghibli is a privately held animation powerhouse with unparalleled brand prestige ('Spirited Away,' 'My Neighbor Totoro'). Its artistic reputation surpasses IG Port’s, but Ghibli’s infrequent releases and lack of a diversified business model make it less scalable. IG Port’s steady output and copyright monetization give it a financial edge.
• The Walt Disney Company (DIS): Disney’s global dominance in animation (Pixar, Marvel) and streaming (Disney+) overshadows IG Port’s niche focus. Disney’s resources and IP library are unmatched, but IG Port’s specialization in anime retains cultural relevance in Japan and among dedicated fans worldwide. Disney’s weakness is its limited appeal to hardcore anime audiences.