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Stock Analysis & ValuationBroadmedia Corporation (4347.T)

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¥1,935.00
Sector Valuation Confidence Level
High
Valuation methodValue, ¥Upside, %
Artificial intelligence (AI)1929.560
Intrinsic value (DCF)1084.19-44
Graham-Dodd Method150.96-92
Graham Formula811.31-58

Strategic Investment Analysis

Company Overview

Broadmedia Corporation (4347.T) is a diversified Japanese company operating in the information technology and content distribution sectors. Headquartered in Tokyo, the company is structured into five key segments: Studio/Contents, Broadcasting, Technology, Education, and Others. The Studio/Contents segment focuses on film production, DVD/Blu-ray sales, TV broadcasting rights, and digital entertainment platforms like Crank In! and its associated services. The Broadcasting segment produces and distributes programs, including the Fishing Vision VOD service. The Technology segment provides cutting-edge solutions such as content delivery networks (CDN), cloud gaming, AI solutions, and private network services. The Education segment runs e-learning high schools with specialized courses in eSports, entertainment, and beauty care, alongside Japanese language programs for non-native speakers. The Others segment manages CYCLOPS, a professional eSports team, and sells communication products. With a market cap of ¥12.38 billion, Broadmedia is a niche player in Japan's entertainment and communication services sector, leveraging digital transformation trends in media and education.

Investment Summary

Broadmedia Corporation presents a mixed investment profile. The company operates in high-growth segments like digital content, eSports, and e-learning, benefiting from Japan's increasing digital consumption. Its diversified revenue streams—spanning film production, broadcasting, and technology services—provide stability. However, the company's modest net income (¥680 million) and low beta (0.104) suggest limited volatility but also subdued growth potential. The dividend yield (¥40 per share) may appeal to income-focused investors, but the lack of capital expenditures raises questions about long-term reinvestment. Competition in Japan's crowded media and tech landscape poses risks, particularly from larger conglomerates. Investors should weigh Broadmedia's niche positioning against its relatively small scale and sector competition.

Competitive Analysis

Broadmedia Corporation competes in Japan's fragmented entertainment and technology sectors, where differentiation is critical. Its Studio/Contents segment faces competition from major film studios like Toei and Toho, but Broadmedia's focus on digital platforms (e.g., Crank In! services) provides a niche edge. In broadcasting, it competes with terrestrial networks like Fuji Media Holdings, though its Fishing Vision VOD service targets a specialized audience. The Technology segment's CDN and cloud gaming offerings compete with global players like Akamai and local IT firms, but Broadmedia's integration with its content business creates synergies. The Education segment's e-learning programs compete with traditional cram schools and online platforms, but its focus on non-traditional courses (e.g., eSports) differentiates it. The company's CYCLOPS eSports team adds brand visibility but operates in a high-risk, high-reward industry. Broadmedia's competitive advantage lies in its vertical integration—combining content creation, distribution, and technology—but its small scale limits bargaining power against larger rivals.

Major Competitors

  • Toho Co., Ltd. (9602.T): Toho is a Japanese entertainment giant with dominant market share in film production and theater operations. Its strengths include blockbuster franchises (e.g., Godzilla) and extensive distribution networks. However, its focus on traditional media contrasts with Broadmedia's digital-first approach in content delivery.
  • Fuji Media Holdings, Inc. (4676.T): Fuji Media is a major broadcaster with strong TV and advertising revenue. Its scale and popular programming give it an edge over Broadmedia's smaller broadcasting segment. However, Fuji's slower adaptation to digital VOD platforms could be a long-term vulnerability.
  • Rakuten Group, Inc. (4755.T): Rakuten dominates Japan's e-commerce and digital services, including streaming (Rakuten TV) and cloud solutions. Its vast ecosystem overshadows Broadmedia's technology segment, but Broadmedia's specialized content (e.g., Fishing Vision) retains niche appeal.
  • Akamai Technologies, Inc. (AKAM): Akamai is a global leader in CDN and cloud security, competing with Broadmedia's Technology segment. While Akamai has superior scale and technology, Broadmedia's localized CDN services for Japanese media may offer better latency and customer support in-region.
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