| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 2127.13 | -17 |
| Intrinsic value (DCF) | 1801.78 | -30 |
| Graham-Dodd Method | 857.88 | -67 |
| Graham Formula | 2464.05 | -4 |
Toei Animation Co., Ltd. is a leading Japanese animation studio renowned for producing and licensing globally popular anime content. Founded in 1948 and headquartered in Tokyo, the company operates across three core segments: Video Production and Sales, Copyright Licensing, and Product Sales. Toei Animation boasts an extensive library, including 246 theatrical works, 223 TV series, and over 12,867 episodes, distributed across theaters, television, streaming platforms, and digital media. The company also monetizes its intellectual property through merchandise, gaming, and mobile applications. As a key player in the global anime industry, Toei Animation benefits from Japan's cultural export strength and the growing international demand for anime. Its iconic franchises, such as 'Dragon Ball,' 'One Piece,' and 'Sailor Moon,' have cemented its reputation in the Communication Services sector, particularly in Entertainment. With a market capitalization of ¥638 billion, Toei Animation remains a dominant force in animation production and licensing.
Toei Animation presents a compelling investment case due to its strong intellectual property portfolio, consistent revenue streams from licensing, and minimal debt (¥112 million). The company's net income of ¥18.8 billion and diluted EPS of ¥91.92 reflect profitability, supported by a healthy cash position (¥52.1 billion). Its low beta (0.24) suggests stability relative to the market. However, risks include reliance on a few flagship franchises and exposure to fluctuating global entertainment trends. The dividend payout (¥82 per share) adds appeal for income-focused investors. Given the expanding global anime market, Toei Animation is well-positioned for growth, though competition and content production costs warrant monitoring.
Toei Animation's competitive advantage lies in its vast content library and iconic franchises, which drive recurring licensing revenue and global brand recognition. Unlike many competitors, Toei owns most of its IP outright, allowing greater monetization flexibility. The company benefits from Japan's anime production ecosystem, including skilled animators and established distribution networks. However, its reliance on long-running series like 'One Piece' poses concentration risks. Competitors such as Studio Ghibli focus on high-quality theatrical films, while newer digital-native studios like MAPPA compete with faster production cycles. Toei's scale and legacy relationships with broadcasters give it an edge in traditional media, but it must adapt to streaming dominance. Its Copyright Business segment provides stable royalties, but the Product Sales segment faces stiff competition from global merchandisers. Overall, Toei's blend of legacy content and ongoing production capabilities positions it as a market leader, though innovation in digital distribution and international partnerships will be critical for sustained growth.