Disclaimer: This article reflects my personal opinion and is for informational purposes only; it should not be considered investment advice. Information is provided "as is" without any guarantee of accuracy. I may hold positions in the securities discussed. All investments involve risk, and you should conduct your own due diligence and consult a qualified financial professional before making any investment decisions.
Imagine a world without theme parks. No roller coasters roaring through loop-the-loops to give you that giddy, stomach-dropping tickle. No merry-go-rounds spinning under warm nostalgic lights. No churros coating your shirt in sugar you'll still find weeks later.
Without these escapes, we'd have fewer joyous memories to cling to, and a lot more time for real-life worries to creep in. Maybe we'd even have to confront our problems instead of hiding behind overpriced Mickey ears and buckets of buttered popcorn.
Fortunately, we don't live in that dreary world, and today I am pleased to announce this first installment of “Theme Park Nation,”! I’m diving deep into the USJ story – from its early roller-coaster ride of fortunes, to its phoenix-like rise, to the investment opportunities swirling around it.
Universal Studios Japan
Universal Studios Japan holds a special place in my heart not just as a fan, but as someone who’s gotten an inside look.
I actually worked for over two years on implementing a new IT system for USJ. I won’t and can’t spill all the details, but suffice it to say, I got to peek under the hood of USJ’s operations. That experience gave me a profound appreciation for the park’s “secret sauce.”
So when I say I know USJ, I’m not kidding. And as a value investor, I couldn’t help but analyze everything I saw through a business lens: What makes this place so wildly popular? How did it go from almost bankrupt to smashing attendance records? And what companies are pulling the strings (and reaping the rewards) behind the scenes?
The Rocky Start
USJ opened in March 2001 with a bang. It was the first Universal theme park outside the United States, a $1.7 billion bet to bring Hollywood thrills to Japan.
The concept made sense: Tokyo Disneyland (opened 1983) was a runaway hit, so why not introduce Mickey’s rival, Universal, to capture Japan’s love of entertainment?
And at first, it worked – over 11 million guests flooded USJ in its debut year, a world record at the time for the fastest theme park to hit 10 million visits. Back then, USJ was like a mini-Hollywood in Osaka: Jurassic Park boat rides, Spider-Man 3D adventures, jaws snapping on the Jaws ride. It leaned heavily on American film IP (intellectual property), aiming to wow Japanese audiences with the same Universal brand spectacles that drew crowds in Orlando and Hollywood.
But novelty can wear off fast. By the mid-2000s, USJ hit a wall. Attendance started dropping, costs stayed high, and the park’s primarily Hollywood-centric attractions weren’t cultivating the repeat local fanbase needed to sustain growth. It turned out that Japanese people were just not that interested in Western movies…
Tokyo Disney Resort, with its entrenched Disney characters and a massive domestic following, was eating USJ’s lunch. Universal’s Osaka jewel was losing its shine; in fact, rumors of bankruptcy loomed as losses mounted. In 2005, Goldman Sachs rode in as a financial white knight, investing ¥20 billion to stabilize USJ and eventually becoming its largest shareholder. This cash infusion kept the lights on, but money alone wasn’t going to save USJ.
Enter the man with the plan: Tsuyoshi Morioka. Morioka (a marketing whiz lured from Procter & Gamble) took the helm in late 2007 and engineered one of the most remarkable turnarounds the theme park industry has ever seen.
Under Morioka’s leadership, USJ didn’t scrap its Hollywood rides, but it infused new life with Japanese flavor. The park launched seasonal events and limited-time attractions that tapped into homegrown pop culture.
One early example: the One Piece Premier Summer event, which began in 2007 and brought the beloved One Piece anime franchise to life in the park. Seeing Luffy and his pirate crew in live shows and themed restaurant experiences (Sanji’s Pirate Restaurant being the biggest smash it even to this day) made Japanese fans flip.
These weren’t permanent rides, but high-quality limited events that got people visiting this year, next year, every year, because the content kept evolving. Halloween Horror Nights, Christmas spectacles, collaborations with monster-hunter video games and anime icons; USJ tried it all. And it turned out, Japanese guests craved this eclectic mix of content.
Unlike Tokyo Disney’s purely American character lineup, USJ stood out by blending domestic anime/gaming IP with the Hollywood staples, a unique mishmash that became its secret weapon.
The results of Morioka’s strategies were stunning. By 2011, attendance had rebounded to around 8.5 million (up from ~7 million at its mid-2000s low) and was on a steady climb. USJ went from bleeding to profitable, with EBITDA quadrupling between 2005 and 2017.
The park had been repositioned: It was now a truly unique experience; Universal Studios Japan in the true sense, proudly integrating Japanese pop culture with global pop culture. Morioka became something of a business legend for this feat. He eventually left USJ in 2014, riding the success to start his own consulting firm, Katana Marketing, to spread the gospel of revitalizing attractions.
By the mid-2010s, USJ was thriving. New investors came onboard (including Asian private equity firms) and pumped in capital for big expansions.
Beating Disney at Its Own Game
Fast forward to today, and Universal Studios Japan is the crown jewel of Comcast’s theme park empire. Don’t just take my word, look at the numbers.
In 2023, USJ hosted 16 million visitors, making it the most visited theme park in Asia (yes, even more than Disney Japan) and the third-most visited park in the world behind only Disney’s Magic Kingdom and Disneyland in California.
For a couple of years running, USJ’s attendance has even edged out Tokyo Disneyland’s, thanks to nearly 30% year-on-year growth as it roared back from the pandemic.
The real story behind USJ’s success is intellectual property and the fandom it commands.
So, as investors, we should follow the IP. Which franchises are drawing those 16 million guests, and who owns them? That’s where the investment cases emerge.
Let’s start with the biggest name of all, the one that’s literally turned USJ into a must-visit pilgrimage site for fans around the world: Nintendo.
Super Nintendo World: A Game-Changer (for USJ and Nintendo)
When Universal partnered with Nintendo to build Super Nintendo World at USJ, it was a match made in IP heaven.
Nintendo’s characters – Mario, Luigi, Yoshi, Bowser, and crew – are as beloved in Japan as Mickey Mouse (if not more so), yet historically they only lived in video games. That changed in March 2021, when Super Nintendo World opened at USJ, bringing the Mushroom Kingdom to life
Super Nintendo World became the park’s superstar attraction overnight, drawing gamer tourists from across Asia and beyond. And in late 2024, USJ doubled down, expanding Super Nintendo World by 70% with a new area: Donkey Kong Country.
To say this expansion is popular would be an understatement. It’s so wildly in demand that USJ still uses timed-entry tickets to control crowds in Super Nintendo World, even years after its opening. The new Donkey Kong Mine Cart Madness coaster has quickly developed a legend for its crazy wait times. The average wait is about 149 minutes (yes, nearly 2.5 hours) and peak waits have hit 300 minutes (5 hours!).
For Nintendo, this theme park venture is part of a broader strategy shift. The Kyoto-based gaming giant spent decades focused almost solely on video games, content to let others (like Pokémon Company or the old Super Mario Bros. 1993 film fiasco) handle its characters outside the console. But in the last few years, Nintendo’s management has made it clear they want to be more like Disney, meaning they want Mario, Zelda, and friends not just on your Switch, but on the big screen, in toys, in theme parks, everywhere.
The timing has been impeccable: in 2023, The Super Mario Bros. Movie (co-produced by Nintendo with Illumination/Universal) became a global blockbuster, grossing $1.36 billion worldwide and smashing box-office records for animated films.
All of this has big implications for Nintendo’s financials, and its valuation.
Let’s talk numbers.
Nintendo’s core business (video games) had a bumper few years with the Switch console; COVID lockdowns drove gaming demand through the roof. The company’s revenue jumped from about ¥1.2 trillion in FY2017 to ¥1.76 trillion in FY2021 (roughly $11B to $16B) at the peak of the Switch frenzy. Profits followed suit, Nintendo made a hefty ¥480 billion net profit in FY2021 (around $4.4B at the time).
In the past two years, as the Switch era matures, sales have cooled off slightly (FY2023 revenue was around ¥1.6 trillion, net profit ¥432B). So on the surface, the top and bottom lines haven’t been in high-growth mode recently; they’re extremely healthy, but not really climbing further.
Yet, the stock market is very excited about Nintendo right now. Nintendo’s stock (TYO:7974) has roughly doubled in the past year, pushing its market cap to around ¥15.5 trillion (~$105 billion).
The valuation has ballooned – Nintendo trades at a trailing P/E over 50(!), whereas historically it often ranged in the teens or low-20s. That’s a richer earnings multiple than even Disney or many tech stocks, and it tells us one thing: investors are betting that Nintendo’s future will be much bigger than its recent past. They’re effectively pricing Nintendo not as a slow-growth console maker, but as a burgeoning IP powerhouse with multi-platform monetization – games, movies, merch, and parks.
As a value investor, seeing a 50+ P/E makes me instinctively cautious. It means a lot of growth is already baked into the share price. If I plug Nintendo’s numbers into a basic discounted cash flow (DCF) model, using optimistic assumptions (say, high-single-digit revenue growth driven by a successful new console cycle plus steady income from films/parks, and stable high margins around 30%), I can get scenarios where Nintendo’s intrinsic value approaches the current market cap. But there’s not much margin of safety – any slip (a flop console, a movie bomb) could leave the stock looking overvalued.
In other words, at ¥15 trillion market cap, Nintendo isn’t a screaming bargain; it’s priced like a growth stock.
That said, I also recognize something important: Nintendo is effectively entering a new phase of its corporate life. It’s leveraging its IP in ways it never has, and the early returns (Mario movie, Super Nintendo World, even a Donkey Kong expansion that’s now jam-packed) show that there is pent-up demand for Nintendo’s worlds beyond games.
Nintendo’s earnings in the next 5 years could see a boost from royalty streams and brand expansion that are only just beginning. So while a value purist might balk at 55x earnings, a more growth-oriented analysis might argue Nintendo deserves it – after all, Disney traded at 40-50x in some high-growth eras, and Nintendo’s brands are of similar caliber.
Anime All-Stars: One Piece, Demon Slayer, and the Merchandising Bonanza
A few franchises stand out as perennial blockbusters for drawing crowds to Universal Studios Japan: One Piece, Demon Slayer: Kimetsu no Yaiba, and the newer phenomenon SPY×FAMILY. These hits have rabid fanbases and a merchandising machine behind them – which means, yes, there are investment angles here too.
Start with One Piece. This pirate adventure saga is the best-selling manga of all time, and it’s been running for over 25 years strong. USJ has run One Piece live shows every summer since 2007, and they are wildly popular. The One Piece Premier Show and the themed dining experience “Sanji’s Pirate Restaurant” have become legendary among fans. Tickets to these are so sought-after that USJ has to run an online lottery months in advance – and even then, demand outstrips supply by huge factors (anecdotally, tens of thousands apply for just a few hundred seats at Sanji’s restaurant, making it dozens of times oversubscribed each session). The power of One Piece to move people is enormous. So who benefits from that power?
The clearest winner is Toei Animation (TYO:4816), the studio that produces the One Piece anime (and owns part of the IP along with the publisher Shueisha). Toei has had a heck of a run lately, not just due to One Piece, but it’s a major factor.
In the past five years, Toei’s revenue and profit have surged thanks to both ongoing series (One Piece, Dragon Ball, Precure etc.) and smash-hit movies. In 2022, Toei released One Piece Film: Red, which became one of the highest-grossing films in Japan that year, and it shows in their earnings. Last fiscal year, Toei Animation pulled in about ¥97 billion in revenue and ¥23.5 billion in net profit, an impressive net margin near 25%. The stock has responded in kind – it currently trades around 28 times earnings, a multiple reflecting optimism that Toei will continue delivering popular content. By traditional value metrics, 28x is a bit rich (the broader market is lower), but given Toei’s consistent growth and fortress IP library, investors have been willing to pay a premium. I’d note that a couple of years ago, Toei was at a much cheaper 15x P/E before the recent anime boom was fully appreciated. So again, a lot of good news is priced in now.
Another major player in anime IP monetization is Bandai Namco Holdings (TYO:7832). If you’ve bought an anime figure, a model kit, a video game adaptation, or really any toy related to these big franchises, Bandai Namco probably made it. They have their fingers in everything – One Piece merchandise, Demon Slayer toys and games, Dragon Ball licensing, you name it.
Bandai Namco’s business has been strong: over the last 5 years, their revenue climbed steadily and hit ¥1.26 trillion ($8.7B) in the last 12 months. They also operate theme park arcades, produce Gundam models, run the Pac-Man video game business, a diversified otaku empire, if you will. The Demon Slayer boom in 2020-2021 gave Bandai a significant boost (their toy sales and game sales for that title were off the charts), and that helped their profit hit record levels around ¥100-130B annually (roughly $1B) in recent years. Bandai Namco’s stock, like Toei’s, isn’t exactly cheap – it trades at ~25x earnings and about 3x book, with a market cap near ¥3 trillion ($20B). But it’s also seen as a steady grower with a vast catalog of IP licenses.
In valuation terms, Bandai is easier to swallow than Nintendo or Toei for a conservative investor – a 25 P/E for a company with both stable core businesses and some growth (7% YoY revenue growth last quarter) is not outrageous. My DCF take on Bandai would assume mid-single-digit growth and decent margins; it likely comes out to a value not far from the current price. So it’s perhaps fairly valued, not a bargain, but not a bubble either. If you believe anime franchises will only get more globally popular (as streaming spreads them and places like USJ hype them), Bandai Namco is a picks-and-shovels way to play that trend.
Looking forward, newer hit series like SPY×FAMILY (a witty spy-and-telepath family anime) are starting to flex their muscles in the merchandise and theme park space. USJ introduced a SPY×FAMILY attraction in 2023, and it was so well-received that they’re bringing multiple Spy×Family attractions in 2025.
That franchise’s main stakeholders include Shueisha and, again, Aniplex/Sony and TOHO (the film studio). TOHO (TYO:9602), by the way, is worth a mention: it’s Japan’s largest movie studio and also owns theaters. TOHO distributed the Mario movie in Japan and the Demon Slayer movie, etc. Its stock has done great in recent years, reflecting the bonanza from those films. It’s another indirect way to ride the anime wave, though as a movie studio, its fortunes can swing with each year’s hits or misses.
In summary, the anime IP gold rush that USJ tapped into has a web of corporate beneficiaries. From an investment standpoint, my picks of the bunch in terms of clarity and focus would be Nintendo, Toei Animation, and Bandai Namco.
Which is most “growthy?” – clearly Nintendo, if it successfully morphs into a Disney-like juggernaut (early evidence is promising).
And which is a bit of both? Perhaps Toei, although it’s smaller and at the mercy of creating hits to justify that higher P/E.
Investing in the Magic of Japanese Escapism
By embracing both Hollywood thrills and homegrown Japanese pop culture, USJ created a formula that resonated deeply with its audience. The park gave people what they didn’t even know they craved: the chance to step into their own favorite stories, whether that’s racing Mario karts, slaying demons with Tanjiro, or hunting pirates with Luffy. In doing so, USJ not only saved itself – it set a new benchmark. (Even Disney is now leaning into local anime collaborations in Asia seeing USJ’s success.)
For us investors, the takeaway is to follow the fandom. The passionate crowds at USJ are voting with their wallets (and wait time tolerance) on what IP is king. Right now, that’s Nintendo and top-tier anime.
While you can’t buy stock in USJ directly, you can invest in the companies behind these phenomena. Just as USJ gave its business a jolt by teaming up with Nintendo and Japan’s hottest anime, an investor’s portfolio can get a boost by holding the Comcasts, Nintendos, Toeis, or Bandais of the world – if bought at the right price.
Universal Studios Japan’s story is still unfolding (Super Nintendo World isn’t even done yet – who knows what Zelda or Pokémon magic might come next?). But one thing is clear: theme parks aren’t just fun and games – they’re platforms for IP monetization on a grand scale. USJ cracked the code, and that’s why I kicked off this “Theme Park Nation” series here. In future articles, we’ll explore other parks and their own “secret sauces” – from Disney’s formula to lesser-known gems – always with an eye on what it means for us as investors seeking value in a world of wonder.
So, next time you’re standing in a 3-hour line for a 2-minute ride, take a moment to appreciate the business brilliance that got you there. And maybe, just maybe, consider if a slice of that brilliance has a place in your portfolio. After all, behind every butter-soaked popcorn and every looping coaster, there might be a stock worth riding for the long haul.
Sources:
en.wikipedia.org; Universal Studios Japan attendance and history
goldmansachs.com; turnaround led by Morioka
theparkdb.com Comcast ownership details
goldmansachs.com; Super Nintendo World expansion and wait times
travelcaffeine.com; Nintendo financials and P/E
finance.yahoo.com; The Super Mario Bros. Movie box office
en.wikipedia.org; USJ anime collaborations and events
japan-forward.com, essential-japan.com, stockanalysis.com; Toei Animation and Bandai Namco financial data
finance.yahoo.com; Theme park industry context
Refinitiv Eikon; For all real-time financial data
Good article.
Comcast itself might be worth a closer look. If you look at the valuation of Oriental Land and compare that to Comcast it’s honestly insane. I don’t think their theme parks are valued properly(unless their core business is in really bad shape which I haven’t looked into).