Capcom Co (CCOEY) AI Stock Analysis

• Market Cap: $9.67B
• Dividend Yield: 1.24%
• Average Volume (3M): 7.41K
• Price to Earnings (P/E): 22.4
• Beta (1Y): 0.38
• Revenue Growth: 45.65%
• EPS Growth: 114.09%
• Country: US
• Employees: 3,531
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 0.09
• Shares Outstanding: 1,066,022,500
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 7,412
• PEG Ratio: 2.73
• Price to Book (P/B): 6.85
• Price to Sales (P/S): 9.13
• P/FCF Ratio: 25.26
• Enterprise Value/Market Cap: 143.49
• Enterprise Value/Revenue: 7.03
• Enterprise Value/Gross Profit: 11.14
• Enterprise Value/Ebitda: 14.80
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.42
• Revenue Forecast (FY): $1.20B

• Rating: 78 Outperform
• Price Target: $12.50 ▲(3.14% Upside)
• Action: Reiterated Date: 01/31/26
• Date: Action: Reiterated 01/31/26

The score is driven primarily by strong financial performance (high profitability and a very low-risk balance sheet), partially offset by cash-flow volatility and sustainability questions around the unusually large TTM growth jump. Technicals are moderately positive in the near term but mixed longer term, and valuation appears fair-to-somewhat rich with a modest dividend yield.

Positive Factors

Diversified, recurring revenue model

Capcom's revenue mix includes full-game sales, DLC/in-game purchases and live-service titles plus licensing and merchandise. This multi-channel monetization provides recurring revenue and revenue diversification that supports stable cash inflows across development cycles and platforms over months to years.

Very conservative balance sheet

A zero-debt TTM position and large equity base materially reduce solvency risk and interest burden, giving management flexibility to fund game development, marketing, IP investment or opportunistic M&A without near-term liquidity pressure. This durability supports multi-quarter strategic execution.

High margins and strong profitability

Sustained high gross and operating margins indicate strong pricing power and scalable development economics. Combined with elevated profitability and historical ROE, these margins enable internal funding of content pipelines and capital returns, underpinning long-term cash generation if product cadence holds.

Negative Factors

Volatile cash flow / declining FCF

Free cash flow volatility and a marked ~36% TTM decline reduce predictability of funding for development and shareholder returns. Lower FCF relative to net income suggests heavier reinvestment or timing effects, which can constrain discretionary spending and raise execution risk across several quarters.

Unsustainably large recent growth step-up

A dramatic TTM growth jump is likely tied to specific product cycles; content-driven businesses typically see lumpy, hit-dependent revenue. If future releases don't match recent performance, topline and margin normalization risk could emerge over the next few quarters, complicating planning and investor expectations.

Low leverage may limit return optimization

While conservative debt levels lower financial risk, near-zero leverage can constrain long-term return-on-equity optimization. The company may underutilize low-cost financing for buybacks or strategic investment, potentially limiting shareholder return enhancement over multiple quarters unless operating growth persists.

Capcom Co Business Overview & Revenue Model

Company Description

Capcom Co., Ltd. is a leading Japanese video game developer and publisher, renowned for its iconic franchises such as Resident Evil, Street Fighter, and Monster Hunter. Established in 1983, Capcom operates primarily within the interactive entertainment sector, focusing on the development and distribution of video games across various platforms including consoles, PC, and mobile devices. The company also engages in merchandise and licensing related to its popular game franchises, further diversifying its offerings.

How the Company Makes Money

Capcom generates revenue primarily through the sale of video games, which includes both physical and digital formats. The company's major revenue streams include new game releases, downloadable content (DLC), and in-game purchases. Additionally, Capcom benefits from recurring revenue through its live service models, particularly with titles like Monster Hunter and Street Fighter, which offer ongoing content updates and expansions. Licensing agreements and merchandise sales also contribute to its earnings, as Capcom capitalizes on its popular franchises through collaborations and partnerships for toys, apparel, and other consumer products. Furthermore, strategic partnerships with platform holders, such as Sony and Microsoft, enhance its distribution capabilities and market reach, ultimately driving sales and revenue growth.

Capcom Co Financial Statement Overview

Summary

Overall financial quality is high: strong profitability and a conservative balance sheet (TTM shows zero debt). The main offset is cash-flow volatility, including a sharp TTM decline in free cash flow despite strong earnings, and an unusually large TTM growth step-up that may be harder to sustain.

Income Statement

Income statement quality is strong, supported by consistently high profitability and solid growth. In TTM (Trailing-Twelve-Months), revenue growth accelerated to ~119% versus the prior annual periods (~11–21%), while margins expanded to very high levels (gross margin ~63%, operating margin ~44%, net margin ~33%). Strengths include sustained high operating leverage and a strong multi-year uptrend in revenue and earnings. Key watch-out: the step-up in TTM growth is unusually large versus historical rates, which can be harder to sustain for a content-driven gaming business.

Balance Sheet

Balance sheet is exceptionally conservative. TTM (Trailing-Twelve-Months) shows zero debt and a large equity base, which materially reduces financial risk and provides flexibility for investment cycles. Even in the annual periods, debt levels are low (debt-to-equity roughly ~4–7%). Profitability on equity is strong (roughly ~21–27% across periods), indicating efficient capital use. The main limitation is that with very low leverage, future returns rely more on continued operating performance than balance-sheet optimization.

Cash Flow

Cash flow is good but less consistent than reported profits. TTM (Trailing-Twelve-Months) operating cash flow remains healthy and comfortably covers earnings (about 1.68x), but free cash flow declined sharply (about -36% growth) and free cash flow is meaningfully below net income (~69%), suggesting higher reinvestment, working-capital timing, or other cash uses. Annual history shows periods of strong cash conversion (free cash flow close to net income), but also volatility (e.g., weaker operating cash flow coverage in 2021 and 2023). Overall: solid cash generation with noticeable swings.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	197.30B	169.60B	152.41B	125.93B	110.05B	95.31B
Gross Profit	124.56B	98.76B	84.66B	73.82B	63.01B	52.74B
EBITDA	93.71B	70.41B	63.56B	54.25B	46.30B	37.39B
Net Income	64.66B	48.45B	43.37B	36.74B	32.55B	24.92B
Balance Sheet
Total Assets	291.07B	312.98B	243.48B	217.37B	187.37B	163.71B
Cash, Cash Equivalents and Short-Term Investments	111.84B	166.78B	125.19B	102.12B	107.26B	71.24B
Total Debt	0.00	11.92B	12.16B	11.75B	6.10B	6.83B
Total Liabilities	40.65B	86.68B	48.40B	56.24B	40.89B	42.92B
Stockholders Equity	250.42B	226.30B	195.08B	161.13B	146.47B	120.80B
Cash Flow
Free Cash Flow	28.20B	61.34B	31.79B	14.37B	42.88B	11.50B
Operating Cash Flow	41.07B	67.62B	36.92B	21.79B	46.95B	14.63B
Investing Cash Flow	-34.27B	-7.27B	-5.96B	-7.68B	-7.43B	-4.23B
Financing Cash Flow	-17.07B	-18.73B	-15.97B	-22.48B	-9.98B	-6.96B

Capcom Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.12
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CCOEY, the sentiment is Positive. The current price of 12.12 is above the 20-day moving average (MA) of 10.50, above the 50-day MA of 11.17, and below the 200-day MA of 13.25, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 58.67 is Neutral, neither overbought nor oversold. The STOCH value of 100.03 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CCOEY.

Capcom Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CCOEY	78 Outperform	$9.67B	22.42	26.66%	1.24%	45.65%	114.09%
NTES	74 Outperform	$69.62B	15.77	22.36%	2.19%	5.69%	32.87%
EA	70 Outperform	$50.32B	75.30	10.03%	0.37%	-1.45%	-11.99%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
TTWO	57 Neutral	$39.61B	-9.56	-86.22%	―	13.98%	-6.71%
RBLX	57 Neutral	$47.80B	-43.75	-345.84%	―	32.70%	12.57%