Capcom Co (CCOEY) AI Stock Analysis

• Market Cap: $12.07B
• Dividend Yield: 0.59%
• Average Volume (3M): 6.11K
• Price to Earnings (P/E): 37.8
• Beta (1Y): 0.59
• Revenue Growth: -18.33%
• EPS Growth: -11.92%
• Country: US
• Employees: 3,531
• Sector: Communication Services
• Sector Strength: 81
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 0.21
• Shares Outstanding: 1,066,022,500
• 10 Day Avg. Volume: 3,390
• 30 Day Avg. Volume: 6,109
• PEG Ratio: -3.07
• Price to Book (P/B): 8.18
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 100.26
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: ―

Capcom Co's strong financial performance is the primary driver of its stock score, supported by robust revenue growth, high profitability, and a solid balance sheet. However, the technical indicators suggest potential short-term bearish momentum, and the high P/E ratio raises valuation concerns. While the company is fundamentally sound, investors should be mindful of valuation and market trends.

Capcom Co Business Overview & Revenue Model

Company Description

Capcom Co., Ltd. plans, develops, manufactures, sells, and distributes home video games, online games, mobile games, and arcade games in Japan and internationally. It operates through Digital Contents, Arcade Operations, Amusement Equipments, and Other Businesses segments. The Digital Contents segment develops and sells packaged and digital game content for consumer home video game platforms, as well as mobile content and PC online games. The Arcade Operations segment operates Plaza Capcom amusement facilities primarily in commercial complexes, as well as hosts various events. The Amusement Equipments segment is involved in the development, manufacture, and sale of frames and LCD devices for gaming machines, as well as software. The Other Businesses segment publishes walkthrough and strategy guides, as well as game art books; licenses movies, animated television programs, music CDs, and merchandise; and focuses on the esports business. It also manages amusement arcades. Capcom Co., Ltd. was incorporated in 1979 and is headquartered in Osaka, Japan.

How the Company Makes Money

Capcom generates revenue through multiple streams, with its core business being the development and sale of video games across various platforms including consoles, PCs, and mobile devices. A significant portion of its income comes from digital sales, which include full game downloads, downloadable content (DLC), and in-game purchases. Additionally, Capcom benefits from merchandise sales related to its popular franchises, as well as licensing fees from adaptations of its games into films, television series, and other media. The company also engages in eSports, which contributes to its revenue through event organization and sponsorships. Strategic partnerships with other gaming companies and digital distribution platforms further enhance Capcom's earnings by expanding the reach and availability of its products.

Capcom Co Financial Statement Overview

Summary

Capcom Co's financial performance is robust, characterized by strong growth, high profitability, and a solid financial position. The company effectively manages its operations and capital structure, reducing financial risks. However, maintaining these growth rates and margins will be crucial as market conditions evolve.

Income Statement

Capcom Co has shown strong revenue growth, with a 21% increase from 2023 to 2024. The company maintains high profitability, with a gross profit margin of 55.55% and a net profit margin of 28.46%. Both EBIT and EBITDA margins are robust, standing at 37.44% and 41.71%, respectively, indicating effective cost management and operational efficiency.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.062, demonstrating minimal reliance on debt. The return on equity is impressive at 22.23%, indicating strong profitability relative to shareholder equity. Additionally, the equity ratio of 80.12% shows a stable capital structure with significant asset backing.

Cash Flow

Capcom Co exhibits strong cash flow management with a significant free cash flow growth rate of 121.15%. The operating cash flow to net income ratio is 0.85, indicating efficient cash generation from operations relative to earnings. The free cash flow to net income ratio is 0.73, reflecting effective capital expenditure management.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
138.15B	152.41B	125.93B	110.05B	95.31B	81.59B
	Gross Profit
72.88B	84.66B	73.82B	63.01B	52.74B	40.95B
	EBIT
45.92B	57.08B	50.81B	42.91B	34.60B	22.83B
	EBITDA
50.32B	63.56B	54.25B	46.30B	37.39B	25.62B
	Net Income Common Stockholders
35.19B	43.37B	36.74B	32.55B	24.92B	15.95B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
125.19B	125.19B	102.12B	107.26B	71.24B	65.66B
	Total Assets
243.48B	243.48B	217.37B	187.37B	163.71B	143.47B
	Total Debt
12.16B	12.16B	11.75B	6.10B	6.83B	7.93B
	Net Debt
-113.03B	-113.03B	-90.36B	-101.17B	-64.41B	-57.73B
	Total Liabilities
48.39B	48.40B	56.24B	40.89B	42.92B	43.73B
	Stockholders Equity
195.08B	195.08B	161.13B	146.47B	120.80B	99.73B
Cash Flow		Free Cash Flow
29.17B	31.79B	14.37B	42.88B	11.50B	19.94B
	Operating Cash Flow
33.35B	36.92B	21.79B	46.95B	14.63B	22.28B
	Investing Cash Flow
-4.93B	-5.96B	-7.68B	-7.43B	-4.23B	-8.44B
	Financing Cash Flow
-16.65B	-15.97B	-22.48B	-9.98B	-6.96B	-6.35B

Capcom Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 14.22 is above the 20-day moving average (MA) of 14.01, above the 50-day MA of 13.10, and above the 200-day MA of 11.66, indicating a bullish trend. The MACD of 0.24 indicates Positive momentum. The RSI at 59.94 is Neutral, neither overbought nor oversold. The STOCH value of 86.20 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
NTES	79 Outperform	$74.32B	17.11	23.93%	2.13%	1.26%	6.84%
EA	76 Outperform	$37.74B	35.44	16.13%	0.50%	-0.81%	-9.28%
CCOEY	74 Outperform	$12.07B	37.81	22.64%	0.59%	-18.33%	-11.92%
RBLX	73 Outperform	$55.42B	―	-460.30%	―	30.24%	27.61%
PLTK	63 Neutral	$1.75B	12.43	-220.61%	8.37%	1.64%	-32.31%
Sector *	60 Neutral	$14.06B	6.51	-3.76%	3.69%	2.48%	-35.40%
TTWO	57 Neutral	$41.42B	―	-114.76%	―	5.31%	-15.57%