Capcom Co (CCOEY) AI Stock Analysis

• Market Cap: $9.30B
• Dividend Yield: 1.24%
• Average Volume (3M): 7.41K
• Price to Earnings (P/E): 32.7
• Beta (1Y): 0.40
• 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: 147.49
• Enterprise Value/Revenue: 6.95
• Enterprise Value/Gross Profit: 11.01
• Enterprise Value/Ebitda: 14.63
• 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

Conservative balance sheet

Zero reported TTM debt and a large equity base materially lower financial risk and provide durable optionality: capacity to fund development, M&A, or weather cyclical downturns without refinancing pressure. This structural strength supports multi‑year investment flexibility.

Very high and sustained margins

Consistently high gross and operating margins reflect strong IP economics and operating leverage; these margins create durable cash-earning capacity, fund ongoing content creation and licensing, and provide resilience to cost inflation versus lower‑margin peers.

Diversified IP-driven revenue model

An asset-light, franchise-centric model generates recurring and long-tail revenue from post-launch monetization and licensing. Multiple monetization channels and platform distribution reduce single-release dependence and enhance scalability and margin sustainability over years.

Negative Factors

Free cash flow deterioration

A large drop in free cash flow and FCF substantially below net income reduces internally available capital for buybacks, dividends, or reinvestment. If persistent, weaker cash conversion constrains strategic optionality and increases reliance on operating performance to fund growth.

Unusually large TTM growth step-up

A sharp, content-driven surge in TTM revenue is hard to replicate cyclically; reliance on blockbuster releases risks mean reversion. If release cadence or hit frequency normalizes, revenue and margin expansion may decelerate, pressuring earnings sustainability over the medium term.

Cash-flow volatility and timing risk

Historical swings in operating cash flow and working-capital timing create unpredictability in free cash generation. This structural volatility complicates multi‑period budgeting and capital allocation, making cash-funded strategies and guidance less reliable.

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 primarily makes money by monetizing its game intellectual property across multiple channels. The largest and most scalable revenue stream is the sale of video game software, which includes full-game sales delivered both digitally (through platform storefronts) and physically (via retail distribution). Capcom also earns ongoing revenue after a game’s launch through additional content and services, such as downloadable content (DLC), expansions, in-game purchases, and other digital add-ons where applicable. Beyond direct game sales, Capcom generates revenue by licensing its IP to third parties for use in areas such as consumer products (merchandise), media adaptations, and collaborations, typically earning royalties or licensing fees. The company also benefits from distribution relationships with console platform holders and PC storefronts, which provide access to global audiences while taking a platform fee from sales; Capcom’s earnings in these channels are its net receipts after such fees and related costs. Overall, Capcom’s revenue model is driven by building and maintaining valuable franchises, launching new titles, extending the lifecycle of games through post-launch monetization, and expanding IP reach through licensing and partnerships.

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: Neutral

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 10.66, above the 50-day MA of 11.08, and below the 200-day MA of 13.11, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 53.42 is Neutral, neither overbought nor oversold. The STOCH value of 44.03 is Neutral, 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	$9.30B	32.70	26.91%	1.24%	45.65%	114.09%
NTES	74 Outperform	$71.55B	18.20	22.14%	2.19%	5.69%	32.87%
EA	70 Outperform	$49.86B	145.12	11.05%	0.37%	-1.45%	-11.99%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
TTWO	57 Neutral	$38.62B	-126.36	-126.41%	―	13.98%	-6.71%
RBLX	57 Neutral	$39.99B	-52.47	-290.61%	―	32.70%	12.57%