DeNA Co (2432) AI Stock Analysis

• Market Cap: ¥281.68B
• Dividend Yield: 2.55%
• Average Volume (3M): 2.14M
• Price to Earnings (P/E): 6.4
• Beta (1Y): 0.92
• Revenue Growth: 34.16%
• EPS Growth: N/A
• Country: JP
• Employees: 2,897
• Sector: Industrials
• Sector Strength: 72
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 106.06
• Shares Outstanding: 122,145,546
• 10 Day Avg. Volume: 2,100,700
• 30 Day Avg. Volume: 2,136,333
• PEG Ratio: -0.09
• Price to Book (P/B): 1.62
• Price to Sales (P/S): 2.38
• P/FCF Ratio: 11.25
• 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: ¥2,043.30
• Price Target Upside: -21.21% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: ¥2,694.00 ▲(3.88% Upside)

DeNA Co's strong financial performance and attractive valuation are the primary drivers of its stock score. While technical indicators suggest neutral to slightly bearish momentum, the company's robust financial health and undervaluation present a compelling investment case. Historical volatility in profitability and cash flow remains a secondary concern.

Positive Factors

Revenue Growth

Consistent revenue growth and strong profit margins indicate effective market strategies and product demand, supporting long-term business sustainability.

Cash Flow Generation

Robust cash flow growth enhances financial flexibility, enabling strategic investments and resilience against market fluctuations.

Financial Health

A strong balance sheet with low leverage indicates financial stability, allowing DeNA to withstand economic downturns and invest in growth opportunities.

Negative Factors

Profitability Volatility

Volatility in profitability can affect investor confidence and may pose challenges in maintaining consistent financial performance.

Cash Flow Volatility

Volatile cash flows can limit the company's ability to fund operations and strategic initiatives, impacting long-term growth prospects.

Historical ROE Concerns

Negative ROE in the past suggests challenges in generating returns on equity, which could affect future investment attractiveness if not addressed.

DeNA Co Business Overview & Revenue Model

Company Description

DeNA Co., Ltd. develops and operates mobile and online services worldwide. The company operates through Game Business, Sports Business, Live Streaming Business, Healthcare Business, and New Businesses and Others segments. It operates Mobage, an entertainment platform; Yahoo! Mobage, which offers games for PC browsers; and AndApp, a platform that allows users to play mobile game apps on PC browsers under the same user account; Pococha, a social live streaming community; and IRIAM, an app which allows to livestream as an anime character. The company also operates SHOWROOM, a virtual stage where fans can watch their artists perform live while interacting with them in real time; MYCODE, a direct-to-consumer genetic testing service; kencom, which supports health insurance societies to manage their members' health data; Haretoke, a web service which provides support for millennial women; Caradamo that offers diet support; and ONSEI, an app that uses AI to check for changes in cognitive function. In addition, it operates MENKYO, which enables cognitive function test for elderly drivers seeking license renewal; SHINRI-ADAS, a cognitive functional test; MRI-TAISEKI, a system that analyses brain DICOM images; Easiit, a brain performance app; and DENA SPORTS GROUP, Yokohama DeNA Baystars, Kawasaki Brave Thunders, S.C.SAGAMIHARA, and DeNA Athletics Elite sports teams. Further, the company operates Mobaoku, which allows users to manage their auction items and bids from mobile phones; Anyca, a mobile app for peer-to-peer car sharing; SOMPO DE NORU, a car leasing service; GO, a taxi dispatch app; DRIVE CHART, an accident reduction support service; Coopel, a cloud robotic process automation service; PLAYBACK 9, a NFT service; Easy Ride, a robo-vehicle mobility service; Manga Box, a weekly manga magazine app; and PICKFIVE, a NFT card game. The company was founded in 1999 and is headquartered in Tokyo, Japan.

How the Company Makes Money

DeNA generates revenue primarily through the sale of virtual goods within its mobile games, which is a significant portion of its income. The company employs a freemium model, offering games for free while monetizing through in-app purchases. Additionally, DeNA earns revenue from advertising within its applications and through partnerships with other game developers for co-publishing games. The company also has ventures in e-commerce and healthcare, which contribute supplementary revenue streams, though gaming remains its core business. Significant partnerships, including collaborations with major franchises and other tech firms, enhance its market reach and revenue potential.

DeNA Co Financial Statement Overview

Summary

DeNA Co exhibits strong financial health with consistent revenue growth, robust profitability, and solid cash flow generation. The company maintains a conservative balance sheet with low leverage, enhancing financial stability.

Income Statement

DeNA Co has shown strong revenue growth with a 4.72% increase in the TTM period. The company maintains a healthy gross profit margin of 58.97% and a net profit margin of 18.83%, indicating robust profitability. EBIT and EBITDA margins are also solid at 23.16% and 26.47%, respectively, reflecting efficient operational management.

Balance Sheet

The balance sheet is stable with a low debt-to-equity ratio of 0.18, suggesting conservative leverage. Return on equity is strong at 13.67%, indicating effective use of shareholder funds. The equity ratio stands at 65.66%, highlighting a solid equity base relative to total assets.

Cash Flow

Cash flow performance is commendable with a positive free cash flow growth rate of 1.60% in the TTM period. The operating cash flow to net income ratio is 1.20, showing strong cash generation relative to net income. The free cash flow to net income ratio of 0.87 further supports the company's ability to generate cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	176.89B	164.00B	136.73B	134.91B	130.87B	136.97B
Gross Profit	107.28B	92.64B	60.99B	64.09B	65.94B	74.93B
EBITDA	53.64B	35.84B	-18.44B	17.45B	20.89B	34.82B
Net Income	44.22B	24.19B	-28.68B	8.86B	30.53B	25.63B
Balance Sheet
Total Assets	404.88B	394.19B	335.71B	348.94B	340.57B	327.12B
Cash, Cash Equivalents and Short-Term Investments	96.92B	92.80B	71.80B	98.01B	78.53B	98.31B
Total Debt	46.16B	50.01B	44.51B	45.16B	28.27B	27.14B
Total Liabilities	120.39B	141.31B	115.68B	114.95B	95.66B	98.46B
Stockholders Equity	274.01B	241.73B	209.20B	221.63B	240.63B	223.71B
Cash Flow
Free Cash Flow	34.20B	34.75B	-21.39B	3.23B	11.94B	20.69B
Operating Cash Flow	39.41B	39.00B	-10.84B	10.81B	18.38B	29.97B
Investing Cash Flow	-8.39B	-12.26B	-12.63B	12.45B	-19.92B	-8.64B
Financing Cash Flow	-10.59B	-5.46B	-4.10B	-4.93B	-18.55B	6.61B

DeNA Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2593.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2432, the sentiment is Positive. The current price of 2593.5 is above the 20-day moving average (MA) of 2408.32, above the 50-day MA of 2474.72, and below the 200-day MA of 2739.03, indicating a neutral trend. The MACD of -0.32 indicates Negative momentum. The RSI at 59.88 is Neutral, neither overbought nor oversold. The STOCH value of 91.97 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2432.

DeNA Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2432	78 Outperform	¥281.68B	6.42	17.98%	2.55%	34.16%	―
2121	66 Neutral	¥178.17B	10.67	9.54%	4.60%	1.14%	77.07%
3765	64 Neutral	¥130.74B	30.53	3.38%	2.38%	-3.12%	-63.07%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
3932	60 Neutral	¥38.65B	18.50	―	4.16%	-15.30%	39.61%
3632	54 Neutral	$71.82B	17.54	4.14%	2.09%	-2.61%	116.80%
3903	46 Neutral	¥17.60B	5.93	―	―	-37.68%	―

DeNA Co Corporate Events

DeNA to Receive Significant Dividend from Cygames

DeNA Co., Ltd. announced it will receive a dividend of 8.379 billion yen from its equity-method affiliate, Cygames, Inc., following a resolution by CyberAgent, Inc., the largest shareholder of Cygames. This dividend will be recorded as non-operating income in DeNA’s standalone financial results for the third quarter of the fiscal year ending March 2026, with limited impact on its consolidated financial results.

DeNA Co. Announces New Management Policy for Sustainable Growth

DeNA Co., Ltd. has announced a new policy initiative aimed at enhancing management practices with a focus on cost of capital and stock price, targeting sustainable growth and increased corporate value in the medium to long term. The company plans to disclose specific measures and progress leading up to the fiscal year ending March 2026, which could impact its operational strategies and stakeholder interests.

DeNA Co., Ltd. Strengthens AI Focus with New Investment Partnership

DeNA Co., Ltd. has announced the establishment of the Delight Ventures Builder III Investment Limited Partnership, aimed at strengthening its AI initiatives under the AI-ALL-IN policy. This investment is expected to enhance the startup ecosystem and entrepreneurial culture, although its immediate impact on financial results is projected to be minimal.

DeNA Co. Reports Robust Financial Growth in First Half of 2025

DeNA Co., Ltd. reported a significant increase in its financial performance for the six months ended September 30, 2025, with revenue rising by 18.3% and operating profit surging by 354.1% compared to the previous year. The company’s strong results reflect its strategic initiatives and market positioning, indicating a robust recovery and potential growth opportunities for stakeholders.