Koei Tecmo Holdings Co., Ltd. (JP:3635)
:3635
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Koei Tecmo Holdings Co., Ltd.
(3635)
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Rating:75Outperform
Price Target:
¥1,796.00
▼(-5.75% Downside)
Action:ReiteratedDate:04/29/26
The score is driven primarily by strong fundamentals (excellent profitability and a very conservative, low-debt balance sheet) and supportive valuation (low P/E with a high dividend yield). These positives are partially offset by weak technical momentum (below key moving averages with negative MACD) and a notable latest-year drop in free cash flow that reduces confidence in near-term cash consistency.
Positive Factors
High Profitability
Sustained very high gross and net margins indicate strong pricing power and efficient cost structure tied to valuable game IP. High profitability underpins reinvestment in development, funds shareholder returns, and provides a durable buffer versus industry cyclicality driven by release timing.
Negative Factors
Sharp Free Cash Flow Decline
A pronounced drop in free cash flow reduces financial headroom for dividends, development pipelines, and opportunistic investment. It signals weaker cash conversion or heavier investment/working-capital swings that could constrain capital allocation over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
High Profitability
Sustained very high gross and net margins indicate strong pricing power and efficient cost structure tied to valuable game IP. High profitability underpins reinvestment in development, funds shareholder returns, and provides a durable buffer versus industry cyclicality driven by release timing.
Read all positive factors
Koei Tecmo Holdings Co., Ltd. (3635) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥517.52B
Dividend Yield2.49%
Average Volume (3M)2.17M
Price to Earnings (P/E)6.9
Beta (1Y)0.27
Revenue Growth6.31%
EPS Growth10.31%
CountryJP
Employees2,531
SectorCommunication Services
Sector Strength97
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)95.17
Shares Outstanding336,096,920
10 Day Avg. Volume1,095,000
30 Day Avg. Volume2,165,733
Financial Highlights & Ratios
PEG Ratio1.15
Price to Book (P/B)1.92
Price to Sales (P/S)5.91
P/FCF Ratio58.17
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)104.35
Revenue Forecast (FY)¥87.87B
Koei Tecmo Holdings Co., Ltd. Business Overview & Revenue Model
Company Description
Koei Tecmo Holdings Co., Ltd., together with its subsidiaries, operates as an entertainment company in Japan, North America, Europe, rest of Asia, and internationally. The company operates through Entertainment, Amusement, and Real Estate segments...
How the Company Makes Money
Koei Tecmo primarily makes money by creating and monetizing video game content across multiple platforms. Key revenue streams include: (1) sales of packaged (physical) game software for consoles/PC through retail and wholesale distribution channel...
Koei Tecmo Holdings Co., Ltd. Financial Statement Overview
Summary
Income Statement
88
Very Positive
Balance Sheet
93
Very Positive
Cash Flow
66
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 80.34B | 88.39B | 83.15B | 84.58B | 78.42B | 72.76B |
| Gross Profit | 49.63B | 57.06B | 62.77B | 55.30B | 57.10B | 50.60B |
| EBITDA | 31.88B | 39.17B | 34.03B | 30.31B | 40.78B | 36.08B |
| Net Income | 30.06B | 42.83B | 37.63B | 33.79B | 30.93B | 35.36B |
Balance Sheet | ||||||
| Total Assets | 243.40B | 313.66B | 209.83B | 245.80B | 210.89B | 219.80B |
| Cash, Cash Equivalents and Short-Term Investments | 41.21B | 115.16B | 44.49B | 70.09B | 20.61B | 45.42B |
| Total Debt | 35.92B | 0.00 | 467.00M | 46.91B | 47.52B | 48.31B |
| Total Liabilities | 56.28B | 41.12B | 20.41B | 70.25B | 68.20B | 81.70B |
| Stockholders Equity | 187.12B | 272.54B | 189.42B | 175.55B | 142.68B | 138.10B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 8.99B | 32.82B | 34.81B | 28.86B | 23.52B |
| Operating Cash Flow | 0.00 | 33.01B | 34.37B | 36.60B | 29.69B | 24.82B |
| Investing Cash Flow | 0.00 | -12.08B | 40.97B | -24.86B | -21.39B | -13.17B |
| Financing Cash Flow | 0.00 | 12.87B | -63.17B | -15.47B | -16.59B | -4.56B |
Koei Tecmo Holdings Co., Ltd. Technical Analysis
Neutral
1905.50
Price Trends
1668.21
Positive
1771.50
Negative
1888.46
Negative
Market Momentum
-2.32
Negative
61.76
Neutral
94.30
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3635, the sentiment is Neutral. The current price of 1905.5 is above the 20-day moving average (MA) of 1645.60, above the 50-day MA of 1668.21, and above the 200-day MA of 1888.46, indicating a neutral trend. The MACD of -2.32 indicates Negative momentum. The RSI at 61.76 is Neutral, neither overbought nor oversold. The STOCH value of 94.30 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3635.
Koei Tecmo Holdings Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | ¥517.52B | 6.94 | ― | 2.49% | 6.31% | 10.31% | |
72 Outperform | ¥2.57T | 25.95 | 17.57% | 0.84% | 10.94% | 10.47% | |
69 Neutral | ¥1.40T | 33.58 | 26.91% | 1.17% | 45.14% | 102.07% | |
68 Neutral | ¥457.20B | -6.55 | -3.66% | 2.12% | 0.36% | -135.24% | |
67 Neutral | ¥8.54T | 19.28 | 13.46% | 1.17% | 71.46% | 25.25% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
57 Neutral | ¥895.31B | 16.57 | 6.70% | 1.80% | -16.07% | 96.56% |
* Communication Services Sector Average
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Koei Tecmo Holdings Co., Ltd. Corporate Events
Koei Tecmo Lifts Year-End Dividend Forecast, Reinforcing Shareholder Return Policy
Apr 27, 2026
Koei Tecmo Holdings has revised its dividend forecast for the fiscal year ending March 2026, sharply raising the planned year-end dividend from ¥43 to ¥66 per share. This compares with a ¥60 dividend in fiscal 2024 and comes despite...
Koei Tecmo Delivers Strong FY2026 Results but Flags Profit Slowdown Ahead
Apr 27, 2026
Koei Tecmo reported solid results for the fiscal year ended March 31, 2026, with net sales rising 6.3% to ¥88.4 billion and operating profit up 15.7% to ¥37.2 billion, while profit attributable to owners of the parent climbed 13.8% to &#...
Koei Tecmo Lifts Profit Outlook to Record Highs Despite Lower Sales Forecast
Apr 20, 2026
Koei Tecmo Holdings has revised its consolidated earnings forecast for the fiscal year ending March 2026, lowering expected net sales from ¥92.0 billion to ¥87.5 billion but raising operating profit from ¥31.0 billion to ¥36.0 ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.