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Koei Tecmo Holdings Co., Ltd. (JP:3635)
:3635
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Koei Tecmo Holdings Co., Ltd. (3635) AI Stock Analysis

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JP:3635

Koei Tecmo Holdings Co., Ltd.

(3635)

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Outperform 82 (OpenAI - 5.2)
Rating:82Outperform
Price Target:
¥1,913.00
▲(0.39% Upside)
Action:Reiterated
Date:07/30/26
The score is primarily supported by strong financial performance (high profitability and an exceptional, low-risk balance sheet) and favorable valuation (low P/E and strong dividend yield). Offsetting factors are weaker cash-flow consistency in the latest year and a mixed technical setup, with the stock still below its 200-day moving average.
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)

Koei Tecmo Holdings Co., Ltd. Business Overview & Revenue Model

Company Description
Koei Tecmo Holdings Co., Ltd., along with its various subsidiaries, operates as a global entertainment enterprise with a presence in Japan, North America, Europe, the wider Asian region, and other international markets. The company's operations ar...
How the Company Makes Money
Koei Tecmo primarily makes money by monetizing game intellectual property across multiple platforms and regions. Key revenue streams include: (1) Game sales (package/physical and digital) for console and PC titles, where revenue is recognized from...

Koei Tecmo Holdings Co., Ltd. Financial Statement Overview

Summary
Strong overall fundamentals driven by premium profitability and an exceptionally conservative, low-debt balance sheet. The key offset is the latest-year deterioration in free cash flow (sharp drop versus prior years), which raises near-term cash-conversion/earnings-quality risk despite robust reported profits.
Income Statement
88
Very Positive
Balance Sheet
93
Very Positive
Cash Flow
66
Positive
BreakdownMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue88.39B83.15B84.58B78.42B72.76B
Gross Profit57.06B62.77B55.30B57.10B50.60B
EBITDA59.00B51.90B47.14B41.61B50.19B
Net Income42.83B37.63B33.79B30.93B35.36B
Balance Sheet
Total Assets313.66B209.83B245.80B210.89B219.80B
Cash, Cash Equivalents and Short-Term Investments115.16B44.49B70.09B20.61B45.42B
Total Debt0.00467.00M46.91B47.52B48.31B
Total Liabilities41.12B20.41B70.25B68.20B81.70B
Stockholders Equity272.54B189.42B175.55B142.68B138.10B
Cash Flow
Free Cash Flow8.99B32.82B34.81B28.86B23.52B
Operating Cash Flow33.01B34.37B36.60B29.69B24.82B
Investing Cash Flow-12.08B40.97B-24.86B-21.39B-13.17B
Financing Cash Flow12.87B-63.17B-15.47B-16.59B-4.56B

Koei Tecmo Holdings Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1905.50
Price Trends
50DMA
1529.56
Positive
100DMA
1574.66
Positive
200DMA
1704.84
Negative
Market Momentum
MACD
10.78
Positive
RSI
52.40
Neutral
STOCH
38.95
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3635, the sentiment is Positive. The current price of 1905.5 is above the 20-day moving average (MA) of 1570.58, above the 50-day MA of 1529.56, and above the 200-day MA of 1704.84, indicating a neutral trend. The MACD of 10.78 indicates Positive momentum. The RSI at 52.40 is Neutral, neither overbought nor oversold. The STOCH value of 38.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3635.

Koei Tecmo Holdings Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
83
Outperform
¥2.80T24.8119.02%1.14%22.80%49.61%
82
Outperform
¥538.25B11.012.49%13.22%52.60%
82
Outperform
¥1.66T24.9321.91%1.34%18.74%19.36%
72
Outperform
¥1.01T33.658.75%1.62%-8.27%21.14%
71
Outperform
¥8.85T21.0714.82%2.95%98.56%52.21%
64
Neutral
¥556.77B-99.98-1.58%2.06%13.66%-112.01%
60
Neutral
$48.67B4.58-11.27%4.14%2.83%-41.78%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3635
Koei Tecmo Holdings Co., Ltd.
1,620.00
-439.29
-21.33%
JP:9766
KONAMI HOLDINGS
21,045.00
-3,285.08
-13.50%
JP:9697
Capcom Co
4,149.00
238.67
6.10%
JP:7974
Nintendo Co
8,043.00
-6,049.79
-42.93%
JP:6460
Sega Sammy Holdings
2,769.50
-472.19
-14.57%
JP:9684
Square Enix Holdings Co
2,769.50
-858.74
-23.67%

Koei Tecmo Holdings Co., Ltd. Corporate Events

Koei Tecmo Completes Treasury Share Disposal for Restricted Stock Compensation
Jul 29, 2026
Koei Tecmo Holdings has completed the payment process for the disposal of 150,746 treasury shares under its restricted stock compensation plan, following a June 29, 2026 board resolution. The shares, priced at 1,507.5 yen each for a total of about...
Koei Tecmo Posts Surge in Q1 Profit but Keeps Outlook and Dividend Cut Intact
Jul 27, 2026
Koei Tecmo reported consolidated net sales of ¥17.37 billion for the three months ended June 30, 2026, up 17.4% year on year, with operating profit surging 51.3% to ¥5.41 billion and profit attributable to owners of the parent jumping 86...
Koei Tecmo Affirms Governance Independence Under KOYU Group Control
Jun 29, 2026
Koei Tecmo Holdings has clarified its ownership and governance structure, confirming KOYU HOLDINGS as its direct parent with a 51.92% voting stake and KOYU CO. as an indirect parent with the same effective control. Both KOYU entities primarily ope...
Koei Tecmo to Grant Restricted Stock to Align Management Pay with Long-Term Value
Jun 29, 2026
Koei Tecmo Holdings has approved the disposal of 150,746 treasury shares as restricted stock compensation, valued at about ¥227 million, to directors and executive officers of the company and its subsidiaries. The plan, set for a July 29, 202...
Koei Tecmo Details Parent Koyu Holdings’ Finalized Results and Ownership Structure
May 18, 2026
Koei Tecmo Holdings has announced that the financial results for the fiscal year ended February 2026 of its parent company, Koyu Holdings Co., Ltd., have been finalized, underscoring the governance links between the two groups. Koyu Holdings, base...
Koei Tecmo to Introduce Restricted Stock Plan for Directors
May 18, 2026
Koei Tecmo Holdings plans to overhaul its executive compensation system by introducing a restricted stock compensation plan for directors, subject to shareholder approval at the June 18, 2026 annual meeting. The company’s board, which includ...
Koei Tecmo Plans New Stock Option Scheme for Directors and Staff
May 18, 2026
Koei Tecmo Holdings has approved a plan to grant stock options in the form of subscription rights to shares to directors and employees of the company and its subsidiaries, subject to approval at its 17th annual general meeting of shareholders in J...
Koei Tecmo refreshes board with new outside director as leadership slate confirmed
May 18, 2026
Koei Tecmo Holdings has announced changes to its board, with outside director Fumiko Hayashi set to retire at the end of her term and Izumi Osanai nominated as a new outside director, subject to shareholder approval at the June 18, 2026 annual gen...
Koei Tecmo Raises Year-End Dividend, Affirms 50% Payout Policy
May 18, 2026
Koei Tecmo Holdings will propose a year-end dividend of ¥66 per share for the fiscal year ended March 31, 2026, to be decided at its June 18, 2026 shareholders’ meeting. The total payout will be about ¥22.0 billion, up from the pre...
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.Date of analysis: Jul 30, 2026