Nihon Falcom Corporation (3723) AI Stock Analysis

• Market Cap: ¥20.60B
• Dividend Yield: 1.25%
• Average Volume (3M): 30.66K
• Price to Earnings (P/E): 8.6
• Beta (1Y): 0.41
• Revenue Growth: 3.50%
• EPS Growth: 6.04%
• Country: JP
• Employees: 66
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 47.88
• Shares Outstanding: 10,280,000
• 10 Day Avg. Volume: 15,990
• 30 Day Avg. Volume: 30,656
• PEG Ratio: 2.87
• Price to Book (P/B): 1.44
• Price to Sales (P/S): 6.00
• P/FCF Ratio: 15.47
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 81 Outperform
• Price Target: ¥2,252.00 ▲(36.82% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is led by strong financial quality: high margins and a debt-free, steadily strengthening balance sheet. Technicals add support from a clear uptrend, but extremely overbought momentum indicators increase near-term risk. Valuation is reasonable on P/E, though the dividend yield is low.

Positive Factors

Debt-free balance sheet

Zero reported debt and steadily rising equity create durable financial flexibility. This lowers solvency risk, enables sustained investment in game development and IP upkeep without relying on external financing, and provides a cushion through uneven release cycles over months.

Negative Factors

Uneven revenue and cash flow

Historic volatility in operating and free cash flow reduces forecasting reliability and can constrain multi-year investment planning. Dependence on hit-driven game releases means cash generation can swing materially across reporting periods, raising execution and funding timing risk.

Nihon Falcom Corporation Business Overview & Revenue Model

Company Description

Nihon Falcom Corporation engages in the development and production of title game software in Japan and internationally. It also produces music and video titles; plans game software; sells game software and related products; and provides various li...

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Nihon Falcom Corporation engages in the development and production of title game software in Japan and internationally. It also produces music and video titles; plans game software; sells game software and related products; and provides various li...

How the Company Makes Money

Nihon Falcom primarily makes money by monetizing its game intellectual property through a mix of direct game sales and IP licensing. A key revenue stream is the sale of its own titles (new releases and catalog sales), which are distributed via phy...

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Nihon Falcom primarily makes money by monetizing its game intellectual property through a mix of direct game sales and IP licensing. A key revenue stream is the sale of its own titles (new releases and catalog sales), which are distributed via phy...

Nihon Falcom Corporation Financial Statement Overview

Breakdown	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	2.61B	2.52B	2.47B	2.53B	2.48B
Gross Profit	2.30B	2.27B	2.23B	2.31B	2.27B
EBITDA	1.35B	1.25B	1.34B	1.47B	1.42B
Net Income	903.68M	852.21M	911.34M	1.03B	1.00B
Balance Sheet
Total Assets	11.50B	10.70B	10.13B	9.69B	8.29B
Cash, Cash Equivalents and Short-Term Investments	10.35B	9.54B	8.90B	8.21B	7.17B
Total Debt	0.00	0.00	0.00	0.00	0.00
Total Liabilities	618.02M	523.90M	595.79M	863.49M	593.76M
Stockholders Equity	10.88B	10.18B	9.53B	8.83B	7.70B
Cash Flow
Free Cash Flow	1.01B	846.50M	898.04M	1.24B	38.65M
Operating Cash Flow	1.01B	848.36M	903.62M	1.24B	102.49M
Investing Cash Flow	-742.00K	-1.86M	-5.58M	-1.43M	52.74M
Financing Cash Flow	-204.90M	-204.88M	-204.85M	-204.61M	-122.77M

Nihon Falcom Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1646.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3723, the sentiment is Positive. The current price of 1646 is below the 20-day moving average (MA) of 2265.15, below the 50-day MA of 2012.62, and above the 200-day MA of 1542.72, indicating a neutral trend. The MACD of -22.19 indicates Positive momentum. The RSI at 44.47 is Neutral, neither overbought nor oversold. The STOCH value of 19.71 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3723.

Nihon Falcom Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3723	81 Outperform	¥20.60B	8.62	―	1.25%	3.50%	6.04%
3635	76 Outperform	¥567.35B	15.43	―	2.49%	-1.05%	6.49%
9697	69 Neutral	¥1.38T	33.58	26.91%	1.17%	45.17%	81.91%
6460	68 Neutral	¥526.48B	-6.55	-3.66%	2.12%	-8.73%	-55.81%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
9684	57 Neutral	¥908.26B	16.57	6.70%	1.80%	-12.02%	126.06%
3851	46 Neutral	¥4.25B	16.91	―	0.64%	-13.35%	-258.79%