Nihon Falcom Corporation (JP:3723)
:3723
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Nihon Falcom Corporation
(3723)
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Rating:81Outperform
Price Target:
¥2,938.00
▲(78.49% Upside)
Action:Reiterated
Date: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
High profitability / margins
Sustained very high gross and net margins indicate strong product economics and pricing power tied to digital game sales and IP licensing. High margins support reinvestment in development, fund sequels/remasters, and provide financial resilience through product cycles, enhancing long-term cash generation.
Negative Factors
Uneven revenue and net income trends
Irregular revenue and net income make multi-year forecasting and investment planning harder for a game developer reliant on hit-driven releases. This volatility can compress margins in weak years, complicate budgeting for development cycles and reduce predictability of licensing and localization income.
Read all positive and negative factors
Positive Factors
Negative Factors
High profitability / margins
Sustained very high gross and net margins indicate strong product economics and pricing power tied to digital game sales and IP licensing. High margins support reinvestment in development, fund sequels/remasters, and provide financial resilience through product cycles, enhancing long-term cash generation.
Read all positive factors
Nihon Falcom Corporation (3723) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥24.16B
Dividend Yield1.25%
Average Volume (3M)30.66K
Price to Earnings (P/E)23.4
Beta (1Y)0.42
Revenue Growth67.49%
EPS Growth189.73%
CountryJP
Employees66
SectorCommunication Services
Sector Strength97
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)87.89
Shares Outstanding10,280,000
10 Day Avg. Volume15,990
30 Day Avg. Volume30,656
Financial Highlights & Ratios
PEG Ratio2.87
Price to Book (P/B)1.44
Price to Sales (P/S)6.00
P/FCF Ratio15.47
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)N/A
Revenue Forecast (FY)N/A
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...
How the Company Makes Money
Nihon Falcom primarily makes money by monetizing its game IP through multiple channels across the game lifecycle. (1) Game software sales and digital distribution: Revenue is generated from selling new titles and back-catalog games on supported pl...
Nihon Falcom Corporation Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
78
Positive
| 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
Positive
1646.00
Price Trends
2161.60
Positive
2004.21
Positive
1708.87
Positive
Market Momentum
76.64
Negative
57.11
Neutral
58.00
Neutral
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 2265.30, below the 50-day MA of 2161.60, and below the 200-day MA of 1708.87, indicating a bullish trend. The MACD of 76.64 indicates Negative momentum. The RSI at 57.11 is Neutral, neither overbought nor oversold. The STOCH value of 58.00 is Neutral, 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
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | ¥24.16B | 23.45 | ― | 1.25% | 67.49% | 189.73% | |
75 Outperform | ¥511.33B | 6.94 | ― | 2.49% | 6.31% | 10.31% | |
65 Neutral | ¥1.34T | 25.65 | 26.91% | 1.17% | 15.19% | 12.65% | |
63 Neutral | ¥995.95B | 30.48 | 6.70% | 1.80% | -8.27% | 21.14% | |
61 Neutral | ¥466.32B | 11.51 | -3.66% | 2.12% | 13.66% | -113.12% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
48 Neutral | ¥4.17B | -11.60 | ― | 0.64% | -31.95% | -62.46% |
* Communication Services Sector Average
JP:3723
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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.