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Cave Interactive Co., Ltd. (JP:3760)
:3760
Japanese Market

Cave Interactive Co., Ltd. (3760) AI Stock Analysis

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JP

Cave Interactive Co., Ltd.

(3760)

Rating:81Outperform
Price Target:
¥1,156.00
▲(8.44%Upside)
Cave Interactive Co., Ltd. is poised for strong performance due to its solid financial foundation, attractive valuation, and positive technical outlook. However, attention to cash flow management is necessary to sustain growth and mitigate risks.

Cave Interactive Co., Ltd. (3760) vs. iShares MSCI Japan ETF (EWJ)

Cave Interactive Co., Ltd. Business Overview & Revenue Model

Company DescriptionCave Interactive Co., Ltd. (3760) is a Japanese company primarily engaged in the development and distribution of video games and digital entertainment content. The company is well-known for its work in the arcade and mobile gaming sectors, particularly for producing 'bullet hell' shooter games. Cave Interactive's portfolio includes both original titles and adaptations for various gaming platforms, catering to a diverse range of gaming enthusiasts.
How the Company Makes MoneyCave Interactive makes money through a multi-faceted revenue model primarily focused on game sales, in-game purchases, and licensing agreements. The company generates revenue from the direct sales of its games across various platforms, including arcade, console, and mobile devices. Additionally, Cave Interactive capitalizes on in-game monetization strategies, such as offering virtual goods and premium content for purchase within its games. Licensing its intellectual property to other developers for adaptations and collaborations also contributes to its revenue streams. Partnerships with distributors and other entertainment companies further enhance its earnings by expanding the reach and availability of its gaming content.

Cave Interactive Co., Ltd. Financial Statement Overview

Summary
Cave Interactive Co., Ltd. shows strong revenue and profit growth, supported by efficient operations and a robust balance sheet with low leverage. However, cash flow challenges and historical instability in equity and income impact the overall financial health.
Income Statement
85
Very Positive
The income statement shows a strong growth trajectory with total revenue increasing significantly from 2023 to 2024. Gross profit margin is healthy at approximately 44.4% for 2024. The net profit margin improved significantly to 12% in 2024, up from 37% in 2023. Both EBIT and EBITDA margins are positive, indicating operational efficiency improvements. However, the volatility in net income over previous years suggests some historical instability.
Balance Sheet
78
Positive
The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.16 in 2024, indicating low leverage and financial risk. The equity ratio is strong at 42.4%, suggesting a solid base of equity financing. Return on equity is healthy at 24.2% for 2024, demonstrating effective use of equity. However, the company has experienced fluctuations in stockholders' equity over the years, indicating some historical variability.
Cash Flow
65
Positive
Cash flow analysis reveals a significant decline in operating cash flow from 2023 to 2024, resulting in negative free cash flow for 2024. The free cash flow to net income ratio is negative, indicating cash flow issues despite positive net income. This could pose a risk to liquidity. Historical cash flow fluctuations suggest potential challenges in maintaining consistent free cash flow.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue13.49B12.27B6.96B1.41B1.70B1.68B
Gross Profit5.64B5.45B3.44B677.71M793.74M851.87M
EBITDA1.94B2.13B2.97B-901.39M-234.60M-313.75M
Net Income1.26B1.48B2.58B-936.99M-244.97M-316.93M
Balance Sheet
Total Assets13.94B14.36B13.49B1.38B1.42B1.45B
Cash, Cash Equivalents and Short-Term Investments5.36B6.34B6.39B1.06B904.44M1.10B
Total Debt1.24B983.92M1.10B206.51M209.72M14.98M
Total Liabilities6.66B7.57B8.40B361.06M359.27M278.76M
Stockholders Equity6.43B6.09B4.42B997.56M1.03B1.17B
Cash Flow
Free Cash Flow0.00-916.03M1.68B-520.33M-485.48M-86.83M
Operating Cash Flow0.00569.09M2.54B-480.60M-299.32M11.67M
Investing Cash Flow0.00-703.00M1.28B44.29M-186.16M-136.76M
Financing Cash Flow0.0031.00M1.52B583.50M287.31M2.28M

Cave Interactive Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1066.00
Price Trends
50DMA
1006.39
Positive
100DMA
954.71
Positive
200DMA
971.41
Positive
Market Momentum
MACD
15.62
Positive
RSI
57.83
Neutral
STOCH
42.53
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3760, the sentiment is Positive. The current price of 1066 is above the 20-day moving average (MA) of 1063.00, above the 50-day MA of 1006.39, and above the 200-day MA of 971.41, indicating a bullish trend. The MACD of 15.62 indicates Positive momentum. The RSI at 57.83 is Neutral, neither overbought nor oversold. The STOCH value of 42.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3760.

Cave Interactive Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
¥7.08B5.01
136.08%16.25%-27.48%
66
Neutral
¥41.63B25.29
3.81%-1.33%5.97%
66
Neutral
¥371.89B13.532.24%2.51%5.32%-18.27%
65
Neutral
¥6.99B16.54
0.90%1.91%9.12%
58
Neutral
¥4.26B41.88
0.59%-0.75%-126.41%
50
Neutral
¥11.35B31.26
<0.01%
41
Neutral
¥6.66B
-11.13%28.02%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3760
Cave Interactive Co., Ltd.
1,069.00
-335.62
-23.89%
JP:3656
KLab Inc.
114.00
-116.00
-50.43%
JP:3851
Nippon Ichi Software, Inc.
841.00
-168.84
-16.72%
JP:3904
KAYAC, Inc.
437.00
-215.31
-33.01%
JP:3911
Aiming, Inc.
251.00
18.00
7.73%
JP:3932
Akatsuki, Inc.
2,959.00
503.78
20.52%
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: Jun 05, 2025