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

• Market Cap: ¥6.25B
• Dividend Yield: 1.06%
• Average Volume (3M): 63.52K
• Price to Earnings (P/E): 23.0
• Beta (1Y): 1.03
• Revenue Growth: 16.25%
• EPS Growth: -27.48%
• Country: JP
• Employees: 171
• Sector: Communication Services
• Sector Strength: 75
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): -122.58
• Shares Outstanding: 6,693,500
• 10 Day Avg. Volume: 61,390
• 30 Day Avg. Volume: 63,520
• PEG Ratio: 2.30
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥1,156.00
• Price Target Upside: 22.07% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 81 Outperform
• Price Target: ¥1,156.00 ▲(22.07%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. Business Overview & Revenue Model

Company Description

Cave 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 Money

Cave 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

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

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

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.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	12.27B	6.96B	1.41B	1.70B	1.68B
Gross Profit	5.45B	3.44B	677.71M	793.74M	851.87M
EBITDA	2.13B	2.97B	-901.39M	-234.60M	-313.75M
Net Income	1.48B	2.58B	-936.99M	-244.97M	-316.93M
Balance Sheet
Total Assets	14.36B	13.49B	1.38B	1.42B	1.45B
Cash, Cash Equivalents and Short-Term Investments	6.34B	6.39B	1.06B	904.44M	1.10B
Total Debt	983.92M	1.10B	206.51M	209.72M	14.98M
Total Liabilities	7.57B	8.40B	361.06M	359.27M	278.76M
Stockholders Equity	6.09B	4.42B	997.56M	1.03B	1.17B
Cash Flow
Free Cash Flow	-916.03M	1.68B	-520.33M	-485.48M	-86.83M
Operating Cash Flow	569.09M	2.54B	-480.60M	-299.32M	11.67M
Investing Cash Flow	-703.00M	1.28B	44.29M	-186.16M	-136.76M
Financing Cash Flow	31.00M	1.52B	583.50M	287.31M	2.28M

Cave Interactive Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 947.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3760, the sentiment is Negative. The current price of 947 is below the 20-day moving average (MA) of 1000.90, below the 50-day MA of 1017.09, and below the 200-day MA of 968.08, indicating a bearish trend. The MACD of -21.95 indicates Positive momentum. The RSI at 38.06 is Neutral, neither overbought nor oversold. The STOCH value of 15.49 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3760.

Cave Interactive Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3760	81 Outperform	¥6.25B	22.98		1.06%	16.25%	-27.48%
3932	69 Neutral	¥43.23B	26.26		3.16%	-1.33%	5.97%
Sector *	66 Neutral	¥380.34B	15.35	2.23%	2.38%	5.85%	-13.93%
3904	65 Neutral	¥7.09B	16.76		0.88%	1.91%	9.12%
3851	56 Neutral	¥4.19B	41.88		0.60%	-0.75%	-126.41%
3911	53 Neutral	¥13.03B	9.16		―	4.13%	―
3656	49 Neutral	¥7.37B	―		―	-11.13%	28.02%