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Nippon Ichi Software, Inc.
(3851)
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Rating:57Neutral
Price Target:
¥1,175.00
▲(45.06% Upside)
Action:Reiterated
Date:08/11/26
The score is held back primarily by weakened financial performance (two consecutive annual losses, revenue decline, and recently negative free cash flow) and a negative P/E that reflects those losses. These risks are partially offset by strong technical momentum (price above key moving averages with positive MACD) and a balance sheet that remains moderately leveraged.
Positive Factors
Proprietary IP and niche SRPG franchises
Nippon Ichi owns well-known SRPG IP (Disgaea) and a back catalog that supports recurring digital and physical sales, licensing and character merchandising. Durable brand loyalty and IP monetization provide a repeatable revenue base and leverage for new launches and regional publishing over months to years.
Negative Factors
Two-year loss trend and steep revenue decline
Consecutive annual losses and a ~24% revenue drop materially weaken earnings power and reduce internal funding for R&D, marketing and localization. Persistent operating losses impair ability to refresh the pipeline and increase dependence on external financing or cost cuts to restore sustainable growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Proprietary IP and niche SRPG franchises
Nippon Ichi owns well-known SRPG IP (Disgaea) and a back catalog that supports recurring digital and physical sales, licensing and character merchandising. Durable brand loyalty and IP monetization provide a repeatable revenue base and leverage for new launches and regional publishing over months to years.
Read all positive factors
Nippon Ichi Software, Inc. (3851) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥5.86B
Dividend Yield0.41%
Average Volume (3M)3.62K
Price to Earnings (P/E)―
Beta (1Y)0.24
Revenue Growth-16.66%
EPS Growth36.54%
CountryJP
Employees182
SectorGeneral
Sector StrengthN/A
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)-29.16
Shares Outstanding5,151,100
10 Day Avg. Volume3,730
30 Day Avg. Volume3,623
Financial Highlights & Ratios
PEG Ratio-0.27
Price to Book (P/B)0.53
Price to Sales (P/S)1.18
P/FCF Ratio-34.55
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
Nippon Ichi Software, Inc. Business Overview & Revenue Model
Company Description
Nippon Ichi Software, Inc. operates as a global developer and vendor of computer software, serving markets across Japan, Asia, North America, Europe, and other international regions. The company's operations are divided into two main sectors: its ...
How the Company Makes Money
Nippon Ichi Software primarily makes money from the commercialization of video game intellectual property (IP) through development and publishing activities. Key revenue streams typically include (1) sales of packaged (physical) game software and ...
Nippon Ichi Software, Inc. Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
66
Positive
Cash Flow
45
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.97B | 3.61B | 5.30B | 5.34B | 4.83B | 5.72B |
| Gross Profit | 1.64B | 1.54B | 1.95B | 2.58B | 2.74B | 3.33B |
| EBITDA | -254.16M | -288.30M | -171.03M | 496.61M | 822.34M | 1.63B |
| Net Income | -147.53M | -255.58M | -157.22M | 593.40M | 672.48M | 1.27B |
Balance Sheet | ||||||
| Total Assets | 11.19B | 11.27B | 11.15B | 10.82B | 9.38B | 8.23B |
| Cash, Cash Equivalents and Short-Term Investments | 6.29B | 6.42B | 5.20B | 5.36B | 4.35B | 4.77B |
| Total Debt | 1.82B | 1.84B | 1.84B | 1.17B | 1.06B | 769.67M |
| Total Liabilities | 3.24B | 3.32B | 3.29B | 2.73B | 2.43B | 2.09B |
| Stockholders Equity | 7.96B | 7.95B | 7.87B | 8.08B | 6.95B | 6.14B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -122.89M | 177.03M | 390.54M | -169.56M | 610.12M |
| Operating Cash Flow | 0.00 | 49.91M | 404.15M | 794.38M | 50.42M | 1.19B |
| Investing Cash Flow | 0.00 | -1.22B | -225.98M | -1.04B | -1.02B | -820.70M |
| Financing Cash Flow | 0.00 | -41.72M | 471.21M | 78.71M | 269.02M | 343.30M |
Nippon Ichi Software, Inc. Technical Analysis
Positive
810.00
Price Trends
925.68
Positive
880.72
Positive
845.72
Positive
Market Momentum
80.71
Negative
70.06
Negative
84.12
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3851, the sentiment is Positive. The current price of 810 is below the 20-day moving average (MA) of 1053.80, below the 50-day MA of 925.68, and below the 200-day MA of 845.72, indicating a bullish trend. The MACD of 80.71 indicates Negative momentum. The RSI at 70.06 is Negative, neither overbought nor oversold. The STOCH value of 84.12 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3851.
Nippon Ichi Software, Inc. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | ¥556.81B | 11.35 | ― | 2.49% | 13.22% | 52.60% | |
81 Outperform | ¥28.93B | 17.11 | ― | 1.25% | 64.69% | 154.84% | |
72 Outperform | ¥1.05T | 27.98 | 8.75% | 1.62% | 0.94% | 104.41% | |
70 Outperform | ¥13.27B | 5.60 | ― | ― | 16.24% | ― | |
69 Neutral | ¥4.93B | 15.09 | ― | 3.95% | 5.77% | 41.35% | |
57 Neutral | ¥5.86B | -41.67 | ― | 0.64% | -16.66% | 36.54% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
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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.