Nippon Ichi Software, Inc. (JP:3851)
:3851
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Nippon Ichi Software, Inc.
(3851)
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Rating:48Neutral
Price Target:
¥822.00
▲(1.48% Upside)
Action:Reiterated
Date:05/17/26
The score is held back primarily by weakening financial performance, including two consecutive annual losses, a steep 2026 revenue decline, and negative free cash flow in the latest period. Technical indicators also point to a soft trend (negative MACD and sub-50 RSI), though oversold signals may limit near-term downside. Valuation is moderate (P/E ~16.9) but the low dividend yield provides limited support.
Positive Factors
Proprietary IP in niche SRPG market
Nippon Ichi's ownership of original IP and concentrated focus on strategy RPGs builds durable brand loyalty and repeatability across sequels, DLC and licensing. This niche positioning supports long-term monetization and easier localization/distribution for overseas publishing cycles.
Negative Factors
Revenue decline & consecutive losses
Two straight annual losses and a steep 24.4% revenue fall in 2026 point to weakening demand or execution problems. Persistent top-line contraction erodes operating leverage, limits internal funding for new titles, and raises the risk that margins and cash generation will remain impaired absent a clear commercial turnaround.
Read all positive and negative factors
Positive Factors
Negative Factors
Proprietary IP in niche SRPG market
Nippon Ichi's ownership of original IP and concentrated focus on strategy RPGs builds durable brand loyalty and repeatability across sequels, DLC and licensing. This niche positioning supports long-term monetization and easier localization/distribution for overseas publishing cycles.
Read all positive factors
Nippon Ichi Software, Inc. (3851) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥4.19B
Dividend Yield0.64%
Average Volume (3M)3.62K
Price to Earnings (P/E)―
Beta (1Y)0.27
Revenue Growth-31.95%
EPS Growth-62.46%
CountryJP
Employees185
SectorCommunication Services
Sector Strength97
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)-45.94
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. develops and sells computer software in Japan, Asia, North America, Europe, and other countries. It operates through Entertainment Business, and Student Dormitories and Other Businesses segments. The company offers home ...
How the Company Makes Money
Nippon Ichi Software primarily makes money by selling video game software it develops and/or publishes. Key revenue streams include: (1) Sales of packaged (physical) game titles through retail distribution, where revenue is earned from wholesale s...
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 | 4.77B | 3.61B | 5.30B | 5.34B | 4.83B | 5.72B |
| Gross Profit | 1.91B | 1.54B | 1.95B | 2.58B | 2.74B | 3.33B |
| EBITDA | -88.90M | -288.30M | -171.03M | 496.61M | 822.34M | 1.63B |
| Net Income | -232.46M | -255.58M | -157.22M | 593.40M | 672.48M | 1.27B |
Balance Sheet | ||||||
| Total Assets | 10.81B | 11.27B | 11.15B | 10.82B | 9.38B | 8.23B |
| Cash, Cash Equivalents and Short-Term Investments | 5.58B | 6.42B | 5.20B | 5.36B | 4.35B | 4.77B |
| Total Debt | 1.76B | 1.84B | 1.84B | 1.17B | 1.06B | 769.67M |
| Total Liabilities | 3.28B | 3.32B | 3.29B | 2.73B | 2.43B | 2.09B |
| Stockholders Equity | 7.53B | 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
Negative
810.00
Price Trends
837.90
Negative
823.01
Positive
829.59
Negative
Market Momentum
-3.69
Positive
43.52
Neutral
23.38
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3851, the sentiment is Negative. The current price of 810 is below the 20-day moving average (MA) of 835.50, below the 50-day MA of 837.90, and below the 200-day MA of 829.59, indicating a bearish trend. The MACD of -3.69 indicates Positive momentum. The RSI at 43.52 is Neutral, neither overbought nor oversold. The STOCH value of 23.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3851.
Nippon Ichi Software, Inc. Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | ¥24.02B | 23.45 | ― | 1.25% | 67.49% | 189.73% | |
75 Outperform | ¥513.34B | 6.94 | ― | 2.49% | 6.31% | 10.31% | |
69 Neutral | ¥4.78B | 21.99 | ― | 3.95% | 20.57% | 166.04% | |
63 Neutral | ¥999.78B | 30.48 | 6.70% | 1.80% | -8.27% | 21.14% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
58 Neutral | ¥12.83B | 52.52 | ― | ― | 38.66% | ― | |
48 Neutral | ¥4.19B | -11.60 | ― | 0.64% | -31.95% | -62.46% |
* Communication Services 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.