Nippon Ichi Software, Inc. (3851) AI Stock Analysis

• Market Cap: ¥4.14B
• Dividend Yield: 0.61%
• Average Volume (3M): 4.25K
• Price to Earnings (P/E): 41.9
• Beta (1Y): 0.35
• Revenue Growth: -21.35%
• EPS Growth: -85.46%
• Country: JP
• Employees: 185
• Sector: Communication Services
• Sector Strength: 86
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): -25.70
• Shares Outstanding: 5,151,100
• 10 Day Avg. Volume: 4,490
• 30 Day Avg. Volume: 4,246
• PEG Ratio: -1.52
• Price to Book (P/B): 0.49
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 67 Neutral
• Price Target: ―

The overall score reflects a mixed financial outlook with strengths in balance sheet stability overshadowed by operational challenges and cash flow concerns. Technical indicators show moderate bullish trends, while the high P/E ratio suggests potential overvaluation. The stock's score indicates a need for cautious optimism, focusing on improving cash flow and operational efficiency.

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 video game software; and game content for mobile phones and smartphones. It also manages student dormitories. The company was founded in 1993 and is headquartered in Kakamigahara, Japan.

How the Company Makes Money

Nippon Ichi Software makes money primarily through the development and sale of video games. The company generates revenue by selling its games directly to consumers through digital and physical distribution channels. Additionally, it earns from licensing its game titles for publication in international markets, which is often facilitated through partnerships with other publishers. Merchandise sales and special editions of games also contribute to revenue. Furthermore, Nippon Ichi Software may engage in collaborative projects or cross-promotions with other entities, enhancing its brand visibility and potential revenue streams.

Nippon Ichi Software, Inc. Financial Statement Overview

Summary

Nippon Ichi Software, Inc. presents a mixed financial outlook. While the balance sheet remains robust with a strong equity base and low debt levels, the decline in income statement metrics and absence of cash flow in the TTM suggest areas of concern. Improved operational efficiency and cash flow management are needed to enhance financial health.

Income Statement

The company shows fluctuating revenue trends with a recent decline in the TTM period. Gross profit margin remains healthy, but the negative EBIT margin in the TTM indicates operational challenges. Net profit margin has decreased from previous years, impacting overall profitability.

Balance Sheet

The balance sheet is strong with a solid equity base and low debt levels, reflecting a favorable debt-to-equity ratio. The equity ratio is high, showcasing financial stability. However, the recent decline in ROE suggests decreased efficiency in generating returns from equity.

Cash Flow

Recent cash flow performance shows no operating or free cash flow in the TTM, indicating liquidity concerns. Historical data shows fluctuating free cash flow growth, with positive free cash flow to net income ratios previously, but current cash flow constraints could pose risks.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
4.63B	5.34B	4.83B	5.72B	5.30B	3.33B
	Gross Profit
1.99B	2.58B	2.74B	3.33B	2.89B	1.90B
	EBIT
-233.47M	401.34M	745.53M	1.57B	1.25B	460.12M
	EBITDA
51.18M	950.30M	822.34M	1.78B	1.31B	499.16M
	Net Income Common Stockholders
95.76M	593.40M	672.48M	1.27B	905.32M	269.24M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.98B	5.36B	4.35B	4.77B	3.78B	2.11B
	Total Assets
11.62B	10.82B	9.38B	8.23B	6.39B	5.00B
	Total Debt
1.72B	1.17B	1.06B	769.67M	367.10M	430.00M
	Net Debt
-4.26B	-3.43B	-3.29B	-4.00B	-3.41B	-1.23B
	Total Liabilities
3.35B	2.73B	2.43B	2.09B	1.75B	1.33B
	Stockholders Equity
8.27B	8.08B	6.95B	6.14B	4.64B	3.67B
Cash Flow		Free Cash Flow
0.00	358.53M	-188.74M	606.70M	1.42B	-628.21M
	Operating Cash Flow
0.00	794.38M	50.42M	1.19B	1.55B	-476.43M
	Investing Cash Flow
0.00	-1.04B	-1.02B	-820.70M	552.41M	117.81M
	Financing Cash Flow
0.00	78.71M	269.02M	343.30M	-83.00M	-336.77M

Nippon Ichi Software, Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 821.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3851, the sentiment is Neutral. The current price of 821 is above the 20-day moving average (MA) of 809.70, above the 50-day MA of 796.05, and below the 200-day MA of 865.62, indicating a neutral trend. The MACD of 8.38 indicates Negative momentum. The RSI at 57.16 is Neutral, neither overbought nor oversold. The STOCH value of 81.87 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3851.

Nippon Ichi Software, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3723	68 Neutral	¥11.61B	21.51		1.76%	-21.03%	-42.64%
3851	67 Neutral	¥4.14B	41.88		0.61%	-21.35%	-85.46%
3907	65 Neutral	¥2.03B	18.39		―	-2.54%	-6.52%
Sector *	60 Neutral	$14.21B	6.47	-3.76%	3.69%	2.48%	-35.46%
3911	59 Neutral	¥11.91B	32.40		―	<0.01%	―
3758	44 Neutral	¥5.51B	―		1.94%	-9.05%	-27.30%
3810	36 Underperform	¥5.25B	―		―	-17.67%	26.46%