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Universal Entertainment Corporation (JP:6425)
:6425
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Universal Entertainment (6425) AI Stock Analysis

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JP:6425

Universal Entertainment

(6425)

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Neutral 48 (OpenAI - 5.2)
Rating:48Neutral
Price Target:
¥624.00
▼(-18.43% Downside)
Action:Reiterated
Date:05/09/26
The score is held down primarily by weak financial performance driven by steep revenue declines, a shift to losses (including a severe 2025 net loss), and balance-sheet deterioration. Technical indicators are comparatively supportive with positive momentum and price above key short- to mid-term averages, but valuation remains unattractive/unclear due to a negative P/E and no dividend yield data.
Positive Factors
Diversified business model: gaming machines and resort/casino operations
The company operates two structurally different revenue streams—product sales (pachislot/pachinko machines) and resort/casino operations—providing durable revenue diversification. This reduces single-segment concentration risk and supports multiple cash generation levers across cycles.
Negative Factors
Severe revenue and earnings deterioration in 2024–2025
A multi-year collapse in top-line and a switch to large net losses materially reduces internal funds for R&D, product launches and resort investment. Earnings volatility undermines planning, risks longer product cycles, and can delay recovery as replacement demand and machine adoption slow.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified business model: gaming machines and resort/casino operations
The company operates two structurally different revenue streams—product sales (pachislot/pachinko machines) and resort/casino operations—providing durable revenue diversification. This reduces single-segment concentration risk and supports multiple cash generation levers across cycles.
Read all positive factors

Universal Entertainment (6425) vs. iShares MSCI Japan ETF (EWJ)

Universal Entertainment Business Overview & Revenue Model

Company Description
Headquartered in Tokyo, Japan, Universal Entertainment Corporation specializes in the development, manufacturing, and distribution of Pachislot and Pachinko machines within the Japanese market. Its operations are primarily divided into two divisio...
How the Company Makes Money
Universal Entertainment makes money primarily through (1) the sale of gaming machines and related equipment and (2) revenue generated from resort/casino operations. In its gaming machine business, revenue is earned by developing and manufacturing ...

Universal Entertainment Financial Statement Overview

Summary
Financial results are highly volatile with a clear recent deterioration: revenue fell in 2024 and again in 2025, EBIT turned negative in 2025, and net income swung from profitability (2022–2023) to losses in 2024 and a very large loss in 2025. The balance sheet also weakened in 2025 with a sharp equity step-down alongside higher debt, while cash flows have been inconsistent despite a rebound in operating/free cash flow in 2025.
Income Statement
38
Negative
Balance Sheet
48
Neutral
Cash Flow
44
Neutral
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue125.60B122.83B126.33B179.00B141.00B90.44B
Gross Profit72.61B71.98B75.10B99.33B78.34B46.54B
EBITDA14.14B14.63B30.64B71.25B41.23B14.06B
Net Income-25.97B-231.43B-15.57B28.44B11.51B-19.05B
Balance Sheet
Total Assets594.41B373.63B632.79B628.01B596.18B572.38B
Cash, Cash Equivalents and Short-Term Investments26.16B40.12B24.07B46.64B37.97B31.22B
Total Debt173.68B194.37B187.51B175.06B174.04B172.65B
Total Liabilities242.10B243.94B263.06B239.62B246.86B233.46B
Stockholders Equity352.31B129.69B369.73B388.39B349.31B338.92B
Cash Flow
Free Cash Flow0.002.49B-7.04B16.28B16.43B-6.92B
Operating Cash Flow0.0011.05B1.52B28.02B24.46B1.75B
Investing Cash Flow0.00-3.92B-13.37B-10.12B-9.00B-7.04B
Financing Cash Flow0.009.25B-9.80B-11.33B-11.25B-1.82B

Universal Entertainment Technical Analysis

Technical Analysis Sentiment
Negative
Last Price765.00
Price Trends
50DMA
747.20
Negative
100DMA
746.33
Negative
200DMA
811.14
Negative
Market Momentum
MACD
-32.35
Positive
RSI
26.41
Positive
STOCH
12.39
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6425, the sentiment is Negative. The current price of 765 is above the 20-day moving average (MA) of 702.75, above the 50-day MA of 747.20, and below the 200-day MA of 811.14, indicating a bearish trend. The MACD of -32.35 indicates Positive momentum. The RSI at 26.41 is Positive, neither overbought nor oversold. The STOCH value of 12.39 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6425.

Universal Entertainment Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
¥2.33T16.6115.67%1.94%8.60%10.04%
69
Neutral
¥37.78B17.653.63%1.04%26.51%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
61
Neutral
¥297.26B15.871.51%
53
Neutral
¥202.69B17.373.83%4.02%76.95%-10.67%
49
Neutral
¥108.64B38.7453.43%1.83%
48
Neutral
¥49.05B-0.22-78.01%4.03%-747.77%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6425
Universal Entertainment
630.00
-320.00
-33.68%
JP:6412
Heiwa
2,047.00
72.69
3.68%
JP:7832
BANDAI NAMCO Holdings
3,591.00
-1,219.62
-25.35%
JP:4680
ROUND ONE
985.10
-360.80
-26.81%
JP:6238
FURYU CORP.
1,325.00
358.19
37.05%
JP:9166
GENDA Inc.
528.00
-383.00
-42.04%
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: May 09, 2026