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Sega Sammy Holdings Inc. (JP:6460)
:6460
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Sega Sammy Holdings (6460) AI Stock Analysis

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JP:6460

Sega Sammy Holdings

(OTC:6460)

Rating:73Outperform
Price Target:
¥3,686.00
▲(20.03% Upside)
Sega Sammy Holdings' overall stock score is driven by strong financial performance and a positive outlook from the earnings call. However, the high P/E ratio and mixed technical indicators temper the score. The company's robust cash generation and low leverage are significant strengths, while valuation concerns and short-term technical weakness present risks.

Sega Sammy Holdings (6460) vs. iShares MSCI Japan ETF (EWJ)

Sega Sammy Holdings Business Overview & Revenue Model

Company DescriptionSega Sammy Holdings Inc., through its subsidiaries, engages in the game machine, entertainment content, and resort businesses. The company operates through Entertainment Contents, Pachislot and Pachinko Machines, and Resort segments. It develops pachislot machines and provides machines for the pachinko business; offers entertainment-related content and services, including consumer and arcade games, toys, and animation; and develops and operates hotels, entertainment and commercial facilities, and casinos. Sega Sammy Holdings Inc. was founded in 2004 and is based in Tokyo, Japan.
How the Company Makes MoneySega Sammy Holdings generates revenue through multiple streams. The company's primary revenue sources include video game sales, amusement machine sales, and pachinko and pachislot machine operations. The video game segment profits from the sale of both physical and digital games, downloadable content, and royalties from licensing its intellectual properties. The amusement segment includes arcade operations and sales of arcade machines. Additionally, the pachinko and pachislot segment is a significant profit driver, where the company manufactures and sells machines to parlors across Japan. The company also benefits from strategic partnerships and collaborations in the gaming and entertainment sectors, which enhance its market reach and contribute to its diverse earnings portfolio.

Sega Sammy Holdings Earnings Call Summary

Earnings Call Date:Aug 08, 2025
(Q1-2026)
|
% Change Since: |
Next Earnings Date:Nov 07, 2025
Earnings Call Sentiment Positive
The earnings call reflected a positive start in the Pachislot, Pachinko, and gaming businesses, with strong launches like Persona5: The Phantom X and successful initiatives like the SEGA Store Tokyo. However, there were notable challenges, including foreign exchange losses and underperformance in Rovio and animation segments. Despite some lowlights, the highlights indicate a generally positive outlook with strong operational starts in key segments.
Q1-2026 Updates
Positive Updates
Strong Start in Pachislot and Pachinko Machines Business
The Pachislot and Pachinko machines business made a good start in terms of operating income, with sales of Dejihane P Hokuto No Ken Jibo and P Zombie Land Saga exceeding internal expectations. Orders for Tokyo Revengers Pachislot machine exceeded 25,000 units, compared to the plan of 20,000 units.
Positive Performance in Gaming Business
Sales of video slot machines were strong in the US, contributing to a favorable start in Q1. Paradise City in South Korea maintained strong sales, especially to Japanese VIP customers.
Successful Launch of Persona5: The Phantom X
Persona5: The Phantom X launched on June 26, ranking first in domestic free game download rankings on the first day, with sales exceeding JPY1 billion in just five days.
Increase in Licensing and Subscription Revenues
Revenues from the provision of titles for subscription services and character licensing exceeded both the results of the same period of the previous year and expectations.
Successful Opening of SEGA Store Tokyo
The SEGA Store Tokyo opened successfully, exceeding expectations in sales and visitor numbers, strengthening touchpoints for SEGA IP.
Negative Updates
Foreign Exchange Losses Impacting Financials
A foreign exchange loss of approximately JPY2.9 billion was recorded as a non-operating expense due to the revaluation and settlement of foreign currency-denominated receivables and payables.
Challenges in Animation Segment
Operating income in the animation area was lower than the previous year due to a decline in Sonic film revenue, which was JPY800 million compared to JPY1.7 to JPY1.8 billion last year.
Underperformance of Rovio
Rovio's sales were below expectations, with the Angry Birds series still in the doldrums. Sales have fallen more than expected, leading to a decline in profits.
Weak Repeat Sales of Full Games
Repeat sales of full games were lower than expected in Q1 but have been recovering since July. Metaphor and Sonic X Shadow fell slightly short of expectations.
Company Guidance
During Sega Sammy Holdings Inc.'s Q1 financial results briefing for the fiscal year ending March 31, 2026, the company reported that sales were generally in line with expectations, leading to a smaller-than-expected loss at the operating income level. The Pachislot and Pachinko machines and gaming businesses showed a good start in operating income, whereas the entertainment contents business performed as anticipated. Although operating income surpassed expectations, adjusted EBITDA remained consistent due to JPY2.9 billion in foreign exchange losses. The company completed acquisitions of Stakelogic BV and GAN Limited, with goodwill estimated at JPY18.6 billion and JPY17.4 billion, respectively. There was a consolidation of the balance sheet from Q1, but P&L contributions will begin in Q2. Notably, 20 million shares of treasury stock were canceled, resulting in 11 million shares remaining. Operating, investing, and financing cash flows were projected at negative JPY11.7 billion, negative JPY19.5 billion, and negative JPY17.9 billion, respectively, contributing to an overall negative cash flow of JPY50.6 billion. The company anticipates growth from Q2 onward, spurred by the introduction of mainstay titles across its various businesses.

Sega Sammy Holdings Financial Statement Overview

Summary
Sega Sammy Holdings shows strong financial performance with robust revenue growth and profitability metrics. The income statement highlights effective revenue and profit management, while the balance sheet underscores a stable financial foundation with low leverage. Despite some fluctuations in cash flow components, the company maintains robust cash generation capabilities.
Income Statement
85
Very Positive
Sega Sammy Holdings has demonstrated robust revenue growth over the past five years, culminating in impressive Gross Profit and Net Profit margins. The company achieved a significant revenue growth rate, particularly from 2021 to 2024. However, the revenue slightly decreased in 2025 compared to the previous year. The EBIT and EBITDA margins remain strong, reflecting efficient operational management and cost control strategies.
Balance Sheet
80
Positive
The balance sheet reveals a healthy financial structure. The Debt-to-Equity ratio is low, indicating low leverage and reduced financial risk. The Return on Equity is strong, showcasing effective use of equity to generate profits. Moreover, the Equity Ratio suggests a solid equity base against total assets, contributing to financial stability. However, the slight fluctuations in total assets and equity over the years require monitoring.
Cash Flow
78
Positive
The cash flow statement indicates strong cash generation capabilities, with consistent positive Free Cash Flow and Operating Cash Flow. There is a noteworthy increase in Free Cash Flow over the years, although the growth rate declined in 2025. The Operating Cash Flow to Net Income ratio is healthy, suggesting efficient conversion of income into cash. Nevertheless, the company experienced volatility in financing cash flow, reflecting strategic shifts in capital management.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue428.95B428.95B467.90B389.63B320.95B277.75B
Gross Profit192.71B192.71B196.74B158.07B127.87B100.78B
EBITDA63.55B72.73B58.61B59.64B45.76B23.29B
Net Income45.05B45.05B33.05B45.94B37.03B1.27B
Balance Sheet
Total Assets644.78B644.78B653.99B501.57B435.49B421.60B
Cash, Cash Equivalents and Short-Term Investments200.36B200.36B219.81B179.51B152.46B155.69B
Total Debt154.14B154.14B161.84B57.35B56.01B56.81B
Total Liabilities263.17B263.17B296.30B170.22B142.85B130.34B
Stockholders Equity381.58B381.58B357.67B331.32B292.59B290.76B
Cash Flow
Free Cash Flow0.009.00B54.72B33.88B27.75B-21.39B
Operating Cash Flow0.0020.86B65.83B44.70B39.61B-6.38B
Investing Cash Flow0.00-12.54B-113.51B-2.35B-8.79B30.47B
Financing Cash Flow0.00-27.98B79.79B-15.36B-35.97B-31.49B

Sega Sammy Holdings Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3071.00
Price Trends
50DMA
3254.68
Negative
100DMA
3058.41
Positive
200DMA
2943.73
Positive
Market Momentum
MACD
-5.57
Positive
RSI
38.67
Neutral
STOCH
3.20
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6460, the sentiment is Negative. The current price of 3071 is below the 20-day moving average (MA) of 3234.00, below the 50-day MA of 3254.68, and above the 200-day MA of 2943.73, indicating a neutral trend. The MACD of -5.57 indicates Positive momentum. The RSI at 38.67 is Neutral, neither overbought nor oversold. The STOCH value of 3.20 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6460.

Sega Sammy Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
$604.89B39.064.51%1.62%-12.78%-56.73%
60
Neutral
$44.05B4.50-12.81%4.08%1.86%-43.08%
¥3.12T41.4516.24%0.67%
$11.39B30.5426.13%1.01%
$18.13B22.1510.04%1.60%
$8.46B68.435.77%1.32%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6460
Sega Sammy Holdings
3,071.00
614.13
25.00%
GB:KNM
KONAMI HOLDINGS
23,045.00
10,308.04
80.93%
CCOEF
Capcom Co
27.00
5.81
27.42%
NEXOF
NEXON Co
18.33
-1.18
-6.05%
SQNXF
Square Enix Holdings Co
66.78
32.04
92.23%

Sega Sammy Holdings Corporate Events

Sega Sammy Holdings Faces Financial Decline Amid Strategic Restructuring
Aug 8, 2025

Sega Sammy Holdings reported a significant decline in its financial performance for the three months ended June 30, 2025, with net sales dropping by 22.7% compared to the previous year. The company experienced operating and ordinary income losses, reflecting challenges in its operational efficiency and market conditions. Despite these setbacks, Sega Sammy plans to maintain its dividend payments and has made strategic changes by adding new subsidiaries, indicating a focus on restructuring and potential growth opportunities.

The most recent analyst rating on (JP:6460) stock is a Hold with a Yen3200.00 price target. To see the full list of analyst forecasts on Sega Sammy Holdings stock, see the JP:6460 Stock Forecast page.

Sega Sammy Introduces Stock-Based Compensation for Executives
Jul 30, 2025

Sega Sammy Holdings Inc. announced the implementation of a new stock-based compensation system for its directors and executive officers, including those of its subsidiaries. This move, involving the granting of Restricted Stock Units (RSUs) and Performance Share Units (PSUs), is aimed at aligning the interests of its management with shareholders and enhancing long-term corporate value.

The most recent analyst rating on (JP:6460) stock is a Hold with a Yen3200.00 price target. To see the full list of analyst forecasts on Sega Sammy Holdings stock, see the JP:6460 Stock Forecast page.

Sega Sammy Holdings Announces New Management Structure
Jun 24, 2025

Sega Sammy Holdings Inc. announced a new management structure following its Board of Directors meeting, which took place after the Ordinary General Meeting of Shareholders on June 24, 2025. The company appointed new Representative Directors and Directors with titles, as well as executive officers, to enhance its operational efficiency and strategic direction. This restructuring is expected to impact the company’s operations positively by streamlining leadership roles and potentially improving stakeholder confidence.

The most recent analyst rating on (JP:6460) stock is a Buy with a Yen3700.00 price target. To see the full list of analyst forecasts on Sega Sammy Holdings stock, see the JP:6460 Stock Forecast page.

SEGA SAMMY HOLDINGS Updates on Treasury Stock Acquisition
Jun 2, 2025

SEGA SAMMY HOLDINGS INC. announced the status of its treasury stock acquisition, revealing that no shares have been acquired yet, despite a plan to purchase up to 6 million shares by the end of 2025. This move is part of a strategic decision to manage the company’s capital structure, potentially impacting shareholder value and market perception.

The most recent analyst rating on (JP:6460) stock is a Buy with a Yen3700.00 price target. To see the full list of analyst forecasts on Sega Sammy Holdings stock, see the JP:6460 Stock Forecast page.

Sega Sammy Completes Acquisition of GAN Limited
May 28, 2025

Sega Sammy Holdings Inc. has completed the acquisition of GAN Limited, a SaaS provider for casino operators and online gaming operator, enhancing its position in the U.S., European, and South American markets. The acquisition, finalized on May 27, 2025, involved a revised total cost of approximately 15.13 billion yen, with the impact on Sega Sammy’s financial results still under evaluation.

The most recent analyst rating on (JP:6460) stock is a Buy with a Yen3700.00 price target. To see the full list of analyst forecasts on Sega Sammy Holdings stock, see the JP:6460 Stock Forecast page.

SEGA SAMMY to Acquire GAN Limited, Expanding Gaming Portfolio
May 20, 2025

SEGA SAMMY HOLDINGS INC. announced the acquisition of GAN Limited, a company listed on Nasdaq, with the acquisition expected to be completed by May 27, 2025. The acquisition, valued at approximately 95.8 million USD, will see GAN become a subsidiary of SEGA SAMMY, potentially strengthening the company’s position in the gaming industry.

The most recent analyst rating on (JP:6460) stock is a Buy with a Yen3700.00 price target. To see the full list of analyst forecasts on Sega Sammy Holdings stock, see the JP:6460 Stock Forecast page.

Sega Sammy Holdings Reports Increased Profitability Amid Declining Sales
May 12, 2025

Sega Sammy Holdings reported its consolidated financial results for the fiscal year ended March 31, 2025, showing a decline in net sales by 8.5% to ¥428,948 million. However, the company achieved a significant increase in profit attributable to owners of the parent by 36.3% to ¥45,051 million, indicating improved profitability despite lower sales. The company also announced plans to increase its dividend payouts, reflecting confidence in its financial stability and commitment to returning value to shareholders.

SEGA SAMMY Enhances Shareholder Returns with Dividend Increase and Treasury Stock Actions
May 12, 2025

SEGA SAMMY HOLDINGS INC. announced a decision to distribute dividends from retained earnings and to acquire and cancel treasury stock. The company aims to enhance shareholder returns by increasing dividends per share and executing a significant treasury stock acquisition and cancellation plan, reflecting confidence in future business growth and current stock price levels.

SEGA SAMMY Announces Director Reappointments Ahead of Shareholders Meeting
May 12, 2025

SEGA SAMMY HOLDINGS INC. announced the reappointment of several key directors at its recent Board of Directors meeting, with the proposal to be presented at the upcoming General Meeting of Shareholders. This decision reflects the company’s commitment to maintaining its current leadership structure, which is likely to ensure continuity in its strategic direction and operations.

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: Aug 28, 2025