Sega Sammy Holdings (6460) AI Stock Analysis

• Market Cap: ¥498.98B
• Dividend Yield: 2.04%
• Average Volume (3M): 1.16M
• Price to Earnings (P/E): 31.4
• Beta (1Y): 0.57
• Revenue Growth: -8.73%
• EPS Growth: -55.81%
• Country: JP
• Employees: 8,623
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): -15.89
• Shares Outstanding: 221,229,480
• 10 Day Avg. Volume: 1,099,920
• 30 Day Avg. Volume: 1,160,320
• PEG Ratio: 0.35
• Price to Book (P/B): 1.62
• Price to Sales (P/S): 1.45
• P/FCF Ratio: 68.92
• 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: ¥3,202.49
• Price Target Upside: 20.01% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 179.45
• Revenue Forecast (FY): ¥474.65B

• Rating: 68 Neutral
• Price Target: ¥2,863.00 ▲(7.29% Upside)

Sega Sammy Holdings' overall stock score is driven primarily by its strong financial performance, which is a key strength. However, technical analysis indicates bearish trends, and the valuation suggests the stock may be overvalued. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Strong Cash Generation

Sega Sammy's ability to consistently generate positive cash flow ensures it can fund operations, invest in growth opportunities, and maintain financial stability.

Successful Product Launches

The successful launch of new titles like Persona5: The Phantom X demonstrates Sega Sammy's strong product development and market penetration capabilities, supporting long-term growth.

Diversified Revenue Streams

A diversified revenue model allows Sega Sammy to mitigate risks associated with any single segment, ensuring stable income and resilience against market fluctuations.

Negative Factors

Foreign Exchange Losses

Significant foreign exchange losses can impact profitability and cash flow, posing a challenge to financial performance and requiring effective currency risk management.

Decline in Animation Segment

A decline in the animation segment, particularly in key franchises like Sonic, can affect overall revenue and profitability, necessitating strategic adjustments to revitalize this area.

Underperformance of Rovio

Underperformance in Rovio, a subsidiary, highlights challenges in revitalizing legacy brands, potentially affecting segment contributions to overall revenue.

Sega Sammy Holdings Business Overview & Revenue Model

Company Description

Sega 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 Money

Sega Sammy Holdings generates revenue through several key streams. The primary source of income comes from its video game division, which includes sales of both physical and digital games, downloadable content, and in-game purchases. The company benefits from the popularity of its established franchises and continually develops new titles to attract gamers. Additionally, Sega Sammy earns significant revenue from its arcade operations and the manufacturing and sale of arcade machines. The pachinko and pachislot segment is another crucial revenue driver, where the company designs and produces these gambling machines for the Japanese market. Partnerships with other game developers, licensing agreements, and collaborations for co-producing titles also enhance its revenue potential. The company's diversified portfolio allows it to mitigate risks and capitalize on various segments of the entertainment industry.

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

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

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

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.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	405.22B	428.95B	467.90B	389.63B	320.95B	277.75B
Gross Profit	176.56B	192.71B	196.74B	158.07B	127.87B	100.78B
EBITDA	42.21B	72.73B	58.61B	60.24B	51.94B	7.36B
Net Income	17.14B	45.05B	33.05B	45.94B	37.03B	1.27B
Balance Sheet
Total Assets	636.62B	644.78B	653.99B	501.57B	435.49B	421.60B
Cash, Cash Equivalents and Short-Term Investments	148.63B	200.36B	219.81B	179.51B	152.46B	155.69B
Total Debt	153.39B	154.14B	161.84B	57.35B	56.01B	56.81B
Total Liabilities	269.74B	263.17B	296.30B	170.22B	142.85B	130.34B
Stockholders Equity	366.85B	381.58B	357.67B	331.32B	292.59B	290.76B
Cash Flow
Free Cash Flow	0.00	9.00B	54.72B	33.88B	27.75B	-21.39B
Operating Cash Flow	0.00	20.86B	65.83B	44.70B	39.61B	-6.38B
Investing Cash Flow	0.00	-12.54B	-113.51B	-2.35B	-8.79B	30.47B
Financing Cash Flow	0.00	-27.98B	79.79B	-15.36B	-35.97B	-31.49B

Sega Sammy Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2668.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 2668.5 is above the 20-day moving average (MA) of 2629.25, below the 50-day MA of 2776.11, and below the 200-day MA of 2953.60, indicating a bearish trend. The MACD of -40.85 indicates Negative momentum. The RSI at 37.79 is Neutral, neither overbought nor oversold. The STOCH value of 12.62 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3659	76 Outperform	$2.72T	27.18	10.76%	0.79%	-4.40%	89.91%
9766	70 Neutral	¥3.43T	40.41	17.57%	0.82%	18.39%	23.33%
9697	69 Neutral	$1.66T	27.40	26.66%	1.16%	45.17%	81.91%
6460	68 Neutral	¥498.98B	31.44	4.45%	2.04%	-8.73%	-55.81%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
9684	57 Neutral	¥1.02T	44.25	6.70%	1.85%	-12.02%	126.06%

Sega Sammy Holdings Corporate Events

Sega Sammy Reports Decline in Financial Performance for H1 2025

Sega Sammy Holdings reported a significant decline in its financial performance for the six months ended September 30, 2025, with net sales dropping by 5% and operating income plummeting by 69.3% compared to the previous year. Despite these challenges, the company has announced a slight increase in its year-end dividend forecast, indicating a cautious optimism about future recovery.

SEGA SAMMY Completes Treasury Stock Disposal Under RSU and PSU Systems

SEGA SAMMY HOLDINGS INC. has completed the payment procedures for the disposal of 13,400 shares of its treasury stock under the Restricted Stock Unit (RSU) and Performance Share Unit (PSU) systems. This move, resolved at the Board of Directors’ meeting on August 27, 2025, involves the allocation of shares to resigned directors and executive officers from both domestic and overseas group companies, potentially impacting the company’s stock management and stakeholder interests.