Sega Sammy Holdings (6460) AI Stock Analysis

• Market Cap: $557.44B
• Dividend Yield: 1.71%
• Average Volume (3M): 1.00M
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.58
• Revenue Growth: -8.32%
• EPS Growth: 40.03%
• Country: JP
• Employees: 8,623
• Sector: Communication Services
• Sector Strength: 88
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 183.62
• Shares Outstanding: 221,229,480
• 10 Day Avg. Volume: 964,520
• 30 Day Avg. Volume: 1,003,940
• PEG Ratio: -2.13
• Price to Book (P/B): 2.65
• 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: $3,174.76
• Price Target Upside: 10.06% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: ¥3,205.00 ▲(11.11%Upside)

Sega Sammy Holdings' overall score reflects its strong financial performance and reasonable valuation, despite mixed technical indicators. The company's robust revenue growth and stable financial structure are significant strengths, but technical signals suggest caution in the short term.

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 multiple streams. The company's gaming sector, led by Sega, earns money from the development and sale of video games for consoles, PCs, and mobile platforms, as well as from arcade operations. Key revenue drivers in this sector include game software sales and in-game purchases. Sammy Corporation contributes to the revenue model through the manufacturing and sales of pachislot and pachinko machines, which are popular forms of gambling entertainment in Japan. Additionally, Sega Sammy Holdings benefits from its resort business, which includes hotel and casino operations, further diversifying its income sources. Strategic partnerships and licensing agreements also play a vital role in enhancing the company's revenue generation capabilities.

Sega Sammy Holdings Financial Statement Overview

Summary

Sega Sammy Holdings demonstrates strong revenue growth and profitability with an improving gross profit margin and healthy EBIT/EBITDA margins. The balance sheet is solid with a manageable debt-to-equity ratio, but increasing debt and cash flow fluctuations suggest a need for better cash management.

Income Statement

Sega Sammy Holdings has shown a strong revenue growth trajectory, increasing from 277.7 billion in 2021 to 467.9 billion in 2024, indicating robust sales performance. The gross profit margin has improved over the years, reflecting efficient cost management. Net profit margin has also seen a positive trend, though slightly fluctuating, it remains strong. EBIT and EBITDA margins are healthy, suggesting good operational efficiency.

Balance Sheet

The company's balance sheet reveals a solid equity base with a growing stockholders' equity, which indicates financial stability. The debt-to-equity ratio is manageable, showing prudent use of leverage. The equity ratio is strong, emphasizing a solid capital structure. However, there is a notable increase in total debt over the years, which could pose future risks if not managed properly.

Cash Flow

The cash flow analysis shows fluctuations in free cash flow due to varying capital expenditures and operating cash flows. The free cash flow to net income ratio indicates efficient cash generation relative to net income in most years, though the operating cash flow to net income ratio varies, suggesting some inconsistency in cash conversion. The company should focus on stabilizing its cash flows to strengthen its financial flexibility.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
440.29B	467.90B	389.63B	320.95B	277.75B	366.59B
	Gross Profit
192.39B	196.74B	158.07B	127.87B	100.78B	136.50B
	EBIT
46.10B	56.84B	46.79B	32.04B	6.55B	27.64B
	EBITDA
67.39B	58.61B	60.24B	51.94B	7.36B	46.82B
	Net Income Common Stockholders
39.48B	33.05B	45.94B	37.03B	1.27B	13.78B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
219.81B	219.81B	179.51B	152.46B	155.69B	164.41B
	Total Assets
653.99B	653.99B	501.57B	435.49B	421.60B	458.27B
	Total Debt
163.73B	161.84B	57.35B	56.01B	56.81B	75.33B
	Net Debt
-56.08B	-49.87B	-122.16B	-96.45B	-98.16B	-83.68B
	Total Liabilities
296.29B	296.30B	170.22B	142.85B	130.34B	161.41B
	Stockholders Equity
357.67B	357.67B	331.32B	292.59B	290.76B	294.92B
Cash Flow		Free Cash Flow
0.00	54.72B	33.88B	27.75B	-21.39B	19.50B
	Operating Cash Flow
0.00	65.83B	44.70B	39.61B	-6.38B	38.54B
	Investing Cash Flow
0.00	-113.51B	-2.35B	-8.79B	30.47B	-15.46B
	Financing Cash Flow
0.00	79.79B	-15.36B	-35.97B	-31.49B	-10.96B

Sega Sammy Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2884.50
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6460, the sentiment is Positive. The current price of 2884.5 is above the 20-day moving average (MA) of 2862.50, above the 50-day MA of 2850.83, and above the 200-day MA of 2803.70, indicating a bullish trend. The MACD of -16.71 indicates Negative momentum. The RSI at 53.46 is Neutral, neither overbought nor oversold. The STOCH value of 82.17 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6460.

Sega Sammy Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6460	71 Outperform	$557.44B	13.75	11.92%	1.71%	-8.32%	40.03%
Sector *	61 Neutral	$14.59B	5.85	-4.31%	3.69%	2.76%	-30.36%
KNM		¥2.68T	36.69	16.43%	0.82%	―	―
CCOEF		$12.45B	39.61	22.64%	0.89%	―	―
NEXOF		$14.44B	17.60	12.67%	0.84%	―	―
SQNXF		$7.42B	46.51	7.32%	1.37%	―	―

Sega Sammy Holdings Corporate Events

SEGA SAMMY HOLDINGS Updates on Treasury Stock Acquisition

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

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

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

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

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

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.

SEGA SAMMY Completes Acquisition of Stakelogic B.V.

SEGA SAMMY HOLDINGS INC. has successfully completed the acquisition of Stakelogic B.V., a Netherlands-based B2B iGaming content supplier, as of April 28, 2025. This strategic move, valued at approximately 125 million Euros, is expected to enhance SEGA SAMMY’s position in the iGaming sector, although the financial impact on the company’s consolidated results is still being assessed.