Sega Sammy Holdings (6460) AI Stock Analysis

• Market Cap: ¥549.82B
• Dividend Yield: 2.12%
• Average Volume (3M): 1.06M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.54
• 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): 13.01
• Shares Outstanding: 221,229,480
• 10 Day Avg. Volume: 950,610
• 30 Day Avg. Volume: 1,060,736
• 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: ¥3,286.67
• Price Target Upside: 23.17% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 55.21
• Revenue Forecast (FY): ¥483.70B

• Rating: 68 Neutral
• Price Target: ¥2,552.00 ▼(-4.37% Downside)
• Action: Reiterated Date: 12/07/25
• Date: Action: Reiterated 12/07/25

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

Free Cash Flow Strength

Consistent positive operating and free cash flow provides durable internal funding for game development, pachislot manufacturing capex, dividends and M&A. Strong cash conversion reduces reliance on external financing and supports resilience across product cycles and downturns.

Balance Sheet Health

Low leverage and a solid equity base materially reduce financial risk, giving management flexibility to invest through cyclical swings in entertainment and arcade markets. A healthy balance sheet supports capital allocation, competitive resilience and long-term strategic optionality.

Sustained Profitability & Margins

Strong gross, EBIT and net margins reflect structural profitability across gaming publishing and pachislot operations. Durable margins support reinvestment in IP, ongoing content pipelines and service-model monetization, underpinning long-term cash generation and shareholder returns.

Negative Factors

Declining Revenue and EPS

Material declines in reported revenue and EPS signal weakening top-line momentum and compressed profitability. If sustained, these trends could erode R&D budgets, slow game/content rollout and pressure margins, limiting medium-term growth and strategic investment capacity.

2025 Revenue Dip

A revenue decline in 2025 after prior multi-year growth suggests product-cycle, market-share or execution headwinds. Without new hit titles or expanded markets, the company risks longer-term growth deceleration in a highly competitive entertainment landscape.

Cash-Flow & Asset Volatility

Volatility in financing cash flow and a slowdown in FCF growth reduce predictability for buybacks, dividends and strategic investments. Fluctuating assets and equity noted in the balance sheet add uncertainty to longer-term capital allocation and financial planning.

Sega Sammy Holdings Business Overview & Revenue Model

Company Description

Sega Sammy Holdings Inc. is a Japanese entertainment conglomerate that operates primarily in the video game and amusement machine sectors. The company is known for its development and publishing of video games, including popular franchises such as Sonic the Hedgehog and Yakuza. Additionally, Sega Sammy engages in the production of arcade machines and operates a chain of amusement centers. The company is also involved in the pachinko and pachislot business, which is a significant part of its operations, catering primarily to the Japanese market.

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 demonstrates strong financial performance with robust revenue growth and profitability metrics. The income statement shows effective revenue and profit management, while the balance sheet indicates a stable financial foundation with low leverage. Despite some fluctuations in cash flow components, the company maintains strong 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 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: Positive
• Last Price: 2668.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 2668.5 is above the 20-day moving average (MA) of 2457.03, above the 50-day MA of 2451.06, and below the 200-day MA of 2846.08, indicating a neutral trend. The MACD of 31.32 indicates Negative momentum. The RSI at 61.96 is Neutral, neither overbought nor oversold. The STOCH value of 65.36 is Neutral, 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
3635	76 Outperform	¥603.30B	15.97	―	2.49%	-1.05%	6.49%
9766	72 Outperform	¥2.82T	32.86	17.57%	0.84%	18.39%	23.33%
9697	72 Outperform	¥1.50T	23.38	26.66%	1.17%	45.17%	81.91%
6460	68 Neutral	¥549.82B	-40.41	4.45%	2.12%	-8.73%	-55.81%
7974	62 Neutral	¥10.47T	26.15	13.46%	1.17%	24.47%	12.54%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
9684	57 Neutral	¥938.70B	36.68	6.70%	1.80%	-12.02%	126.06%

Sega Sammy Holdings Corporate Events

Sega Sammy Launches ¥20 Billion Share Buyback After M&A Setbacks

Sega Sammy Holdings has decided to repurchase up to ¥20 billion of its own shares, or a maximum of 12 million common shares representing roughly 5.7% of shares outstanding, via market purchases on the Tokyo Stock Exchange between mid-February and the end of July 2026. The company plans to cancel all shares acquired through this program, signaling a shift in capital allocation after recent M&A-driven expansion.

The buyback follows impairment losses on Rovio’s goodwill and weaker-than-expected profitability at Stakelogic, prompting Sega Sammy to suspend large-scale M&A for the time being and redirect those funds to shareholder returns. Management stressed that its core shareholder return policy remains intact, maintaining its dividend framework and confirming a total dividend of ¥55 per share for the year ending March 2026, reinforcing commitment to capital efficiency despite recent setbacks in acquisitions.

The most recent analyst rating on (JP:6460) stock is a Buy with a Yen2640.00 price target. To see the full list of analyst forecasts on Sega Sammy Holdings stock, see the JP:6460 Stock Forecast page.

Sega Sammy Books Major Impairment Charges and Swings to Forecast Net Loss

Sega Sammy Holdings has recorded around ¥31.3 billion in impairment losses on goodwill and other intangible assets tied to Rovio, after the acquired mobile game developer struggled amid intensifying global competition and a rapidly shifting market. The write-down drove an estimated ¥30.4 billion hit to net loss attributable to owners in the third quarter, although a partial offset came from deferred tax effects.

The company also cut its full-year forecast, now expecting higher net sales of ¥490 billion but lower operating and ordinary income, and a net loss of ¥13 billion due to the Rovio charges and an additional expected impairment of about ¥15 billion on Stakelogic as regulatory tightening in the Netherlands erodes profitability. Despite the swing into loss, Sega Sammy will maintain its planned year-end dividend, keeping the total annual payout at ¥55 per share under its shareholder return policy focused on DOE or total return ratio targets.

The most recent analyst rating on (JP:6460) stock is a Buy with a Yen2640.00 price target. To see the full list of analyst forecasts on Sega Sammy Holdings stock, see the JP:6460 Stock Forecast page.

Sega Sammy Cuts FY2026 Earnings Outlook as Extraordinary Losses Offset Stable Core Business

Sega Sammy reported consolidated sales of ¥335.2 billion through the third quarter of FY2026/3, with operating income of ¥19.8 billion and ordinary income of ¥23.8 billion, while profit attributable to owners of the parent fell to ¥2.7 billion due mainly to higher extraordinary losses. The group revised its full-year forecast to ¥490.0 billion in sales and ¥40.0 billion in operating income but now expects a net loss of ¥13.0 billion, reflecting large projected extraordinary losses despite stable core operations and continued investment in R&D and content production.

In the Entertainment Contents segment, consumer, animation, and amusement businesses continued to drive sales growth, supported by rising R&D and content production spending as well as higher advertising outlays. The Pachislot & Pachinko business remained profitable but at lower operating margins, while the Gaming segment stayed in the red, underscoring structural challenges even as consolidated capital expenditure and headcount rose, including the integration of Rovio that lifted R&D personnel ratios and overseas staffing.

The most recent analyst rating on (JP:6460) stock is a Buy with a Yen2640.00 price target. To see the full list of analyst forecasts on Sega Sammy Holdings stock, see the JP:6460 Stock Forecast page.

Sega Sammy Issues Q3 FY2026 Results Briefing With Extensive Disclaimers

Sega Sammy Holdings released an English-language version of its Q3 fiscal 2026 results presentation, emphasizing that the material is for informational purposes only and not an investment solicitation. The company stresses that all performance outlooks and market forecasts are based on current management judgment and may differ materially from actual results due to a wide range of economic, regulatory, and operational risks.

The group also disclaims responsibility for the accuracy of third-party information cited and for any damages arising from the use of the document. It further prohibits unauthorized reproduction or alteration of the materials and clarifies that, in the event of any inconsistency, the original Japanese-language version of the presentation prevails over the English translation.

The most recent analyst rating on (JP:6460) stock is a Buy with a Yen2640.00 price target. To see the full list of analyst forecasts on Sega Sammy Holdings stock, see the JP:6460 Stock Forecast page.

Sega Sammy Swings to Loss Despite Higher Sales and Expands via iGaming Acquisitions

Sega Sammy Holdings reported consolidated net sales of ¥335.2 billion for the nine months to December 31, 2025, up 4.0% year on year, but operating income plunged 54.6% to ¥19.8 billion and the company swung to a net loss attributable to owners of the parent of ¥16.9 billion. Profitability deteriorated sharply, with adjusted EBITDA collapsing and the equity ratio declining to 56.2%, even as the company maintained its interim dividend and now forecasts full-year sales growth to ¥490.0 billion but a full-year net loss of ¥13.0 billion, reflecting continued margin pressure.

Management revised its full-year earnings outlook downward, projecting significant declines in operating and ordinary income despite higher revenues, which signals rising costs or underperformance in key segments and raises concerns for shareholders about earnings quality. During the period Sega Sammy also added 37 significant subsidiaries, including Stakelogic B.V. and GAN Limited and their respective groups, indicating an aggressive expansion into online gaming and iGaming platforms that could reshape its business mix and long-term competitive position.

The most recent analyst rating on (JP:6460) stock is a Buy with a Yen2640.00 price target. To see the full list of analyst forecasts on Sega Sammy Holdings stock, see the JP:6460 Stock Forecast page.