BANDAI NAMCO Holdings (7832) AI Stock Analysis

• Market Cap: ¥3.13T
• Dividend Yield: 0.46%
• Average Volume (3M): 2.43M
• Price to Earnings (P/E): 24.4
• Beta (1Y): 0.57
• Revenue Growth: 21.09%
• EPS Growth: 157.99%
• Country: JP
• Employees: 11,159
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Leisure
• EPS (TTM): 1.16
• Shares Outstanding: 650,000,000
• 10 Day Avg. Volume: 2,454,070
• 30 Day Avg. Volume: 2,428,780
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• P/FCF Ratio: N/A
• 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: ¥5,305.21
• Price Target Upside: 9.82% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 75 Outperform
• Price Target: ―

BANDAI NAMCO Holdings scores well overall, bolstered by strong financial performance and a solid valuation. The lack of recent operating cash flow data is a minor concern, but the zero-debt balance sheet and robust profitability margins highlight financial strength. Technical analysis suggests mixed signals with potential short-term weakness but long-term resilience. The absence of earnings call and corporate events data limits further insight.

Positive Factors

International Growth

With overseas locations in London, NY, and Birmingham, Bandai Namco is expanding its international footprint.

Market Expansion

Bandai Namco is due to open its 12th domestic Cross Store in Shibuya, which enhances its presence in the market.

Negative Factors

Earnings Headwinds

Near-term attention is centering on earnings headwinds after a strong console game lineup.

User Acquisition

It seems difficult to attract many casual new users.

BANDAI NAMCO Holdings Business Overview & Revenue Model

Company Description

BANDAI NAMCO Holdings Inc., headquartered in Tokyo, Japan, is a leading global entertainment company known for producing and marketing a wide range of products and services. The company operates through several segments, including Toys and Hobby, Network Entertainment, and Visual and Music Production. BANDAI NAMCO is renowned for its popular franchises such as Gundam, Dragon Ball, and Pac-Man, offering diverse entertainment experiences through video games, amusement facilities, toys, and multimedia content.

How the Company Makes Money

BANDAI NAMCO Holdings generates revenue through a diversified business model that encompasses multiple entertainment sectors. The Network Entertainment segment, which includes the development and distribution of video games for consoles, PCs, and mobile devices, is a significant source of income. The Toys and Hobby segment drives revenue through the production and sale of toys, model kits, and other merchandise associated with popular franchises. Additionally, the Visual and Music Production segment contributes through music, video content, and live events. The company often collaborates with other media and technology companies to expand its reach and monetize its intellectual properties effectively. Strategic partnerships, licensing, and merchandising agreements also play a vital role in bolstering BANDAI NAMCO's earnings.

BANDAI NAMCO Holdings Financial Statement Overview

Summary

BANDAI NAMCO Holdings demonstrates robust financial health with strong revenue growth, significant profitability, and a zero-debt balance sheet. The income statement and balance sheet scores are excellent, though the lack of recent operating cash flow data slightly tempers the cash flow assessment.

Income Statement

BANDAI NAMCO Holdings demonstrates strong financial performance with a consistent revenue growth trajectory, highlighted by a 17.5% revenue growth in TTM compared to the previous year. The company maintains robust profitability margins, with a TTM gross profit margin of 39.2% and a net profit margin of 13.8%. The EBIT and EBITDA margins are also healthy at 15.5% and 20.3% respectively, showcasing operational efficiency and effective cost management.

Balance Sheet

The balance sheet is exceptionally strong, characterized by a zero-debt position and significant equity base. The debt-to-equity ratio is 0, reflecting no leverage risk, while the equity ratio stands at 73.1%, indicating a strong equity foundation. The return on equity (ROE) is impressive at 20.6%, demonstrating effective utilization of shareholders' funds to generate profits.

Cash Flow

The cash flow statement reflects stable free cash flow generation, although the absence of recent operating cash flow data hinders a complete assessment. The company has shown a positive free cash flow trend historically, with a notable free cash flow of ¥53.997 billion in the last annual report. The free cash flow to net income ratio is strong at 53.2% for the last reported year, indicating good cash conversion.

Breakdown
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

BANDAI NAMCO Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4831.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7832, the sentiment is Positive. The current price of 4831 is above the 20-day moving average (MA) of 4693.40, above the 50-day MA of 4730.86, and above the 200-day MA of 4219.97, indicating a bullish trend. The MACD of -7.68 indicates Negative momentum. The RSI at 56.86 is Neutral, neither overbought nor oversold. The STOCH value of 69.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7832.

BANDAI NAMCO Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7832	75 Outperform	¥3.13T	24.41	17.13%	0.46%	21.09%	157.99%
9697	73 Outperform	$1.79T	36.99	22.64%	0.93%	11.28%	11.70%
9684	70 Outperform	$1.21T	49.95	7.32%	0.70%	0.58%	-56.67%
Sector *	67 Neutral	¥265.88B	13.58	6.45%	2.57%	5.21%	-11.92%
9766	67 Neutral	¥2.73T	36.62	16.43%	0.82%	17.01%	26.23%
7860	60 Neutral	€57.71B	48.74	2.03%	3.93%	-1.27%	10.18%
3656	49 Neutral	¥7.25B	―		―	-11.13%	28.02%

BANDAI NAMCO Holdings Corporate Events

Bandai Namco Cancels Treasury Shares to Boost Shareholder Value

Bandai Namco Holdings Inc. has announced a decision to cancel 10 million treasury shares, representing 1.52% of its total issued shares, to enhance shareholder returns and improve capital efficiency. This move, scheduled for April 30, 2025, is expected to positively impact the company’s financial structure and demonstrate a commitment to optimizing shareholder value.