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BANDAI NAMCO Holdings (JP:7832)
:7832

BANDAI NAMCO Holdings (7832) AI Stock Analysis

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BANDAI NAMCO Holdings

(OTC:7832)

Rating:75Outperform
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
Film Collaboration
Bandai Namco is teaming up with A24 to develop an ELDEN RING live-action film, easing concerns over its role in ELDEN RING IP amid KADOKAWA's push for in-house publishing.
Financial Performance
Bandai Namco reported Q3 results which were a significant beat of analyst estimates and consensus.
IP Expansion
The company plans to expand Gundam IP with a new card game in 54 markets, mirroring ONE PIECE's strong growth.
Negative Factors
Earnings Headwinds
Near-term attention is centering on earnings headwinds after a strong console game lineup.
Network Content Revenue
Network Content revenue was lower than modeled and flat year on year.
Operating Profit Outlook
The prospect of a down year for operating profit leaves mixed feelings about the company's future performance.

BANDAI NAMCO Holdings (7832) vs. iShares MSCI Japan ETF (EWJ)

BANDAI NAMCO Holdings Business Overview & Revenue Model

Company DescriptionBANDAI NAMCO Holdings Inc. develops entertainment-related products and services worldwide. Its Toys and Hobby segment offers toys, capsule and candy toys, cards, confectionery, food, apparel, sundries, plastic models, figures, communications and peripheral equipment, consumer electronics, character-based products, pachinko and pachislot machines, medical and electronic-related equipment, playground equipment, bicycles, furniture, visual, RC and robot toys, molds, stationery, prizes, and other products. This segment is also involved in the contract operations for inspecting and testing; and import and export of toys, etc. The company's Network Entertainment segment plans, develops, and distributes network content, as well as home video games, live events, machines, Internet-based online games, other software and services, amusement machines, etc.; and provides advertising, promotion, online video distribution and games platforms, communication and related tools, and shared services, as well as visual substrates. Its Real Entertainment segment plans, produces, and sells amusement machines; plans and operates amusement facilities, etc.; and provides after-sales services and stocks and sells pre-owned amusement machines and products. The company's Visual and Music Production segment offers visual and music content and package software, and audio engineering services; conducts live entertainment operations; plans and produces animation; manages affiliated artists; operates fan clubs; produces visual products related to live performances, events, and music; plans, produces, and sells goods, tickets, etc. Its IP Creation segment plans and produces animations, labels, events, etc., as well as music related to animations; manages and administers copyrights and other rights. The company was formerly known as NAMCO BANDAI Holdings, Inc. and changed its name to BANDAI NAMCO Holdings Inc. in June 2014. The company was founded in 2005 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyBANDAI 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
85
Very Positive
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
90
Very Positive
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
70
Positive
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.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue1.23T1.24T1.05T990.09B889.27B740.90B
Gross Profit483.69B495.19B370.96B368.66B356.27B282.01B
EBITDA261.51B227.35B187.99B147.57B153.07B111.65B
Net Income169.79B129.30B101.49B90.34B92.75B48.89B
Balance Sheet
Total Assets1.13T1.10T971.84B926.36B862.65B732.78B
Cash, Cash Equivalents and Short-Term Investments395.36B388.46B321.87B280.23B279.40B204.33B
Total Debt0.000.0012.36B10.77B21.05B20.23B
Total Liabilities302.20B309.42B272.02B274.23B278.42B221.35B
Stockholders Equity824.91B792.85B699.52B651.85B584.00B510.52B
Cash Flow
Free Cash Flow0.00153.78B54.00B61.82B94.42B36.63B
Operating Cash Flow0.00187.34B88.91B95.63B121.21B60.48B
Investing Cash Flow0.00-62.00B10.14B-40.88B-27.14B-29.77B
Financing Cash Flow0.00-77.35B-75.24B-59.52B-25.45B-19.04B

BANDAI NAMCO Holdings Technical Analysis

Technical Analysis Sentiment
Negative
Last Price4702.00
Price Trends
50DMA
4785.92
Negative
100DMA
4849.12
Negative
200DMA
4115.11
Positive
Market Momentum
MACD
30.72
Positive
RSI
42.93
Neutral
STOCH
7.22
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7832, the sentiment is Negative. The current price of 4702 is below the 20-day moving average (MA) of 4869.90, below the 50-day MA of 4785.92, and above the 200-day MA of 4115.11, indicating a neutral trend. The MACD of 30.72 indicates Positive momentum. The RSI at 42.93 is Neutral, neither overbought nor oversold. The STOCH value of 7.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7832.

BANDAI NAMCO Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
¥1.87T38.6822.64%0.98%11.28%11.70%
75
Outperform
¥3.05T23.7617.13%0.47%21.09%157.99%
70
Outperform
$1.21T49.817.32%0.85%0.58%-56.67%
65
Neutral
¥2.78T37.2216.43%0.97%17.01%26.23%
65
Neutral
€55.58B46.942.03%4.08%-1.27%10.18%
62
Neutral
$16.90B11.24-7.48%2.95%1.60%-23.76%
41
Neutral
¥6.72B
-11.13%28.02%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7832
BANDAI NAMCO Holdings
4,702.00
1,671.16
55.14%
JP:3656
KLab Inc.
112.00
-123.00
-52.34%
JP:7860
Avex Inc.
1,225.00
-190.30
-13.45%
JP:9766
KONAMI HOLDINGS
20,510.00
9,056.53
79.07%
JP:9684
Square Enix Holdings Co
10,130.00
5,518.37
119.66%
JP:9697
Capcom Co
4,481.00
1,371.05
44.09%

BANDAI NAMCO Holdings Corporate Events

Bandai Namco Cancels Treasury Shares to Boost Shareholder Value
Apr 16, 2025

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.

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: Apr 10, 2025