BANDAI NAMCO Holdings (7832) AI Stock Analysis

• Market Cap: ¥3.05T
• Dividend Yield: 0.47%
• Average Volume (3M): 2.56M
• Price to Earnings (P/E): 23.8
• Beta (1Y): 0.55
• Revenue Growth: 21.09%
• EPS Growth: 157.99%
• Country: JP
• Employees: 11,159
• Sector: Consumer Cyclical
• Sector Strength: 61
• Industry: Leisure
• EPS (TTM): 1.16
• Shares Outstanding: 650,000,000
• 10 Day Avg. Volume: 2,242,730
• 30 Day Avg. Volume: 2,557,480
• PEG Ratio: -7.66
• Price to Book (P/B): 2.88
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 30.41
• 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: ¥5,307.13
• Price Target Upside: 12.87% 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

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 Business Overview & Revenue Model

Company Description

BANDAI 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 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	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.23T	1.24T	1.05T	990.09B	889.27B	740.90B
Gross Profit	483.69B	495.19B	370.96B	368.66B	356.27B	282.01B
EBITDA	261.51B	227.35B	187.99B	147.57B	153.07B	111.65B
Net Income	169.79B	129.30B	101.49B	90.34B	92.75B	48.89B
Balance Sheet
Total Assets	1.13T	1.10T	971.84B	926.36B	862.65B	732.78B
Cash, Cash Equivalents and Short-Term Investments	395.36B	388.46B	321.87B	280.23B	279.40B	204.33B
Total Debt	0.00	0.00	12.36B	10.77B	21.05B	20.23B
Total Liabilities	302.20B	309.42B	272.02B	274.23B	278.42B	221.35B
Stockholders Equity	824.91B	792.85B	699.52B	651.85B	584.00B	510.52B
Cash Flow
Free Cash Flow	0.00	153.78B	54.00B	61.82B	94.42B	36.63B
Operating Cash Flow	0.00	187.34B	88.91B	95.63B	121.21B	60.48B
Investing Cash Flow	0.00	-62.00B	10.14B	-40.88B	-27.14B	-29.77B
Financing Cash Flow	0.00	-77.35B	-75.24B	-59.52B	-25.45B	-19.04B

BANDAI NAMCO Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4702.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9697	81 Outperform	¥1.87T	38.68	22.64%	0.98%	11.28%	11.70%
7832	75 Outperform	¥3.05T	23.76	17.13%	0.47%	21.09%	157.99%
9684	70 Outperform	$1.21T	49.81	7.32%	0.85%	0.58%	-56.67%
9766	65 Neutral	¥2.78T	37.22	16.43%	0.97%	17.01%	26.23%
7860	65 Neutral	€55.58B	46.94	2.03%	4.08%	-1.27%	10.18%
Sector *	62 Neutral	$16.90B	11.24	-7.48%	2.95%	1.60%	-23.76%
3656	41 Neutral	¥6.72B	―		―	-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.