BANDAI NAMCO Holdings (7832) AI Stock Analysis

• Market Cap: ¥2.75T
• Dividend Yield: 1.94%
• Average Volume (3M): 1.81M
• Price to Earnings (P/E): 23.8
• Beta (1Y): 0.63
• Revenue Growth: 9.86%
• EPS Growth: -1.06%
• Country: JP
• Employees: 11,159
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): 55.82
• Shares Outstanding: 650,000,000
• 10 Day Avg. Volume: 1,777,230
• 30 Day Avg. Volume: 1,812,986
• PEG Ratio: 0.88
• Price to Book (P/B): 4.12
• Price to Sales (P/S): 2.63
• P/FCF Ratio: 22.57
• 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: ¥5,181.02
• Price Target Upside: 22.08% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 201.99
• Revenue Forecast (FY): ¥1.30T

• Rating: 62 Neutral
• Price Target: ¥4,317.00 ▲(1.72% Upside)
• Action: Reiterated Date: 11/07/25
• Date: Action: Reiterated 11/07/25

BANDAI NAMCO Holdings' strong financial performance is a key strength, reflecting robust revenue growth and solid profitability. However, technical indicators suggest a bearish trend, and the stock appears overvalued based on its P/E ratio. These factors result in a moderate overall stock score.

Positive Factors

Strong balance sheet

Extremely low leverage and a high equity ratio give the company durable financial flexibility. This reduces bankruptcy and refinancing risk, supports investment in content/IP and M&A, and enables sustained capital returns or reinvestment through economic cycles over the next 2–6 months and beyond.

Robust cash generation

Consistently strong operating cash flow and a material improvement in free cash flow indicate the business converts earnings into spendable cash. That supports content investment, capex for amusement venues, and shareholder returns while providing a buffer against cyclical revenue swings.

Diversified IP model & healthy margins

Revenue growth and above-average margins reflect effective monetization of owned IP across games, toys, media and venues. The diversified, cross-media model spreads revenue streams, improving stability and margin sustainability as hits are monetized across products and distribution channels.

Negative Factors

EPS contraction

A significant decline in EPS signals stress on per-share profitability that may stem from higher costs, nonrecurring items, or share dilution. Persistent EPS weakness can constrain dividend growth and investor confidence and may reflect margin or operational pressures needing remediation.

Asset utilization scope for improvement

A strong equity base paired with suboptimal asset turnover suggests the company may not be extracting full revenue from invested assets. Over the medium term this can cap return expansion and limit efficiency gains unless management improves operational use of assets or reallocates capital.

Hit-driven IP cyclicality

Reliance on creating or acquiring hit IPs and monetizing them across formats concentrates outcomes around content success. This creates structural revenue and profit cyclicality: weak release cycles or underperforming franchises can materially affect results for several quarters.

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 multiple key streams. The Game Software segment is a significant contributor, where the company earns money by developing and publishing video games across various platforms including consoles, PCs, and mobile devices. The Toys and Hobby segment produces and sells merchandise linked to popular franchises, including action figures and collectibles. Additionally, the Visual and Music Production segment generates income from the production and distribution of anime, films, and music related to its properties. Furthermore, partnerships with other companies for licensing and collaboration in developing games and merchandise enhance revenue opportunities. The company's focus on international markets and digital distribution channels also contributes to its earnings, allowing for broader audience reach and engagement.

BANDAI NAMCO Holdings Financial Statement Overview

Summary

BANDAI NAMCO Holdings exhibits strong financial health with impressive revenue growth and solid profitability margins. The balance sheet is characterized by low leverage and high equity, while cash flows are robust, supporting ongoing operations and growth.

Income Statement

BANDAI NAMCO Holdings has demonstrated strong revenue growth, with a significant increase of 62.2% in the latest year. The company maintains healthy profitability margins, with a gross profit margin of 39.89% and a net profit margin of 10.41%. The EBIT and EBITDA margins are also robust at 14.86% and 18.31%, respectively, indicating efficient operational management. Overall, the income statement reflects a positive growth trajectory and stable profitability.

Balance Sheet

The balance sheet of BANDAI NAMCO Holdings is solid, with a low debt-to-equity ratio of 0.015, indicating minimal leverage and financial risk. The return on equity is strong at 16.31%, showcasing effective use of shareholder funds. The equity ratio stands at 71.89%, reflecting a strong equity base relative to total assets. The company's financial stability is commendable, although there is room for improvement in asset utilization.

Cash Flow

The cash flow statement reveals a significant improvement in free cash flow, with a growth rate of 'Infinity' due to a substantial increase in free cash flow. The operating cash flow to net income ratio is healthy at 0.67, and the free cash flow to net income ratio is 0.77, indicating strong cash generation relative to earnings. The company's cash flow position is robust, supporting its operational and strategic initiatives.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.26T	1.24T	1.05T	990.09B	889.27B	740.90B
Gross Profit	511.05B	495.19B	370.96B	368.66B	356.27B	282.01B
EBITDA	229.56B	227.35B	187.99B	157.65B	159.20B	99.16B
Net Income	133.58B	129.30B	101.49B	90.34B	92.75B	48.89B
Balance Sheet
Total Assets	1.08T	1.10T	971.84B	926.36B	862.65B	732.78B
Cash, Cash Equivalents and Short-Term Investments	320.91B	388.46B	321.87B	280.23B	279.40B	204.33B
Total Debt	25.23B	12.01B	12.36B	10.77B	21.05B	20.62B
Total Liabilities	280.05B	309.42B	272.02B	274.23B	278.42B	221.35B
Stockholders Equity	796.05B	792.85B	699.52B	651.85B	584.00B	510.52B
Cash Flow
Free Cash Flow	0.00	144.90B	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: Positive
• Last Price: 4244.00
• 50DMA: Positive
• 100DMA: Negative
• 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:7832, the sentiment is Positive. The current price of 4244 is above the 20-day moving average (MA) of 4074.30, above the 50-day MA of 4123.90, and below the 200-day MA of 4614.44, indicating a neutral trend. The MACD of -0.74 indicates Negative momentum. The RSI at 62.07 is Neutral, neither overbought nor oversold. The STOCH value of 74.10 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
4680	67 Neutral	¥310.56B	18.72	―	1.51%	11.92%	33.70%
6238	64 Neutral	¥34.42B	15.91	―	3.63%	2.20%	2.39%
7867	63 Neutral	¥257.66B	22.34	―	2.18%	10.50%	27.82%
7832	62 Neutral	¥2.75T	23.76	15.67%	1.94%	9.86%	-1.06%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
4661	59 Neutral	¥4.62T	36.08	13.17%	0.48%	10.59%	13.93%
4343	52 Neutral	¥51.97B	37.49	―	―	6.00%	-184.09%

BANDAI NAMCO Holdings Corporate Events

Bandai Namco Grows Sales but Profit Slips in Third Quarter

Bandai Namco Holdings reported consolidated net sales of ¥1,002.2 billion for the nine months ended December 31, 2025, a 4.9% year-on-year increase, while operating profit fell 12.2% to ¥157.4 billion and ordinary profit declined 10.2% to ¥166.5 billion. Profit attributable to owners of parent dropped 10.6% to ¥115.0 billion, but the company’s financial position remained solid, with total assets rising to ¥1,169.4 billion and an equity ratio of 73.1%, suggesting continued balance sheet strength despite margin pressure.

The most recent analyst rating on (JP:7832) stock is a Hold with a Yen4393.00 price target. To see the full list of analyst forecasts on BANDAI NAMCO Holdings stock, see the JP:7832 Stock Forecast page.

Bandai Namco Reviews Board Effectiveness, Pivots to Long-Term IP Strategy and Risk Focus

Bandai Namco Holdings has completed its regular evaluation of the effectiveness of its Board of Directors for the fiscal year ending March 31, 2026, using a revised questionnaire and third-party analysis to gather feedback from all 15 directors. The review found the Board’s foundations and director effectiveness to be generally strong, with particular praise for board culture and the chairperson’s role.

Independent outside directors, however, highlighted the need to better address long-term management issues, including more flexible revisions of business strategy and stronger risk management. In response, the company plans deeper mid- to long-term discussions on its core IP axis strategy, balancing “offensive” growth opportunities and “defensive” vulnerability management.

These discussions will be conducted not only at the Board level but also through a dedicated Vision Meeting forum that brings together diverse director perspectives. Outcomes are intended to feed directly into future initiatives and measures, with priority issues acted on swiftly to support sustainable enhancement of corporate value.

The most recent analyst rating on (JP:7832) stock is a Hold with a Yen4393.00 price target. To see the full list of analyst forecasts on BANDAI NAMCO Holdings stock, see the JP:7832 Stock Forecast page.

Bandai Namco Launches ¥30 Billion Share Buyback to Boost Capital Efficiency and Shareholder Returns

Bandai Namco Holdings’ board has approved a share buyback of up to 6 million common shares, or 0.93% of outstanding shares, with a maximum value of ¥30 billion to be repurchased on the Tokyo Stock Exchange between February 6 and April 30, 2026. The move is aimed at improving capital efficiency, strengthening the financial structure, and supporting a flexible capital policy, and, together with a revised dividend forecast, is expected to lift the total shareholder return ratio for the fiscal year ending March 31, 2026 to 59.4%, above its stated minimum target of a 50% total return ratio and a 3.60% DOE, underscoring its commitment to shareholder returns.

The most recent analyst rating on (JP:7832) stock is a Hold with a Yen4404.00 price target. To see the full list of analyst forecasts on BANDAI NAMCO Holdings stock, see the JP:7832 Stock Forecast page.

Bandai Namco Lifts Earnings and Dividend Outlook on Strong Gundam and Digital Growth

Bandai Namco Holdings has raised its consolidated forecast for the fiscal year ending March 31, 2026, citing stronger-than-expected performance in its Toys and Hobby Business and Digital Business, as well as robust monetization of key IP, particularly the Gundam series. The company now projects net sales of ¥1.3 trillion, operating profit of ¥181 billion, and profit attributable to owners of parent of ¥130 billion, all above previous guidance and slightly exceeding the prior year, supported by successful new network content and cross-group initiatives tied to the new Mobile Suit Gundam visual work and its presence at Expo 2025 Osaka, Kansai. Reflecting improved earnings and an updated shareholder return policy under its mid-term plan, Bandai Namco also lifted its full-year dividend outlook to a total of ¥73 per share, up from earlier projections, combining higher base and performance-based dividends and reinforcing shareholder returns as a top management priority while maintaining financial soundness.

The most recent analyst rating on (JP:7832) stock is a Hold with a Yen4404.00 price target. To see the full list of analyst forecasts on BANDAI NAMCO Holdings stock, see the JP:7832 Stock Forecast page.

Bandai Namco Logs Higher Sales but Lower Profits in Nine-Month Results

Bandai Namco Holdings reported consolidated net sales of ¥1,002.2 billion for the nine months ended December 31, 2025, a 4.9% year-on-year increase, while operating profit declined 12.2% to ¥157.4 billion and ordinary profit fell 10.2% to ¥166.5 billion, resulting in a 10.6% drop in profit attributable to owners of parent to ¥115.0 billion. Despite the profit contraction following a very strong prior-year period, the company’s financial position strengthened, with total assets rising to ¥1,169.4 billion, net assets increasing to ¥855.1 billion, and its equity ratio improving to 73.1%, underscoring a solid balance sheet that may help support future strategic investments and shareholder returns.

The most recent analyst rating on (JP:7832) stock is a Hold with a Yen4404.00 price target. To see the full list of analyst forecasts on BANDAI NAMCO Holdings stock, see the JP:7832 Stock Forecast page.