BANDAI NAMCO Holdings (7832) AI Stock Analysis

• Market Cap: ¥3.60T
• Dividend Yield: 1.08%
• Average Volume (3M): 2.42M
• Price to Earnings (P/E): 27.1
• Beta (1Y): 0.59
• Revenue Growth: 14.04%
• EPS Growth: 18.44%
• Country: JP
• Employees: 11,159
• Sector: Consumer Cyclical
• Sector Strength: 73
• Industry: Leisure
• EPS (TTM): 59.22
• Shares Outstanding: 650,000,000
• 10 Day Avg. Volume: 2,810,270
• 30 Day Avg. Volume: 2,419,143
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥5,507.61
• Price Target Upside: -2.55% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• 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

Game Performance

Digital's OP was well above the market expectations, mainly due to the high performance of the Gundam mobile game.

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 Outlook

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

Margin Pressure

Tariff impacts may affect margins in Q2, but the company plans to address this, and the effect appears minimal.

User Acquisition

It seems difficult to attract many casual new users.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.24T	1.05T	990.09B	889.27B	740.90B
Gross Profit	495.19B	370.96B	368.66B	356.27B	282.01B
EBITDA	227.35B	187.99B	147.57B	153.07B	111.65B
Net Income	129.30B	101.49B	90.34B	92.75B	48.89B
Balance Sheet
Total Assets	1.10T	971.84B	926.36B	862.65B	732.78B
Cash, Cash Equivalents and Short-Term Investments	388.46B	321.87B	280.23B	279.40B	204.33B
Total Debt	0.00	12.36B	10.77B	21.05B	20.23B
Total Liabilities	309.42B	272.02B	274.23B	278.42B	221.35B
Stockholders Equity	792.85B	699.52B	651.85B	584.00B	510.52B
Cash Flow
Free Cash Flow	153.78B	54.00B	61.82B	94.42B	36.63B
Operating Cash Flow	187.34B	88.91B	95.63B	121.21B	60.48B
Investing Cash Flow	-62.00B	10.14B	-40.88B	-27.14B	-29.77B
Financing Cash Flow	-77.35B	-75.24B	-59.52B	-25.45B	-19.04B

BANDAI NAMCO Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5652.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 5652 is above the 20-day moving average (MA) of 5017.35, above the 50-day MA of 4868.28, and above the 200-day MA of 4343.86, indicating a bullish trend. The MACD of 205.43 indicates Negative momentum. The RSI at 74.23 is Negative, neither overbought nor oversold. The STOCH value of 85.10 is Negative, 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
7944	81 Outperform	¥85.90B	14.35		5.18%	-4.39%	-27.30%
7809	78 Outperform	¥13.41B	11.70		2.48%	0.75%	-1.86%
7832	75 Outperform	¥3.60T	27.14	18.09%	1.08%	14.04%	18.44%
7990	74 Outperform	¥52.87B	10.79		3.43%	0.66%	31.91%
7867	70 Neutral	¥316.29B	18.34		1.59%	17.05%	66.00%
7952	57 Neutral	¥21.93B	42.27		3.64%	-6.74%	-69.87%
Sector *	57 Neutral	HK$25.63B	4.89	-2.69%	5.48%	-0.60%	-50.24%

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.