Nintendo Co Ltd (JP:7974)
:7974
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Nintendo Co
(7974)
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Rating:71Outperform
Price Target:
¥7,757.00
▼(-9.96% Downside)
Action:Upgraded
Date:05/12/26
The score is primarily supported by very strong financial resilience (especially the exceptionally conservative balance sheet) and a reasonable valuation aided by a solid dividend yield. Offsetting these positives, technical indicators show a clear downtrend with weak momentum, which materially reduces the overall score.
Positive Factors
Exceptional balance sheet
Near-zero debt and a very strong balance sheet provide durable financial flexibility. Over a multi-month horizon this enables sustained R&D and first-party game investment, supports consistent capital returns or opportunistic M&A, and cushions the company against cyclical hardware/software revenue swings.
Negative Factors
Cash flow volatility
Large swings in operating cash flow reduce predictability for capex, content investment, and shareholder returns. Even with strong balance-sheet liquidity, uneven conversion from earnings to cash complicates long-term planning and raises reinvestment and payout risk across product cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Exceptional balance sheet
Near-zero debt and a very strong balance sheet provide durable financial flexibility. Over a multi-month horizon this enables sustained R&D and first-party game investment, supports consistent capital returns or opportunistic M&A, and cushions the company against cyclical hardware/software revenue swings.
Read all positive factors
Nintendo Co (7974) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥8.24T
Dividend Yield1.17%
Average Volume (3M)5.83M
Price to Earnings (P/E)19.5
Beta (1Y)0.55
Revenue Growth98.56%
EPS Growth52.21%
CountryJP
Employees7,724
SectorCommunication Services
Sector Strength97
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)364.51
Shares Outstanding1,287,260,000
10 Day Avg. Volume6,683,710
30 Day Avg. Volume5,826,276
Financial Highlights & Ratios
PEG Ratio0.46
Price to Book (P/B)3.46
Price to Sales (P/S)4.41
P/FCF Ratio38.87
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥12,465.71Price Target Upside44.70% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)350.26
Revenue Forecast (FY)¥2.36T
Nintendo Co Business Overview & Revenue Model
Company Description
Nintendo Co., Ltd., together with its subsidiaries, develops, manufactures, and sells home entertainment products in Japan, the Americas, Europe, and internationally. It offers video game platforms, playing cards, Karuta, and other products; and h...
How the Company Makes Money
Nintendo primarily makes money by monetizing its integrated hardware-and-software ecosystem. A major revenue stream is the sale of dedicated video game hardware (e.g., Nintendo Switch systems and related accessories), which expands the installed b...
Nintendo Co Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
95
Very Positive
Cash Flow
72
Positive
| Breakdown | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.31T | 1.16T | 1.67T | 1.60T | 1.70T |
| Gross Profit | 908.96B | 710.17B | 954.34B | 885.44B | 946.04B |
| EBITDA | 375.97B | 387.69B | 698.75B | 611.92B | 603.29B |
| Net Income | 424.06B | 278.81B | 490.60B | 432.77B | 477.69B |
Balance Sheet | |||||
| Total Assets | 3.81T | 3.40T | 3.21T | 2.85T | 2.66T |
| Cash, Cash Equivalents and Short-Term Investments | 2.22T | 2.06T | 2.25T | 1.88T | 1.71T |
| Total Debt | 0.00 | 7.16B | 6.13B | 6.29B | 6.23B |
| Total Liabilities | 850.13B | 673.07B | 604.01B | 587.82B | 593.08B |
| Stockholders Equity | 2.95T | 2.72T | 2.60T | 2.27T | 2.07T |
Cash Flow | |||||
| Free Cash Flow | 262.62B | -6.94B | 445.97B | 300.65B | 282.07B |
| Operating Cash Flow | 289.79B | 12.07B | 462.10B | 322.84B | 289.66B |
| Investing Cash Flow | -210.05B | 753.06B | -630.63B | 111.51B | 93.70B |
| Financing Cash Flow | -249.71B | -195.13B | -236.96B | -290.97B | -337.01B |
Nintendo Co Technical Analysis
Negative
8615.00
Price Trends
8160.10
Negative
8783.33
Negative
10775.80
Negative
Market Momentum
-293.94
Negative
40.59
Neutral
23.09
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7974, the sentiment is Negative. The current price of 8615 is above the 20-day moving average (MA) of 7286.40, above the 50-day MA of 8160.10, and below the 200-day MA of 10775.80, indicating a bearish trend. The MACD of -293.94 indicates Negative momentum. The RSI at 40.59 is Neutral, neither overbought nor oversold. The STOCH value of 23.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7974.
Nintendo Co Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | ¥1.73T | 14.41 | 8.89% | 0.78% | 13.65% | 2.51% | |
71 Outperform | ¥8.24T | 19.53 | 13.46% | 1.17% | 98.56% | 52.21% | |
70 Outperform | ¥2.57T | 25.66 | 17.57% | 0.84% | 17.10% | 33.90% | |
65 Neutral | ¥1.26T | 23.11 | 26.91% | 1.17% | 15.19% | 12.65% | |
63 Neutral | ¥932.51B | 31.15 | 6.70% | 1.80% | -8.27% | 21.14% | |
61 Neutral | ¥468.04B | -84.95 | -3.66% | 2.12% | 13.66% | -113.12% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
JP:7974
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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.