Nintendo Co (7974) AI Stock Analysis

• Market Cap: $15.10T
• Dividend Yield: 1.25%
• Average Volume (3M): 5.26M
• Price to Earnings (P/E): 54.2
• Beta (1Y): 0.81
• Revenue Growth: -27.51%
• EPS Growth: -35.35%
• Country: JP
• Employees: 7,724
• Sector: Communication Services
• Sector Strength: 81
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 35.74
• Shares Outstanding: 1,298,690,000
• 10 Day Avg. Volume: 3,481,600
• 30 Day Avg. Volume: 5,264,913
• PEG Ratio: -4.23
• Price to Book (P/B): 5.54
• 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: $14,007.13
• Price Target Upside: 8.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 69 Neutral
• Price Target: ―

Nintendo's stock score is primarily driven by its strong financial performance, underscored by high profitability, a debt-free balance sheet, and consistent cash generation. The technical analysis presents a mixed outlook with short-term consolidation signals, while the valuation suggests that the stock may be priced for growth, potentially limiting immediate gains. Overall, Nintendo remains a financially resilient company, but investors should be cautious of its current valuation levels.

Positive Factors

Console Sales Performance

Nintendo Switch 2 sold over 3.5 million units globally in just four days, marking the fastest console launch ever.

Earnings Growth Potential

Analysts forecast over four times operating profit growth in the next three years, with further earnings growth anticipated.

Product Line Expansion

Nintendo has announced a Splatoon spin-off, adding to an already strong first-party game lineup this year.

Negative Factors

Market Misunderstanding

Several investors misunderstand Nintendo's business model, thinking earnings growth aligns with hardware sales growth.

Stock Price Movement

The impact on the share price following the announcement was limited, with shares opening 4% lower on the day.

Tariff Impact

US tariffs are expected to significantly depress Nintendo's gross profit, with an impact greater than current market expectations.

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 handheld and home console hardware systems and related software. The company was formerly known as Nintendo Playing Card Co., Ltd. and changed its name to Nintendo Co., Ltd. in 1963. Nintendo Co., Ltd. was founded in 1889 and is headquartered in Kyoto, Japan.

How the Company Makes Money

Nintendo primarily generates revenue through the sale of hardware and software products. Its hardware segment includes consoles like the Nintendo Switch, which has been a significant driver of sales. In addition to hardware, Nintendo earns substantial income from the sales of its proprietary video game titles, which include some of the best-selling games globally. The company also generates revenue through digital distribution and online services via the Nintendo eShop, offering digital downloads of games and additional content. Licensing deals, merchandise sales, and mobile game applications further contribute to Nintendo's earnings. Strategic partnerships and collaborations, such as those with The Pokémon Company and other developers, also play a vital role in expanding its product offerings and revenue streams.

Nintendo Co Financial Statement Overview

Summary

Nintendo demonstrates strong financial health characterized by high profitability, a robust balance sheet with no debt, and consistent cash generation. While revenue has seen minor fluctuations, the company's financial resilience is evident in its strong margins and substantial equity base. Continued focus on revenue growth and cash flow transparency will further enhance its financial standing.

Income Statement

Nintendo shows strong profitability with a high gross profit margin of 60.1% and a net profit margin of 25.9% in the TTM. Despite a slight decline in revenue from the previous year, the company maintains robust EBIT and EBITDA margins at 25.3% and 31.2% respectively, indicating efficient cost management and operational excellence.

Balance Sheet

The balance sheet is exceptionally strong with no debt, resulting in a debt-to-equity ratio of 0. The return on equity is impressive at 11.9%, reflecting effective use of shareholders' funds. The equity ratio of 79.5% indicates a solid capital structure with a high level of equity financing.

Cash Flow

Cash flow metrics show a mixed picture; while the company has maintained a positive free cash flow, the absence of detailed cash flow data for the TTM limits a full assessment. Historically, Nintendo has demonstrated strong cash generation with a high free cash flow to net income ratio.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.16T	1.67T	1.60T	1.70T	1.76T
Gross Profit	710.17B	954.34B	885.44B	946.04B	970.47B
EBITDA	387.69B	698.75B	515.41B	603.29B	651.43B
Net Income	278.81B	490.60B	432.77B	477.69B	480.38B
Balance Sheet
Total Assets	3.40T	3.15T	2.85T	2.66T	2.45T
Cash, Cash Equivalents and Short-Term Investments	2.06T	2.25T	1.88T	1.71T	1.74T
Total Debt	0.00	6.13B	6.29B	6.23B	5.77B
Total Liabilities	673.07B	546.40B	587.82B	593.08B	572.30B
Stockholders Equity	2.72T	2.60T	2.27T	2.07T	1.87T
Cash Flow
Free Cash Flow	-6.94B	445.97B	300.65B	282.07B	605.10B
Operating Cash Flow	12.07B	462.10B	322.84B	289.66B	612.11B
Investing Cash Flow	753.06B	-630.63B	111.51B	93.70B	-136.53B
Financing Cash Flow	-195.13B	-236.96B	-290.97B	-337.01B	-194.94B

Nintendo Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12970.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7974, the sentiment is Positive. The current price of 12970 is below the 20-day moving average (MA) of 13042.00, above the 50-day MA of 12390.10, and above the 200-day MA of 10234.96, indicating a neutral trend. The MACD of 98.24 indicates Positive momentum. The RSI at 54.51 is Neutral, neither overbought nor oversold. The STOCH value of 63.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7974.

Nintendo Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7974	69 Neutral	$15.10T	54.16	10.29%	1.25%	-27.51%	-35.35%
Sector *	66 Neutral	¥374.59B	14.94	2.24%	2.46%	5.43%	-14.83%
KNM	―	¥2.80T	37.47	16.43%	0.87%	―	―
CCOEF	―	$12.55B	39.54	22.64%	1.00%	―	―
NEXOF	―	$15.03B	19.50	12.67%	1.02%	―	―
SGAMF	―	$4.05B	15.51	11.92%	1.69%	―	―
SQNXF	―	$8.15B	50.98	7.32%	0.99%	―	―