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Square Enix Holdings Co Ltd (JP:9684)
:9684

Square Enix Holdings Co (9684) AI Stock Analysis

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JP

Square Enix Holdings Co

(OTC:9684)

Rating:70Outperform
Price Target:
Square Enix Holdings Co benefits from strong financial stability and technical momentum, reflected in high trading levels and robust market indicators. However, operational efficiency and cash flow transparency pose challenges. The stock is currently trading at a high valuation, which may limit immediate upside potential.
Positive Factors
Valuation
Despite the gloomy outlook, the current valuation is at a historical high.
Negative Factors
Buyback Rejection
The firm rejected a proposed ¥60b buyback.
Game Segment Performance
Sustained decline in mobile-game weakness as well as a down-year for PC MMO game segment.
Operational Challenges
All game sub-segments face operational or structural challenges.

Square Enix Holdings Co (9684) vs. iShares MSCI Japan ETF (EWJ)

Square Enix Holdings Co Business Overview & Revenue Model

Company DescriptionSquare Enix Holdings Co., Ltd. operates in the content and service businesses in Japan, North America, Europe, and rest of Asia. It operates through four segments: Digital Entertainment, Amusement, Publication, and Merchandising. The company's Digital Entertainment segment plans, develops, distributes, and operates digital entertainment content primarily in the form of games. This segment offers digital entertainment content for various customer usage environments, including personal computers and smart devices, as well as consumer game consoles, such as handheld game machines. Its Amusement segment is involved in the operation of amusement facilities. This segment also engages in the planning, development, distribution, and rental of arcade game machines and related products for amusement facilities. The company's Publication segment publishes and licenses comic magazines, comic books, and game-related books. Its Merchandising segment plans, produces, distributes, and licenses derivative products. The company publishes, distributes, and licenses entertainment content under the SQUARE ENIX and TAITO brands. Square Enix Holdings Co., Ltd. was founded in 1975 and is headquartered in Tokyo, Japan.
How the Company Makes MoneySquare Enix generates revenue primarily through the sale of video games, which includes both physical and digital formats. The company's video game revenue is driven by the success of its popular franchises and new game releases, which often include additional downloadable content (DLC), expansion packs, and in-game purchases that provide ongoing revenue streams. Additionally, Square Enix earns from licensing its intellectual properties for merchandise and media adaptations, such as films and animation. The company also operates amusement facilities, which contribute to its revenue, although at a smaller scale compared to its gaming division. Strategic partnerships and collaborations with other technology and media companies further enhance its revenue potential by expanding its market reach and product offerings.

Square Enix Holdings Co Financial Statement Overview

Summary
Square Enix Holdings Co demonstrates strong profitability with zero debt and healthy equity. However, recent operational and cash flow challenges, along with a slight decline in margins, suggest caution in maintaining financial strength.
Income Statement
75
Positive
Square Enix Holdings Co has shown stable revenue and profitability metrics. The company experienced a slight decrease in revenue in TTM compared to the last fiscal year, but it remains strong overall. The Gross Profit Margin and Net Profit Margin are healthy, reflecting efficient cost management and profitability. However, the decline in EBIT and EBITDA margins in TTM indicates a slight pressure on operational efficiency.
Balance Sheet
82
Very Positive
The balance sheet is robust with zero total debt, indicating strong financial stability. The company maintains a high equity ratio, reflecting a solid financial foundation. Additionally, a negative net debt position emphasizes excellent liquidity. However, a slight decline in stockholder's equity growth compared to previous years suggests a need for caution.
Cash Flow
65
Positive
Cash flow metrics reflect some challenges. While free cash flow growth has been positive in previous years, the TTM period shows zero free cash flow due to missing operating cash flow data. The lack of recent cash flow data limits the ability to fully evaluate cash generation efficiency. Historical data indicates strong cash flow management, though current transparency is limited.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue347.25B324.51B356.34B343.27B365.27B331.05B
Gross Profit157.83B158.65B167.37B175.89B195.31B159.21B
EBITDA19.71B48.25B25.68B51.25B66.86B54.74B
Net Income12.86B24.41B14.91B49.26B51.01B26.94B
Balance Sheet
Total Assets421.57B416.16B411.93B400.59B380.90B336.14B
Cash, Cash Equivalents and Short-Term Investments237.64B247.76B225.90B193.50B163.09B146.23B
Total Debt2.19B0.002.15B2.17B4.34B3.78B
Total Liabilities85.85B79.79B94.80B83.32B96.47B92.86B
Stockholders Equity335.43B336.06B316.87B317.04B284.24B243.13B
Cash Flow
Free Cash Flow0.0031.91B41.79B3.68B19.61B28.60B
Operating Cash Flow0.0042.78B52.24B12.23B27.57B35.00B
Investing Cash Flow0.00-15.11B-13.21B27.60B-8.12B-6.65B
Financing Cash Flow0.00-6.60B-14.79B-15.52B-9.34B-6.65B

Square Enix Holdings Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price10805.00
Price Trends
50DMA
8852.56
Positive
100DMA
7878.14
Positive
200DMA
6883.04
Positive
Market Momentum
MACD
558.55
Negative
RSI
83.35
Negative
STOCH
94.98
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9684, the sentiment is Positive. The current price of 10805 is above the 20-day moving average (MA) of 9700.10, above the 50-day MA of 8852.56, and above the 200-day MA of 6883.04, indicating a bullish trend. The MACD of 558.55 indicates Negative momentum. The RSI at 83.35 is Negative, neither overbought nor oversold. The STOCH value of 94.98 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9684.

Square Enix Holdings Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
$1.29T53.137.32%0.80%0.58%-56.67%
58
Neutral
C$3.18B5.94-0.75%6.71%-2.19%-11.60%
GBKNM
¥3.07T41.1516.43%0.79%
$14.11B42.0522.64%0.92%
$15.91B20.2212.67%0.98%
$4.63B15.8111.92%1.66%
72
Outperform
¥789.07B19.80
2.03%-1.70%11.29%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:9684
Square Enix Holdings Co
10,805.00
6,000.52
124.89%
GB:KNM
KONAMI HOLDINGS
22,675.00
11,307.46
99.47%
CCOEF
Capcom Co
31.95
13.36
71.87%
NEXOF
NEXON Co
19.99
2.04
11.36%
SGAMF
Sega Sammy Holdings
21.75
7.14
48.87%
JP:3635
Koei Tecmo Holdings Co., Ltd.
2,359.50
1,013.32
75.27%

Square Enix Holdings Co Corporate Events

Square Enix Reports No Share Repurchases in March 2025
Apr 3, 2025

Square Enix Holdings Co., Ltd. announced that no shares were repurchased during the period from March 1, 2025, to March 31, 2025, despite a prior board resolution allowing for the repurchase of up to 5 million shares. This lack of share repurchase activity may indicate a strategic decision to maintain current capital levels or reflect market conditions, potentially impacting investor perceptions and the company’s stock performance.

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.Date of analysis: May 01, 2025