Square Enix Holdings Co (9684) AI Stock Analysis

• Market Cap: ¥1.08T
• Dividend Yield: 1.37%
• Average Volume (3M): 884.75K
• Price to Earnings (P/E): 44.4
• Beta (1Y): 0.39
• Revenue Growth: 0.58%
• EPS Growth: -56.67%
• Country: JP
• Employees: 4,770
• Sector: Communication Services
• Sector Strength: 88
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 108.03
• Shares Outstanding: 122,531,600
• 10 Day Avg. Volume: 672,680
• 30 Day Avg. Volume: 884,746
• PEG Ratio: 2.29
• Price to Book (P/B): 2.46
• 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: ¥6,365.35
• Price Target Upside: -29.55% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 5

• Rating: 70 Outperform
• 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

Earnings

Earnings Decline Continues; Most Exp. Game Stock; Cut Est.

Game Segment Challenges

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 Business Overview & Revenue Model

Company Description

Square 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 Money

Square 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

Income Statement

Balance Sheet

Cash Flow

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
347.25B	356.34B	343.27B	365.27B	331.05B	265.29B
	Gross Profit
157.83B	167.37B	175.89B	195.31B	159.21B	126.27B
	EBIT
31.02B	32.56B	44.33B	59.26B	47.23B	32.76B
	EBITDA
19.71B	25.68B	51.25B	66.86B	54.74B	40.18B
	Net Income Common Stockholders
12.86B	14.91B	49.26B	51.01B	26.94B	21.35B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
237.64B	225.90B	193.50B	163.09B	146.23B	123.45B
	Total Assets
421.57B	410.88B	399.63B	380.90B	336.14B	302.63B
	Total Debt
0.00	0.00	2.17B	4.34B	3.78B	3.80B
	Net Debt
-237.64B	-225.90B	-191.33B	-158.75B	-142.45B	-119.65B
	Total Liabilities
85.86B	93.75B	82.37B	96.47B	92.87B	80.71B
	Stockholders Equity
335.43B	316.87B	317.04B	284.24B	243.13B	221.79B
Cash Flow		Free Cash Flow
0.00	41.79B	3.68B	19.61B	28.60B	10.59B
	Operating Cash Flow
0.00	52.24B	12.23B	27.57B	35.00B	18.00B
	Investing Cash Flow
0.00	-13.21B	27.60B	-8.12B	-6.65B	-10.04B
	Financing Cash Flow
0.00	-14.79B	-15.52B	-9.34B	-6.65B	-14.05B

Square Enix Holdings Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9035.00
• 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:9684, the sentiment is Positive. The current price of 9035 is above the 20-day moving average (MA) of 8899.75, above the 50-day MA of 7959.75, and above the 200-day MA of 6515.75, indicating a bullish trend. The MACD of 296.85 indicates Positive momentum. The RSI at 69.23 is Neutral, neither overbought nor oversold. The STOCH value of 53.87 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9684	70 Outperform	¥1.08T	44.42	7.32%	1.37%	0.58%	-56.67%
Sector *	61 Neutral	$14.59B	5.85	-4.31%	3.69%	2.76%	-30.36%
KNM		¥2.68T	36.69	16.43%	0.82%	―	―
CCOEF		$12.45B	39.61	22.64%	0.89%	―	―
NEXOF		$14.44B	17.60	12.67%	0.84%	―	―
SGAMF		$3.85B	14.61	11.92%	1.71%	―	―
3635	72 Outperform	¥773.18B	19.41		2.62%	-1.70%	11.29%

Square Enix Holdings Co Corporate Events

Square Enix Reports No Share Repurchases in March 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.