Capcom Co (9697) AI Stock Analysis

• Market Cap: $1.68T
• Dividend Yield: 1%
• Average Volume (3M): 2.41M
• Price to Earnings (P/E): 30.1
• Beta (1Y): 0.85
• Revenue Growth: 34.28%
• EPS Growth: 58.34%
• Country: JP
• Employees: 3,531
• Sector: Communication Services
• Sector Strength: 89
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 41.21
• Shares Outstanding: 533,011,200
• 10 Day Avg. Volume: 1,980,450
• 30 Day Avg. Volume: 2,406,666
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: 10.33
• Enterprise Value/Gross Profit: 17.23
• Enterprise Value/Ebitda: 23.81
• 1Y Price Target: $4,762.53
• Price Target Upside: 18.91% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 66 Neutral
• Price Target: ¥4,293.00 ▲(7.19% Upside)

Capcom Co's overall stock score is driven by strong financial performance, which is the most significant factor. However, technical analysis indicates bearish momentum, and the valuation suggests potential overvaluation. The absence of earnings call data and corporate events means these factors did not influence the score.

Positive Factors

Earnings

Capcom delivered a strong Q1 FY2025, with OP of ¥24.5bn, beating consensus by ~17% and achieving ~33% of its FY guidance.

Product Launch

Capcom officially unveiled Resident Evil 9 at Summer Game Fest, confirming a global launch which strengthens visibility on topline/margins.

Negative Factors

Market Reaction

Despite record sales, the stock fell approximately 3-4%.

Visibility

Near-term, MH Wilds issues have reduced visibility, leading to a cut in operating profit estimates.

Capcom Co Business Overview & Revenue Model

Company Description

Capcom Co., Ltd. plans, develops, manufactures, sells, and distributes home video games, online games, mobile games, and arcade games in Japan and internationally. It operates through Digital Contents, Arcade Operations, Amusement Equipments, and Other Businesses segments. The Digital Contents segment develops and sells packaged and digital game content for consumer home video game platforms, as well as mobile content and PC online games. The Arcade Operations segment operates Plaza Capcom amusement facilities primarily in commercial complexes, as well as hosts various events. The Amusement Equipments segment is involved in the development, manufacture, and sale of frames and LCD devices for gaming machines, as well as software. The Other Businesses segment publishes walkthrough and strategy guides, as well as game art books; licenses movies, animated television programs, music CDs, and merchandise; and focuses on the esports business. It also manages amusement arcades. Capcom Co., Ltd. was incorporated in 1979 and is headquartered in Osaka, Japan.

How the Company Makes Money

Capcom generates revenue primarily through the sale of video games across various platforms, including consoles, PCs, and mobile devices. The company's revenue streams are diversified across digital downloads, physical game sales, and downloadable content (DLC). Capcom also benefits from the monetization of its popular franchises through licensing agreements for films, television series, and merchandise. Additionally, the company earns from operating arcade centers and selling arcade game machines. Collaborations and partnerships with other technology and entertainment companies further bolster its revenue, along with a focus on expanding its presence in the online and mobile gaming markets.

Capcom Co Financial Statement Overview

Summary

Capcom Co exhibits strong financial health with impressive revenue growth and profitability metrics. The balance sheet is robust with low leverage, and cash flow management remains effective despite recent declines in free cash flow growth. The company is well-positioned to capitalize on opportunities in the electronic gaming and multimedia industry, though attention to cash flow trends is advisable.

Income Statement

Capcom Co has demonstrated strong revenue growth with a TTM increase of 9.38%, supported by robust gross and net profit margins of 58.23% and 28.57% respectively. The EBIT and EBITDA margins are also healthy at 39.23% and 41.54%, indicating efficient operational management. The consistent growth trajectory and high profitability metrics reflect a well-positioned company in the gaming industry.

Balance Sheet

The balance sheet is solid with a low debt-to-equity ratio of 0.05, indicating conservative leverage. Return on equity is strong at 23.44%, showcasing effective use of shareholder funds. The equity ratio stands at 79.65%, suggesting a stable financial structure. Overall, Capcom Co maintains a healthy balance sheet with minimal risk from debt.

Cash Flow

Capcom Co's cash flow performance is stable, with an operating cash flow to net income ratio of 0.97 and a free cash flow to net income ratio of 0.91. However, the free cash flow growth rate has declined by 19.03% TTM, which could indicate potential challenges in cash generation. Despite this, the company maintains a strong cash flow position relative to net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	185.51B	169.60B	152.41B	125.93B	110.05B	95.31B
Gross Profit	111.27B	98.76B	84.66B	111.54B	91.00B	76.66B
EBITDA	80.52B	70.41B	63.56B	54.63B	47.76B	37.69B
Net Income	55.72B	48.45B	43.37B	36.74B	32.55B	24.92B
Balance Sheet
Total Assets	293.24B	312.98B	243.48B	217.37B	187.37B	163.90B
Cash, Cash Equivalents and Short-Term Investments	153.27B	166.78B	125.19B	102.12B	107.26B	71.24B
Total Debt	6.59B	11.92B	12.16B	11.75B	6.10B	6.83B
Total Liabilities	59.66B	86.68B	48.40B	56.23B	40.89B	43.10B
Stockholders Equity	233.58B	226.30B	195.08B	161.13B	146.47B	120.79B
Cash Flow
Free Cash Flow	50.02B	61.34B	31.79B	14.37B	42.88B	11.50B
Operating Cash Flow	63.38B	67.62B	36.92B	21.79B	46.95B	14.63B
Investing Cash Flow	-17.88B	-7.27B	-5.96B	-7.68B	-7.43B	-4.23B
Financing Cash Flow	-19.02B	-18.73B	-15.97B	-22.48B	-9.98B	-6.96B

Capcom Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4005.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9697, the sentiment is Negative. The current price of 4005 is below the 20-day moving average (MA) of 4048.50, below the 50-day MA of 4314.56, and above the 200-day MA of 3869.32, indicating a neutral trend. The MACD of -68.02 indicates Negative momentum. The RSI at 42.03 is Neutral, neither overbought nor oversold. The STOCH value of 8.49 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9697.

Capcom Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9697	66 Neutral	$1.68T	30.07	26.13%	1.00%	34.28%	58.34%
Sector *	60 Neutral	$44.01B	4.39	-12.81%	4.08%	1.86%	-42.71%
KNM	―	¥3.04T	41.45	16.24%	0.67%	―	―
NEXOF	―	$18.35B	22.15	10.04%	1.60%	―	―
SGAMF	―	$4.04B	40.85	4.51%	1.66%	―	―
SQNXF	―	$8.23B	66.22	5.77%	1.29%	―	―
3635	64 Neutral	¥648.61B	20.38		2.47%	-4.23%	-18.49%

Capcom Co Corporate Events

Capcom Reports Strong Financial Growth in Q1 2025

Capcom Co., Ltd. reported significant growth in its financial results for the three months ended June 30, 2025, with net sales increasing by 53.7% year-on-year to ¥45,502 million. Operating profit surged by 90.8% to ¥24,597 million, and profit attributable to owners of the parent rose by 72.8% to ¥17,238 million. This strong performance reflects Capcom’s successful strategy in leveraging its popular game franchises and expanding its market presence. The company maintains a robust financial position with a shareholder equity ratio of 79.6%, indicating stability and potential for future growth. The dividend forecast remains unchanged, suggesting confidence in sustained financial health.

The most recent analyst rating on (JP:9697) stock is a Buy with a Yen4250.00 price target. To see the full list of analyst forecasts on Capcom Co stock, see the JP:9697 Stock Forecast page.