Capcom Co (9697) AI Stock Analysis

• Market Cap: $1.87T
• Dividend Yield: 1.01%
• Average Volume (3M): 1.83M
• Price to Earnings (P/E): 38.6
• Beta (1Y): 0.89
• Revenue Growth: 11.28%
• EPS Growth: 11.70%
• Country: JP
• Employees: 3,531
• Sector: Communication Services
• Sector Strength: 83
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 60.70
• Shares Outstanding: 533,011,200
• 10 Day Avg. Volume: 1,837,860
• 30 Day Avg. Volume: 1,827,980
• PEG Ratio: 0.70
• Price to Book (P/B): 7.88
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 28.85
• 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: $4,669.64
• Price Target Upside: 4.54% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 81 Outperform
• Price Target: ¥5,514.00 ▲(23.44%Upside)

Capcom Co's strong financial performance, characterized by robust growth and solid cash flows, is the primary driver of its stock score. The technical analysis supports a bullish trend, although caution is advised due to overbought indicators. The high P/E ratio suggests the stock may be overvalued, presenting a potential risk. The absence of recent earnings call data and corporate events limits additional insights.

Positive Factors

Financial Performance

Capcom's Q4 operating profit was in-line with expectations, indicating stable performance.

Growth Opportunities

Analyst sees additional growth opportunities from Switch 2 ports and new titles.

Product Launch

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

Negative Factors

Earnings Report

3Q OP of ¥10.3b was lower than expected, with a year-over-year decrease of 26%.

Market Reaction

The stock was set up for 'sell the event' despite strong sales performance.

Stock Performance

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

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 demonstrates exceptional financial health with consistent revenue and profit growth, strong operational efficiency, and robust cash flows. The balance sheet is solid with low leverage, reflecting a stable financial structure.

Income Statement

Capcom Co has demonstrated impressive growth in its revenue and profitability over the years. The Revenue Growth Rate was robust, with a significant increase from ¥110.05 billion in 2022 to ¥169.60 billion in 2025, indicating strong market demand and effective strategies. The Gross Profit Margin remains high, reflecting efficient cost management. The Net Profit Margin also shows a healthy upward trajectory, highlighting strong profitability. Both the EBIT and EBITDA margins are solid, reinforcing the company's operational efficiency.

Balance Sheet

The balance sheet of Capcom Co is strong, with a high Equity Ratio indicating a stable financial structure predominantly financed by equity. The Debt-to-Equity Ratio is low, suggesting prudent debt management and lower financial risk. The Return on Equity is impressive, reflecting the company's effective use of equity to generate profits. These factors collectively indicate a robust financial foundation with minimal risk exposure.

Cash Flow

Capcom Co's cash flow statement showcases strong cash generation abilities. The Free Cash Flow Growth Rate is significant, indicating the company's ability to generate excess cash after capital expenditures. The Operating Cash Flow to Net Income Ratio is healthy, showing that the company's earnings are well-supported by cash flows. Additionally, the Free Cash Flow to Net Income Ratio is solid, highlighting strong cash conversion efficiency.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	169.60B	152.41B	125.93B	110.05B	95.31B
Gross Profit	98.76B	84.66B	73.82B	63.01B	52.74B
EBITDA	70.41B	63.56B	54.25B	46.30B	37.39B
Net Income	48.45B	43.37B	36.74B	32.55B	24.92B
Balance Sheet
Total Assets	312.98B	243.48B	217.37B	187.37B	163.71B
Cash, Cash Equivalents and Short-Term Investments	166.78B	125.19B	102.12B	107.26B	71.24B
Total Debt	11.92B	12.16B	11.75B	6.10B	6.83B
Total Liabilities	86.67B	48.40B	56.24B	40.89B	42.92B
Stockholders Equity	226.30B	195.08B	161.13B	146.47B	120.80B
Cash Flow
Free Cash Flow	61.77B	31.79B	14.37B	42.88B	11.50B
Operating Cash Flow	67.62B	36.92B	21.79B	46.95B	14.63B
Investing Cash Flow	-7.27B	-5.96B	-7.68B	-7.43B	-4.23B
Financing Cash Flow	-18.73B	-15.97B	-22.48B	-9.98B	-6.96B

Capcom Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4467.00
• 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:9697, the sentiment is Positive. The current price of 4467 is below the 20-day moving average (MA) of 4544.00, above the 50-day MA of 4407.64, and above the 200-day MA of 3745.64, indicating a neutral trend. The MACD of -44.96 indicates Positive momentum. The RSI at 51.12 is Neutral, neither overbought nor oversold. The STOCH value of 55.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9697.

Capcom Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9697	81 Outperform	$1.87T	38.56	22.64%	1.01%	11.28%	11.70%
Sector *	62 Neutral	$41.14B	-1.94	-12.05%	3.98%	2.10%	-69.66%
KNM	―	¥2.80T	37.47	16.43%	0.86%	―	―
NEXOF	―	$14.98B	18.61	12.67%	1.06%	―	―
SGAMF	―	$4.05B	15.51	11.92%	1.69%	―	―
SQNXF	―	$8.15B	50.98	7.32%	0.99%	―	―
3635	72 Outperform	¥694.42B	17.43		2.29%	-1.70%	11.29%

Capcom Co Corporate Events

Capcom Reports Fiscal Year 2025 Financial Results and Strategic Expansion

Capcom Co., Ltd. reported its consolidated financial results for the fiscal year ended March 31, 2025, highlighting a slight decrease in comprehensive income by 0.8% compared to the previous year. The company implemented a 2-for-1 stock split effective April 1, 2024, and announced an upward revision in its dividend forecast. The financial results indicate a stable financial position with a focus on enhancing shareholder value, despite minor fluctuations in income. The inclusion of two new subsidiaries, Leostar Co., Ltd. and Minimum Studios Co., Ltd., suggests strategic expansion efforts.

The most recent analyst rating on (JP:9697) stock is a Buy with a Yen3540.00 price target. To see the full list of analyst forecasts on Capcom Co stock, see the JP:9697 Stock Forecast page.

Capcom Revises Earnings and Dividend Forecasts Upward Amid Strong Performance

Capcom Co., Ltd. has revised its full-year consolidated earnings forecast for the fiscal year ending March 31, 2025, due to strong performance in its Digital Contents business. The success of new and existing game titles has led to increased sales and earnings, prompting an upward revision of the dividend forecast. This reflects positively on Capcom’s operational efficiency and market positioning, indicating potential benefits for stakeholders.