Capcom Co (9697) AI Stock Analysis

• Market Cap: ¥1.45T
• Dividend Yield: 1.17%
• Average Volume (3M): 1.76M
• Price to Earnings (P/E): 33.6
• Beta (1Y): 0.55
• Revenue Growth: 45.17%
• EPS Growth: 81.91%
• Country: JP
• Employees: 3,531
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 27.18
• Shares Outstanding: 533,011,200
• 10 Day Avg. Volume: 1,489,130
• 30 Day Avg. Volume: 1,759,873
• PEG Ratio: 2.70
• Price to Book (P/B): 6.77
• Price to Sales (P/S): 9.04
• P/FCF Ratio: 24.81
• 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: ¥4,635.74
• Price Target Upside: 33.83% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 129.22
• Revenue Forecast (FY): ¥185.75B

• Rating: 69 Neutral
• Price Target: ¥3,616.00 ▲(4.39% Upside)
• Action: Downgraded Date: 03/06/26
• Date: Action: Downgraded 03/06/26

The score is driven primarily by strong financial performance—excellent margins, high returns, and a zero-debt balance sheet—partly offset by a notable TTM decline in free cash flow. Technicals are mixed with the stock still below key longer-term moving averages, and valuation is on the expensive side given the ~33.6 P/E and modest ~1.27% yield.

Positive Factors

High profitability margins

Sustained high gross, EBIT and net margins signal durable pricing power and efficient cost structure tied to digital game sales and DLC. Over months this supports strong earnings retention, funding for development and marketing, and resilience versus peers facing higher variable costs.

Negative Factors

Decline in TTM free cash flow

A sizable TTM FCF decline and sub-100% conversion of net income reduce cash cushion available for long development cycles or opportunistic investments. Persisting weaker FCF would constrain reinvestment and capital returns even if accounting profits remain high.

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 ...

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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 ...

How the Company Makes Money

Capcom generates revenue through multiple streams, primarily from the sale of video games. This includes physical and digital game sales, downloadable content (DLC), and in-game purchases. The company also benefits from recurring revenue through i...

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Capcom generates revenue through multiple streams, primarily from the sale of video games. This includes physical and digital game sales, downloadable content (DLC), and in-game purchases. The company also benefits from recurring revenue through i...

Capcom Co Financial Statement Overview

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	196.07B	169.60B	152.41B	125.93B	110.05B	95.31B
Gross Profit	123.77B	148.25B	127.70B	111.54B	91.00B	76.66B
EBITDA	94.21B	70.51B	61.30B	54.25B	46.30B	37.39B
Net Income	64.27B	48.45B	43.37B	36.74B	32.55B	24.92B
Balance Sheet
Total Assets	290.87B	312.98B	243.48B	217.37B	187.37B	163.90B
Cash, Cash Equivalents and Short-Term Investments	111.77B	166.78B	125.19B	102.12B	107.26B	71.24B
Total Debt	0.00	11.92B	12.16B	11.75B	6.10B	6.83B
Total Liabilities	40.62B	86.67B	48.39B	56.23B	40.89B	43.10B
Stockholders Equity	250.25B	226.30B	195.08B	161.13B	146.47B	120.79B
Cash Flow
Free Cash Flow	28.92B	61.77B	32.08B	14.69B	44.00B	12.32B
Operating Cash Flow	41.90B	67.62B	36.92B	21.79B	46.95B	14.63B
Investing Cash Flow	-45.10B	-7.27B	-5.96B	-7.68B	-7.43B	-4.23B
Financing Cash Flow	-26.32B	-18.73B	-15.97B	-22.48B	-9.98B	-6.96B

Capcom Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3464.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Negative. The current price of 3464 is below the 20-day moving average (MA) of 3464.10, above the 50-day MA of 3440.88, and below the 200-day MA of 3917.73, indicating a neutral trend. The MACD of 40.80 indicates Negative momentum. The RSI at 50.68 is Neutral, neither overbought nor oversold. The STOCH value of 51.94 is Neutral, 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
3635	76 Outperform	¥586.24B	15.43	―	2.49%	-1.05%	6.49%
9766	72 Outperform	¥2.69T	25.95	17.57%	0.84%	18.39%	23.33%
9697	69 Neutral	¥1.45T	33.58	26.91%	1.17%	45.17%	81.91%
6460	68 Neutral	¥523.96B	-6.55	-3.66%	2.12%	-8.73%	-55.81%
7974	67 Neutral	$10.98T	19.28	13.46%	1.17%	24.47%	12.54%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
9684	57 Neutral	¥914.09B	16.57	6.70%	1.80%	-12.02%	126.06%

Capcom Co Corporate Events