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Capcom Co
(9697)
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Rating:82Outperform
Price Target:
¥4,906.00
▲(45.84% Upside)
Action:Reiterated
Date:07/30/26
The score is driven primarily by strong financial performance (excellent margins, solid growth, and very low leverage), supported by a clear technical uptrend versus major moving averages. Offsetting factors are weaker cash conversion and a moderately high valuation (P/E ~27) with only a modest dividend yield (~1.06%).
Positive Factors
High profitability margins
Sustained high gross, EBIT and net margins indicate durable pricing power and efficient cost structure for a software/IP-driven business. These margins generate operating leeway to fund development, marketing and franchise extensions while supporting strong ROE and shareholder returns over multiple cycles.
Negative Factors
Weak cash conversion
Profitability is high but a material portion does not convert to cash, reducing usable liquidity for capex, dividends or opportunistic investments. Lumpy free cash flow raises execution risk around release cycles and can force short-term financing or deferred spend in weaker cash years.
Read all positive and negative factors
Positive Factors
Negative Factors
High profitability margins
Sustained high gross, EBIT and net margins indicate durable pricing power and efficient cost structure for a software/IP-driven business. These margins generate operating leeway to fund development, marketing and franchise extensions while supporting strong ROE and shareholder returns over multiple cycles.
Read all positive factors
Capcom Co (9697) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.66T
Dividend Yield1.14%
Average Volume (3M)1.76M
Price to Earnings (P/E)24.9
Beta (1Y)0.32
Revenue Growth18.74%
EPS Growth19.36%
CountryJP
Employees3,976
SectorCommunication Services
Sector Strength97
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)159.00
Shares Outstanding533,011,200
10 Day Avg. Volume1,489,130
30 Day Avg. Volume1,759,873
Financial Highlights & Ratios
PEG Ratio2.03
Price to Book (P/B)5.23
Price to Sales (P/S)7.17
P/FCF Ratio78.73
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥3,600.00Price Target Upside7.02% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)152.52
Revenue Forecast (FY)¥221.77B
Capcom Co Business Overview & Revenue Model
Company Description
Capcom Co., Ltd., established in 1979 and headquartered in Osaka, Japan, is a prominent global entertainment developer and publisher. The company is engaged in the planning, creation, manufacturing, sales, and distribution of a wide array of inter...
How the Company Makes Money
Capcom primarily makes money by monetizing its game intellectual property (IP) across development, publishing, and long-tail catalog sales. The core revenue stream is sales of digital and physical game software for consoles and PC, including new r...
Capcom Co Financial Statement Overview
Summary
Income Statement
92
Very Positive
Balance Sheet
96
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 220.27B | 195.37B | 169.60B | 152.41B | 125.93B | 110.05B |
| Gross Profit | 127.99B | 110.22B | 148.25B | 127.70B | 111.54B | 91.00B |
| EBITDA | 97.43B | 79.19B | 70.47B | 63.56B | 54.63B | 47.76B |
| Net Income | 66.51B | 54.59B | 48.45B | 43.37B | 36.74B | 32.55B |
Balance Sheet | ||||||
| Total Assets | 341.31B | 339.31B | 312.98B | 243.48B | 217.37B | 187.37B |
| Cash, Cash Equivalents and Short-Term Investments | 161.21B | 148.00B | 166.78B | 125.19B | 102.12B | 107.26B |
| Total Debt | 6.49B | 5.10B | 11.92B | 12.16B | 11.75B | 6.10B |
| Total Liabilities | 54.39B | 71.59B | 86.67B | 48.39B | 56.23B | 40.89B |
| Stockholders Equity | 286.89B | 267.70B | 226.30B | 195.08B | 161.13B | 146.47B |
Cash Flow | ||||||
| Free Cash Flow | 44.39B | 17.79B | 61.77B | 32.08B | 14.69B | 44.00B |
| Operating Cash Flow | 53.36B | 31.38B | 67.62B | 36.92B | 21.79B | 46.95B |
| Investing Cash Flow | -23.39B | -55.86B | -7.27B | -5.96B | -7.68B | -7.43B |
| Financing Cash Flow | -27.37B | -26.07B | -18.73B | -15.97B | -22.48B | -9.98B |
Capcom Co Technical Analysis
Positive
3364.00
Price Trends
3240.45
Positive
3311.52
Positive
3481.47
Positive
Market Momentum
225.63
Negative
71.92
Negative
70.90
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 3364 is below the 20-day moving average (MA) of 3621.80, above the 50-day MA of 3240.45, and below the 200-day MA of 3481.47, indicating a bullish trend. The MACD of 225.63 indicates Negative momentum. The RSI at 71.92 is Negative, neither overbought nor oversold. The STOCH value of 70.90 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
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | ¥2.80T | 24.81 | 19.02% | 1.14% | 22.80% | 49.61% | |
82 Outperform | ¥1.66T | 24.93 | 21.91% | 1.34% | 18.74% | 19.36% | |
82 Outperform | ¥538.25B | 11.01 | ― | 2.49% | 13.22% | 52.60% | |
72 Outperform | ¥1.01T | 33.65 | 8.75% | 1.62% | -8.27% | 21.14% | |
71 Outperform | ¥8.85T | 21.07 | 14.82% | 2.95% | 98.56% | 52.21% | |
64 Neutral | ¥556.77B | -99.98 | -1.58% | 2.06% | 13.66% | -112.01% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
JP:9697
Capcom Co
4,149.00
238.67
6.10%
JP:9766
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-42.93%
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1,620.00
-439.29
-21.33%
Capcom Co Corporate Events
Capcom Delivers Strong First-Quarter Earnings and Confirms Full-Year Outlook
Jul 28, 2026
Capcom reported strong results for the quarter ended June 30, 2026, with net sales rising 54.7% year on year to ¥70.4 billion and operating profit jumping 66.9% to ¥41.1 billion, driving profit attributable to owners of parent up 69.2% t...
Capcom Completes Treasury Share Disposal for External Director Stock Compensation
Jul 17, 2026
Capcom has completed the disposal of a portion of its treasury shares to provide restricted stock remuneration to its external directors, following a board resolution passed on June 18, 2026. The transaction, finalized on July 17, 2026, involved 6...
Capcom Introduces Restricted Stock Pay for External Directors to Align Interests
Jun 18, 2026
Capcom has approved a revision to its remuneration system for external directors, excluding audit and supervisory committee members, introducing restricted stock as a new compensation component. The move is intended to strengthen independent overs...
Capcom Revamps Director Pay to Strengthen Performance and Shareholder Alignment
May 13, 2026
Capcom’s board has approved a proposal to overhaul its director remuneration system, excluding members of the Audit and Supervisory Committee, with the aim of strengthening incentives for medium- to long-term value creation and aligning mana...
Capcom Delivers Double-Digit Profit Growth and Lifts Dividend on Strong FY2026 Results
May 13, 2026
Capcom reported strong results for the fiscal year ended March 31, 2026, with net sales rising 15.2% to ¥195.4 billion and profit attributable to owners of parent increasing 12.7% to ¥54.6 billion. Margins remained high, with an operatin...
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.