Capcom Co (9697) AI Stock Analysis

• Market Cap: ¥1.51T
• Dividend Yield: 1.17%
• Average Volume (3M): 1.76M
• Price to Earnings (P/E): 24.9
• Beta (1Y): 0.79
• 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): 24.57
• 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: 24.98
• 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: ¥4,680.19
• Price Target Upside: 30.01% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ¥4,380.00 ▲(21.67% Upside)

Capcom Co's overall stock score is driven primarily by its strong financial performance, which reflects robust revenue growth and profitability. Technical analysis suggests caution due to mixed signals, while valuation metrics indicate the stock may be overvalued. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth reflects Capcom's ability to expand its market reach and capitalize on its popular franchises, ensuring long-term business sustainability.

Balance Sheet Health

A low debt-to-equity ratio indicates conservative financial management, providing Capcom with flexibility to invest in growth opportunities without significant risk.

Profitability Metrics

High profit margins suggest effective cost management and strong pricing power, which are crucial for maintaining competitive advantage and long-term profitability.

Negative Factors

Cash Flow Challenges

A decline in free cash flow growth could signal potential challenges in cash generation, which may impact Capcom's ability to fund new projects or return capital to shareholders.

Free Cash Flow to Net Income Ratio

While stable, a lower free cash flow to net income ratio compared to previous periods may limit Capcom's ability to reinvest in growth or manage financial obligations effectively.

Decline in Free Cash Flow Growth

The decline in free cash flow growth suggests potential operational inefficiencies or increased capital expenditures, which could affect Capcom's financial flexibility in the medium term.

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 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 its online services and subscriptions associated with specific titles. Additionally, Capcom earns revenue from licensing its intellectual properties for merchandise, films, and collaborations with other media. Significant partnerships with platform holders such as Sony, Microsoft, and Nintendo further enhance its distribution capabilities and visibility in the market. Seasonal sales promotions and events, like the Tokyo Game Show, also contribute to increased sales and brand awareness.

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	194.35B	169.60B	152.41B	125.93B	110.05B	95.31B
Gross Profit	118.28B	98.76B	84.66B	111.54B	91.00B	76.66B
EBITDA	86.42B	70.41B	63.56B	54.63B	47.76B	37.69B
Net Income	60.69B	48.45B	43.37B	36.74B	32.55B	24.92B
Balance Sheet
Total Assets	298.85B	312.98B	243.48B	217.37B	187.37B	163.90B
Cash, Cash Equivalents and Short-Term Investments	130.74B	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	53.66B	86.68B	48.40B	56.23B	40.89B	43.10B
Stockholders Equity	245.19B	226.30B	195.08B	161.13B	146.47B	120.79B
Cash Flow
Free Cash Flow	44.15B	61.34B	31.79B	14.37B	42.88B	11.50B
Operating Cash Flow	58.05B	67.62B	36.92B	21.79B	46.95B	14.63B
Investing Cash Flow	-40.84B	-7.27B	-5.96B	-7.68B	-7.43B	-4.23B
Financing Cash Flow	-25.34B	-18.73B	-15.97B	-22.48B	-9.98B	-6.96B

Capcom Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3600.00
• 50DMA: Negative
• 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 3600 is below the 20-day moving average (MA) of 3644.40, below the 50-day MA of 3882.30, and below the 200-day MA of 4032.31, indicating a bearish trend. The MACD of -93.89 indicates Negative momentum. The RSI at 43.31 is Neutral, neither overbought nor oversold. The STOCH value of 31.86 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
3659	76 Outperform	¥3.08T	27.40	10.76%	0.78%	-4.40%	89.91%
3635	76 Outperform	¥645.60B	17.37	―	2.49%	-1.05%	6.49%
9766	70 Neutral	¥2.93T	34.56	17.57%	0.84%	18.39%	23.33%
9697	69 Neutral	¥1.51T	24.90	26.66%	1.17%	45.17%	81.91%
6460	68 Neutral	¥482.36B	30.39	4.45%	2.12%	-8.73%	-55.81%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
9684	57 Neutral	¥1.05T	45.47	6.70%	1.80%	-12.02%	126.06%

Capcom Co Corporate Events

Capcom Reports Strong Financial Growth in First Half of 2025

Capcom Co., Ltd. reported a significant increase in its consolidated financial results for the six months ending September 30, 2025, with net sales rising by 43.9% year-on-year. The company’s operating profit and ordinary profit also saw substantial growth, highlighting strong performance and positive market reception. This financial success positions Capcom favorably within the gaming industry, indicating robust operational strategies and potential positive implications for stakeholders.