Capcom Co (9697) AI Stock Analysis

• Market Cap: $2.04T
• Dividend Yield: 0.9%
• Average Volume (3M): 1.70M
• Price to Earnings (P/E): 42.1
• Beta (1Y): 0.88
• Revenue Growth: 11.28%
• EPS Growth: 11.70%
• Country: JP
• Employees: 3,531
• Sector: Communication Services
• Sector Strength: 93
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 60.70
• Shares Outstanding: 533,011,200
• 10 Day Avg. Volume: 1,537,090
• 30 Day Avg. Volume: 1,703,856
• PEG Ratio: 1.86
• Price to Book (P/B): 6.18
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 69.26
• 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: $4,670.91
• Price Target Upside: -4.30% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 81 Outperform
• Price Target: ¥5,514.00 ▲(12.97%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

Earnings Growth

Capcom is expected to have multi-year earnings drivers and forecast margin leadership among peers.

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 Performance

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

Stock Price Reaction

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

Capcom Co Business Overview & Revenue Model

Company Description

Capcom Co., Ltd. is a leading Japanese video game developer and publisher, renowned for creating iconic game franchises such as Resident Evil, Street Fighter, Monster Hunter, and Mega Man. Founded in 1979, the company has established a strong presence in the entertainment industry through its development of engaging and innovative gaming experiences. Capcom operates primarily in the digital entertainment sector, focusing on home video games, mobile content, and arcade operations.

How the Company Makes Money

Capcom generates revenue primarily through the development and sale of video games across various platforms, including consoles, PCs, and mobile devices. The company's key revenue streams include digital sales of game titles, physical sales through retail partners, and downloadable content (DLC) that enhances the gaming experience. Additionally, Capcom earns through licensing agreements for merchandise and adaptations of its game franchises into films and other media. The company also benefits from arcade operations and collaborations with other entertainment entities to expand its market reach. A significant portion of Capcom's revenue is derived from successful franchises that have a strong fan base globally, ensuring continual sales through sequels and expansions.

Capcom Co Financial Statement Overview

Summary

Capcom Co exhibits exceptional financial health with strong revenue and profit growth, robust operational efficiency, a sound financial position with low leverage, and strong cash flows. These factors collectively reinforce Capcom's position as a financially stable and profitable entity within its industry.

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: 4881.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 4881 is above the 20-day moving average (MA) of 4572.90, above the 50-day MA of 4270.06, and above the 200-day MA of 3652.75, indicating a bullish trend. The MACD of 174.80 indicates Negative momentum. The RSI at 75.84 is Negative, neither overbought nor oversold. The STOCH value of 86.13 is Negative, 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	$2.04T	42.13	22.64%	0.90%	11.28%	11.70%
3659	80 Outperform	¥2.30T	18.95	12.67%	1.05%	10.80%	138.34%
3635	72 Outperform	¥789.07B	19.80		2.03%	-1.70%	11.29%
9684	70 Outperform	$1.29T	53.13	7.32%	0.80%	0.58%	-56.67%
6460	70 Outperform	$670.21B	16.53	11.92%	1.44%	-8.32%	39.87%
9766	68 Neutral	¥3.07T	41.15	16.43%	0.88%	17.01%	26.23%
Sector *	66 Neutral	¥370.54B	13.79	2.32%	2.56%	5.41%	-19.09%

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.