KONAMI HOLDINGS (9766) AI Stock Analysis

• Market Cap: ¥2.82T
• Dividend Yield: 0.84%
• Average Volume (3M): 464.12K
• Price to Earnings (P/E): 32.9
• Beta (1Y): 0.51
• Revenue Growth: 18.39%
• EPS Growth: 23.33%
• Country: JP
• Employees: 4,890
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 205.54
• Shares Outstanding: 143,500,000
• 10 Day Avg. Volume: 458,490
• 30 Day Avg. Volume: 464,116
• PEG Ratio: 1.22
• Price to Book (P/B): 4.95
• Price to Sales (P/S): 5.65
• P/FCF Ratio: 49.90
• 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: ¥26,877.78
• Price Target Upside: 37.31% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 701.16
• Revenue Forecast (FY): ¥479.11B

• Rating: 72 Outperform
• Price Target: ¥21,728.00 ▲(11.00% Upside)
• Action: Upgraded Date: 01/31/26
• Date: Action: Upgraded 01/31/26

The score is driven primarily by strong financial performance (high margins, strong TTM revenue growth, and a conservatively financed balance sheet). This is tempered by weaker free-cash-flow conversion/volatility, a mixed technical picture with negative MACD, and a relatively high P/E with a low dividend yield.

Positive Factors

Strong profitability & margins

Konami’s TTM margins and recent revenue step-up show durable operating leverage: high gross and EBIT margins provide structural cashflow potential, enabling reinvestment in IP and live ops and cushioning earnings through normal industry cycles over the next several months.

Conservative balance sheet

Extremely low leverage and a declining debt ratio give Konami financial flexibility to fund investment, weather cyclical downturns, and pursue strategic opportunities without pressuring cash flow or requiring rapid deleveraging, supporting stability over 2–6 months.

Recurring revenue from IP & live ops

Konami’s revenue mix—live-service game monetization, licensing of IP, recurring casino systems fees, and sports-club memberships—creates predictable, repeatable cash streams that support revenue durability and higher customer lifetime value across core segments.

Negative Factors

Moderate and volatile free cash flow

Free cash flow conversion is only moderate and recent FCF growth is sharply negative, indicating capex or working-capital drag. That volatility constrains sustained buybacks/dividends and makes capital allocation outcomes and liquidity less predictable over the medium term.

Cyclical earnings risk

The games and amusement industries are hit-driven and tied to product cycles; sustaining a recent step-up in revenue and margins is uncertain. A content lull or weaker release cadence could reverse margin gains and pressure returns within months.

Casino/regulatory exposure

Significant exposure to overseas casino equipment and systems ties part of revenue to casino capital spending and regulatory shifts. Changes in regulation or reduced casino investment can structurally reduce demand and impair medium-term growth visibility.

KONAMI HOLDINGS Business Overview & Revenue Model

Company Description

Konami Group Corporation, together with its subsidiaries, primarily engages in the digital entertainment digital entertainment, amusement, gaming and systems, and sports businesses. The Digital Entertainment segment manufactures and sells digital content and related products, including mobile games, arcade games, card games, and computer and video games. The Amusement segment manufactures and sells amusement machines. The Gaming & Systems segment manufactures, sells, and services gaming machines and casino management systems. The Sports segment operates fitness activities and sports classes, including swimming, gymnastics, dance, soccer, tennis, and golf, as well as produces and sells sports related goods. It operates in Japan and other Asia/Oceania countries, the United States, and Europe. The company was formerly known as Konami Holdings Corporation and changed its name to Konami Group Corporation in July 2022. Konami Group Corporation was founded in 1969 and is headquartered in Tokyo, Japan.

How the Company Makes Money

KONAMI generates revenue primarily through its digital entertainment division, which includes the sale of video games, in-game purchases, and mobile gaming. The company also earns significant income from its gaming and systems segment, where it manufactures and sells gaming machines to casinos, as well as providing systems and services for gaming operations. Furthermore, KONAMI's health and fitness segment contributes to its earnings through the operation of fitness clubs and the sale of related products and services. Strategic partnerships with other gaming companies and collaborations for IP licensing also enhance its revenue streams, allowing for cross-promotional opportunities and broadened market reach.

KONAMI HOLDINGS Financial Statement Overview

Summary

Strong profitability and improving margins with solid TTM revenue growth (+31.1%) and low leverage (debt-to-equity ~0.08). Main offset is less consistent cash flow: free cash flow conversion is moderate (~44% of net income) and TTM free cash flow growth is sharply negative, indicating investment/working-capital drag and volatility.

Income Statement

KONAMI HOLDINGS shows strong and improving profitability alongside solid top-line momentum. In TTM (Trailing-Twelve-Months), revenue grew 31.1% with healthy margins (gross margin ~47.9%, EBIT margin ~25.7%, net margin ~18.3%). Profitability has generally strengthened versus prior annual periods (net margin ~11.1% in 2022 to ~17.7% in 2025 annual), supporting a high score. The main watch-out is that growth and earnings can be cyclical in this industry, so sustaining the recent step-up is the key risk.

Balance Sheet

The balance sheet looks conservatively financed, with low leverage and solid shareholder backing. In TTM (Trailing-Twelve-Months), debt-to-equity is ~0.08 (down from ~0.12 in 2025 annual and ~0.20 in 2021), indicating declining reliance on debt. Returns are also strong, with return on equity ~17.3% in TTM (Trailing-Twelve-Months), improving versus earlier years. A potential weakness is that strong returns are partly tied to continued operating performance; any earnings normalization would likely pull returns down.

Cash Flow

Cash generation is solid but less consistent than profitability. TTM (Trailing-Twelve-Months) operating cash flow is strong (121.8B) and modestly exceeds net income (about 1.23x), which supports earnings quality. However, free cash flow conversion is only moderate (free cash flow is ~44% of net income in TTM), and free cash flow growth is sharply negative in TTM (Trailing-Twelve-Months) (-4.146), suggesting higher investment or working-capital drag. Historical volatility also stands out (including a negative free cash flow year in 2023 annual).

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	463.79B	421.60B	360.31B	314.32B	299.52B	272.66B
Gross Profit	224.76B	198.92B	160.04B	122.39B	134.84B	113.44B
EBITDA	152.05B	132.67B	106.62B	71.58B	92.37B	55.72B
Net Income	85.93B	74.69B	59.17B	34.90B	54.81B	32.26B
Balance Sheet
Total Assets	710.80B	665.04B	605.85B	547.22B	528.61B	489.01B
Cash, Cash Equivalents and Short-Term Investments	286.76B	294.22B	273.75B	219.26B	250.71B	202.43B
Total Debt	39.93B	59.91B	59.86B	59.82B	68.15B	75.17B
Total Liabilities	173.98B	183.17B	178.47B	170.94B	180.54B	189.46B
Stockholders Equity	536.80B	481.85B	427.36B	376.26B	348.06B	298.73B
Cash Flow
Free Cash Flow	51.72B	47.76B	73.75B	-7.68B	73.41B	46.21B
Operating Cash Flow	121.85B	114.62B	103.06B	36.10B	96.54B	69.77B
Investing Cash Flow	-69.96B	-67.89B	-29.22B	-42.79B	-22.99B	-22.41B
Financing Cash Flow	-51.93B	-25.78B	-24.20B	-27.47B	-27.91B	22.43B

KONAMI HOLDINGS Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19575.00
• 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:9766, the sentiment is Positive. The current price of 19575 is above the 20-day moving average (MA) of 19344.75, below the 50-day MA of 20525.40, and below the 200-day MA of 21561.51, indicating a neutral trend. The MACD of -486.74 indicates Negative momentum. The RSI at 49.23 is Neutral, neither overbought nor oversold. The STOCH value of 61.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9766.

KONAMI HOLDINGS Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9766	72 Outperform	¥2.82T	32.86	17.57%	0.84%	18.39%	23.33%
9697	72 Outperform	$1.50T	23.38	26.66%	1.17%	45.17%	81.91%
6460	68 Neutral	¥549.82B	-40.41	4.45%	2.12%	-8.73%	-55.81%
3659	64 Neutral	¥2.57T	29.01	10.76%	0.78%	-4.40%	89.91%
7974	62 Neutral	¥10.47T	26.15	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	¥938.70B	36.68	6.70%	1.80%	-12.02%	126.06%

KONAMI HOLDINGS Corporate Events

Konami to Absorb Real Estate Subsidiary in Streamlining Move

Konami Group Corporation will absorb its wholly owned subsidiary Konami Real Estate, Inc. in an absorption-type merger effective April 1, 2026, with Konami as the surviving entity and the real estate unit to be dissolved. The move centralizes the management and operation of group real estate assets within the parent company to streamline group governance and improve administrative efficiency.

No new shares will be issued and no merger consideration will be paid, as Konami already holds 100% of Konami Real Estate, and the transaction will proceed as a short-form merger without a shareholder vote. Konami expects only minimal impact on its consolidated financial statements, indicating the reorganization is primarily structural rather than a driver of near-term financial performance, but it may support longer-term operational efficiency in asset management.

The most recent analyst rating on (JP:9766) stock is a Buy with a Yen20896.00 price target. To see the full list of analyst forecasts on KONAMI HOLDINGS stock, see the JP:9766 Stock Forecast page.

Konami Lifts FY2026 Earnings and Dividend Forecast on Strong Digital Entertainment Performance

Konami Group Corporation has raised its consolidated earnings forecast for the fiscal year ending March 31, 2026, citing stronger-than-expected performance across revenue and profits, driven chiefly by robust demand for core digital entertainment titles including eFootball™. Revenue is now projected at ¥468 billion versus an earlier ¥430 billion, with business profit and operating profit both revised up by ¥17 billion and profit attributable to owners of the parent increased to ¥86 billion, outpacing both prior guidance and the previous year’s results. Reflecting this improved outlook and its policy of maintaining a payout ratio above 30%, Konami also lifted its year-end dividend forecast from ¥83.00 to ¥107.50 per share, bringing the total annual dividend to ¥190.50 per share, signaling stronger shareholder returns and underlining the company’s confidence in its earnings momentum.

The most recent analyst rating on (JP:9766) stock is a Buy with a Yen25166.00 price target. To see the full list of analyst forecasts on KONAMI HOLDINGS stock, see the JP:9766 Stock Forecast page.

Konami Delivers Double-Digit Profit Growth and Raises FY2026 Forecasts

Konami Group Corporation reported solid growth for the nine months ended December 31, 2025, with revenue rising 13.6% year-on-year to ¥353.0 billion and profit attributable to owners of the parent climbing 17.8% to ¥74.3 billion, supported by double-digit gains in business and operating profit and higher basic earnings per share of ¥548.46. The company also strengthened its financial position, with total assets increasing to ¥710.8 billion and equity attributable to owners of the parent improving to a 75.5% ratio, while it raised both its dividend and full-year earnings forecasts for the fiscal year ending March 31, 2026, signaling confidence in continued profit growth and enhanced shareholder returns.

The most recent analyst rating on (JP:9766) stock is a Buy with a Yen25166.00 price target. To see the full list of analyst forecasts on KONAMI HOLDINGS stock, see the JP:9766 Stock Forecast page.