KONAMI HOLDINGS (9766) AI Stock Analysis

• Market Cap: ¥3.07T
• Dividend Yield: 0.88%
• Average Volume (3M): 448.17K
• Price to Earnings (P/E): 41.2
• Beta (1Y): 0.62
• Revenue Growth: 17.01%
• EPS Growth: 26.23%
• Country: JP
• Employees: 4,890
• Sector: Communication Services
• Sector Strength: 93
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): N/A
• Shares Outstanding: 143,500,000
• 10 Day Avg. Volume: 444,240
• 30 Day Avg. Volume: 448,170
• PEG Ratio: -0.63
• Price to Book (P/B): 2.18
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -106.55
• 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: ¥20,640.00
• Price Target Upside: -8.97% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 68 Neutral
• Price Target: ¥24,460.00 ▲(7.87%Upside)

The most significant factor contributing to the overall score is the strong financial performance, demonstrating robust growth and stability. Technical analysis presents some caution due to overbought signals, potentially limiting near-term price appreciation. The valuation suggests a high P/E ratio, indicating potential overvaluation, which might deter some investors.

Positive Factors

Analyst Recommendation

The analyst recommendation is to buy.

Earnings Growth

The MGS Remake and Soccer World Cup are key earnings growth drivers for Konami.

Financial Performance

Konami's 3Q OP of ¥36.9b (+53% YoY) beat consensus of ¥29.1b driven by the Game segment, particularly continued strong momentum of eFootball (Mobile) and strong sales of SH2 (Console).

Negative Factors

Monetization Decisions

A light 4Q with OP of ¥15b may seem like a miss due to the company's voluntarily turning down monetization in eFootball.

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 HOLDINGS generates revenue through several key streams. In the digital entertainment sector, the company earns money from the development and sale of video games across multiple platforms, including consoles, PCs, and mobile devices. This includes sales of game titles, downloadable content, and in-game purchases. The amusement segment contributes through the sale and leasing of arcade machines and related content. In the gaming & systems sector, Konami supplies gaming machines and casino management systems to casinos, earning revenue from both product sales and ongoing support services. The sports segment generates income from membership fees and services related to the operation of fitness clubs and health-related offerings. Additionally, Konami's partnerships and collaborations with other companies enhance its product offerings and market reach, further contributing to its revenue streams.

KONAMI HOLDINGS Financial Statement Overview

Summary

KONAMI HOLDINGS exhibits strong financial performance with impressive revenue growth and profitability. The income statement, balance sheet, and cash flow scores indicate robust financial health, low financial risk, and efficient cash management.

Income Statement

KONAMI HOLDINGS has demonstrated strong financial performance with a consistent increase in total revenue over the years. The gross profit margin and EBIT margin have shown improvement, reflecting effective cost management and operational efficiency. Net profit margin remains robust, indicating strong profitability. The company has also shown significant revenue growth, especially in the recent periods, which is a positive indicator of its market position and demand for its offerings.

Balance Sheet

The balance sheet of KONAMI HOLDINGS is healthy, characterized by a low debt-to-equity ratio, which indicates prudent financial leverage. The equity ratio is solid, suggesting a stable capital structure with significant shareholder equity. Return on equity is strong, reflecting the company's ability to generate profits from its equity base. Overall, the company is in a strong financial position with minimal risk associated with high leverage.

Cash Flow

The cash flow statements indicate a positive trend in free cash flow, with significant year-over-year growth. The operating cash flow to net income ratio is healthy, showing efficient conversion of profits into cash. The free cash flow to net income ratio also suggests strong cash generation capabilities, contributing to the company's ability to reinvest in its business and return value to shareholders. The company maintains a strong cash position, providing flexibility for future investments.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	421.60B	360.31B	314.32B	299.52B	272.66B
Gross Profit	198.92B	160.04B	122.39B	134.84B	113.44B
EBITDA	132.67B	106.62B	71.58B	92.37B	55.72B
Net Income	74.69B	59.17B	34.90B	54.81B	32.26B
Balance Sheet
Total Assets	665.04B	605.85B	547.22B	528.61B	489.01B
Cash, Cash Equivalents and Short-Term Investments	294.22B	273.75B	219.26B	250.71B	202.43B
Total Debt	75.53B	59.86B	59.82B	68.15B	75.17B
Total Liabilities	183.17B	178.47B	170.94B	180.54B	189.46B
Stockholders Equity	481.85B	427.36B	376.26B	348.06B	298.73B
Cash Flow
Free Cash Flow	47.76B	73.75B	-7.68B	73.41B	46.21B
Operating Cash Flow	114.62B	103.06B	36.10B	96.54B	69.77B
Investing Cash Flow	-67.89B	-29.22B	-42.79B	-22.99B	-22.41B
Financing Cash Flow	-25.78B	-24.20B	-27.47B	-27.91B	22.43B

KONAMI HOLDINGS Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 22675.00
• 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:9766, the sentiment is Positive. The current price of 22675 is above the 20-day moving average (MA) of 20971.00, above the 50-day MA of 20186.90, and above the 200-day MA of 16651.18, indicating a bullish trend. The MACD of 753.96 indicates Negative momentum. The RSI at 72.69 is Negative, neither overbought nor oversold. The STOCH value of 93.78 is Negative, 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	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%
CCOEF		$14.11B	42.05	22.64%	0.92%	―	―
NEXOF		$15.91B	20.22	12.67%	0.98%	―	―
NTDOF		$109.70B	60.48	10.29%	1.19%	―	―
SQNXF		$8.93B	56.22	7.32%	0.90%	―	―
3635	72 Outperform	¥789.07B	19.80		2.03%	-1.70%	11.29%

KONAMI HOLDINGS Corporate Events

KONAMI Announces Business Reorganization to Enhance Market Responsiveness

KONAMI GROUP CORPORATION announced a business reorganization involving the transfer of part of its subsidiary’s business to a newly established company, Konami Arcade Games Co., Ltd. This move aims to create independent entities for arcade games and pachinko businesses, enhancing decision-making and management flexibility. The reorganization is expected to have minimal impact on the company’s financial results.

The most recent analyst rating on (JP:9766) stock is a Buy with a Yen12160.00 price target. To see the full list of analyst forecasts on KONAMI HOLDINGS stock, see the JP:9766 Stock Forecast page.

Konami Announces Director Candidates Ahead of Shareholder Meeting

Konami Group Corporation has announced the candidates for appointment as directors, which will be confirmed at the upcoming General Meeting of Shareholders on June 26, 2025. This announcement reflects the company’s strategic leadership planning and could influence its future direction and governance structure.

KONAMI Announces Record Dividend Payout Amid Strong Financial Performance

KONAMI GROUP CORPORATION announced a resolution to distribute dividends from retained earnings, with a record date of March 31, 2025. The company reported strong performance in its Digital Entertainment business, leading to an increase in total revenue and profits, surpassing previous forecasts. Consequently, the year-end dividend per share has been set at 99.50 yen, resulting in an annual dividend of 165.50 yen per share, marking the highest dividend payout in the company’s history.

Konami Reports Strong Financial Growth in FY2025

Konami Group Corporation reported a strong financial performance for the fiscal year ending March 31, 2025, with significant increases in revenue and profit compared to the previous year. The company achieved a 17% increase in revenue and a 26.2% rise in profit attributable to owners of the parent, reflecting robust operational efficiency and market demand. The company’s financial position remains solid, with a notable increase in total equity and cash dividends, indicating a positive outlook for stakeholders.