KONAMI HOLDINGS (9766) AI Stock Analysis

• Market Cap: ¥2.66T
• Dividend Yield: 0.87%
• Average Volume (3M): 523.70K
• Price to Earnings (P/E): 34.2
• Beta (1Y): 0.65
• Revenue Growth: 22.76%
• EPS Growth: 50.11%
• Country: JP
• Employees: 4,890
• Sector: Communication Services
• Sector Strength: 84
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): N/A
• Shares Outstanding: 143,500,000
• 10 Day Avg. Volume: 534,270
• 30 Day Avg. Volume: 523,700
• PEG Ratio: 2.69
• Price to Book (P/B): 5.79
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 39.64
• 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: ¥19,685.00
• Price Target Upside: 4.60% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

KONAMI HOLDINGS shows strong financial performance with high profitability and a solid balance sheet. The stock demonstrates a stable upward trend in the medium to long term, although current market momentum indicators are unavailable. Valuation appears reasonable, with a P/E ratio in line with industry standards. The modest dividend yield suggests a focus on growth rather than income distribution. Overall, the company is well-positioned for future growth in the Electronic Gaming & Multimedia industry.

Positive Factors

Earnings

Konami's 3Q operating profit of ¥36.9 billion, marking a 53% year-over-year increase, exceeded the consensus forecast of ¥29.1 billion, driven by strong performance in the Game segment.

Financial Outlook

The company revised up its operating profit guidance to ¥100 billion from ¥84 billion.

Market Growth Drivers

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

Negative Factors

Monetization Strategy

A light fourth quarter operating profit of ¥15 billion may appear as a miss due to the company's voluntary decision to reduce monetization in eFootball.

KONAMI HOLDINGS Business Overview & Revenue Model

Company Description

KONAMI HOLDINGS CORPORATION is a diversified entertainment and gaming company headquartered in Tokyo, Japan. The company operates in various sectors, including digital entertainment, amusement, gaming & systems, and sports. Konami is renowned for its development and publishing of video games, with popular franchises such as Metal Gear, Silent Hill, and Pro Evolution Soccer. Additionally, it manufactures and distributes amusement arcade games, gaming machines, and provides sports club management and health-related services.

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

Overall, KONAMI HOLDINGS exhibits robust financial health with consistent revenue growth, high profitability, and efficient cash flow management. The balance sheet is solid with low leverage, although monitoring free cash flow trends is advisable to maintain financial flexibility. The company is well-positioned in the Electronic Gaming & Multimedia industry, with a strong trajectory for future growth.

Income Statement

KONAMI HOLDINGS demonstrates strong financial performance with increasing revenue and profitability. The TTM (Trailing-Twelve-Months) gross profit margin stands at 46.63%, and the net profit margin is 18.60%, indicating high profitability. Revenue has grown consistently, with a notable increase of 16.02% from the previous year. The EBIT margin and EBITDA margin are also robust at 26.81% and 32.71%, respectively, showcasing operational efficiency.

Balance Sheet

The company maintains a solid balance sheet with a low debt-to-equity ratio of 0.13, reflecting prudent financial leverage. The return on equity (ROE) is strong at 16.37%, indicating efficient use of equity capital. The equity ratio is 73.14%, which suggests substantial equity financing, reducing the risk of solvency issues.

Cash Flow

KONAMI HOLDINGS has a positive cash flow profile, with significant free cash flow growth and strong operating cash flow relative to net income. The free cash flow to net income ratio is 0.89, and the operating cash flow to net income ratio is 1.48, demonstrating efficient cash conversion. However, free cash flow has decreased slightly in the recent period, which could be a point of attention.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
418.05B	360.31B	314.32B	299.52B	272.66B	262.81B
	Gross Profit
194.99B	160.04B	122.39B	134.84B	113.44B	99.77B
	EBIT
112.09B	80.26B	46.19B	74.44B	36.55B	30.97B
	EBITDA
136.50B	106.34B	70.03B	92.37B	55.72B	57.88B
	Net Income Common Stockholders
77.79B	59.17B	34.90B	54.81B	32.26B	19.89B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
285.69B	273.75B	219.26B	250.71B	202.43B	131.43B
	Total Assets
649.71B	605.85B	547.22B	528.61B	489.01B	419.13B
	Total Debt
59.90B	59.86B	59.82B	68.15B	75.17B	38.12B
	Net Debt
-225.80B	-213.88B	-159.44B	-182.56B	-127.25B	-93.31B
	Total Liabilities
174.45B	178.47B	170.94B	180.54B	189.46B	150.19B
	Stockholders Equity
475.25B	427.36B	376.26B	348.06B	298.73B	268.14B
Cash Flow		Free Cash Flow
69.40B	73.75B	-7.68B	73.41B	46.21B	-11.40B
	Operating Cash Flow
115.03B	103.06B	36.10B	96.54B	69.77B	51.17B
	Investing Cash Flow
-46.68B	-29.22B	-42.79B	-22.99B	-22.41B	-62.15B
	Financing Cash Flow
-25.76B	-24.20B	-27.47B	-27.91B	22.43B	-15.87B

KONAMI HOLDINGS Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18820.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 18820 is below the 20-day moving average (MA) of 19698.75, above the 50-day MA of 18477.56, and above the 200-day MA of 15334.17, indicating a neutral trend. The MACD of 250.89 indicates Positive momentum. The RSI at 53.70 is Neutral, neither overbought nor oversold. The STOCH value of 20.96 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	73 Outperform	¥2.66T	34.16	16.43%	0.87%	22.76%	50.11%
9757	73 Outperform	¥111.29B	24.00		3.18%	10.59%	-13.59%
9697	73 Outperform	¥1.72T	34.18	22.64%	0.97%	-11.38%	-33.42%
9684	70 Outperform	$1.07T	43.57	7.32%	1.40%	0.58%	-56.67%
7974	69 Neutral	$13.55T	47.79	10.29%	1.00%	-27.51%	-35.35%
7860	65 Neutral	¥55.99B	47.29	2.03%	4.17%	0.92%	27.31%
Sector *	60 Neutral	$14.09B	6.86	-3.35%	3.70%	2.42%	-36.28%

KONAMI HOLDINGS Corporate Events

KONAMI Revises Forecasts Amid Strong Game Performance

KONAMI has revised its earnings and dividend forecasts for the fiscal year ending March 31, 2025, due to strong business performance, particularly from key titles in its Digital Entertainment segment. The company’s revenue, operating profits, and dividends per share are all expected to surpass previous forecasts, reflecting the successful release of new game offerings and enhanced shareholder returns.

Konami Reports Robust Financial Growth for 2024

Konami Group Corporation reported significant growth in its financial results for the nine months ending December 31, 2024. The company experienced substantial year-over-year increases in revenue and profits, with operating profit rising by 45.5% and profit attributable to owners by 41.8%. These positive results reflect strong performance and strategic positioning in the market, potentially enhancing stakeholder confidence and future financial stability.