KONAMI HOLDINGS (9766) AI Stock Analysis

• Market Cap: ¥2.68T
• Dividend Yield: 0.82%
• Average Volume (3M): 460.54K
• Price to Earnings (P/E): 35.8
• Beta (1Y): 0.61
• Revenue Growth: 17.01%
• EPS Growth: 26.23%
• Country: JP
• Employees: 4,890
• Sector: Communication Services
• Sector Strength: 88
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): N/A
• Shares Outstanding: 143,500,000
• 10 Day Avg. Volume: 449,220
• 30 Day Avg. Volume: 460,543
• 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: ¥20,168.00
• Price Target Upside: 2.17% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 78 Outperform
• Price Target: ¥23,055.00 ▲(16.79%Upside)

KONAMI HOLDINGS is supported by strong financial performance and positive technical indicators. However, high valuation metrics suggest that the stock may be priced for growth, which adds some risk. Overall, the company is well-positioned in its industry with robust financial health and positive market trends.

Positive Factors

Analyst Recommendation

The analyst recommendation is to buy.

Earnings Growth Drivers

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 Concerns

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

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: 19740.00
• 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 19740 is above the 20-day moving average (MA) of 19546.00, above the 50-day MA of 19160.85, and above the 200-day MA of 15964.66, indicating a bullish trend. The MACD of 181.33 indicates Positive momentum. The RSI at 51.91 is Neutral, neither overbought nor oversold. The STOCH value of 45.57 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	78 Outperform	¥2.68T	35.83	16.43%	0.82%	17.01%	26.23%
Sector *	61 Neutral	$14.59B	5.85	-4.31%	3.69%	2.76%	-30.36%
CCOEF		$12.41B	39.28	22.64%	0.89%	―	―
NEXOF		$14.47B	17.60	12.67%	0.84%	―	―
NTDOF		$95.68B	53.09	10.29%	0.95%	―	―
SQNXF		$7.46B	46.56	7.32%	1.37%	―	―
3635	72 Outperform	¥766.83B	19.25		2.62%	-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.