KONAMI HOLDINGS (9766) AI Stock Analysis

• Market Cap: ¥2.69T
• Dividend Yield: 0.84%
• Average Volume (3M): 464.12K
• Price to Earnings (P/E): 25.9
• Beta (1Y): 0.50
• 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: ¥26,428.57
• Price Target Upside: 30.74% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 701.62
• Revenue Forecast (FY): ¥479.88B

• Rating: 72 Outperform
• Price Target: ¥22,439.00 ▲(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 and margins

Sustained high margins and recent 31.1% TTM revenue growth indicate durable operating leverage and pricing/promo discipline. Robust margins support reinvestment in IP, buffer against cyclical dips, and give long-term capacity to fund live-service updates and product development.

Conservative balance sheet

Very low leverage and improving returns provide financial flexibility to fund content development, acquisitions, or cyclical downturns without stressing liquidity. A conservative capital structure reduces refinancing risk and supports long-term strategic optionality.

Solid operating cash generation

Operating cash flow comfortably above net income indicates earnings quality and ongoing ability to fund content pipelines and recurring-service operations. This cash generation supports multi-period investment in live services and amortizes development spend over time.

Negative Factors

Weak free-cash-flow conversion

Only ~44% FCF conversion and sharply negative TTM FCF growth point to working-capital or capex drag that can constrain discretionary spending. Over months this reduces flexibility for buybacks/dividends or extra content investment absent improved conversion.

Earnings and revenue cyclicality

Reliance on hit-driven franchises and content cadence means revenue and margins can revert if major releases underperform or live-ops engagement wanes. Structurally, cyclicality raises execution risk for sustaining current profitability over the next several quarters.

Exposure to casino/regulatory cycles

Material revenue exposure to casino equipment and systems links results to long multi-year capex cycles and changing regulations abroad. Structural regulatory or industry slowdowns can depress that segment’s sales for quarters to years, increasing revenue volatility.

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 makes money primarily by creating and operating entertainment content and platforms across four segments: 1) Digital Entertainment (largest earnings driver in many periods) - Sale and operation of games: Revenue comes from selling and distributing games for consoles/PC and from operating mobile/online games. - In-game monetization: For free-to-play and live-service titles, the company earns recurring revenue through in-app purchases (e.g., virtual items, player packs, season passes) and other online spending tied to ongoing content updates. - Licensing and related income: Konami monetizes its intellectual property (IP) by licensing game brands and characters for collaborations and other uses; if specific licensing partners or amounts are not disclosed in public filings, those details are null. 2) Amusement - Sale of amusement machines: Konami earns revenue from manufacturing and selling arcade machines and related hardware/software to amusement operators. - Ongoing content/service: Depending on product type, revenue can also include software updates, maintenance, parts, and networked amusement services; specific per-product monetization structures not publicly detailed are null. 3) Gaming & Systems - Casino gaming equipment: The company generates revenue by selling or leasing casino gaming machines (e.g., slot machines) and related hardware to casinos, largely outside Japan. - Systems and recurring fees: Revenue also comes from casino management systems and related software, which may include installation, support, maintenance, and ongoing service arrangements; the exact mix (sale vs. lease vs. participation arrangements) is not fully specified here and is null where not publicly broken out. 4) Sports - Membership and facility revenue: Konami Sports Club earns recurring revenue mainly from monthly membership fees, facility usage fees, and program fees (e.g., swimming lessons, fitness classes). - Ancillary sales: Additional revenue can come from merchandise, services, and other club-related offerings; specific category breakdowns are null if not disclosed. Key factors influencing earnings - Strength of IP and live operations: Performance depends heavily on player engagement and retention in key franchises, the cadence of content updates, and the ability to monetize over time rather than only at launch. - Geographic and regulatory exposure: Gaming & Systems performance is tied to casino capital spending cycles and regulatory environments in the jurisdictions where it operates. - Partnerships: Konami collaborates with platform holders, distributors, and sometimes other IP owners for content and promotions; specific named partnerships are null unless explicitly disclosed in the company’s public materials.

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	152.68B	132.99B	106.62B	71.72B	93.93B	55.86B
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	81.75B	87.28B	89.46B	100.35B	110.94B
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: Negative
• Last Price: 20215.00
• 50DMA: Positive
• 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 Negative. The current price of 20215 is above the 20-day moving average (MA) of 19910.50, above the 50-day MA of 20169.90, and below the 200-day MA of 21623.14, indicating a neutral trend. The MACD of 184.68 indicates Negative momentum. The RSI at 51.22 is Neutral, neither overbought nor oversold. The STOCH value of 61.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥2.69T	25.95	17.57%	0.84%	18.39%	23.33%
9697	69 Neutral	¥1.45T	33.58	26.91%	1.17%	45.17%	81.91%
6460	68 Neutral	¥523.96B	-6.55	-3.66%	2.12%	-8.73%	-55.81%
7974	67 Neutral	¥10.98T	19.28	13.46%	1.17%	24.47%	12.54%
3659	64 Neutral	¥2.20T	33.43	8.89%	0.78%	-4.40%	89.91%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
9684	57 Neutral	¥914.09B	16.57	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.