KONAMI HOLDINGS (9766) AI Stock Analysis

• Market Cap: ¥2.96T
• Dividend Yield: 0.76%
• Average Volume (3M): 503.00K
• Price to Earnings (P/E): 39.3
• Beta (1Y): 0.62
• Revenue Growth: 13.45%
• EPS Growth: 16.03%
• Country: JP
• Employees: 4,890
• Sector: Communication Services
• Sector Strength: 96
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 146.32
• Shares Outstanding: 143,500,000
• 10 Day Avg. Volume: 433,150
• 30 Day Avg. Volume: 503,003
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥25,685.00
• Price Target Upside: 17.63% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 72 Outperform
• Price Target: ¥25,064.00 ▲(14.79% Upside)

KONAMI HOLDINGS' strong financial performance, reflected in robust revenue growth and profitability, significantly supports its stock score. However, technical indicators suggest potential overbought conditions, and a high P/E ratio raises valuation concerns. Despite these, the company's financial stability positions it well for future growth.

Positive Factors

Growth Drivers

Konami's growth is accelerating, with no signs of slowing.

Product Expansion

The growth is driven by eFootball's expansion in emerging markets and the World Cup.

Negative Factors

Profit Decline

Gaming & Systems saw profits turn to losses this 1Q.

Segment Challenges

A couple other segments posted losses, showing challenges outside the Digital Entertainment sector.

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 through its Digital Entertainment segment by developing and publishing video games for consoles, PCs, and mobile platforms. This segment includes sales from game titles, downloadable content, and in-game purchases. The Amusement segment contributes to earnings through the sale and operation of arcade machines and related content. The Gaming & Systems segment earns revenue by providing casino operators with gaming machines and casino management systems. Finally, the Sports segment brings in revenue through memberships and service fees from the operation of fitness clubs, sports classes, and related health services. Key partnerships, such as licensing agreements and collaborations with other gaming and entertainment companies, further enhance KONAMI's revenue streams.

KONAMI HOLDINGS Financial Statement Overview

Summary

KONAMI HOLDINGS demonstrates strong overall financial performance with robust revenue growth and profitability. The balance sheet indicates stability with a low debt-to-equity ratio and solid equity ratio. Cash flow statements highlight efficient cash management and strong cash generation capabilities.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	421.60B	421.60B	360.31B	314.32B	299.52B	272.66B
Gross Profit	198.92B	198.92B	160.04B	122.39B	134.84B	113.44B
EBITDA	136.26B	132.67B	106.62B	71.58B	92.37B	55.72B
Net Income	74.69B	74.69B	59.17B	34.90B	54.81B	32.26B
Balance Sheet
Total Assets	665.04B	665.04B	605.85B	547.22B	528.61B	489.01B
Cash, Cash Equivalents and Short-Term Investments	294.22B	294.22B	273.75B	219.26B	250.71B	202.43B
Total Debt	75.53B	75.53B	59.86B	59.82B	68.15B	75.17B
Total Liabilities	183.17B	183.17B	178.47B	170.94B	180.54B	189.46B
Stockholders Equity	481.85B	481.85B	427.36B	376.26B	348.06B	298.73B
Cash Flow
Free Cash Flow	47.76B	47.76B	73.75B	-7.68B	73.41B	46.21B
Operating Cash Flow	114.62B	114.62B	103.06B	36.10B	96.54B	69.77B
Investing Cash Flow	-67.89B	-67.89B	-29.22B	-42.79B	-22.99B	-22.41B
Financing Cash Flow	-25.78B	-25.78B	-24.20B	-27.47B	-27.91B	22.43B

KONAMI HOLDINGS Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 21835.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9766, the sentiment is Neutral. The current price of 21835 is below the 20-day moving average (MA) of 23464.00, below the 50-day MA of 22092.70, and above the 200-day MA of 18626.72, indicating a neutral trend. The MACD of -178.50 indicates Positive momentum. The RSI at 40.03 is Neutral, neither overbought nor oversold. The STOCH value of 18.20 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥2.96T	39.28	16.24%	0.76%	13.45%	16.03%
Sector *	60 Neutral	$46.60B	4.08	-11.40%	4.13%	1.85%	-42.71%
CCOEF	―	$11.30B	30.77	26.13%	0.98%	―	―
NEXOF	―	$18.66B	22.15	10.04%	1.60%	―	―
NTDOF	―	$104.31B	53.16	11.31%	0.86%	―	―
SQNXF	―	$8.09B	66.49	5.77%	1.27%	―	―
3635	64 Neutral	¥635.90B	19.98		2.51%	-4.23%	-18.49%

KONAMI HOLDINGS Corporate Events

Konami Reports Revenue Growth Amidst Profitability Challenges

Konami Group Corporation reported a 7.7% increase in revenue for the three months ended June 30, 2025, compared to the same period last year. Despite the growth in revenue and profits, the company’s total comprehensive income decreased by 26.4%, reflecting challenges in maintaining profitability. The company maintained its earnings forecast for the fiscal year ending March 31, 2026, with a slight increase in expected revenue and profits, suggesting a cautious outlook amidst market uncertainties.