Nintendo Co (NTDOY) AI Stock Analysis

• Market Cap: $101.19B
• Dividend Yield: 0.64%
• Average Volume (3M): 1.27M
• Price to Earnings (P/E): 51.3
• Beta (1Y): 1.13
• Revenue Growth: 2.17%
• EPS Growth: -25.07%
• Country: US
• Employees: 7,724
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 0.56
• Shares Outstanding: 5,194,760,000
• 10 Day Avg. Volume: 1,601,598
• 30 Day Avg. Volume: 1,269,085
• 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: 0.98
• Enterprise Value/Revenue: 0.08
• Enterprise Value/Gross Profit: 0.13
• Enterprise Value/Ebitda: 0.33
• 1Y Price Target: $17.20
• Price Target Upside: -20.59% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: ―

Nintendo's strong financial performance, highlighted by high profitability and a solid balance sheet, drives the overall score. Technical indicators show positive momentum, though the high valuation reflects market expectations for growth. The absence of notable corporate events or earnings call data limits other influences on the score.

Nintendo Co Business Overview & Revenue Model

Company Description

Nintendo Co., Ltd. is a multinational consumer electronics and video game company headquartered in Kyoto, Japan. Established in 1889, the company has become a leading figure in the video game industry, renowned for its innovative hardware and beloved game franchises. Nintendo's core products include gaming consoles such as the Nintendo Switch, handheld gaming devices, and a rich portfolio of game titles featuring iconic characters like Mario, Zelda, and Pokémon. The company operates primarily in the electronic entertainment sector, focusing on the development, manufacturing, and marketing of both hardware and software.

How the Company Makes Money

Nintendo generates revenue through several key streams. The primary source is the sale of gaming hardware, such as the Nintendo Switch console and its various models, including the Switch Lite. In addition, Nintendo earns significant income from software sales, which includes both physical and digital game titles. The company's vast library of games, featuring popular franchises like Super Mario, The Legend of Zelda, and Pokémon, contributes to strong software sales. Nintendo also monetizes through digital services, including Nintendo Switch Online, a subscription-based service that offers online multiplayer gaming, classic game libraries, and other features. Licensing agreements for merchandise and media adaptations of Nintendo's intellectual properties further supplement its revenue. Strategic partnerships, for instance with game developers and media companies, enhance its offerings and expand its market reach.

Nintendo Co Financial Statement Overview

Summary

Nintendo exhibits strong financial health with robust revenue and profit growth. The balance sheet shows minimal debt and a high equity ratio, reducing financial risk. Cash flow metrics are strong, but substantial investing cash outflows require monitoring.

Income Statement

Nintendo has demonstrated strong revenue and profit growth over the past year. The gross profit margin remains high at 57.0%, reflecting efficient cost management. The net profit margin increased to 29.3%, indicating robust profitability. The revenue growth rate of 4.4% shows moderate growth, supported by a solid EBIT margin of 31.6% and an EBITDA margin of 41.8%.

Balance Sheet

Nintendo's balance sheet is exceptionally strong with a very low debt-to-equity ratio of 0.0024, indicating minimal reliance on debt. The return on equity is impressive at 18.8%, showing effective use of shareholders' equity. With an equity ratio of 82.6%, Nintendo has a solid financial foundation, minimizing financial risk.

Cash Flow

Operating cash flow has increased significantly, leading to a free cash flow growth rate of 48.3%. The operating cash flow to net income ratio is robust at 0.94, demonstrating efficient cash generation relative to net income. The free cash flow to net income ratio is also strong at 0.91, though the substantial investing cash outflow could be monitored for future impacts.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.16T	1.67T	1.60T	1.70T	1.76T
Gross Profit	710.17B	954.34B	885.44B	946.04B	970.47B
EBITDA	387.69B	698.75B	515.41B	603.29B	651.43B
Net Income	278.81B	490.60B	432.77B	477.69B	480.38B
Balance Sheet
Total Assets	3.40T	3.15T	2.85T	2.66T	2.45T
Cash, Cash Equivalents and Short-Term Investments	2.06T	2.25T	1.88T	1.71T	1.74T
Total Debt	0.00	6.13B	6.29B	6.23B	5.77B
Total Liabilities	673.07B	546.40B	587.82B	593.08B	572.30B
Stockholders Equity	2.72T	2.60T	2.27T	2.07T	1.87T
Cash Flow
Free Cash Flow	-6.94B	445.97B	300.65B	282.07B	605.10B
Operating Cash Flow	12.07B	462.10B	322.84B	289.66B	612.11B
Investing Cash Flow	753.06B	-630.63B	111.51B	93.70B	-136.53B
Financing Cash Flow	-195.13B	-236.96B	-290.97B	-337.01B	-194.94B

Nintendo Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 21.66
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NTDOY, the sentiment is Negative. The current price of 21.66 is below the 20-day moving average (MA) of 22.58, below the 50-day MA of 22.75, and above the 200-day MA of 19.50, indicating a neutral trend. The MACD of -0.37 indicates Positive momentum. The RSI at 41.40 is Neutral, neither overbought nor oversold. The STOCH value of 10.68 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NTDOY.

Nintendo Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NTES	80 Outperform	$90.92B	20.02	22.87%	1.96%	2.86%	19.96%
NTDOY	76 Outperform	$101.19B	51.29	11.31%	0.64%	2.17%	-25.07%
EA	75 Outperform	$48.38B	48.54	17.13%	0.39%	2.68%	-6.15%
RBLX	72 Outperform	$93.63B	-94.67	-269.61%	―	27.39%	16.59%
BILI	68 Neutral	$10.74B	359.37	-9.55%	―	22.89%	―
TTWO	60 Neutral	$47.25B	-10.70	-121.49%	―	7.33%	-7.46%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%