Nintendo Co (NTDOY) AI Stock Analysis

• Market Cap: $96.67B
• Dividend Yield: 0.69%
• Average Volume (3M): 1.18M
• Price to Earnings (P/E): 38.1
• Beta (1Y): 1.17
• Revenue Growth: 25.64%
• EPS Growth: 13.40%
• Country: US
• Employees: 7,724
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 0.57
• Shares Outstanding: 5,194,760,000
• 10 Day Avg. Volume: 815,119
• 30 Day Avg. Volume: 1,175,297
• PEG Ratio: -1.00
• Price to Book (P/B): 4.40
• Price to Sales (P/S): 10.29
• P/FCF Ratio: -1.73K
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: 0.06
• Enterprise Value/Gross Profit: 0.11
• Enterprise Value/Ebitda: 0.31
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 2.27
• Revenue Forecast (FY): $15.29B

• 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.

Positive Factors

Strong Balance Sheet

A strong balance sheet with minimal debt enhances Nintendo's financial stability, allowing for strategic investments and resilience against economic downturns.

Cash Generation Ability

Robust cash generation supports Nintendo's ability to fund new projects, return capital to shareholders, and maintain financial flexibility.

Successful Product Launch

The successful launch of Nintendo Switch 2 indicates strong product demand and reinforces Nintendo's competitive position in the gaming console market.

Negative Factors

Declining Console Spending

A significant decline in spending on older console models may impact revenue if not offset by new product sales, indicating potential challenges in product lifecycle management.

Earnings Decline

A decline in earnings per share suggests profitability challenges, which could affect investor confidence and limit resources for future growth initiatives.

Investing Cash Outflows

Large cash outflows for investments could strain liquidity if not managed properly, potentially impacting Nintendo's ability to capitalize on new opportunities.

Nintendo Co Business Overview & Revenue Model

Company Description

Nintendo Co., Ltd., together with its subsidiaries, develops, manufactures, and sells home entertainment products in Japan, the Americas, Europe, and internationally. It offers video game platforms, playing cards, Karuta, and other products; and handheld and home console hardware systems and related software. The company was formerly known as Nintendo Playing Card Co., Ltd. and changed its name to Nintendo Co., Ltd. in 1963. Nintendo Co., Ltd. was founded in 1889 and is headquartered in Kyoto, Japan.

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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.49T	1.16T	1.67T	1.60T	1.70T	1.76T
Gross Profit	742.86B	710.17B	954.34B	885.44B	946.04B	970.47B
EBITDA	277.70B	387.69B	698.75B	611.92B	603.29B	651.43B
Net Income	293.88B	278.81B	490.60B	432.77B	477.69B	480.38B
Balance Sheet
Total Assets	3.47T	3.40T	3.15T	2.85T	2.66T	2.45T
Cash, Cash Equivalents and Short-Term Investments	1.91T	2.06T	2.25T	1.88T	1.71T	1.74T
Total Debt	0.00	0.00	6.13B	6.29B	6.23B	5.77B
Total Liabilities	770.16B	673.07B	546.40B	587.82B	593.08B	572.30B
Stockholders Equity	2.70T	2.72T	2.60T	2.27T	2.07T	1.87T
Cash Flow
Free Cash Flow	0.00	-6.94B	445.97B	300.65B	282.07B	605.10B
Operating Cash Flow	0.00	12.07B	462.10B	322.84B	289.66B	612.11B
Investing Cash Flow	0.00	753.06B	-630.63B	111.51B	93.70B	-136.53B
Financing Cash Flow	0.00	-195.13B	-236.96B	-290.97B	-337.01B	-194.94B

Nintendo Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 21.22
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 21.22 is below the 20-day moving average (MA) of 21.38, below the 50-day MA of 21.25, and above the 200-day MA of 20.81, indicating a bearish trend. The MACD of -0.25 indicates Positive momentum. The RSI at 42.02 is Neutral, neither overbought nor oversold. The STOCH value of 19.93 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	81 Outperform	$85.69B	18.01	24.65%	2.17%	5.69%	32.87%
NTDOY	76 Outperform	$96.67B	38.10	13.46%	0.69%	25.64%	13.40%
EA	68 Neutral	$50.88B	59.40	13.20%	0.37%	-1.45%	-11.99%
BILI	62 Neutral	$10.77B	100.19	5.30%	―	16.84%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
TTWO	50 Neutral	$45.61B	―	-86.61%	―	13.98%	-6.71%
RBLX	49 Neutral	$66.83B	-66.79	-324.24%	―	32.70%	12.57%