Nintendo Co (NTDOY) AI Stock Analysis

• Market Cap: $69.22B
• Dividend Yield: 0.84%
• Average Volume (3M): 2.95M
• Price to Earnings (P/E): 18.9
• Beta (1Y): 1.11
• 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): 0.22
• Shares Outstanding: 5,194,760,000
• 10 Day Avg. Volume: 3,500,645
• 30 Day Avg. Volume: 2,948,095
• 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: 129.69
• Enterprise Value/Revenue: 6.02
• Enterprise Value/Gross Profit: 12.09
• Enterprise Value/Ebitda: 32.33
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.57
• Revenue Forecast (FY): $14.96B

• Rating: 58 Neutral
• Price Target: $16.00 ▲(8.84% Upside)
• Action: Reiterated Date: 02/06/26
• Date: Action: Reiterated 02/06/26

The score is primarily supported by Nintendo’s high-quality profitability and extremely strong, low-leverage balance sheet, but is capped by the FY2025 cash flow breakdown (negative free cash flow) and recent revenue/earnings decline. Technical signals further weigh on the score due to a clear downtrend, while valuation offers only modest support given the P/E and low dividend yield.

Positive Factors

Franchise IP & Platform Exclusives

Nintendo’s globally recognized first‑party franchises and platform‑exclusive model create durable demand and high consumer loyalty. Exclusive titles boost software sales and hardware attach rates, enable recurring monetization via DLC/licensing, and support long-term cross-media IP monetization.

Conservative Balance Sheet

An exceptionally low‑leverage balance sheet gives Nintendo strong financial resilience and strategic optionality. Minimal debt reduces refinancing risk, preserves capital for content investment or M&A, and helps the company absorb cyclical hardware/software swings without pressuring liquidity.

High Margin Profile

Sustained high gross and operating margins reflect the asset‑light, software‑driven economics of Nintendo’s business and the favorable mix of digital sales and licensing. This margin durability supports reinvestment in IP and content even during periods of sales softness.

Negative Factors

Deteriorating Cash Generation

A sharp swing to negligible operating cash flow and negative free cash flow in FY2025 signals weaker cash conversion and elevated working‑capital or timing volatility. Persistent negative FCF would constrain content investment, dividends, or strategic initiatives without tapping reserves.

Recent Revenue & Earnings Decline

A material decline in revenue and earnings in FY2025 breaks prior growth momentum and reduces margin-buffering capacity. If the downturn persists, it can weaken software attach rates, subscription growth, and the economics of sequels/licensing, making recovery dependent on new hit releases.

Cyclical Exposure to Hardware & Release Cadence

Nintendo’s revenue is structurally tied to console lifecycle and the timing of flagship game releases. This reliance creates inherent volatility: weaker hardware demand or delayed/underperforming first‑party titles can materially depress software sales and recurring revenues over multi‑quarter periods.

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 primarily makes money by selling (1) dedicated video game hardware, (2) video game software (first-party and published titles), (3) online services, and (4) licensing and other IP-related income. 1) Hardware sales (console platform revenue) - Nintendo generates revenue from the sale of its gaming systems (e.g., Nintendo Switch family). Hardware revenue is typically driven by unit sales and price/mix over a console’s lifecycle. 2) Software sales (games) - First-party titles: A major driver of Nintendo’s earnings is sales of games developed and/or published by Nintendo for its own platforms (physical game cards and digital downloads). Successful first-party releases can meaningfully increase both software revenue and hardware demand (the “platform + exclusive content” model). - Third-party titles and publishing: Nintendo also earns revenue from publishing certain titles and from third-party game sales on its platform, including digital storefront sales where Nintendo participates via platform fees/revenue share. Specific revenue-share terms are not publicly disclosed in detail (null). 3) Digital distribution and add-on content - Nintendo earns revenue from digital game sales via the Nintendo eShop, including full-game downloads, downloadable content (DLC), season passes, and in-game purchases for applicable titles. Digital sales can provide higher margins than physical distribution due to reduced manufacturing and logistics costs. 4) Online subscriptions and services - Nintendo Switch Online: Nintendo earns recurring revenue from paid memberships that provide online play for supported games and additional features (e.g., access to libraries of classic titles under certain plans). Subscription revenue contributes to a more recurring revenue base compared with one-time hardware/software purchases. 5) Licensing, royalties, and IP monetization - Nintendo monetizes its characters and franchises through licensing arrangements (royalties) for products and experiences such as merchandise and other branded initiatives. It also earns royalties tied to certain IP arrangements (for example, Pokémon-related income is generated through Nintendo’s ownership stake in The Pokémon Company and related licensing/royalty flows; exact amounts by sub-stream may not be fully itemized publicly (null)). 6) Other revenue sources - Nintendo can earn revenue from accessories/peripherals and from other IP-related activities. The contribution of each category can vary by period depending on hardware cycle timing, major game releases, and the mix of physical vs. digital sales. Key factors influencing earnings - Installed base growth: A larger hardware installed base supports higher software attach rates and digital/subscription revenue. - First-party release cadence: Major releases from Nintendo’s internal studios often drive spikes in software and digital revenue and can sustain platform engagement. - Digital shift: Greater digital mix can improve economics versus physical sales. - IP strength and partnerships: Licensing partners (e.g., manufacturers, entertainment and consumer products partners) can expand IP reach and add royalty income, though specific partner-by-partner economics are generally not disclosed (null).

Nintendo Co Financial Statement Overview

Summary

Strong profitability and an exceptionally conservative balance sheet (negligible debt) support resilience, but fundamentals weakened in the most recent year with revenue and earnings declining and a sharp deterioration in cash generation (negative free cash flow in FY2025), which meaningfully raises near-term risk.

Income Statement

Profitability remains a clear strength, with consistently high gross and operating margins and strong net profitability across the period. However, growth has turned negative in the most recent year (revenue down ~5.5% in FY2025 vs. modest growth in prior years), and earnings also stepped down materially from FY2024 levels—suggesting a weaker near-term trajectory despite an otherwise high-quality margin profile.

Balance Sheet

The balance sheet is exceptionally conservative: debt is effectively negligible (including a zero debt figure in FY2025) and equity is substantial relative to the asset base. Returns on equity have been solid historically (high-teens to mid-20% in earlier years) but moderated in FY2025, reflecting the earnings slowdown rather than financial leverage risk.

Cash Flow

Cash generation quality is mixed and deteriorated sharply in FY2025: operating cash flow collapsed to a very small level and free cash flow turned negative, which is a meaningful red flag versus prior years where free cash flow was strong and closely tracked net income. The magnitude of the swing suggests higher working-capital or timing volatility, reducing confidence in near-term cash conversion despite a historically strong record.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
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	327.14M	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: 14.70
• 50DMA: Negative
• 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 NTDOY, the sentiment is Negative. The current price of 14.7 is above the 20-day moving average (MA) of 14.60, below the 50-day MA of 15.05, and below the 200-day MA of 19.75, indicating a neutral trend. The MACD of 0.15 indicates Negative momentum. The RSI at 47.70 is Neutral, neither overbought nor oversold. The STOCH value of 46.84 is Neutral, 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	74 Outperform	$68.91B	18.20	22.14%	2.19%	5.69%	32.87%
EA	70 Outperform	$50.33B	145.12	11.05%	0.37%	-1.45%	-11.99%
BILI	65 Neutral	$9.74B	62.04	8.04%	―	16.84%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
NTDOY	58 Neutral	$69.22B	18.91	14.28%	0.84%	25.64%	13.40%
TTWO	57 Neutral	$37.19B	-126.36	-126.41%	―	13.98%	-6.71%
RBLX	52 Neutral	$40.28B	-52.47	-290.61%	―	32.70%	12.57%