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Sega Sammy Holdings Inc (SGAMY)
OTHER OTC:SGAMY
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Sega Sammy Holdings
(OTC:SGAMY)
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Rating:66Neutral
Price Target:
$4.00
▼(-0.50% Downside)
Action:ReiteratedDate:12/07/25
Sega Sammy Holdings' strong financial performance is the primary driver of its overall score, supported by robust profitability and financial stability. However, technical indicators suggest bearish momentum, and the stock's high valuation presents a risk. The lack of earnings call data and corporate events limits additional insights.
Positive Factors
Balance Sheet Strength
A high equity ratio and manageable debt-to-equity provide durable financial stability, reducing insolvency risk and enabling the company to fund investments or weather industry cyclicality. This balance-sheet strength supports long-term strategic flexibility and creditworthiness.
Cash Generation Capability
Consistent operating cash flow and positive free cash flow underpin sustainable funding for game development, maintenance of amusement assets, and shareholder returns. Strong cash conversion improves resilience to revenue swings and funds multi-year content and capital programs.
Profitability & Margins
Sustained strong margins reflect operational efficiency and pricing power from IP and diversified businesses. Healthy profitability supports reinvestment in franchises, R&D and facilities, and provides a buffer if top-line growth moderates over the medium term.
Negative Factors
Declining Revenue Growth
Negative revenue growth signals structural headwinds such as weaker game releases, market saturation, or reduced arcade/pachinko demand. Persistent top-line contraction can limit reinvestment capacity, pressure margins long-term, and require strategic shifts to restore growth.
Slowing Free Cash Flow Growth
A marked slowdown in FCF growth reduces the company's ability to finance new IP, capital-intensive amusement projects, or sustain elevated shareholder distributions. Over months, weaker FCF growth constrains strategic flexibility and increases reliance on operational improvements or external funding.
Moderate Asset Growth Limits Scale
Only moderate asset growth may restrict capacity to expand arcade networks, invest in new pachinko machines, or scale game development infrastructure. Over a multi-month horizon this can impede market share gains and slow revenue recovery versus more aggressively investing peers.
Sega Sammy Holdings (SGAMY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.50B
Dividend Yield2.31%
Average Volume (3M)144.00
Price to Earnings (P/E)―
Beta (1Y)0.36
Revenue Growth-8.28%
EPS Growth-55.63%
CountryUS
Employees8,623
SectorCommunication Services
Sector Strength97
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)0.02
Shares Outstanding884,917,900
10 Day Avg. Volume92
30 Day Avg. Volume144
Financial Highlights & Ratios
PEG Ratio0.35
Price to Book (P/B)1.61
Price to Sales (P/S)1.43
P/FCF Ratio68.40
Enterprise Value/Market Cap157.93
Enterprise Value/Revenue1.37
Enterprise Value/Gross Profit3.13
Enterprise Value/Ebitda12.66
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.07
Revenue Forecast (FY)$3.13B
Sega Sammy Holdings Business Overview & Revenue Model
Company DescriptionSega Sammy Holdings Inc., through its subsidiaries, engages in the game machine, entertainment content, and resort businesses. The company operates through Entertainment Contents, Pachislot and Pachinko Machines, and Resort segments. It develops pachislot machines and provides machines for the pachinko business; offers entertainment-related content and services, including consumer and arcade games, toys, and animation; and develops and operates hotels, entertainment and commercial facilities, and casinos. Sega Sammy Holdings Inc. was founded in 2004 and is based in Tokyo, Japan.
How the Company Makes MoneySega Sammy generates revenue through multiple channels, primarily from its video game sales, which include both physical and digital formats. The company's gaming segment is bolstered by the release of new titles and ongoing revenue from existing games through downloadable content and microtransactions. Another significant revenue stream comes from the arcade operations, where Sega Sammy earns income from the sale and operation of arcade machines in entertainment centers. The pachinko and pachislot machines also contribute to revenue, as they are popular forms of gambling in Japan. Furthermore, partnerships with other companies and licensing agreements, particularly for merchandise and media adaptations of its game franchises, enhance revenue. The company strategically leverages its intellectual properties to create synergy across its various entertainment sectors.
Sega Sammy Holdings Earnings Call Summary
Earnings Call Date:Aug 08, 2025
(Q1-2026)
| % Change Since: |
Next Earnings Date:May 08, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted several positive developments such as the successful launch of new titles, strong sales in certain segments, and strategic acquisitions. However, these were offset by significant challenges including foreign exchange losses, weak repeat sales, and declining performance from Rovio. The sentiment was balanced with equal emphasis on achievements and challenges.Q1-2026 Updates
Positive Updates
Successful Launch of Persona5: The Phantom X
Persona5: The Phantom X officially launched on June 26, ranking first in the domestic free game download rankings on its first day, with sales exceeding JPY1 billion within five days.
Strong Pachinko Machine Sales
Sales of Dejihane P Hokuto No Ken Jibo, P Zombie Land Saga, and other products exceeded internal expectations with orders in excess of 25,000 units.
Favorable Start in Gaming Business
Sales of video slot machines in the US were strong, and Paradise City in South Korea maintained strong casino sales, especially to Japanese VIP customers.
Record Box-Office Revenue for Conan Movie
The Conan movie released in April performed well with box-office revenues surpassing JPY14 billion.
Completion of Strategic Acquisitions
Acquisitions of Stakelogic BV and GAN Limited were completed, with estimated goodwill of approximately JPY18.6 billion and JPY17.4 billion, respectively.
Negative Updates
Foreign Exchange Losses
A foreign exchange loss of approximately JPY2.9 billion was recorded as a non-operating expense due to the revaluation and settlement of foreign currency denominated receivables and payables.
Weak Repeat Sales of Full Games
Repeat sales of full games were lower than expected in Q1, attributed to the absence of mainstay titles in new releases.
Decline in Rovio Sales
Rovio's sales have continued to decline, particularly for Angry Birds 2, which remains below expectations.
Negative Overall Cash Flow
Overall cash flow was expected to be negative JPY50.6 billion, including operating, investing, and financing cash flows.
Company Guidance
During the Q1 financial results briefing for the fiscal year ending March 31, 2026, Sega Sammy Holdings Inc. reported a smaller-than-expected operating income loss despite fewer new products. The Pachislot and Pachinko machines and gaming businesses exceeded operating income expectations, while the entertainment contents business performed as anticipated. Adjusted EBITDA was in line with expectations, with a foreign exchange loss of approximately JPY2.9 billion recorded in non-operating expenses. The acquisitions of Stakelogic BV and GAN Limited were completed, with estimated goodwill amounts of JPY18.6 billion and JPY17.4 billion, respectively. Treasury stock acquisition and cancellation resulted in 11 million shares at the end of Q1. Operating cash flow was approximately minus JPY11.7 billion, investing cash flow minus JPY19.5 billion, and financing cash flow minus JPY17.9 billion, resulting in an overall negative cash flow of JPY50.6 billion. Persona5: The Phantom X launched on June 26, and revenues from title subscriptions and character licensing exceeded expectations. In the gaming sector, Paradise City in South Korea maintained strong sales, contributing JPY1.1 billion to ordinary income and adjusted EBITDA. Overall, the company anticipates significant contributions from new titles and strategic initiatives from Q2 onward.Sega Sammy Holdings Financial Statement Overview
Summary
Sega Sammy Holdings demonstrates robust financial performance with strong revenue and profit growth, supported by solid margins and financial stability. However, a slowdown in revenue and cash flow growth rates indicates potential challenges ahead.Income Statement
Sega Sammy Holdings demonstrates robust revenue and profit growth with a consistent increase in total revenue from 2021 to 2025. Gross profit margin and net profit margin are strong, supported by solid EBIT and EBITDA margins, reflecting operational efficiency. However, the revenue growth rate between 2024 and 2025 shows a decline, indicating a slowdown in growth momentum.85
Very Positive
Balance Sheet
The company's balance sheet is marked by a strong equity position with a high equity ratio, indicating financial stability. The debt-to-equity ratio is maintained at a manageable level, reflecting prudent leverage management. The return on equity remains strong, showcasing effective use of shareholder funds. However, the total assets growth is moderate, which might limit future expansion potential.80
Positive
Cash Flow
Sega Sammy has shown strong operating cash flows, with positive free cash flow, indicating good cash generation capability. However, the free cash flow growth rate significantly declined in 2025 compared to 2024, highlighting potential challenges in sustaining cash flow levels. The operating cash flow to net income ratio is favorable, reflecting effective conversion of profits into cash.78
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 405.22B | 428.95B | 467.90B | 389.63B | 320.95B | 277.75B |
| Gross Profit | 176.56B | 192.71B | 196.74B | 158.07B | 127.87B | 100.78B |
| EBITDA | 43.72B | 72.73B | 58.61B | 60.24B | 45.76B | 23.29B |
| Net Income | 17.14B | 45.05B | 33.05B | 45.94B | 37.03B | 1.27B |
Balance Sheet | ||||||
| Total Assets | 636.62B | 644.78B | 653.99B | 501.57B | 435.49B | 421.60B |
| Cash, Cash Equivalents and Short-Term Investments | 148.63B | 200.36B | 219.81B | 179.51B | 152.46B | 155.69B |
| Total Debt | 153.39B | 154.14B | 161.84B | 57.35B | 56.01B | 56.81B |
| Total Liabilities | 269.75B | 263.17B | 296.30B | 170.22B | 142.85B | 130.34B |
| Stockholders Equity | 366.85B | 381.58B | 357.67B | 331.32B | 292.59B | 290.76B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 9.00B | 54.72B | 33.88B | 27.75B | -21.39B |
| Operating Cash Flow | 0.00 | 20.86B | 65.83B | 44.70B | 39.61B | -6.38B |
| Investing Cash Flow | 0.00 | -12.54B | -113.51B | -2.35B | -8.79B | 30.47B |
| Financing Cash Flow | 0.00 | -27.98B | 79.79B | -15.36B | -35.97B | -31.49B |
Sega Sammy Holdings Technical Analysis
Neutral
4.02
Price Trends
3.93
Positive
4.19
Negative
4.76
Negative
Market Momentum
0.06
Negative
59.50
Neutral
84.77
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SGAMY, the sentiment is Neutral. The current price of 4.02 is above the 20-day moving average (MA) of 3.96, above the 50-day MA of 3.93, and below the 200-day MA of 4.76, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 59.50 is Neutral, neither overbought nor oversold. The STOCH value of 84.77 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SGAMY.
Sega Sammy Holdings Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $69.62B | 15.77 | 22.36% | 2.19% | 5.69% | 32.87% | |
70 Outperform | $50.32B | 75.30 | 10.03% | 0.37% | -1.45% | -11.99% | |
66 Neutral | $3.50B | -39.82 | 4.51% | 2.31% | -8.28% | -55.63% | |
65 Neutral | $11.36B | 106.16 | 5.30% | ― | 16.84% | ― | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
57 Neutral | $39.61B | -9.56 | -86.22% | ― | 13.98% | -6.71% | |
57 Neutral | $47.80B | ― | -345.84% | ― | 32.70% | 12.57% |
* Communication Services Sector Average
SGAMY
Sega Sammy Holdings
4.15
-0.74
-15.12%
EA
Electronic Arts
201.06
69.80
53.18%
NTES
NetEase
115.19
17.13
17.47%
TTWO
Take-Two
213.88
5.33
2.56%
BILI
Bilibili
27.23
6.29
30.04%
RBLX
Roblox
67.44
4.78
7.63%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.