Sega Sammy Holdings (SGAMY) AI Stock Analysis

• Market Cap: $3.08B
• Dividend Yield: 2.31%
• Average Volume (3M): 144.00
• Price to Earnings (P/E): 29.8
• Beta (1Y): 0.38
• Revenue Growth: -8.28%
• EPS Growth: -55.63%
• Country: US
• Employees: 8,623
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): N/A
• Shares Outstanding: 884,917,900
• 10 Day Avg. Volume: 92
• 30 Day Avg. Volume: 144
• PEG Ratio: 0.35
• Price to Book (P/B): 1.61
• Price to Sales (P/S): 1.43
• P/FCF Ratio: 68.40
• Enterprise Value/Market Cap: 237.10
• Enterprise Value/Revenue: 1.80
• Enterprise Value/Gross Profit: 4.13
• Enterprise Value/Ebitda: 16.69
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: $4.50 ▲(11.94% Upside)

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

Strong Financial Performance

The company's strong financial performance, characterized by robust revenue and profit growth, indicates a solid foundation for future operations and potential for sustainable growth.

Strategic Acquisitions

Strategic acquisitions enhance Sega Sammy's product offerings and market reach, potentially leading to increased revenue streams and competitive advantages in the gaming industry.

Successful Product Launches

Successful launches of new products like Persona5: The Phantom X demonstrate Sega Sammy's ability to innovate and capture market interest, supporting long-term revenue growth.

Negative Factors

Declining Revenue Growth

A decline in revenue growth rate suggests potential challenges in maintaining momentum, which could impact future financial performance and market competitiveness.

Negative Cash Flow

Negative cash flow indicates potential liquidity issues, which may constrain Sega Sammy's ability to invest in growth opportunities and manage financial obligations effectively.

Foreign Exchange Losses

Significant foreign exchange losses can erode profitability and affect financial stability, posing a risk to the company's international operations and earnings consistency.

Sega Sammy Holdings Business Overview & Revenue Model

Company Description

Sega 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 Money

Sega 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 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.

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.

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.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 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

• Technical Analysis Sentiment: Negative
• Last Price: 4.02
• 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 SGAMY, the sentiment is Negative. The current price of 4.02 is above the 20-day moving average (MA) of 4.00, below the 50-day MA of 4.20, and below the 200-day MA of 4.94, indicating a bearish trend. The MACD of -0.08 indicates Negative momentum. The RSI at 43.94 is Neutral, neither overbought nor oversold. The STOCH value of 72.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SGAMY.

Sega Sammy Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NTES	81 Outperform	$87.69B	18.13	24.65%	2.19%	5.69%	32.87%
SGAMY	66 Neutral	$3.08B	29.81	4.51%	2.31%	-8.28%	-55.63%
EA	66 Neutral	$51.15B	59.69	13.20%	0.37%	-1.45%	-11.99%
BILI	62 Neutral	$11.23B	111.66	5.30%	―	16.84%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
TTWO	53 Neutral	$47.43B	-11.18	-86.61%	―	13.98%	-6.71%
RBLX	51 Neutral	$53.64B	-51.83	-324.24%	―	32.70%	12.57%