Sega Sammy Holdings (SGAMY) AI Stock Analysis

• Market Cap: $4.05B
• Dividend Yield: 1.89%
• Average Volume (3M): 20.00
• Price to Earnings (P/E): 15.3
• Beta (1Y): 0.34
• Revenue Growth: -12.95%
• EPS Growth: 28.87%
• Country: US
• Employees: 8,623
• Sector: Communication Services
• Sector Strength: 83
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 0.30
• Shares Outstanding: 884,917,900
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 20
• PEG Ratio: 0.91
• Price to Book (P/B): 1.71
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 68 Neutral
• Price Target: $6.00 ▲(14.29%Upside)

Sega Sammy Holdings exhibits solid financial performance with strong profitability and cash flow management. Technical analysis presents mixed signals, with potential resistance but also oversold conditions suggesting possible upside. The stock's valuation is reasonable, with a fair P/E ratio and a modest dividend yield. Continued focus on growth and cash flow will be critical for maintaining strength.

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 Holdings generates revenue through several key streams. The video game segment, under Sega, contributes significantly by developing and selling video game software for consoles, PCs, and mobile platforms. This includes sales of digital games, physical copies, and in-game purchases. The arcade operations also provide revenue through amusement centers and arcade machine sales. Meanwhile, Sammy's pachinko and pachislot machine business remains a lucrative segment, capitalizing on the popularity of these gambling devices in Japan. Additionally, the company leverages strategic partnerships and licensing deals to enhance its product offerings and expand its market presence. These diverse revenue streams enable Sega Sammy Holdings to maintain a robust financial footing in the entertainment and gaming industries.

Sega Sammy Holdings Financial Statement Overview

Summary

Sega Sammy Holdings demonstrates strong financial performance marked by robust revenue and profit growth. The company has a solid balance sheet with a high equity ratio and effective cash flow management. However, there is a noted deceleration in growth rates and a decline in free cash flow growth in 2025, highlighting potential future challenges.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	428.95B	467.90B	389.63B	320.95B	277.75B
Gross Profit	192.71B	196.74B	158.07B	127.87B	100.78B
EBITDA	72.73B	58.61B	59.64B	45.76B	7.36B
Net Income	45.05B	33.05B	45.94B	37.03B	1.27B
Balance Sheet
Total Assets	644.78B	653.99B	501.57B	435.49B	421.60B
Cash, Cash Equivalents and Short-Term Investments	200.36B	219.81B	179.51B	152.46B	155.69B
Total Debt	154.14B	161.84B	57.35B	56.01B	56.81B
Total Liabilities	263.17B	296.30B	170.22B	142.85B	130.34B
Stockholders Equity	381.58B	357.67B	331.32B	292.59B	290.76B
Cash Flow
Free Cash Flow	9.00B	54.72B	33.88B	27.75B	-21.39B
Operating Cash Flow	20.86B	65.83B	44.70B	39.61B	-6.38B
Investing Cash Flow	-12.54B	-113.51B	-2.35B	-8.79B	30.47B
Financing Cash Flow	-27.98B	79.79B	-15.36B	-35.97B	-31.49B

Sega Sammy Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 5.25
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 5.25 is below the 20-day moving average (MA) of 5.68, below the 50-day MA of 5.29, and above the 200-day MA of 4.89, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 43.12 is Neutral, neither overbought nor oversold. The STOCH value of 23.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SGAMY.

Sega Sammy Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NTES	85 Outperform	$84.89B	19.55	23.93%	2.39%	1.26%	6.84%
RBLX	73 Outperform	$84.45B	―	-460.30%	―	30.24%	27.61%
EA	70 Outperform	$37.72B	35.35	16.13%	0.63%	-0.81%	-9.28%
BILI	69 Neutral	$10.42B	―	-4.29%	―	21.11%	87.93%
SGAMY	68 Neutral	$4.05B	15.27	11.92%	1.89%	-12.95%	28.87%
Sector *	59 Neutral	C$3.39B	8.06	-17.94%	6.39%	-2.63%	-19.63%
TTWO	57 Neutral	$41.02B	―	-114.76%	―	5.31%	-15.57%