Sega Sammy Holdings (SGAMY) AI Stock Analysis

• Market Cap: $4.63B
• Dividend Yield: 1.62%
• Average Volume (3M): 22.00
• Price to Earnings (P/E): 17.4
• Beta (1Y): 0.35
• Revenue Growth: -12.56%
• EPS Growth: -24.47%
• Country: US
• Employees: 8,623
• Sector: Communication Services
• Sector Strength: 93
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 0.30
• Shares Outstanding: 884,917,900
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 22
• PEG Ratio: 0.10
• Price to Book (P/B): 0.42
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.07
• 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: 72 Outperform
• Price Target: ―

Sega Sammy Holdings demonstrates strong financial performance with effective profitability and a solid balance sheet, although recent revenue declines and missing cash flow data warrant attention. The technical indicators suggest a positive long-term trend, while the valuation is fair, offering moderate investment appeal. The overall score reflects these strengths and challenges.

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 Entertainment Contents Business is a major contributor, encompassing the development and sale of video games for various platforms, including consoles, PCs, and mobile devices. This segment also includes the operation of amusement centers and sales of arcade machines. The Pachislot and Pachinko Machines Business is another significant revenue source, involving the manufacture and sale of these gaming machines primarily in Japan. Additionally, the company earns income from its Resort Business, which includes integrated resorts and hotels. Sega Sammy's earnings are also bolstered by strategic partnerships and licensing agreements that expand its reach in the entertainment sector. The company's ability to leverage its intellectual properties across multiple platforms and sectors is a critical factor in its financial performance.

Sega Sammy Holdings Financial Statement Overview

Summary

Sega Sammy Holdings exhibits strong financial performance with healthy profitability and a robust balance sheet. However, recent revenue declines and missing cash flow data pose challenges. Overall, the company demonstrates a stable financial position but needs to address these areas of concern.

Income Statement

Sega Sammy Holdings has demonstrated strong revenue growth over recent years with revenue increasing from 2021 to the TTM period. The gross profit and net profit margins are healthy, indicating efficient cost management and profitability. The EBIT and EBITDA margins are also positive, reflecting strong operational performance. However, there was a decline in revenue from the previous fiscal year to the TTM period, suggesting a need to monitor potential market challenges.

Balance Sheet

The company's balance sheet shows a solid equity base with a low debt-to-equity ratio, which reflects prudent financial management and low leverage risk. The return on equity is competitive, indicating effective use of shareholder funds. However, the equity ratio is moderate, suggesting room for improvement in asset utilization.

Cash Flow

While Sega Sammy's historical free cash flow generation has been robust, the TTM period shows a lack of reported cash flow figures, raising concerns about recent cash management or timing issues in reporting. The operating cash flow to net income ratio has been strong, indicating efficient conversion of profits into cash flow. However, fluctuations in free cash flow growth and the absence of current figures suggest potential volatility.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	440.29B	467.90B	389.63B	320.95B	277.75B	366.59B
Gross Profit	192.39B	196.74B	158.07B	127.87B	100.78B	136.50B
EBITDA	62.06B	58.61B	59.64B	45.76B	7.36B	46.88B
Net Income	39.48B	33.05B	45.94B	37.03B	1.27B	13.78B
Balance Sheet
Total Assets	645.67B	653.99B	501.57B	435.49B	421.60B	458.27B
Cash, Cash Equivalents and Short-Term Investments	202.35B	219.81B	179.51B	152.46B	155.69B	164.41B
Total Debt	153.25B	161.84B	57.35B	56.01B	56.81B	75.33B
Total Liabilities	262.59B	296.30B	170.22B	142.85B	130.34B	161.41B
Stockholders Equity	383.05B	357.67B	331.32B	292.59B	290.76B	294.92B
Cash Flow
Free Cash Flow	0.00	54.72B	33.88B	27.75B	-21.39B	19.50B
Operating Cash Flow	0.00	65.83B	44.70B	39.61B	-6.38B	38.54B
Investing Cash Flow	0.00	-113.51B	-2.35B	-8.79B	30.47B	-15.46B
Financing Cash Flow	0.00	79.79B	-15.36B	-35.97B	-31.49B	-10.96B

Sega Sammy Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.98
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SGAMY, the sentiment is Positive. The current price of 5.98 is above the 20-day moving average (MA) of 5.39, above the 50-day MA of 5.16, and above the 200-day MA of 4.86, indicating a bullish trend. The MACD of 0.31 indicates Negative momentum. The RSI at 68.48 is Neutral, neither overbought nor oversold. The STOCH value of 88.65 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	$82.72B	19.05	23.93%	2.04%	1.26%	6.84%
SGAMY	72 Outperform	$4.63B	17.40	11.92%	1.62%	-12.56%	-24.47%
RBLX	72 Outperform	$71.62B	―	-460.30%	―	30.24%	27.61%
BILI	71 Outperform	$8.67B	―	-4.29%	―	21.11%	87.93%
EA	70 Outperform	$39.64B	37.15	16.13%	0.48%	-0.81%	-9.28%
Sector *	61 Neutral	$41.22B	-1.26	-14.49%	3.95%	2.29%	-73.14%
TTWO	57 Neutral	$42.84B	―	-114.76%	―	5.31%	-15.57%