Koei Tecmo Holdings Co., Ltd. (3635) AI Stock Analysis

• Market Cap: ¥781.71B
• Dividend Yield: 2.04%
• Average Volume (3M): 560.02K
• Price to Earnings (P/E): 19.7
• Beta (1Y): 0.46
• Revenue Growth: -1.70%
• EPS Growth: 11.29%
• Country: JP
• Employees: 2,531
• Sector: Communication Services
• Sector Strength: 86
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 39.47
• Shares Outstanding: 336,096,920
• 10 Day Avg. Volume: 693,950
• 30 Day Avg. Volume: 560,016
• PEG Ratio: -2.87
• Price to Book (P/B): 5.27
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 26.12
• 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: ¥2,200.00
• Price Target Upside: -6.32% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 72 Outperform
• Price Target: ―

Koei Tecmo scores well on financial performance due to strong profitability and low leverage, despite some uncertainty around liquidity due to missing cash flow data. The stock exhibits positive technical signals, trading above key moving averages, though lacking complete momentum indicators. Valuation is fair with a moderate P/E ratio and dividend yield, supporting a solid but cautious investment outlook.

Koei Tecmo Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

Koei Tecmo Holdings Co., Ltd. (3635) is a prominent Japanese video game developer and publisher, formed through the merger of Koei and Tecmo. The company operates in the interactive entertainment industry, producing a variety of video games across multiple platforms. It is well-known for its popular franchises including Dynasty Warriors, Dead or Alive, and Nioh, which cater to diverse gaming audiences globally. Koei Tecmo also engages in the development of software for game consoles, personal computers, and handheld devices, and has expanded its presence into online and mobile gaming sectors.

How the Company Makes Money

Koei Tecmo Holdings Co., Ltd. generates revenue primarily through the development and sale of video game software. The company earns money by selling its games on various platforms such as consoles, PCs, and mobile devices. Additionally, Koei Tecmo benefits from digital downloads, downloadable content (DLC), and in-game purchases, which have become significant revenue streams in the gaming industry. The company also licenses its intellectual properties for merchandise and media adaptations, further diversifying its income sources. Key partnerships with console manufacturers and digital distribution platforms enhance its market reach and sales potential. Furthermore, Koei Tecmo's involvement in creating online and mobile games provides access to the growing market of online gaming, contributing to its overall earnings.

Koei Tecmo Holdings Co., Ltd. Financial Statement Overview

Summary

Koei Tecmo demonstrates strong financial health with robust profitability and low leverage. The income statement shows solid profit margins, although recent revenue growth has slightly declined. The balance sheet is stable, with minimal debt and strong equity funding, but fluctuations in assets and liabilities require monitoring. The lack of current cash flow data introduces some uncertainty regarding liquidity.

Income Statement

Koei Tecmo has demonstrated strong performance with a consistent increase in revenue and profitability. The TTM Gross Profit Margin stands at 59.93%, and the Net Profit Margin at 45.60%, indicating robust profitability. The EBIT and EBITDA margins are also healthy, at 30.59% and 28.32% respectively. Revenue growth has been positive, although slightly declining in the latest TTM compared to the previous annual period.

Balance Sheet

The company maintains a strong balance sheet with a low Debt-to-Equity Ratio of 0.05, indicating minimal leverage. The Return on Equity (ROE) is impressive at 17.71% in the latest TTM, suggesting efficient use of equity. The Equity Ratio is high at 82.07%, reflecting strong equity funding. However, fluctuations in total assets and liabilities warrant cautious monitoring.

Cash Flow

Cash flow metrics are mixed due to missing data for the latest TTM period. Historically, the company has maintained strong Free Cash Flow and Operating Cash Flow relative to Net Income. However, the absence of recent cash flow data introduces uncertainty in evaluating the current liquidity position.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	76.02B	83.15B	84.58B	78.42B	72.76B	60.37B
Gross Profit	45.56B	52.39B	55.30B	57.10B	50.60B	39.07B
EBITDA	21.53B	51.90B	30.31B	55.55B	28.34B	25.95B
Net Income	34.67B	37.63B	33.79B	30.93B	35.36B	29.55B
Balance Sheet
Total Assets	238.38B	209.83B	245.80B	210.89B	219.80B	190.67B
Cash, Cash Equivalents and Short-Term Investments	35.95B	44.49B	70.09B	20.61B	45.42B	17.23B
Total Debt	9.00B	0.00	46.54B	47.34B	48.15B	41.00M
Total Liabilities	42.68B	20.41B	70.25B	68.20B	81.70B	25.54B
Stockholders Equity	195.70B	189.42B	175.55B	142.68B	138.10B	165.13B
Cash Flow
Free Cash Flow	0.00	32.82B	34.80B	28.80B	23.47B	28.14B
Operating Cash Flow	0.00	34.37B	36.60B	29.69B	24.82B	29.73B
Investing Cash Flow	0.00	40.97B	-24.86B	-21.39B	-13.17B	-12.29B
Financing Cash Flow	0.00	-63.17B	-15.47B	-16.59B	-4.56B	-19.40B

Koei Tecmo Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2348.50
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3635, the sentiment is Neutral. The current price of 2348.5 is above the 20-day moving average (MA) of 2337.87, below the 50-day MA of 2373.49, and above the 200-day MA of 1919.28, indicating a neutral trend. The MACD of -2.84 indicates Negative momentum. The RSI at 48.40 is Neutral, neither overbought nor oversold. The STOCH value of 47.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3635.

Koei Tecmo Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9697	81 Outperform	$1.99T	41.04	22.64%	0.93%	11.28%	11.70%
9766	78 Outperform	¥3.01T	39.96	16.43%	0.90%	17.01%	26.23%
3635	72 Outperform	¥781.71B	19.71		2.04%	-1.70%	11.29%
9684	70 Outperform	$1.25T	51.31	7.32%	0.82%	0.58%	-56.67%
6460	70 Outperform	$699.97B	17.27	11.92%	1.38%	-8.32%	39.87%
7974	69 Neutral	$15.00T	52.91	10.29%	1.28%	-27.51%	-35.35%
Sector *	67 Neutral	¥364.61B	13.68	2.32%	2.55%	5.41%	-18.17%

Koei Tecmo Holdings Co., Ltd. Corporate Events

Koei Tecmo Exceeds Profit Forecasts and Raises Dividend

Koei Tecmo Holdings Co., Ltd. announced a discrepancy between its performance forecast and actual results for the fiscal year ending March 2025, with actual net sales falling short of forecasts but operating and ordinary profits exceeding expectations. This was attributed to the release of nine new titles and cost reductions in operating titles. Additionally, the company revised its year-end dividend forecast from 48 yen to 60 yen per share, reflecting its commitment to shareholder returns and improved financial performance.

Koei Tecmo Reports Fiscal Year 2025 Financial Results with Increased Operating Profit

Koei Tecmo Holdings Co., Ltd. reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a slight decline in net sales by 1.7% compared to the previous year, but an increase in operating profit by 12.7%. The company also announced a dividend increase to 60 yen per share, reflecting its commitment to returning value to shareholders. Despite the decrease in comprehensive income, the company maintained a strong financial position with a high capital adequacy ratio of 89.9%.

Koei Tecmo Announces Leadership Changes and Strategic Corporate Restructuring

Koei Tecmo Holdings Co., Ltd. has announced significant changes in its leadership and corporate structure. These include the appointment of Hiroshi Koinuma as the new President and CEO, a shift in management roles to enhance governance, and the establishment of Koei Tecmo Corporate Finance Co., Ltd. to consolidate group finance operations, aiming for better cash management and investment governance.