Cave Interactive Co., Ltd. (3760) AI Stock Analysis

• Market Cap: ¥6.33B
• Dividend Yield: 1.05%
• Average Volume (3M): 22.17K
• Price to Earnings (P/E): 23.3
• Beta (1Y): 0.93
• Revenue Growth: 13.81%
• EPS Growth: -83.34%
• Country: JP
• Employees: 171
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): -122.58
• Shares Outstanding: 6,693,500
• 10 Day Avg. Volume: 13,730
• 30 Day Avg. Volume: 22,170
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,002.00
• Price Target Upside: 5.25% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 56 Neutral
• Price Target: ¥1,002.00 ▲(5.25% Upside)

Cave Interactive Co., Ltd. has strong revenue growth but faces significant challenges in profitability and cash flow management. Technical indicators suggest bearish momentum, and the valuation appears high relative to earnings. The lack of earnings call data and notable corporate events limits additional insights.

Cave Interactive Co., Ltd. Business Overview & Revenue Model

Company Description

CAVE Interactive CO.,LTD. engages in entertainment business in Japan. It plans, produces, operates, and markets entertainment content, including mobile media. The company also offers games and live streaming services. CAVE Interactive CO.,LTD. was incorporated in 1994 and is based in Tokyo, Japan.

How the Company Makes Money

Cave Interactive generates revenue primarily through the sale of its video games across various platforms, including mobile, console, and PC. The company monetizes its games through direct sales, in-game purchases, and downloadable content (DLC). Additionally, Cave Interactive earns income from partnerships with other game developers and publishers, collaborating on joint ventures and licensing agreements to expand its market reach. The success of their titles, especially in the niche shmup genre, along with strategic marketing and community engagement, significantly contributes to their overall earnings.

Cave Interactive Co., Ltd. Financial Statement Overview

Summary

Cave Interactive Co., Ltd. shows strong revenue and profit growth, supported by efficient operations and a robust balance sheet with low leverage. However, cash flow challenges and historical instability in equity and income impact the overall financial health.

Income Statement

The income statement shows a strong growth trajectory with total revenue increasing significantly from 2023 to 2024. Gross profit margin is healthy at approximately 44.4% for 2024. The net profit margin improved significantly to 12% in 2024, up from 37% in 2023. Both EBIT and EBITDA margins are positive, indicating operational efficiency improvements. However, the volatility in net income over previous years suggests some historical instability.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.16 in 2024, indicating low leverage and financial risk. The equity ratio is strong at 42.4%, suggesting a solid base of equity financing. Return on equity is healthy at 24.2% for 2024, demonstrating effective use of equity. However, the company has experienced fluctuations in stockholders' equity over the years, indicating some historical variability.

Cash Flow

Cash flow analysis reveals a significant decline in operating cash flow from 2023 to 2024, resulting in negative free cash flow for 2024. The free cash flow to net income ratio is negative, indicating cash flow issues despite positive net income. This could pose a risk to liquidity. Historical cash flow fluctuations suggest potential challenges in maintaining consistent free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.88B	13.97B	12.27B	6.96B	1.41B	1.70B
Gross Profit	5.49B	5.23B	5.45B	3.44B	677.71M	793.74M
EBITDA	1.90B	55.80M	2.13B	2.97B	-901.39M	-234.60M
Net Income	1.28B	246.49M	1.48B	2.58B	-936.99M	-244.97M
Balance Sheet
Total Assets	14.24B	13.25B	14.36B	13.49B	1.38B	1.42B
Cash, Cash Equivalents and Short-Term Investments	5.31B	6.20B	6.34B	6.39B	1.06B	904.44M
Total Debt	1.11B	1.25B	983.92M	1.10B	206.51M	209.72M
Total Liabilities	6.47B	6.98B	7.57B	8.40B	361.06M	359.27M
Stockholders Equity	7.05B	6.22B	6.09B	4.42B	997.56M	1.03B
Cash Flow
Free Cash Flow	0.00	-257.72M	-916.03M	1.68B	-520.33M	-485.48M
Operating Cash Flow	0.00	922.45M	569.09M	2.54B	-480.60M	-299.32M
Investing Cash Flow	0.00	-1.35B	-703.00M	1.28B	44.29M	-186.16M
Financing Cash Flow	0.00	279.65M	31.00M	1.85B	583.50M	287.31M

Cave Interactive Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 952.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3760, the sentiment is Negative. The current price of 952 is below the 20-day moving average (MA) of 974.40, below the 50-day MA of 979.92, and below the 200-day MA of 965.38, indicating a bearish trend. The MACD of -11.35 indicates Positive momentum. The RSI at 37.35 is Neutral, neither overbought nor oversold. The STOCH value of 26.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3760.

Cave Interactive Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3904	67 Neutral	7.68B	16.11	2.68%	0.82%	4.65%	113.47%
3932	63 Neutral	40.17B	53.56	3.97%	3.41%	-10.86%	-64.25%
3851	58 Neutral	4.38B	-18.85	-2.00%	0.58%	-5.41%	-151.67%
3760	56 Neutral	¥6.33B	23.27		1.05%	13.81%	-83.34%
3911	54 Neutral	12.80B	9.00	-5.89%	―	4.13%	0.00%
3656	50 Neutral	10.67B	-1.47	-26.83%	―	-12.70%	-78.58%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%