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

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Cave Interactive Co., Ltd.

(3760)

Rating:67Neutral

Price Target:―

Cave Interactive Co., Ltd. demonstrates strong financial growth and a robust balance sheet, but faces challenges with cash flow consistency. The technical analysis indicates bearish trends, suggesting caution. However, its attractive valuation, with a low P/E ratio and reasonable dividend yield, enhances its investment appeal.

Cave Interactive Co., Ltd. (3760) vs. iShares MSCI Japan ETF (EWJ)

Market Cap

¥6.57B

Dividend Yield1.52%

Average Volume (3M)35.20K

Price to Earnings (P/E)4.6

Beta (1Y)0.94

Revenue Growth16.25%

EPS Growth-27.48%

CountryJP

Employees171

SectorCommunication Services

Sector Strength86

IndustryElectronic Gaming & Multimedia

Share Statistics

EPS (TTM)212.92

Shares Outstanding6,693,500

10 Day Avg. Volume20,770

30 Day Avg. Volume35,203

Financial Highlights & Ratios

PEG Ratio2.41

Price to Book (P/B)0.81

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

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

Company DescriptionCave Interactive Co., Ltd. (3760) is a Japanese company primarily engaged in the development and distribution of video games and digital entertainment content. The company is well-known for its work in the arcade and mobile gaming sectors, particularly for producing 'bullet hell' shooter games. Cave Interactive's portfolio includes both original titles and adaptations for various gaming platforms, catering to a diverse range of gaming enthusiasts.

How the Company Makes MoneyCave Interactive makes money through a multi-faceted revenue model primarily focused on game sales, in-game purchases, and licensing agreements. The company generates revenue from the direct sales of its games across various platforms, including arcade, console, and mobile devices. Additionally, Cave Interactive capitalizes on in-game monetization strategies, such as offering virtual goods and premium content for purchase within its games. Licensing its intellectual property to other developers for adaptations and collaborations also contributes to its revenue streams. Partnerships with distributors and other entertainment companies further enhance its earnings by expanding the reach and availability of its gaming content.

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, challenges in maintaining stable cash flow could impact liquidity, which needs attention to mitigate potential risks.

Income Statement

Very Positive

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

Positive

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

Positive

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.

TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Breakdown
Income Statement		Total Revenue
13.49B	12.27B	6.96B	1.41B	1.70B	1.68B
	Gross Profit
5.64B	5.45B	3.44B	677.71M	793.74M	851.87M
	EBIT
1.63B	1.87B	203.18M	-813.36M	-225.58M	-269.01M
	EBITDA
1.94B	2.13B	2.97B	-901.39M	-234.60M	-313.75M
	Net Income Common Stockholders
1.26B	1.48B	2.58B	-936.99M	-244.97M	-316.93M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.36B	6.34B	6.39B	1.06B	904.44M	1.10B
	Total Assets
13.94B	14.36B	13.49B	1.38B	1.42B	1.45B
	Total Debt
1.24B	983.92M	1.10B	206.51M	209.72M	14.98M
	Net Debt
-4.13B	-5.36B	-5.28B	-849.55M	-694.72M	-1.09B
	Total Liabilities
6.66B	7.57B	8.40B	361.06M	359.27M	278.76M
	Stockholders Equity
6.43B	6.09B	4.42B	997.56M	1.03B	1.17B
Cash Flow		Free Cash Flow
0.00	-916.03M	1.68B	-520.33M	-485.48M	-86.83M
	Operating Cash Flow
0.00	569.09M	2.54B	-480.60M	-299.32M	11.67M
	Investing Cash Flow
0.00	-703.00M	1.28B	44.29M	-186.16M	-136.76M
	Financing Cash Flow
0.00	31.00M	1.52B	583.50M	287.31M	2.28M

Cave Interactive Co., Ltd. Technical Analysis

Technical Analysis Sentiment

Positive

Last Price982.00

Price Trends

50DMA

916.22

Positive

100DMA

937.53

Positive

200DMA

1002.28

Negative

Market Momentum

MACD

14.87

Negative

RSI

58.77

Neutral

STOCH

58.25

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3760, the sentiment is Positive. The current price of 982 is above the 20-day moving average (MA) of 939.10, above the 50-day MA of 916.22, and below the 200-day MA of 1002.28, indicating a neutral trend. The MACD of 14.87 indicates Negative momentum. The RSI at 58.77 is Neutral, neither overbought nor oversold. The STOCH value of 58.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3760.

Cave Interactive Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3904	70 Neutral	¥6.73B	15.93		0.93%	1.91%	9.12%
3851	67 Neutral	¥4.17B	41.88		0.61%	-21.35%	-85.46%
3760	67 Neutral	¥6.57B	4.64		1.52%	16.25%	-27.48%
3932	64 Neutral	¥42.39B	25.76		3.23%	1.15%	1150.40%
Sector *	60 Neutral	$14.21B	6.47	-3.76%	3.69%	2.48%	-35.46%
3911	59 Neutral	¥12.19B	31.89		―	<0.01%	―
3656	41 Neutral	¥6.38B	―		―	-11.13%	28.02%

* Communication Services Sector Average

Performance Comparison

JP:3760

Cave Interactive Co., Ltd.

974.00

-642.65

-39.75%

JP:3656

KLab Inc.

115.00

-117.00

-50.43%

JP:3851

Nippon Ichi Software, Inc.

821.00

-202.76

-19.81%

JP:3904

KAYAC, Inc.

418.00

-227.37

-35.23%

JP:3911

Aiming, Inc.

255.00

45.00

21.43%

JP:3932

Akatsuki, Inc.

2,929.00

871.03

42.32%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.