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Cave Interactive Co., Ltd. (JP:3760)
:3760
Japanese Market
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Cave Interactive Co., Ltd. (3760) AI Stock Analysis

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JP:3760

Cave Interactive Co., Ltd.

(3760)

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Neutral 51 (OpenAI - 5.2)
Rating:51Neutral
Price Target:
¥732.00
▼(-0.27% Downside)
Action:Reiterated
Date:07/16/26
The score is held down primarily by weak financial performance (recent losses and negative operating/free cash flow). This is partially offset by strong technical trend and momentum signals, while valuation support is limited due to loss-making earnings and only a modest dividend yield.
Positive Factors
Recurring in-game purchase revenue model
A business model centered on in-game purchases creates recurring, high-margin revenue tied to engaged users and live operations. This structurally supports durable cash generation when titles retain players, and reduces capital intensity versus physical goods or hardware cycles.
Negative Factors
Sharp shift to operating and net losses
A swing into material operating and net losses in 2026 undermines recurring profitability and erodes retained earnings. For a hit-driven gaming firm, this weakens the firm’s ability to invest in live ops, acquisition, and development, making sustained recovery dependent on new successful titles.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring in-game purchase revenue model
A business model centered on in-game purchases creates recurring, high-margin revenue tied to engaged users and live operations. This structurally supports durable cash generation when titles retain players, and reduces capital intensity versus physical goods or hardware cycles.
Read all positive factors

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

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

Company Description
CAVE Interactive CO.,LTD. operates within the Japanese entertainment industry. This company is responsible for the conceptualization, development, management, and marketing of various entertainment content, particularly focusing on mobile media. A...
How the Company Makes Money
The company makes money mainly through operating and monetizing its mobile/online games. Its revenue model is primarily based on in-game purchases (selling virtual items, characters, upgrades, and other digital goods within games) and may also inc...

Cave Interactive Co., Ltd. Financial Statement Overview

Summary
Latest annual results are weak: the company shifted to meaningful operating losses and a large net loss, with negative operating and free cash flow. While leverage is only moderate (debt-to-equity ~0.47), the sharp negative ROE and cash burn increase risk until profitability and cash generation recover.
Income Statement
34
Negative
Balance Sheet
55
Neutral
Cash Flow
31
Negative
BreakdownMay 2025May 2024May 2023May 2022May 2021
Income Statement
Total Revenue12.00B13.97B12.27B6.96B1.41B
Gross Profit3.46B5.23B5.37B3.44B677.71M
EBITDA-555.18M1.41B2.20B260.29M-779.99M
Net Income-2.80B246.49M1.48B2.58B-936.99M
Balance Sheet
Total Assets9.41B13.25B14.36B13.49B1.38B
Cash, Cash Equivalents and Short-Term Investments5.26B6.20B6.34B6.39B1.06B
Total Debt1.72B1.25B1.59B1.10B206.51M
Total Liabilities5.76B6.98B7.57B8.40B361.06M
Stockholders Equity3.64B6.22B6.09B4.42B997.56M
Cash Flow
Free Cash Flow-579.55M827.63M477.74M2.46B-485.49M
Operating Cash Flow-560.48M922.45M569.09M2.54B-480.60M
Investing Cash Flow-1.14B-1.14B-657.82M1.28B44.29M
Financing Cash Flow627.19M69.58M-14.33M1.52B583.50M

Cave Interactive Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price734.00
Price Trends
50DMA
704.50
Positive
100DMA
660.32
Positive
200DMA
681.13
Positive
Market Momentum
MACD
3.73
Positive
RSI
48.06
Neutral
STOCH
50.61
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3760, the sentiment is Neutral. The current price of 734 is below the 20-day moving average (MA) of 737.45, above the 50-day MA of 704.50, and above the 200-day MA of 681.13, indicating a neutral trend. The MACD of 3.73 indicates Positive momentum. The RSI at 48.06 is Neutral, neither overbought nor oversold. The STOCH value of 50.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
70
Outperform
¥15.13B6.5816.24%
61
Neutral
¥8.59B13.39-23.76%-54.87%
60
Neutral
$48.67B4.58-11.27%4.14%2.83%-41.78%
58
Neutral
¥6.23B-49.380.64%-16.66%36.54%
54
Neutral
¥15.25B10.122.70%-28.19%
51
Neutral
¥4.90B-1.561.44%-14.08%-1241.11%
45
Neutral
¥16.21B19.3810.54%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3760
Cave Interactive Co., Ltd.
722.00
-272.00
-27.36%
JP:3656
KLab Inc.
193.00
33.00
20.63%
JP:3793
Drecom Co., Ltd.
533.00
34.00
6.81%
JP:3851
Nippon Ichi Software, Inc.
1,440.00
567.23
64.99%
JP:3903
gumi, Inc.
288.00
-352.00
-55.00%
JP:3911
Aiming, Inc.
184.00
-79.00
-30.04%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 16, 2026