Sega Sammy Holdings (6460) AI Stock Analysis

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Sega Sammy Holdings

(OTC:6460)

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Outperform 70 (OpenAI - 4o)

Rating:70Outperform

Price Target:

¥3,469.00

▲(12.37% Upside)

Sega Sammy Holdings' overall stock score reflects strong financial performance and a positive outlook from the earnings call, despite technical indicators suggesting short-term weakness and a high valuation. The company's robust growth in key segments and effective financial management are significant strengths, while the high P/E ratio and recent market momentum are notable risks.

Sega Sammy Holdings (6460) vs. iShares MSCI Japan ETF (EWJ)

Market Cap

$596.58B

Dividend Yield1.62%

Average Volume (3M)814.78K

Price to Earnings (P/E)38.5

Beta (1Y)0.59

Revenue Growth-12.78%

EPS Growth-56.73%

CountryJP

Employees8,623

SectorCommunication Services

Sector Strength97

IndustryElectronic Gaming & Multimedia

Share Statistics

EPS (TTM)-15.89

Shares Outstanding221,229,480

10 Day Avg. Volume684,800

30 Day Avg. Volume814,776

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap1.24

Enterprise Value/Revenue1.73

Enterprise Value/Gross Profit3.85

Enterprise Value/Ebitda11.67

Forecast

1Y Price Target

$3,650.07

Price Target Upside18.24% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering2

Sega Sammy Holdings Business Overview & Revenue Model

Company DescriptionSega 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 MoneySega Sammy Holdings generates revenue through multiple streams. The company's primary revenue sources include video game sales, amusement machine sales, and pachinko and pachislot machine operations. The video game segment profits from the sale of both physical and digital games, downloadable content, and royalties from licensing its intellectual properties. The amusement segment includes arcade operations and sales of arcade machines. Additionally, the pachinko and pachislot segment is a significant profit driver, where the company manufactures and sells machines to parlors across Japan. The company also benefits from strategic partnerships and collaborations in the gaming and entertainment sectors, which enhance its market reach and contribute to its diverse earnings portfolio.

Sega Sammy Holdings Earnings Call Summary

Earnings Call Date:Aug 08, 2025

(Q1-2026)

% Change Since: |

Next Earnings Date:Nov 07, 2025

Earnings Call Sentiment Positive

The earnings call reflected a positive start in the Pachislot, Pachinko, and gaming businesses, with strong launches like Persona5: The Phantom X and successful initiatives like the SEGA Store Tokyo. However, there were notable challenges, including foreign exchange losses and underperformance in Rovio and animation segments. Despite some lowlights, the highlights indicate a generally positive outlook with strong operational starts in key segments.

Q1-2026 Updates

Positive Updates

Strong Start in Pachislot and Pachinko Machines Business

The Pachislot and Pachinko machines business made a good start in terms of operating income, with sales of Dejihane P Hokuto No Ken Jibo and P Zombie Land Saga exceeding internal expectations. Orders for Tokyo Revengers Pachislot machine exceeded 25,000 units, compared to the plan of 20,000 units.

Positive Performance in Gaming Business

Sales of video slot machines were strong in the US, contributing to a favorable start in Q1. Paradise City in South Korea maintained strong sales, especially to Japanese VIP customers.

Successful Launch of Persona5: The Phantom X

Persona5: The Phantom X launched on June 26, ranking first in domestic free game download rankings on the first day, with sales exceeding JPY1 billion in just five days.

Increase in Licensing and Subscription Revenues

Revenues from the provision of titles for subscription services and character licensing exceeded both the results of the same period of the previous year and expectations.

Successful Opening of SEGA Store Tokyo

The SEGA Store Tokyo opened successfully, exceeding expectations in sales and visitor numbers, strengthening touchpoints for SEGA IP.

Negative Updates

Foreign Exchange Losses Impacting Financials

A foreign exchange loss of approximately JPY2.9 billion was recorded as a non-operating expense due to the revaluation and settlement of foreign currency-denominated receivables and payables.

Challenges in Animation Segment

Operating income in the animation area was lower than the previous year due to a decline in Sonic film revenue, which was JPY800 million compared to JPY1.7 to JPY1.8 billion last year.

Underperformance of Rovio

Rovio's sales were below expectations, with the Angry Birds series still in the doldrums. Sales have fallen more than expected, leading to a decline in profits.

Weak Repeat Sales of Full Games

Repeat sales of full games were lower than expected in Q1 but have been recovering since July. Metaphor and Sonic X Shadow fell slightly short of expectations.

Company Guidance

During Sega Sammy Holdings Inc.'s Q1 financial results briefing for the fiscal year ending March 31, 2026, the company reported that sales were generally in line with expectations, leading to a smaller-than-expected loss at the operating income level. The Pachislot and Pachinko machines and gaming businesses showed a good start in operating income, whereas the entertainment contents business performed as anticipated. Although operating income surpassed expectations, adjusted EBITDA remained consistent due to JPY2.9 billion in foreign exchange losses. The company completed acquisitions of Stakelogic BV and GAN Limited, with goodwill estimated at JPY18.6 billion and JPY17.4 billion, respectively. There was a consolidation of the balance sheet from Q1, but P&L contributions will begin in Q2. Notably, 20 million shares of treasury stock were canceled, resulting in 11 million shares remaining. Operating, investing, and financing cash flows were projected at negative JPY11.7 billion, negative JPY19.5 billion, and negative JPY17.9 billion, respectively, contributing to an overall negative cash flow of JPY50.6 billion. The company anticipates growth from Q2 onward, spurred by the introduction of mainstay titles across its various businesses.

Sega Sammy Holdings Financial Statement Overview

Summary

Sega Sammy Holdings shows strong financial performance with robust revenue growth and profitability metrics. The income statement highlights effective revenue and profit management, while the balance sheet underscores a stable financial foundation with low leverage. Despite some fluctuations in cash flow components, the company maintains robust cash generation capabilities.

Income Statement

Very Positive

Sega Sammy Holdings has demonstrated robust revenue growth over the past five years, culminating in impressive Gross Profit and Net Profit margins. The company achieved a significant revenue growth rate, particularly from 2021 to 2024. However, the revenue slightly decreased in 2025 compared to the previous year. The EBIT and EBITDA margins remain strong, reflecting efficient operational management and cost control strategies.

Balance Sheet

Positive

The balance sheet reveals a healthy financial structure. The Debt-to-Equity ratio is low, indicating low leverage and reduced financial risk. The Return on Equity is strong, showcasing effective use of equity to generate profits. Moreover, the Equity Ratio suggests a solid equity base against total assets, contributing to financial stability. However, the slight fluctuations in total assets and equity over the years require monitoring.

Cash Flow

Positive

The cash flow statement indicates strong cash generation capabilities, with consistent positive Free Cash Flow and Operating Cash Flow. There is a noteworthy increase in Free Cash Flow over the years, although the growth rate declined in 2025. The Operating Cash Flow to Net Income ratio is healthy, suggesting efficient conversion of income into cash. Nevertheless, the company experienced volatility in financing cash flow, reflecting strategic shifts in capital management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	428.95B	428.95B	467.90B	389.63B	320.95B	277.75B
Gross Profit	192.71B	192.71B	196.74B	158.07B	127.87B	100.78B
EBITDA	63.55B	72.73B	58.61B	60.24B	51.94B	7.36B
Net Income	45.05B	45.05B	33.05B	45.94B	37.03B	1.27B
Balance Sheet
Total Assets	644.78B	644.78B	653.99B	501.57B	435.49B	421.60B
Cash, Cash Equivalents and Short-Term Investments	200.36B	200.36B	219.81B	179.51B	152.46B	155.69B
Total Debt	154.14B	154.14B	161.84B	57.35B	56.01B	56.81B
Total Liabilities	263.17B	263.17B	296.30B	170.22B	142.85B	130.34B
Stockholders Equity	381.58B	381.58B	357.67B	331.32B	292.59B	290.76B
Cash Flow
Free Cash Flow	0.00	9.00B	54.72B	33.88B	27.75B	-21.39B
Operating Cash Flow	0.00	20.86B	65.83B	44.70B	39.61B	-6.38B
Investing Cash Flow	0.00	-12.54B	-113.51B	-2.35B	-8.79B	30.47B
Financing Cash Flow	0.00	-27.98B	79.79B	-15.36B	-35.97B	-31.49B

Sega Sammy Holdings Technical Analysis

Technical Analysis Sentiment

Negative

Last Price3087.00

Price Trends

50DMA

3155.32

Negative

100DMA

3113.13

Negative

200DMA

2977.02

Positive

Market Momentum

MACD

-24.00

Positive

RSI

44.22

Neutral

STOCH

20.82

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6460, the sentiment is Negative. The current price of 3087 is below the 20-day moving average (MA) of 3120.15, below the 50-day MA of 3155.32, and above the 200-day MA of 2977.02, indicating a neutral trend. The MACD of -24.00 indicates Positive momentum. The RSI at 44.22 is Neutral, neither overbought nor oversold. The STOCH value of 20.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6460.

Sega Sammy Holdings Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3659	77 Outperform	2.70T	27.03	9.80%	0.89%	2.84%	51.14%
6460	70 Outperform	$596.58B	38.53	4.51%	1.62%	-12.78%	-56.73%
9697	68 Neutral	1.70T	30.47	23.85%	0.99%	34.28%	58.34%
9766	65 Neutral	2.88T	38.19	15.50%	0.78%	13.45%	16.03%
9684	57 Neutral	1.16T	62.70	7.26%	1.33%	-7.85%	-3.39%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

* Communication Services Sector Average

Performance Comparison

JP:6460

Sega Sammy Holdings

3,087.00

212.21

7.38%

GB:KNM

KONAMI HOLDINGS

21,235.00

7,126.83

50.52%

CCOEF

Capcom Co

27.48

4.85

21.43%

NEXOF

NEXON Co

20.61

1.09

5.58%

SQNXF

Square Enix Holdings Co

65.75

27.23

70.69%

Sega Sammy Holdings Corporate Events

Sega Sammy Holdings Announces Treasury Stock Disposal to Align Interests

Aug 27, 2025

Sega Sammy Holdings Inc. announced the disposal of treasury stocks through its RSU and PSU systems, aimed at aligning the company’s long-term interests with shareholders and enhancing corporate value. This move involves transferring shares to resigned directors and executive officers, reflecting the company’s strategic focus on incentivizing leadership to meet performance targets and drive growth.

The most recent analyst rating on (JP:6460) stock is a Hold with a Yen3200.00 price target. To see the full list of analyst forecasts on Sega Sammy Holdings stock, see the JP:6460 Stock Forecast page.

Sega Sammy Holdings Faces Financial Decline Amid Strategic Restructuring

Aug 8, 2025

Sega Sammy Holdings reported a significant decline in its financial performance for the three months ended June 30, 2025, with net sales dropping by 22.7% compared to the previous year. The company experienced operating and ordinary income losses, reflecting challenges in its operational efficiency and market conditions. Despite these setbacks, Sega Sammy plans to maintain its dividend payments and has made strategic changes by adding new subsidiaries, indicating a focus on restructuring and potential growth opportunities.

Sega Sammy Introduces Stock-Based Compensation for Executives

Jul 30, 2025

Sega Sammy Holdings Inc. announced the implementation of a new stock-based compensation system for its directors and executive officers, including those of its subsidiaries. This move, involving the granting of Restricted Stock Units (RSUs) and Performance Share Units (PSUs), is aimed at aligning the interests of its management with shareholders and enhancing long-term corporate value.

Sega Sammy Holdings Announces New Management Structure

Jun 24, 2025

Sega Sammy Holdings Inc. announced a new management structure following its Board of Directors meeting, which took place after the Ordinary General Meeting of Shareholders on June 24, 2025. The company appointed new Representative Directors and Directors with titles, as well as executive officers, to enhance its operational efficiency and strategic direction. This restructuring is expected to impact the company’s operations positively by streamlining leadership roles and potentially improving stakeholder confidence.

The most recent analyst rating on (JP:6460) stock is a Buy with a Yen3700.00 price target. To see the full list of analyst forecasts on Sega Sammy Holdings stock, see the JP:6460 Stock Forecast page.

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: Sep 12, 2025