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Nintendo Co
(7974)
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Rating:80Outperform
Price Target:
¥8,987.00
▲(2.97% Upside)
Action:Reiterated
Date:08/17/26
The score is primarily driven by strong financial performance, led by an exceptionally conservative balance sheet and solid profitability, tempered by cyclical volatility in revenue/cash flow and 2026 margin compression. Technicals are supportive but look overheated (overbought signals) and still below the 200-day average. Valuation is reasonable with a supportive dividend yield, but not especially cheap at ~21.7x earnings.
Positive Factors
Exceptional balance sheet
A debt-light balance sheet materially reduces financial risk and interest burden, preserving flexibility through game-cycle downturns. Strong equity and asset growth also give Nintendo capacity to fund platform investment, software development, and shareholder returns without relying heavily on external financing.
Negative Factors
Revenue and margin volatility
The sharp swings in revenue and the 2026 margin compression indicate meaningful dependence on product cycles and release timing. Even with a strong rebound, uneven operating performance can make earnings less predictable and constrain confidence in near-term profit sustainability.
Read all positive and negative factors
Positive Factors
Negative Factors
Exceptional balance sheet
A debt-light balance sheet materially reduces financial risk and interest burden, preserving flexibility through game-cycle downturns. Strong equity and asset growth also give Nintendo capacity to fund platform investment, software development, and shareholder returns without relying heavily on external financing.
Read all positive factors
Nintendo Co (7974) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥9.39T
Dividend Yield2.71%
Average Volume (3M)6.82M
Price to Earnings (P/E)19.9
Beta (1Y)0.58
Revenue Growth51.51%
EPS Growth62.39%
CountryJP
Employees8,666
SectorCommunication Services
Sector Strength97
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)409.91
Shares Outstanding1,287,260,000
10 Day Avg. Volume7,220,980
30 Day Avg. Volume6,817,273
Financial Highlights & Ratios
PEG Ratio0.46
Price to Book (P/B)3.46
Price to Sales (P/S)4.41
P/FCF Ratio38.87
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥8,825.00Price Target Upside1.11% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)373.43
Revenue Forecast (FY)¥2.31T
Nintendo Co Business Overview & Revenue Model
Company Description
Nintendo Co., Ltd., together with its subsidiaries, develops, manufactures, and sells home entertainment products in Japan, the Americas, Europe, and internationally. It offers home console gaming hardware, software, accessories, and other product...
How the Company Makes Money
Nintendo primarily earns revenue by selling (1) dedicated video game hardware, (2) first-party and third-party game software for its platforms, (3) digital content and services, and (4) licensing and other IP-related income.
1) Hardware sales (co...
Nintendo Co Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
95
Very Positive
Cash Flow
72
Positive
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.26T | 2.31T | 1.16T | 1.67T | 1.60T | 1.70T |
| Gross Profit | 1.01T | 908.96B | 710.17B | 954.34B | 885.44B | 946.04B |
| EBITDA | 604.03B | 584.26B | 387.69B | 698.75B | 611.92B | 603.29B |
| Net Income | 475.45B | 424.06B | 278.81B | 490.60B | 432.77B | 477.69B |
Balance Sheet | ||||||
| Total Assets | 3.82T | 3.81T | 3.40T | 3.21T | 2.85T | 2.66T |
| Cash, Cash Equivalents and Short-Term Investments | 1.97T | 2.22T | 2.06T | 2.25T | 1.88T | 1.71T |
| Total Debt | 70.06B | 0.00 | 7.16B | 6.13B | 6.29B | 6.23B |
| Total Liabilities | 896.94B | 850.13B | 673.07B | 604.01B | 587.82B | 593.08B |
| Stockholders Equity | 2.92T | 2.95T | 2.72T | 2.60T | 2.27T | 2.07T |
Cash Flow | ||||||
| Free Cash Flow | 262.62B | 262.62B | -6.94B | 445.97B | 300.65B | 282.07B |
| Operating Cash Flow | 289.79B | 289.79B | 12.07B | 462.10B | 322.84B | 289.66B |
| Investing Cash Flow | -210.05B | -210.05B | 753.06B | -630.63B | 111.51B | 93.70B |
| Financing Cash Flow | -249.71B | -249.71B | -195.13B | -236.96B | -290.97B | -337.01B |
Nintendo Co Technical Analysis
Positive
8728.00
Price Trends
8255.83
Negative
7680.99
Positive
8370.22
Negative
Market Momentum
-117.11
Positive
51.68
Neutral
47.25
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7974, the sentiment is Positive. The current price of 8728 is above the 20-day moving average (MA) of 8028.32, above the 50-day MA of 8255.83, and above the 200-day MA of 8370.22, indicating a neutral trend. The MACD of -117.11 indicates Positive momentum. The RSI at 51.68 is Neutral, neither overbought nor oversold. The STOCH value of 47.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7974.
Nintendo Co Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | ¥3.13T | 28.44 | 20.53% | 1.08% | 22.80% | 49.61% | |
82 Outperform | ¥1.84T | 27.97 | 25.34% | 1.09% | 18.74% | 19.36% | |
80 Outperform | ¥9.39T | 19.94 | 16.30% | 2.71% | 51.51% | 62.39% | |
79 Outperform | ¥2.01T | 15.61 | 12.80% | 1.97% | 15.07% | 38.01% | |
72 Outperform | ¥1.04T | 27.34 | 11.04% | 1.51% | 0.94% | 104.41% | |
64 Neutral | ¥656.13B | -3,683.33 | -0.05% | 1.70% | 23.77% | -98.22% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
JP:7974
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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.