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Nintendo Co
(7974)
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Rating:80Outperform
Price Target:
¥10,235.00
▲(46.86% 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 near debt-free balance sheet gives Nintendo substantial financial resilience and flexibility. It reduces interest and refinancing risk, supports continued investment in platforms and intellectual property, and helps the company withstand cyclical swings in hardware and software demand.
Negative Factors
Volatile Cash Conversion
Uneven operating and free-cash-flow conversion reduces visibility into internally generated funding and makes results more dependent on release timing and working capital. Although 2026 recovered strongly, another weak cycle could constrain investment planning or shareholder distributions.
Read all positive and negative factors
Positive Factors
Negative Factors
Exceptional Balance Sheet
A near debt-free balance sheet gives Nintendo substantial financial resilience and flexibility. It reduces interest and refinancing risk, supports continued investment in platforms and intellectual property, and helps the company withstand cyclical swings in hardware and software demand.
Read all positive factors
Nintendo Co (7974) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥10.22T
Dividend Yield2.46%
Average Volume (3M)5.83M
Price to Earnings (P/E)21.2
Beta (1Y)0.55
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. Volume6,683,710
30 Day Avg. Volume5,826,276
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
¥11,812.00Price Target Upside69.49% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)362.63
Revenue Forecast (FY)¥2.32T
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 Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | ¥3.01T | 26.32 | 19.02% | 1.14% | 22.80% | 49.61% | |
82 Outperform | ¥1.78T | 26.33 | 21.91% | 1.34% | 18.74% | 19.36% | |
80 Outperform | ¥10.22T | 21.23 | 14.82% | 2.95% | 51.51% | 62.39% | |
79 Outperform | ¥2.41T | 18.17 | 11.68% | 2.45% | 15.07% | 38.01% | |
72 Outperform | ¥1.08T | 27.53 | 8.75% | 1.62% | 0.94% | 104.41% | |
64 Neutral | ¥612.17B | -3,317.78 | -1.58% | 2.06% | 23.77% | -98.22% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
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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.