Nintendo Co (7974) AI Stock Analysis

• Market Cap: $14.39T
• Dividend Yield: 0.88%
• Average Volume (3M): 6.32M
• Price to Earnings (P/E): 45.0
• Beta (1Y): 0.81
• Revenue Growth: -27.51%
• EPS Growth: -35.35%
• Country: JP
• Employees: 7,724
• Sector: Communication Services
• Sector Strength: 81
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 274.64
• Shares Outstanding: 1,298,690,000
• 10 Day Avg. Volume: 5,399,890
• 30 Day Avg. Volume: 6,316,663
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $12,098.01
• Price Target Upside: -2.12% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

Nintendo's stock score is primarily driven by its strong financial performance, underscored by high profitability, a debt-free balance sheet, and consistent cash generation. The technical analysis presents a mixed outlook with short-term consolidation signals, while the valuation suggests that the stock may be priced for growth, potentially limiting immediate gains. Overall, Nintendo remains a financially resilient company, but investors should be cautious of its current valuation levels.

Positive Factors

Growth Strategy

Analyst expects three factors to drive profit growth: the release of the Switch 2, the eventual release of a lower-priced version, and Nintendo’s extensive software lineup.

Pre-Order Demand

Unprecedented Pre-Order Demand: Nintendo has received over 2.2m pre-order lottery applications for the NS2 in Japan alone, far exceeding both internal forecasts and available launch-day supply.

Software and Hardware Sales

The company sees a major opportunity with substantial growth expected in both hardware and software sales.

Negative Factors

Market Skepticism

Initial media and online commentary around Switch 2 pricing and launch prospects were notably negative, echoing the skepticism at the 2017 Switch launch.

Pricing Concerns

The shares have recently seen increased volatility, fueled by concerns that the higher price point of the Nintendo Switch 2 will weigh on sales.

Nintendo Co Business Overview & Revenue Model

Company Description

Nintendo Co., Ltd. is a global leader in the entertainment industry, known for its innovative video game hardware and software. Founded in 1889 and headquartered in Kyoto, Japan, Nintendo develops and sells gaming consoles, handheld devices, and a wide array of video games. The company is renowned for iconic franchises such as Mario, Zelda, and Pokémon. Nintendo operates primarily in the video game sector, producing both hardware, like the Nintendo Switch, and an extensive library of game titles that appeal to a broad audience worldwide.

How the Company Makes Money

Nintendo primarily generates revenue through the sale of hardware and software products. Its hardware segment includes consoles like the Nintendo Switch, which has been a significant driver of sales. In addition to hardware, Nintendo earns substantial income from the sales of its proprietary video game titles, which include some of the best-selling games globally. The company also generates revenue through digital distribution and online services via the Nintendo eShop, offering digital downloads of games and additional content. Licensing deals, merchandise sales, and mobile game applications further contribute to Nintendo's earnings. Strategic partnerships and collaborations, such as those with The Pokémon Company and other developers, also play a vital role in expanding its product offerings and revenue streams.

Nintendo Co Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
1.67T	1.60T	1.70T	1.76T	1.31T
	Gross Profit
954.34B	885.44B	946.04B	970.47B	641.70B
	EBIT
528.94B	504.38B	592.76B	640.63B	352.37B
	EBITDA
698.75B	515.41B	603.29B	651.43B	361.93B
	Net Income Common Stockholders
490.60B	432.77B	477.69B	480.38B	258.64B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.25T	1.88T	1.71T	1.74T	1.22T
	Total Assets
3.15T	2.85T	2.66T	2.45T	1.93T
	Total Debt
6.13B	6.29B	6.23B	5.77B	2.16B
	Net Debt
-1.48T	-1.26T	-1.20T	-1.18T	-888.24B
	Total Liabilities
546.40B	587.82B	593.08B	572.30B	393.19B
	Stockholders Equity
2.60T	2.27T	2.07T	1.87T	1.54T
Cash Flow		Free Cash Flow
445.97B	300.65B	282.07B	605.10B	337.91B
	Operating Cash Flow
462.10B	322.84B	289.66B	612.11B	347.75B
	Investing Cash Flow
-630.63B	111.51B	93.70B	-136.53B	-188.43B
	Financing Cash Flow
-236.96B	-290.97B	-337.01B	-194.94B	-111.03B

Nintendo Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12360.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 12360 is above the 20-day moving average (MA) of 10568.85, above the 50-day MA of 10645.70, and above the 200-day MA of 9070.20, indicating a bullish trend. The MACD of 417.32 indicates Negative momentum. The RSI at 70.41 is Negative, neither overbought nor oversold. The STOCH value of 97.18 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7974.

Nintendo Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9766	73 Outperform	¥2.81T	36.18	17.62%	0.76%	22.76%	50.11%
9697	73 Outperform	$1.74T	54.80	16.14%	0.92%	-11.38%	-33.42%
6460	72 Outperform	¥626.97B	16.01	10.45%	1.62%	-5.84%	-16.40%
9684	70 Outperform	$1.00T	78.22	3.62%	0.81%	0.58%	-56.67%
7974	69 Neutral	$14.39T	45.00	12.13%	0.88%	-27.51%	-35.35%
7860	65 Neutral	¥58.07B	33.48	3.03%	4.06%	0.92%	27.31%
Sector *	59 Neutral	$13.76B	7.65	-2.18%	3.85%	2.32%	-36.56%