Square Enix Holdings Co (9684) AI Stock Analysis

• Market Cap: ¥1.16T
• Dividend Yield: 1.33%
• Average Volume (3M): 379.61K
• Price to Earnings (P/E): 62.7
• Beta (1Y): 0.46
• Revenue Growth: -7.85%
• EPS Growth: -3.39%
• Country: JP
• Employees: 4,770
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 40.00
• Shares Outstanding: 122,531,600
• 10 Day Avg. Volume: 319,300
• 30 Day Avg. Volume: 379,613
• PEG Ratio: 0.54
• Price to Book (P/B): 2.48
• Price to Sales (P/S): 2.57
• P/FCF Ratio: 26.16
• 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: ¥8,850.30
• Price Target Upside: -8.87% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 5

• Rating: 57 Neutral
• Price Target: ¥10,052.00 ▲(3.50% Upside)

The overall stock score for Square Enix Holdings Co is primarily influenced by its stable financial performance, which is offset by bearish technical indicators and a high valuation. The company's strong profitability and low leverage are positive factors, but the current market momentum and valuation concerns suggest caution.

Positive Factors

Negative Factors

Square Enix Holdings Co Business Overview & Revenue Model

Company Description

Square Enix Holdings Co., Ltd. operates in the content and service businesses in Japan, North America, Europe, and rest of Asia. It operates through four segments: Digital Entertainment, Amusement, Publication, and Merchandising. The company's Digital Entertainment segment plans, develops, distributes, and operates digital entertainment content primarily in the form of games. This segment offers digital entertainment content for various customer usage environments, including personal computers and smart devices, as well as consumer game consoles, such as handheld game machines. Its Amusement segment is involved in the operation of amusement facilities. This segment also engages in the planning, development, distribution, and rental of arcade game machines and related products for amusement facilities. The company's Publication segment publishes and licenses comic magazines, comic books, and game-related books. Its Merchandising segment plans, produces, distributes, and licenses derivative products. The company publishes, distributes, and licenses entertainment content under the SQUARE ENIX and TAITO brands. Square Enix Holdings Co., Ltd. was founded in 1975 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Square Enix generates revenue through multiple streams, primarily from the sale of video games across various platforms including consoles, PC, and mobile devices. The Digital Entertainment segment is the largest contributor to its revenue, driven by both new game releases and ongoing revenue from live services and downloadable content (DLC). In addition to direct game sales, the company earns significant income from microtransactions within its mobile games. Merchandise sales related to its popular franchises further enhance its revenue. Partnerships with other companies for co-development or distribution of games also play a crucial role in its financial success. Furthermore, licensing its intellectual properties for adaptations in films, television, and other media provides an additional revenue stream, reinforcing its presence in the broader entertainment landscape.

Square Enix Holdings Co Financial Statement Overview

Summary

Square Enix Holdings Co demonstrates strong profitability with zero debt and healthy equity. However, recent operational and cash flow challenges, along with a slight decline in margins, suggest caution in maintaining financial strength.

Income Statement

Square Enix Holdings Co has shown stable revenue and profitability metrics. The company experienced a slight decrease in revenue in TTM compared to the last fiscal year, but it remains strong overall. The Gross Profit Margin and Net Profit Margin are healthy, reflecting efficient cost management and profitability. However, the decline in EBIT and EBITDA margins in TTM indicates a slight pressure on operational efficiency.

Balance Sheet

The balance sheet is robust with zero total debt, indicating strong financial stability. The company maintains a high equity ratio, reflecting a solid financial foundation. Additionally, a negative net debt position emphasizes excellent liquidity. However, a slight decline in stockholder's equity growth compared to previous years suggests a need for caution.

Cash Flow

Cash flow metrics reflect some challenges. While free cash flow growth has been positive in previous years, the TTM period shows zero free cash flow due to missing operating cash flow data. The lack of recent cash flow data limits the ability to fully evaluate cash generation efficiency. Historical data indicates strong cash flow management, though current transparency is limited.

Breakdown	TTM	Dec 2025	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	313.87B	324.51B	356.34B	343.27B	365.27B	331.05B
Gross Profit	155.46B	158.65B	167.37B	175.89B	195.31B	159.21B
EBITDA	42.03B	48.25B	25.68B	51.25B	66.86B	54.74B
Net Income	18.60B	24.41B	14.91B	49.26B	51.01B	26.94B
Balance Sheet
Total Assets	402.48B	416.16B	411.93B	400.59B	380.90B	336.14B
Cash, Cash Equivalents and Short-Term Investments	231.72B	247.76B	225.90B	193.50B	163.09B	146.23B
Total Debt	3.78B	1.54B	2.15B	2.17B	4.34B	3.78B
Total Liabilities	73.24B	79.79B	94.80B	83.32B	96.47B	92.86B
Stockholders Equity	328.94B	336.06B	316.87B	317.04B	284.24B	243.13B
Cash Flow
Free Cash Flow	0.00	31.91B	41.79B	3.68B	19.61B	28.60B
Operating Cash Flow	0.00	42.78B	52.24B	12.23B	27.57B	35.00B
Investing Cash Flow	0.00	-15.11B	-13.21B	27.60B	-8.12B	-6.65B
Financing Cash Flow	0.00	-6.60B	-14.79B	-15.52B	-9.34B	-6.65B

Square Enix Holdings Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9712.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9684, the sentiment is Negative. The current price of 9712 is below the 20-day moving average (MA) of 10105.40, below the 50-day MA of 10374.28, and above the 200-day MA of 8234.07, indicating a neutral trend. The MACD of -158.36 indicates Positive momentum. The RSI at 31.33 is Neutral, neither overbought nor oversold. The STOCH value of 25.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9684.

Square Enix Holdings Co Peers Comparison

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	11.81%	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%
3635	64 Neutral	645.43B	20.28	19.86%	2.49%	-4.23%	-18.49%
9684	57 Neutral	¥1.16T	62.70	5.77%	1.33%	-7.85%	-3.39%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Square Enix Holdings Co Corporate Events

Square Enix Reports No Share Repurchases in March 2025

Square Enix Holdings Co., Ltd. announced that no shares were repurchased during the period from March 1, 2025, to March 31, 2025, despite a prior board resolution allowing for the repurchase of up to 5 million shares. This lack of share repurchase activity may indicate a strategic decision to maintain current capital levels or reflect market conditions, potentially impacting investor perceptions and the company’s stock performance.