Capcom Co (9697) AI Stock Analysis

• Market Cap: $1.66T
• Dividend Yield: 0.97%
• Average Volume (3M): 1.76M
• Price to Earnings (P/E): 27.4
• Beta (1Y): 0.83
• Revenue Growth: 45.17%
• EPS Growth: 81.91%
• Country: JP
• Employees: 3,531
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 24.57
• Shares Outstanding: 533,011,200
• 10 Day Avg. Volume: 1,489,130
• 30 Day Avg. Volume: 1,759,873
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.15
• Enterprise Value/Revenue: 10.33
• Enterprise Value/Gross Profit: 17.23
• Enterprise Value/Ebitda: 23.81
• 1Y Price Target: $4,766.60
• Price Target Upside: 20.46% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ¥4,380.00 ▲(10.69% Upside)

Capcom Co's overall stock score is driven primarily by its strong financial performance, which reflects robust revenue growth and profitability. Technical analysis suggests caution due to mixed signals, while valuation metrics indicate the stock may be overvalued. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth reflects Capcom's ability to expand its market reach and capitalize on its popular franchises, ensuring long-term business sustainability.

Balance Sheet Health

A low debt-to-equity ratio indicates conservative financial management, providing Capcom with flexibility to invest in growth opportunities without significant risk.

Profitability Metrics

High profit margins suggest effective cost management and strong pricing power, which are crucial for maintaining competitive advantage and long-term profitability.

Negative Factors

Cash Flow Challenges

A decline in free cash flow growth could signal potential challenges in cash generation, which may impact Capcom's ability to fund new projects or return capital to shareholders.

Free Cash Flow to Net Income Ratio

While stable, a lower free cash flow to net income ratio compared to previous periods may limit Capcom's ability to reinvest in growth or manage financial obligations effectively.

Decline in Free Cash Flow Growth

The decline in free cash flow growth suggests potential operational inefficiencies or increased capital expenditures, which could affect Capcom's financial flexibility in the medium term.

Capcom Co Business Overview & Revenue Model

Company Description

Capcom Co., Ltd. is a leading Japanese video game developer and publisher, renowned for its innovative gaming franchises and high-quality entertainment content. Founded in 1983, the company operates primarily in the interactive entertainment sector, focusing on the development, publishing, and distribution of video games across various platforms, including consoles, PC, and mobile devices. Capcom is best known for its iconic franchises such as Resident Evil, Street Fighter, and Monster Hunter, which have garnered significant global recognition and a dedicated fan base.

How the Company Makes Money

Capcom generates revenue through multiple streams, primarily from the sale of video games. This includes physical and digital game sales, downloadable content (DLC), and in-game purchases. The company also benefits from recurring revenue through its online services and subscriptions associated with specific titles. Additionally, Capcom earns revenue from licensing its intellectual properties for merchandise, films, and collaborations with other media. Significant partnerships with platform holders such as Sony, Microsoft, and Nintendo further enhance its distribution capabilities and visibility in the market. Seasonal sales promotions and events, like the Tokyo Game Show, also contribute to increased sales and brand awareness.

Capcom Co Financial Statement Overview

Summary

Capcom Co exhibits strong financial health with impressive revenue growth and profitability metrics. The balance sheet is robust with low leverage, and cash flow management remains effective despite recent declines in free cash flow growth. The company is well-positioned to capitalize on opportunities in the electronic gaming and multimedia industry, though attention to cash flow trends is advisable.

Income Statement

Capcom Co has demonstrated strong revenue growth with a TTM increase of 9.38%, supported by robust gross and net profit margins of 58.23% and 28.57% respectively. The EBIT and EBITDA margins are also healthy at 39.23% and 41.54%, indicating efficient operational management. The consistent growth trajectory and high profitability metrics reflect a well-positioned company in the gaming industry.

Balance Sheet

The balance sheet is solid with a low debt-to-equity ratio of 0.05, indicating conservative leverage. Return on equity is strong at 23.44%, showcasing effective use of shareholder funds. The equity ratio stands at 79.65%, suggesting a stable financial structure. Overall, Capcom Co maintains a healthy balance sheet with minimal risk from debt.

Cash Flow

Capcom Co's cash flow performance is stable, with an operating cash flow to net income ratio of 0.97 and a free cash flow to net income ratio of 0.91. However, the free cash flow growth rate has declined by 19.03% TTM, which could indicate potential challenges in cash generation. Despite this, the company maintains a strong cash flow position relative to net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	185.51B	169.60B	152.41B	125.93B	110.05B	95.31B
Gross Profit	111.27B	98.76B	84.66B	111.54B	91.00B	76.66B
EBITDA	80.52B	70.41B	63.56B	54.63B	47.76B	37.69B
Net Income	55.72B	48.45B	43.37B	36.74B	32.55B	24.92B
Balance Sheet
Total Assets	293.24B	312.98B	243.48B	217.37B	187.37B	163.90B
Cash, Cash Equivalents and Short-Term Investments	153.27B	166.78B	125.19B	102.12B	107.26B	71.24B
Total Debt	6.59B	11.92B	12.16B	11.75B	6.10B	6.83B
Total Liabilities	59.66B	86.68B	48.40B	56.23B	40.89B	43.10B
Stockholders Equity	233.58B	226.30B	195.08B	161.13B	146.47B	120.79B
Cash Flow
Free Cash Flow	50.02B	61.34B	31.79B	14.37B	42.88B	11.50B
Operating Cash Flow	63.38B	67.62B	36.92B	21.79B	46.95B	14.63B
Investing Cash Flow	-17.88B	-7.27B	-5.96B	-7.68B	-7.43B	-4.23B
Financing Cash Flow	-19.02B	-18.73B	-15.97B	-22.48B	-9.98B	-6.96B

Capcom Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3957.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9697, the sentiment is Negative. The current price of 3957 is below the 20-day moving average (MA) of 4185.80, below the 50-day MA of 4097.06, and below the 200-day MA of 4010.32, indicating a bearish trend. The MACD of -32.09 indicates Positive momentum. The RSI at 37.58 is Neutral, neither overbought nor oversold. The STOCH value of 14.31 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9697.

Capcom Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3635	76 Outperform	¥704.12B	18.94	―	2.29%	-1.05%	6.49%
3659	71 Outperform	$2.72T	27.18	10.04%	0.94%	2.84%	51.14%
9766	69 Neutral	¥3.43T	40.41	17.57%	0.82%	18.39%	23.33%
9697	69 Neutral	$1.66T	27.40	26.66%	0.97%	45.17%	81.91%
6460	66 Neutral	$547.10B	35.33	4.51%	1.87%	-12.78%	-56.73%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
9684	57 Neutral	$1.12T	59.58	5.77%	1.68%	-12.02%	126.06%

Capcom Co Corporate Events

Capcom Reports Strong Financial Growth in 2025

Capcom Co., Ltd., a renowned Japanese video game developer and publisher, is widely recognized for its popular franchises such as Resident Evil, Street Fighter, and Monster Hunter, operating primarily in the digital entertainment industry.

Capcom Reports Strong Financial Growth in First Half of 2025

Capcom Co., Ltd. reported a significant increase in its consolidated financial results for the six months ending September 30, 2025, with net sales rising by 43.9% year-on-year. The company’s operating profit and ordinary profit also saw substantial growth, highlighting strong performance and positive market reception. This financial success positions Capcom favorably within the gaming industry, indicating robust operational strategies and potential positive implications for stakeholders.

The most recent analyst rating on (JP:9697) stock is a Buy with a Yen4800.00 price target. To see the full list of analyst forecasts on Capcom Co stock, see the JP:9697 Stock Forecast page.

Capcom Reports Strong Growth in Q1 2025 Earnings

Capcom Co., Ltd. is a leading Japanese video game developer and publisher known for its popular franchises such as Resident Evil, Street Fighter, and Monster Hunter, operating primarily in the digital entertainment industry with a strong focus on digital sales and global market expansion.