Capcom Co., Ltd. (9697) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Capcom Co., Ltd.

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Money Forward, Inc.

Sega Sammy Holdings, Inc.

Why is Capcom Co., Ltd. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 21.92%

Healthy long term growth as Operating profit has grown by an annual rate 23.57%
Company has very low debt and has enough cash to service the debt requirements

The company has declared positive results in Mar'2025 after 5 consecutive negative quarters

OPERATING CASH FLOW(Y) Highest at JPY 63,383 MM
RAW MATERIAL COST(Y) Fallen by -9.17% (YoY)
NET SALES(9M) Higher at JPY 158,704 MM

With ROE of 21.41%, it has a expensive valuation with a 10.16 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 6.79%, its profits have risen by 10.7%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Capcom Co., Ltd. should be less than 10%
Overall Portfolio exposure to Software Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Capcom Co., Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Capcom Co., Ltd.

6.79%

430.77

33.80%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.76%

EBIT Growth (5y)

23.57%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.70

Sales to Capital Employed (avg)

0.73

Tax Ratio

26.21%

Dividend Payout Ratio

34.53%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

80.67%

ROE (avg)

21.92%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

10.16

EV to EBIT

32.54

EV to EBITDA

30.38

EV to Capital Employed

31.65

EV to Sales

12.62

PEG Ratio

Dividend Yield

ROCE (Latest)

97.27%

ROE (Latest)

21.41%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

22What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 63,383 MM

RAW MATERIAL COST(Y)

Fallen by -9.17% (YoY

NET SALES(9M)

Higher at JPY 158,704 MM

NET PROFIT(9M)

Higher at JPY 50,415 MM

CASH AND EQV(HY)

Highest at JPY 320,052 MM

DEBT-EQUITY RATIO (HY)

Lowest at -62.8 %

INVENTORY TURNOVER RATIO(HY)

Highest at 1.38%

OPERATING PROFIT MARGIN(Q)

Highest at 56.62 %

-10What is not working for the Company

INTEREST(HY)

At JPY 41 MM has Grown at 24.24%

Here's what is working for Capcom Co., Ltd.

Net Sales

At JPY 126,253 MM has Grown at 66.5%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Net Profit

At JPY 42,625 MM has Grown at 125.33%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Net Profit

Higher at JPY 42,625 MM

than preceding 12 month period ended Jun 2025

MOJO Watch

In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (JPY MM)

Operating Cash Flow

Highest at JPY 63,383 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Operating Profit Margin

Highest at 56.62 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Cash and Eqv

Highest at JPY 320,052 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -62.8 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 1.38%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -9.17% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Capcom Co., Ltd.

Interest

At JPY 22 MM has Grown at 15.79%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)