Nintendo Co., Ltd. (7974) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Bandai Namco Holdings, Inc.

Nintendo Co., Ltd.

Yamaha Corp.

Yonex Co., Ltd.

Roland Corp.

GLOBERIDE, Inc.

Fujishoji Co., Ltd.

Mars Group Holdings Corp.

Tomy Co., Ltd.

Alpen Co., Ltd.

Snow Peak, Inc. (Japan)

Why is Nintendo Co., Ltd. ?

With a growth in Operating Profit of 63.13%, the company declared Very Positive results in Jun 26

The company has declared positive results for the last 4 consecutive quarters
NET SALES(HY) At JPY 924,981 MM has Grown at 18.43%
NET PROFIT(HY) At JPY 217,850.04 MM has Grown at 58.27%
ROCE(HY) Highest at 16.92%

With ROE of 13.46%, it has a fair valuation with a 3.12 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 -41.53%, its profits have risen by 25.2% ; the PEG ratio of the company is 0.9
At the current price, the company has a high dividend yield of 0

Majority shareholders : Non Institution

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Nintendo Co., Ltd. should be less than 10%
Overall Portfolio exposure to Media & Entertainment should be less than 30%

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

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

Is Nintendo Co., Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Nintendo Co., Ltd.

-42.42%

48.35

39.52%

Japan Nikkei 225

60.14%

2.04

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.58%

EBIT Growth (5y)

-11.29%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.75

Sales to Capital Employed (avg)

0.60

Tax Ratio

25.36%

Dividend Payout Ratio

60.08%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

107.19%

ROE (avg)

19.36%

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

3.12

EV to EBIT

20.87

EV to EBITDA

19.87

EV to Capital Employed

10.27

EV to Sales

3.31

PEG Ratio

0.92

Dividend Yield

ROCE (Latest)

49.22%

ROE (Latest)

13.46%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

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

13What is working for the Company

NET SALES(HY)

At JPY 924,981 MM has Grown at 18.43%

NET PROFIT(HY)

At JPY 217,850.04 MM has Grown at 58.27%

ROCE(HY)

Highest at 16.92%

RAW MATERIAL COST(Y)

Fallen by -70.14% (YoY

OPERATING PROFIT MARGIN(Q)

Highest at 29.4 %

PRE-TAX PROFIT(Q)

At JPY 206,136 MM has Grown at 60.97%

-6What is not working for the Company

INTEREST(9M)

At JPY 124 MM has Grown at inf%

DEBT-EQUITY RATIO (HY)

Highest at -65.05 %

NET SALES(Q)

Fallen at -9.53%

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

Net Profit

At JPY 217,850.04 MM has Grown at 58.27%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Operating Profit Margin

Highest at 29.4 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

At JPY 206,136 MM has Grown at 60.97%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Raw Material Cost

Fallen by -70.14% (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

Depreciation

Highest at JPY 9,641 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Depreciation

At JPY 9,641 MM has Grown at 181.82%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (JPY MM)

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

Interest

At JPY 124 MM has Grown at inf%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Sales

Fallen at -9.53%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Debt-Equity Ratio

Highest at -65.05 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio