Square Enix Holdings Co., Ltd. (9684) 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

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Square Enix Holdings Co., Ltd.

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Why is Square Enix Holdings Co., Ltd. ?

High Management Efficiency with a high ROE of 11.75%

Company has very low debt and has enough cash to service the debt requirements

Poor long term growth as Operating profit has grown by an annual rate 4.34% of over the last 5 years

With a growth in Net Profit of 196.4%, the company declared Very Positive results in Dec 25

INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost
RAW MATERIAL COST(Y) Fallen by -15.3% (YoY)
CASH AND EQV(HY) Highest at JPY 494,450 MM

With ROE of 7.53%, it has a very attractive valuation with a 3.28 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 9.96%, its profits have risen by 51.2% ; 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

Underperformed the market in the last 1 year

The stock has generated a return of 9.96% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 36.73%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Square Enix Holdings 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 Square Enix Holdings Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Square Enix Holdings Co., Ltd.

9.96%

68.89

76.36%

Japan Nikkei 225

36.73%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.11%

EBIT Growth (5y)

4.34%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.74

Sales to Capital Employed (avg)

1.04

Tax Ratio

38.19%

Dividend Payout Ratio

63.43%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

42.79%

ROE (avg)

11.75%

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

3.28

EV to EBIT

21.05

EV to EBITDA

17.42

EV to Capital Employed

9.67

EV to Sales

2.63

PEG Ratio

0.85

Dividend Yield

0.01%

ROCE (Latest)

45.96%

ROE (Latest)

7.53%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

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

17What is working for the Company

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

RAW MATERIAL COST(Y)

Fallen by -15.3% (YoY

CASH AND EQV(HY)

Highest at JPY 494,450 MM

DEBT-EQUITY RATIO (HY)

Lowest at -72.22 %

OPERATING PROFIT(Q)

Highest at JPY 21,313 MM

PRE-TAX PROFIT(Q)

Highest at JPY 24,658 MM

NET PROFIT(Q)

Highest at JPY 17,049.84 MM

EPS(Q)

Highest at JPY 43.11

-5What is not working for the Company

NET SALES(HY)

At JPY 156,180 MM has Grown at -12.56%

Here's what is working for Square Enix Holdings Co., Ltd.

Net Profit

At JPY 17,049.84 MM has Grown at 157.62%

over average net sales of the previous four periods of JPY 6,618.34 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Operating Profit

Highest at JPY 21,313 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Pre-Tax Profit

Highest at JPY 24,658 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

At JPY 24,658 MM has Grown at 98.47%

over average net sales of the previous four periods of JPY 12,424.25 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 17,049.84 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 43.11

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 494,450 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -72.22 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Raw Material Cost

Fallen by -15.3% (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 Square Enix Holdings Co., Ltd.

Net Sales

At JPY 156,180 MM has Grown at -12.56%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)