8 Japanese Video Gaming and E-Sports Stocks

“Fall Seven Times, Stand up Eight”-Naoki Higashida

Ever wanted to own a piece of your favorite Japanese gaming company? Look no further!

The onset of Covid-19 pandemic has been nothing but trouble for the economy and almost all industries. However, there are some industries for whom the pandemic has proved to be a turning point, and among those are video games and online gaming.

The wonderful quote above by Naoki Higashida captures the essence of all that is gaming. Games capture the minds & imaginations of kids and adults alike and all it takes is a single controller to convert a stern, disciplined adult into a laughing, smiling kid.

The global video game industry is now poised to grow in leaps and bounds.  E-sports which are gaming competitions have seen a rise in viewership and revenue. A new generation of sportspeople are emerging; one which bucks tradition.

Covid-19 has shown a new future of sports: a future in which all the activity takes place on a monitor and the rules of the game have changed. Japan, which is synonymous with the Golden Age of gaming, and where video gaming is a major industry, is expected to be a major beneficiary of this growth. 

In this article, we will look at 8 such gaming companies expected to benefit from this gaming boom.

The World:

The world gaming market was valued at 151 billion USD at end of 2019 with it being forecasted to grow at 9.2% Compound Annual Growth Rate (CAGR).

Source: Global Gaming Market 2020-2025 by Mordor Intelligence

Asia pacific region holds the majority of the revenue share at 47% and is set to continue to dominate the global gaming market.

Source: Global Gaming Market 2020-2025 by Mordor Intelligence

The Asia pacific region is currently valued at 77.9 billion USD and is poised to grow at 8.2% CAGR.

Source: Global Gaming Market 2020-2025 by Mordor Intelligence

China is expected to have a major share of this market due to their large population & Japan holds the second largest share of the market.

Source: Global Gaming Market 2020-2025 by Mordor Intelligence

World E-sports Market

What began as an amateur get together to show off gaming skills and win bragging rights sometime in late 2000s has been transformed into a multibillion dollar industry. The world E-sports market is currently valued at 1.1 billion USD and looks likely to grow at a healthy 16.1% CAGR.

Source: E-Sports Global Outlook & Forecast 2020-2025 by Arizton Advisory & Intelligence

North America holds the larger share beating Asia pacific by a narrow margin.

Source: E-Sports Global Outlook & Forecast 2020-2025 by Arizton Advisory & Intelligence

Within the Asia pacific region, Japan holds the second largest E-Sports market share at 61.2 million USD.

Source: E-Sports Global Outlook & Forecast 2020-2025 by Arizton Advisory & Intelligence

Asia Pacific E-sports market revenue is projected to grow at a respectable 13.2% CAGR.

Source: E-Sports Global Outlook & Forecast 2020-2025 by Arizton Advisory & Intelligence

Japan

With its world famous exports from the 80’s and 90’s, Japan is rightly associated with video gaming. Video games are a major industry in Japan, with the three gaming giants, Sony, Nintendo and Sega having formed during the golden age alongside several other familiar names like Namco, Capcom, Square Enix, Konami.

The golden age of gaming is also associated with the rise of video game arcades in which Japan was a dominant player. Even today, despite the world having moved on to personal gaming devices and consoles, arcades continue to enjoy immense popularity with Japanese gamers.

Japan’s gaming market was valued at 18.9 billion USD and is expected to grow at 4.2% CAGR. 

Source: Global Gaming Market 2020-2025 by Mordor Intelligence

Japan has a strong E-sports environment and its E-sports revenue is expected to grow at 12.2% CAGR.

Source: E-Sports Global Outlook & Forecast 2020-2025 by Arizton Advisory & Intelligence
Some of the popular E-sports games:

Consoles & Mobile gaming

The future of gaming is said to be on mobile and a lot of focus is on mobile games at the moment. However, consoles are the preferred choice of gaming for households in Japan.

Japan continues to maintain a strong presence in the console hardware market with two of the three dominant world players in Japan (Sony and Nintendo).

Microsoft has found it difficult to enter the Japanese console market with the vast majority of Japanese consumers preferring their domestic counterparts.

Japan is also making great strides in mobile gaming with around 70 million active players.

This continuous rise in mobile gaming has been given a massive boost by the Covid-19 lockdown and the mobile gaming industry today stands at an inflection point. Japan’s mobile gaming companies are expected to benefit from this as they receive worldwide adoption.

Source: Global Gaming Market 2020-2025 by Mordor Intelligence

The Japanese government is also supportive of the Japanese gaming industry and it has now extend its support to the E-sports industry as well. It is planning to expand Japan’s E-Sports industry with the private sector to help revitalize regional economies and generate 285 billion JPY a year by 2025.

Japan’s video game industry stands at an interesting time in its illustrious history. It has a lot of tailwinds (Covid-19 induced demand, government support, increased reach and adoptions amongst customers worldwide) and very few headwinds. It already leads the console and mobile gaming segment and has the potential to increase its market share while expanding to other geographies as well.

Let’s look at 8 of these gaming companies in Japan.

1. Nintendo

Founded in 1889 as a manufacturer of playing cards, Nintendo has grown & matured across its more than a century’s journey into a giant conglomerate consisting of 25 subsidiaries engaged in development, manufacture and sale of consoles, videogames, playing cards and other entertainment products.

Its largest game brand and one which it is well known for is its Pokémon, which also had a hugely popular card game in the laste 1990’s and early 2000’s. It has also published a series of home and handheld consoles but is a smaller player in comparison to SONY & Microsoft. 

Series of Home Consoles:

Series of Handheld consoles

Some of the game series published by Nintendo are as follows:

Nintendo produces off the wall consoles which appeal to customers of all age groups, especially children.

With its name already familair in the west from it’s smash hits Super Nintendo and Nintendo 64, the company firmly planted itself as the console of choice for families in 2006, with its array of fun-looking games which could be played by al family members.

During the PS4 vs Xbox One years, it came out with the Switch and was a surprise hit as it gained mass popularity due to its dual nature of home console & handheld console.

Nintendo has also made clear their intention of extending and supporting the life of the Switch and are reportedly planning some new launched at present.

Nintendo’s share price has increased dramatically in 2020, with a leap of 6% in August on news of its success due to the hugely popular Animal Crossing during the lockdown period. Many analysts believe the share price still has plenty of room to grow.

Financials: (Source: https://in.tradingview.com/symbols/TSE-7974/) (All figures except share price in USD) (USD Rate 1 USD = 104.76)

Valuation Price History 
Market Capitalization63.9BAverage Volume (10 day)658.64K
Enterprise Value (MRQ)42.7B1-Year Beta0.5583
Enterprise Value/EBITDA (TTM)10.3452 Week High61.3K
Total Shares Outstanding (MRQ)119.124M52 Week Low31.88K
Number of Employees6.2K  
Number of Shareholders37.775KDividends 
Price to Earnings Ratio (TTM)19.2262Dividends Paid (FY)-1.0B
Price to Revenue Ratio (TTM)4.4835Dividends Yield (FY)1.7956
Price to Book (FY)4.3492Dividends per Share (FY)10.4
Price to Sales (FY)5.1208  
  Margins 
Balance Sheet Net Margin (TTM)0.2332
Quick Ratio (MRQ)3.7954Gross Margin (TTM)0.5151
Current Ratio (MRQ)4.0449Operating Margin (TTM)0.3143
Debt to Equity Ratio (MRQ)0.0119Pretax Margin (TTM)0.3274
Net Debt (MRQ)-11.82B  
Total Debt (MRQ)0.17BIncome Statement 
Total Assets (MRQ)18.85BBasic EPS (FY)20.73
  Basic EPS (TTM)27.93
Operating Metrics EPS Diluted (FY)20.73
Return on Assets (TTM)0.1951Net Income (FY)2.5B
Return on Equity (TTM)0.2405EBITDA (TTM)4.6B
Return on Invested Capital (TTM)0.2376Gross Profit (MRQ)2.0B
Revenue per Employee (TTM)2.01MGross Profit (FY)6.1B
  Last Year Revenue (FY)12.5B
  Total Revenue (FY)12.5B

Nintendo has seen steady revenue growth since the launch of the Switch and Covid-19 seems to have not affected it much. The company is also projected to grow its revenue and at this stage their prospects look strong.

Source: https://www.investing.com/equities/nintendo-ltd-income-statement

Nintendo has regained its high profit margin which is amongst the highest in the industry. Its margins reflect the superior loyalty and following which Nintendo enjoys which we predict it will continue to enjoy.

2. Sony

Sony Corporation (known as SONY) founded in 1946 develops, designs, manufactures & sells electronic equipment, instruments, devices, game consoles & games and software for consumers, professionals and industrial markets. Its subsidiary, Sony Interactive Entertainment LLC handles the console and game publishing business. SONY is famous for one of the world’s bestselling and most popular console series the PlayStation.

It also develops & publishes console exclusive games through its subsidiary companies. It is believed that the high quality and increasing no. of exclusive games offered by SONY has led to the huge popularity and sale of the PlayStation series. Some of its games are as follows:

SONY’s rivalry with fellow console maker and largest competitor Microsoft is well known and the two are now clashing again with the release of their respective latest generation of console: the PlayStation 5 and Xbox Series X.

Unlike other stocks mentioned in this article, Sony Corp. is an enormous company and its video game business accounts for 27.3% of its revenue, meaning that when you buy Sony stock, less than a third is going towards owning its video game business — so it’s important to check out the other part of the business, too!

Financials: (Source: https://in.tradingview.com/symbols/TSE-6758/) (All figures except share price in USD) (USD Rate 1 USD = 104.76)

Valuation Price History 
Market Capitalization92.3BAverage Volume (10 day)4.38M
Enterprise Value (MRQ)79.9B1-Year Beta0.9192
Enterprise Value/EBITDA (TTM)4.303852 Week High8.92K
Total Shares Outstanding (MRQ)1.221B52 Week Low5.297K
Number of Employees111.7K  
Number of Shareholders423.556KDividends 
Price to Earnings Ratio (TTM)14.9395Dividends Paid (FY)-0.4B
Price to Revenue Ratio (TTM)1.1865Dividends Yield (FY)0.6332
Price to Book (FY)2.3354Dividends per Share (FY)0.43
Price to Sales (FY)1.2098  
  Margins 
Balance Sheet Net Margin (TTM)0.0799
Quick Ratio (MRQ)0.8407Gross Margin (TTM)0.3353
Current Ratio (MRQ)0.9337Operating Margin (TTM)0.1018
Debt to Equity Ratio (MRQ)0.4703Pretax Margin (TTM)0.107
Net Debt (MRQ)-1517.594B  
Total Debt (MRQ)19.4BIncome Statement 
Total Assets (MRQ)225.5BBasic EPS (FY)4.5
  Basic EPS (TTM)5.2
Operating Metrics EPS Diluted (FY)4.4
Return on Assets (TTM)0.0293Net Income (FY)5.5B
Return on Equity (TTM)0.1622EBITDA (TTM)15.2B
Return on Invested Capital (TTM)0.1337Gross Profit (MRQ)6.1B
Revenue per Employee (TTM)0.7MGross Profit (FY)27B
  Last Year Revenue (FY)78.63B
  Total Revenue (FY)78.63B
  Free Cash Flow (TTM)10.4B

Sony has seen steady revenue growth across past few years with there being a dip in 2020. It has projected sales to remain subdued for FY 2021 due to Covid-19 but expects revenue to pick up with the launch of PlayStation 5 and several games with it. Their PlayStation Plus subscription service has also seen a boost of 2.7 million users bringing the user base to 41.5 million.

Source: https://finance.yahoo.com/quote/SNE/financials/, https://www.marketscreener.com/quote/stock/SONY-CORPORATION-6492482/financials/

Sony’s Net Profit margin have seen consistent growth but had to take a hit due to Covid-19. The same can be expected to return to normal once economy resumes

Home video game equipment, world share 57%. In the fiscal year ended March 31, 2018, operating income increased by approximately 200 billion yen due to the impact of the earthquake and loss of impairment. The quantity of PS4 has been further increased by expanding the software.

3. Konami

Konami founded in 1969 is a Japanese entertainment and gambling conglomerate. It develops, manufactures and distributes trading cards, anime, slot machines & arcade machines. It also develops and publishes video games. It has casinos around the world and runs health & physical fitness clubs around Japan.

Some of the famous game series developed by Konami are as follows:

Financials: Source: https://in.tradingview.com/symbols/TSE-9766/ (All figures except share price in USD) (USD Rate 1 USD = 104.76)

Valuation Price History 
Market Capitalization5.4BAverage Volume (10 day)467.4K
Enterprise Value (MRQ)3.8B1-Year Beta1.3528
Enterprise Value/EBITDA (TTM)5.735652 Week High5.19K
Total Shares Outstanding (MRQ)133.214M52 Week Low2.461K
Number of Employees5.057K  
Number of Shareholders21.673KDividends 
Price to Earnings Ratio (TTM)34.043Dividends Paid (FY)-133.5M
Price to Revenue Ratio (TTM)2.1903Dividends Yield (FY)1.074
Price to Book (FY)2.0816Dividends per Share (FY)0.5
Price to Sales (FY)2.19  
  Margins 
Balance Sheet Net Margin (TTM)0.0648
Quick Ratio (MRQ)1.8664Gross Margin (TTM)0.3851
Current Ratio (MRQ)1.9653Operating Margin (TTM)0.1809
Debt to Equity Ratio (MRQ)0.1483Pretax Margin (TTM)0.104
Net Debt (MRQ)-883.3M  
Total Debt (MRQ)384.2MIncome Statement 
Total Assets (MRQ)4.03BBasic EPS (FY)1.41
  Basic EPS (TTM)1.19
Operating Metrics EPS Diluted (FY)1.38
Return on Assets (TTM)0.0407Net Income (FY)189.8M
Return on Equity (TTM)0.0623EBITDA (TTM)697.4M
Return on Invested Capital (TTM)0.0601Gross Profit (MRQ)217.9M
Revenue per Employee (TTM)0.5MGross Profit (FY)947.6M
  Last Year Revenue (FY)2.5B
  Total Revenue (FY)2.5B

The company has mentioned of several projects in the works but the fallout with Metal Gear Solid creator Hideo Kojima means that a lot of them might be in trouble. The company has assured that they are moving on with the new projects even those initially developed by Kojima. However, fan reactions to them will be known with time.

They have also switched their focus from single player games to multi-player games and have now begun to focus on mobile gaming. Konami’s European president Masami Saso has declared in no uncertain terms that E-sports will form major part of Konami’s future games development.

The company established Esports Ginza Studio in Tokyo, which is equipped with state of the art equipment for e-sports in November 2019 with a view to hosting major competitions.

They have had growing revenues coinciding with their new mobile game launches, and they have reduced their revenue projections suggesting that they are spending a lot of money on research & development and not on launch of new products, but they expect this research to turn into profit in 2022.

Their Net Profit Margin has therefore reduced recently, but the new product launches might help get them back on track.

Source: https://www.investing.com/equities/konami-corp.-balance-sheet

https://www.marketscreener.com/quote/stock/KONAMI-HOLDINGS-CORPORATI-6491328/?type_recherche=rapide&mots=konami

4. Nexon

Nexon Co. is a South Korean- Japanese video game publisher that specializes in online games for PC and Mobile. It has been credited for introducing the world’s first graphic Massively Multiplayer Online Role Playing Game (MMORPG) and the first free-to-play game of its kind. It is the industry pioneer of MMORPGs with more than 80 live games operated across more than 190 countries. Some of its games are as follows:

Financials: Source: https://in.tradingview.com/symbols/TSE-3659/ (All figures except share price in USD) (USD Rate 1 USD = 104.76)

Valuation Price History 
Market Capitalization21.2BAverage Volume (10 day)4.358M
Enterprise Value (MRQ)16.4B1-Year Beta0.455
Enterprise Value/EBITDA (TTM)7.367552 Week High2.965K
Total Shares Outstanding (MRQ)885.898M52 Week Low1.225K
Number of Employees6.428K  
Number of Shareholders2.881KDividends 
Price to Earnings Ratio (TTM)19.6234Dividends Paid (FY)0
Price to Revenue Ratio (TTM)8.8318Dividends Yield (FY)0.2028
Price to Book (FY)3.5084Dividends per Share (FY)0.02
Price to Sales (FY)8.937  
  Margins 
Balance Sheet Net Margin (TTM)0.4533
Quick Ratio (MRQ)11.3845Gross Margin (TTM)0.7647
Current Ratio (MRQ)11.3845Operating Margin (TTM)0.4254
Debt to Equity Ratio (MRQ)0.0184Pretax Margin (TTM)0.5013
Net Debt (MRQ)-4.4B  
Total Debt (MRQ)116MIncome Statement 
Total Assets (MRQ)7.3BBasic EPS (FY)1.23
  Basic EPS (TTM)1.21
Operating Metrics EPS Diluted (FY)1.22
Return on Assets (TTM)0.1556Net Income (FY)1.1B
Return on Equity (TTM)0.1792EBITDA (TTM)1.08B
Return on Invested Capital (TTM)0.1773Gross Profit (MRQ)476.2M
Revenue per Employee (TTM)0.4MGross Profit (FY)1.8B
  Last Year Revenue (FY)2.7B
  Total Revenue (FY)2.7B

Nexon’s five major franchises on PC have generated billions of revenue over the years. It now plans to bring them all to mobile which will increase its revenue multifold. They have benefited a lot from the pandemic lockdown.

Their franchises are gaining popularity and receiving love from new and veteran gamers alike. They have also decided to expand towards other countries, mostly in North America.

Nexon has seen steady revenue growth and projected to continue growing at a similar rate

Source: https://www.investing.com/equities/nexon-co-ltd-balance-sheet

https://www.marketscreener.com/quote/stock/NEXON-CO-LTD-10016656/?type_recherche=rapide&mots=nexon

They have phenomenally high net profit margins and with the popularity they enjoy, will continue to maintain it.

5. Square Enix

Square Enix founded in 1975 is a Japanese video game company that develops and sells video games for home consoles as well as online. The company also publishes guidebooks for its games and comic magazines and books. 

Some of its famous game series are as follows:

Financials: Source: https://in.tradingview.com/symbols/TSE-9684/ (All figures except share price in USD) (USD Rate 1 USD = 104.76)

Valuation Price History 
Market Capitalization7.3BAverage Volume (10 day)785.81K
Enterprise Value (MRQ)5.1B1-Year Beta0.459
Enterprise Value/EBITDA (TTM)11.369152 Week High7.46K
Total Shares Outstanding (MRQ)119.316M52 Week Low3.695K
Number of Employees5.077K  
Number of Shareholders15.357KDividends 
Price to Earnings Ratio (TTM)24.3547Dividends Paid (FY)-5.3M
Price to Revenue Ratio (TTM)2.5875Dividends Yield (FY)0.8385
Price to Book (FY)3.4639Dividends per Share (FY)0.5
Price to Sales (FY)2.8994  
  Margins 
Balance Sheet Net Margin (TTM)0.1062
Quick Ratio (MRQ)3.1045Gross Margin (TTM)0.497
Current Ratio (MRQ)4.5258Operating Margin (TTM)0.1685
Debt to Equity Ratio (MRQ)0.0196Pretax Margin (TTM)0.1554
Net Debt (MRQ)-1.08B  
Total Debt (MRQ)4.3MIncome Statement 
Total Assets (MRQ)2.8BBasic EPS (FY)1.709
  Basic EPS (TTM)2.529
Operating Metrics EPS Diluted (FY)1.706
Return on Assets (TTM)0.1104Net Income (FY)203.7M
Return on Equity (TTM)0.1446EBITDA (TTM)549.9M
Return on Invested Capital (TTM)0.1418Gross Profit (MRQ)484.9M
Revenue per Employee (TTM)0.5MGross Profit (FY)1.2B
  Last Year Revenue (FY)2.5B
  Total Revenue (FY)2.5B

They have declared launch of new games which include one on Marvel’s Avengers which has been released recently and has received average reviews but has been a well-selling game.

They have seen steady revenues and are projecting higher revenue for coming years due to the new game launches

Source: https://www.investing.com/equities/square-enix-holdings-co-ltd-income-statement

https://www.marketscreener.com/quote/stock/SQUARE-ENIX-HOLDINGS-CO–6494078/financials/

Their net profit margin has been lackluster and has fluctuated but the same is again showing signs of improvement. 

Probably best known for its Final Fantasy series, the company made the news in August 2020 when more than 5 million Final Fantasy VII Remake copies were sold at launch. But there is more to come! That was only the first part; the second part will follow a year or two later and it seems predictable that those who played the first part will be the first to buy it when it’s out.

This also begs the question of whether they will resurrect another of the other Final Fantasy classics (anyone else an FF9 fan?).

6. CyberAgent

Cyber Agent is a Japanese digital advertisement and game publishing company founded in 1998. They started Cygames in 2009 and it along with 12 other gaming subsidiaries develop and operate mobile games. Some of its titles are as follows:

Financials: Source: https://in.tradingview.com/symbols/TSE-4751/ (All figures except share price in USD) (USD Rate 1 USD = 104.76)

Valuation Price History 
Market Capitalization8.1BAverage Volume (10 day)718.07K
Enterprise Value (MRQ)6.4B1-Year Beta0.4651
Enterprise Value/EBITDA (TTM)13.124652 Week High7.03K
Total Shares Outstanding (MRQ)126.093M52 Week Low3.175K
Number of Employees5.139K  
Number of Shareholders15.404KDividends 
Price to Earnings Ratio (TTM)155.7658Dividends Paid (FY)-3.8M
Price to Revenue Ratio (TTM)1.9045Dividends Yield (FY)0.4911
Price to Book (FY)10.5709Dividends per Share (FY)0.3
Price to Sales (FY)1.9681  
  Margins 
Balance Sheet Net Margin (TTM)0.0123
Quick Ratio (MRQ)2.5047Gross Margin (TTM)0.2939
Current Ratio (MRQ)2.5283Operating Margin (TTM)0.0766
Debt to Equity Ratio (MRQ)0.485Pretax Margin (TTM)0.0555
Net Debt (MRQ)-639M  
Total Debt (MRQ)393.8MIncome Statement 
Total Assets (MRQ)2.2BBasic EPS (FY)0.128
  Basic EPS (TTM)0.439
Operating Metrics EPS Diluted (FY)0.117
Return on Assets (TTM)0.0257Net Income (FY)16.1M
Return on Equity (TTM)0.0705EBITDA (TTM)422.7M
Return on Invested Capital (TTM)0.0472Gross Profit (MRQ)305.4M
Revenue per Employee (TTM)0.8MGross Profit (FY)1.2B
  Last Year Revenue (FY)4.3B
  Total Revenue (FY)4.3B

Cygames has an E-sports team which participates in street fighter competition. They have also launched a subsidiary Cymusic which will produce music. In addition they have some games lined up for release.

Cyber Agent has seen steady revenue rise and have projected for a similar growth in revenues.

Source: https://www.investing.com/equities/cyberagent-inc-balance-sheet

https://www.marketscreener.com/quote/stock/CYBERAGENT-INC-6814805/financials/

Nintendo has acquired 5% stake in Cygames as they collaborated on & released a new game called Dragalia Lost Read. This marked Nintendo’s foray in mobile gaming segment and further development in that area will lead to better opportunities for Cygames and Cyber Agent in the future.

Subsidiary CyberZ started collaboration with Avex Entertainment Inc. and esports event “RAGE” in March 2017, and has grown into one of the largest esports competitions in Japan, mobilizing 10,000 people in a year and a half.

7. Bandai Namco

Bandai Namco, founded in 2006 by a Merger of gaming giants Bandai & Namco, is a Japanese Multinational video game developer and publisher. It has developed and published several successful game franchise, a few of which are mentioned below:

In addition they have also published several mobile and online games. They have also decided to focus on new products going forward.

Financials: Source: https://in.tradingview.com/symbols/TSE-7832/ (All figures except share price in USD) (USD Rate 1 USD = 104.76)

Valuation Price History 
Market Capitalization16.3BAverage Volume (10 day)509.94K
Enterprise Value (MRQ)10.6B1-Year Beta0.9351
Enterprise Value/EBITDA (TTM)9.479852 Week High8.004K
Total Shares Outstanding (MRQ)219.629M52 Week Low4.57K
Number of Employees9.052K  
Number of Shareholders30.129KDividends 
Price to Earnings Ratio (TTM)31.6504Dividends Paid (FY)-308.5M
Price to Revenue Ratio (TTM)2.4034Dividends Yield (FY)0.5408
Price to Book (FY)3.7971Dividends per Share (FY)1.3
Price to Sales (FY)2.3574  
  Margins 
Balance Sheet Net Margin (TTM)0.076
Quick Ratio (MRQ)1.7287Gross Margin (TTM)0.3606
Current Ratio (MRQ)2.2354Operating Margin (TTM)0.1069
Debt to Equity Ratio (MRQ)0.1107Pretax Margin (TTM)0.1037
Net Debt (MRQ)-1.2B  
Total Debt (MRQ)465.5MIncome Statement 
Total Assets (MRQ)6.1BBasic EPS (FY)2.50
  Basic EPS (TTM)245.36842.34
Operating Metrics EPS Diluted (FY)2.50
Return on Assets (TTM)0.0894Net Income (FY)550.4M
Return on Equity (TTM)0.1259EBITDA (TTM)958.5M
Return on Invested Capital (TTM)0.1223Gross Profit (MRQ)555.3M
Revenue per Employee (TTM)0.76MGross Profit (FY)2.5B
  Last Year Revenue (FY)6.9B
  Total Revenue (FY)6.9B

Bandai Namco had pretty stable revenue so far but has projected almost double its usual revenue to be bolstered by sales from its its Dragon Ball franchise.

Source: https://www.investing.com/equities/bandai-namco-holdings-inc-balance-sheet 

https://www.marketscreener.com/quote/stock/BANDAI-NAMCO-HOLDINGS-INC-6497993/?type_recherche=rapide&mots=7832

It has pretty stable net profit margin and the same is expected to continue in the foreseeable future

The company’s popular game “Tekken 7” was adopted at the world’s largest fighting game event “EVO” in 2018 and has been a feature each year since.

8. Capcom

Capcom, established in 1979, began as a manufacturer of arcade game machines and transitioned into a video game developer and publisher.

It has developed legendary game series like Resident Evil, Devil May Cry, Mega Man, Street Fighter etc. Street Fighter has now gained prominence amongst E-sports enthusiasts and is one of the major games in E-Sports.

Financials: Source: https://in.tradingview.com/symbols/TSE-9697/ (All figures except share price in USD) (USD Rate 1 USD = 104.76)

Valuation Price History 
Market Capitalization6.1BAverage Volume (10 day)566.09K
Enterprise Value (MRQ)3.4B1-Year Beta0.7006
Enterprise Value/EBITDA (TTM)11.8752 Week High6.34K
Total Shares Outstanding (MRQ)106.75M52 Week Low2.4K
Number of Employees2.988K  
Number of Shareholders10.273KDividends 
Price to Earnings Ratio (TTM)34.7998Dividends Paid (FY)-4M
Price to Revenue Ratio (TTM)7.306Dividends Yield (FY)0.7525
Price to Book (FY)6.4006Dividends per Share (FY)0.4
Price to Sales (FY)7.824  
  Margins 
Balance Sheet Net Margin (TTM)0.2099
Quick Ratio (MRQ)3.2169Gross Margin (TTM)0.794
Current Ratio (MRQ)4.2312Operating Margin (TTM)0.2957
Debt to Equity Ratio (MRQ)0.0628Pretax Margin (TTM)0.2954
Net Debt (MRQ)-602.1M  
Total Debt (MRQ)6.2MIncome Statement 
Total Assets (MRQ)1.3BBasic EPS (FY)1.43
  Basic EPS (TTM)1.64
Operating Metrics EPS Diluted (FY)1.43
Return on Assets (TTM)0.1436Net Income (FY)152.2M
Return on Equity (TTM)0.1869EBITDA (TTM)273.9M
Return on Invested Capital (TTM)0.1785Gross Profit (MRQ)198.9M
Revenue per Employee (TTM)0.26MGross Profit (FY)625.5M
  Last Year Revenue (FY)778.8M
  Total Revenue (FY)778.8M

Capcom is soon to launch three major titles which will be providing a boost to their revenue. The company has also launched its games on mobile and the response has been positive domestically. It is also looking to transition to a multi-platform game developer as it launched the game “Shinsekai: Into the Depth” for Apple Arcade.

Revenue has been more or less steady and their projections are in line with the past trend.

Source: https://www.investing.com/equities/capcom-co-ltd

https://www.marketscreener.com/quote/stock/CAPCOM-CO-LTD-6492670/financials/


Net Profit margin for Capcom however has seen improvement doubling from 4 years ago.

Capcom has declared plans to bring dormant IPs back to life which include Dino Crisis and Darkstalkers which might bring back old fans and customers. 

The company set up a game experience space “CAPCOM eSPORTS Club” in Kichijoji, Tokyo which holds events regularly.

Conclusion:

The future for gaming worldwide looks bright. Japan, which is quick to take to new technology will once again be the first ones to participate in the gaming revolution. The future for Japanese video game industry looks brighter still, and it might be a good idea to “press start” on some of these awesome gaming stocks and enter the game before it’s too late!

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