DB:CPK

Stock Analysis Report

Executive Summary

Capcom Co., Ltd. plans, develops, manufactures, sells, and distributes home video games, online games, mobile games, and arcade games in Japan and internationally.


Snowflake Analysis

Flawless balance sheet with acceptable track record.


Similar Companies

Share Price & News

How has Capcom's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CPK's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.8%

CPK

-10.2%

DE Entertainment

-6.8%

DE Market


1 Year Return

56.4%

CPK

22.9%

DE Entertainment

6.5%

DE Market

Return vs Industry: CPK exceeded the German Entertainment industry which returned 23.8% over the past year.

Return vs Market: CPK exceeded the German Market which returned 6.1% over the past year.


Shareholder returns

CPKIndustryMarket
7 Day-1.8%-10.2%-6.8%
30 Day11.9%-10.4%-3.7%
90 Day30.6%-4.8%-3.6%
1 Year58.8%56.4%24.6%22.9%9.8%6.5%
3 Year206.2%192.7%28.1%21.9%6.8%-2.6%
5 Year276.3%246.7%93.6%78.2%12.5%-2.9%

Price Volatility Vs. Market

How volatile is Capcom's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Capcom undervalued compared to its fair value and its price relative to the market?

21.21x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CPK (€27.97) is trading above our estimate of fair value (€20.33)

Significantly Below Fair Value: CPK is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CPK is good value based on its PE Ratio (21.2x) compared to the Entertainment industry average (39.1x).

PE vs Market: CPK is poor value based on its PE Ratio (21.2x) compared to the German market (20.2x).


Price to Earnings Growth Ratio

PEG Ratio: CPK is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: CPK is overvalued based on its PB Ratio (3.6x) compared to the DE Entertainment industry average (1.3x).


Next Steps

Future Growth

How is Capcom forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

11.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CPK's forecast earnings growth (11.1% per year) is above the savings rate (-0.4%).

Earnings vs Market: CPK's earnings (11.1% per year) are forecast to grow slower than the German market (13% per year).

High Growth Earnings: CPK's earnings are forecast to grow, but not significantly.

Revenue vs Market: CPK's revenue (8.8% per year) is forecast to grow faster than the German market (5.1% per year).

High Growth Revenue: CPK's revenue (8.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CPK's Return on Equity is forecast to be low in 3 years time (17.3%).


Next Steps

Past Performance

How has Capcom performed over the past 5 years?

24.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CPK has high quality earnings.

Growing Profit Margin: CPK's current net profit margins (17.9%) are higher than last year (14.5%).


Past Earnings Growth Analysis

Earnings Trend: CPK's earnings have grown significantly by 24% per year over the past 5 years.

Accelerating Growth: CPK's earnings growth over the past year (4.8%) is below its 5-year average (24% per year).

Earnings vs Industry: CPK earnings growth over the past year (4.8%) underperformed the Entertainment industry 14.9%.


Return on Equity

High ROE: CPK's Return on Equity (16.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Capcom's financial position?


Financial Position Analysis

Short Term Liabilities: CPK's short term assets (¥98.0B) exceed its short term liabilities (¥21.2B).

Long Term Liabilities: CPK's short term assets (¥98.0B) exceed its long term liabilities (¥11.3B).


Debt to Equity History and Analysis

Debt Level: CPK's debt to equity ratio (6.9%) is considered satisfactory.

Reducing Debt: CPK's debt to equity ratio has reduced from 12.9% to 6.9% over the past 5 years.

Debt Coverage: CPK's debt is well covered by operating cash flow (416.5%).

Interest Coverage: CPK earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: CPK has a high level of physical assets or inventory.

Debt Coverage by Assets: CPK's debt is covered by short term assets (assets are 14.7x debt).


Next Steps

Dividend

What is Capcom's current dividend yield, its reliability and sustainability?

1.23%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Capcom before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.2%marketbottom25%1.5%markettop25%3.8%industryaverage1.3%forecastin3Years1.5%

Current dividend yield vs market & industry

Notable Dividend: CPK's dividend (1.23%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.43%).

High Dividend: CPK's dividend (1.23%) is low compared to the top 25% of dividend payers in the German market (3.8%).


Stability and Growth of Payments

Stable Dividend: CPK's dividend payments have been volatile in the past 10 years.

Growing Dividend: CPK's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26%), CPK's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.3yrs

Average management tenure


CEO

Kenzo Tsujimoto (79yo)

18.8yrs

Tenure

JP¥130,000,000

Compensation

Mr. Tsujimoto Kenzo has been the Chairman of the Board at Capcom Co. Ltd. since July 1, 2007 and has been its Chief Executive Officer since April 2001. Mr. Kenzo serves as the Chief Executive Officer at Ca ...


CEO Compensation Analysis

Compensation vs Market: Kenzo's total compensation ($USD1.18M) is below average for companies of similar size in the German market ($USD2.52M).

Compensation vs Earnings: Kenzo's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Kenzo Tsujimoto
Chairman & CEO18.8yrsJP¥130.00m3.76% ¥109.1m
Haruhiro Tsujimoto
President22.7yrsJP¥104.00m2.9% ¥84.2m
Kenkichi Nomura
CFO, Executive Corporate Officer & Director0yrsno data0.0028% ¥81.5k
Koji Yokota
Managing Corporate Officer & Head of Administration Division0.8yrsno datano data
Midori Yuasa
Corporate Officer & Deputy Head of eSports Business Division0yrsno datano data
Motohide Imaizumi
Head of Arcade Operations Business and Managing Corporate Officer0yrsno datano data
Yoichi Egawa
Executive Corporate Officer & Director6.7yrsno data0.0028% ¥81.5k
Nobuyuki Matsushima
Managing Corporate Officer and Head of R&D Management Division3.8yrsno datano data
Jun Takeuchi
Head of Consumer Games Development Division & Managing Corporate Officer0yrsno datano data
Yoshinori Ono
Corporate Officer6.8yrsno datano data

5.3yrs

Average Tenure

60yo

Average Age

Experienced Management: CPK's management team is seasoned and experienced (5.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kenzo Tsujimoto
Chairman & CEO18.8yrsJP¥130.00m3.76% ¥109.1m
Haruhiro Tsujimoto
President22.7yrsJP¥104.00m2.9% ¥84.2m
Kenkichi Nomura
CFO, Executive Corporate Officer & Director0yrsno data0.0028% ¥81.5k
Yoichi Egawa
Executive Corporate Officer & Director6.7yrsno data0.0028% ¥81.5k
Kunio Neo
Executive Corporate Officer & Director1.7yrsno datano data
Makoto Matsuo
External Independent Director12.7yrsno data0.0075% ¥217.2k
Kazushi Hirao
Director3.7yrsno data0.0094% ¥271.7k
Yoshihiko Iwasaki
External Independent Director3.7yrsno data0.0056% ¥162.9k
Toru Muranaka
External Independent Director3.7yrsno datano data
Masao Sato
External Independent Director3.7yrsno datano data

3.7yrs

Average Tenure

67yo

Average Age

Experienced Board: CPK's board of directors are considered experienced (3.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Capcom Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Capcom Co., Ltd.
  • Ticker: CPK
  • Exchange: DB
  • Founded: 1979
  • Industry: Interactive Home Entertainment
  • Sector: Media
  • Market Cap: JP¥348.608b
  • Listing Market Cap: JP¥2.899b
  • Shares outstanding: 106.77m
  • Website: https://www.capcom.co.jp

Number of Employees


Location

  • Capcom Co., Ltd.
  • 3-1-3 Uchihirano-machi
  • Chuo-ku
  • Osaka
  • 540-0037
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CPKDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992
9697TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
CCOE.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
CCOE.YOTCPK (Pink Sheets LLC)ADRUSUSDJun 2012

Biography

Capcom Co., Ltd. plans, develops, manufactures, sells, and distributes home video games, online games, mobile games, and arcade games in Japan and internationally. It operates through Digital Contents, Arcade Operations, Amusement Equipments, and Other Businesses segments. The Digital Contents segment develops and sells package games and digital download content. This segment also develops and manages mobile contents and PC online games. The Arcade Operations segment operates Plaza Capcom amusement facilities primarily in commercial complexes; and hosts various events. The Amusement Equipments segment is involved in the development, manufacture, and sale of frames and LCD devices for gaming machines, as well as software; and development, production, and sale of arcade games for amusement facilities. The Other Businesses segment publishes walkthrough and strategy guides, as well as game art books; licenses movies, animated television programs, music CDs and merchandise; and develops game content. The company was founded in 1979 and is headquartered in Osaka, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 20:41
End of Day Share Price2020/02/26 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.