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Square Enix Holdings

Executive Summary

Square Enix Holdings Co., Ltd. operates in the content and service businesses in Japan, North America, Europe, and rest of Asia. More Details


Snowflake Analysis

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

How has Square Enix Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EI4 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-6.7%

EI4

-3.4%

DE Entertainment

-3.2%

DE Market


1 Year Return

18.9%

EI4

-23.1%

DE Entertainment

0.2%

DE Market

Return vs Industry: EI4 exceeded the German Entertainment industry which returned -25.4% over the past year.

Return vs Market: EI4 exceeded the German Market which returned 1.7% over the past year.


Shareholder returns

EI4IndustryMarket
7 Day-6.7%-3.4%-3.2%
30 Day-10.1%-1.9%1.0%
90 Day6.5%12.0%-2.9%
1 Year20.3%18.9%-23.0%-23.1%3.4%0.2%
3 Year55.7%50.1%-4.5%-7.4%1.0%-7.8%
5 Year115.9%101.8%17.9%9.9%21.1%3.8%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Square Enix Holdings undervalued compared to its fair value and its price relative to the market?

23.7x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: EI4 (€49) is trading above our estimate of fair value (€37.66)

Significantly Below Fair Value: EI4 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: EI4 is good value based on its PE Ratio (23.7x) compared to the XE Entertainment industry average (32.8x).

PE vs Market: EI4 is poor value based on its PE Ratio (23.7x) compared to the German market (22.4x).


Price to Earnings Growth Ratio

PEG Ratio: EI4 is poor value based on its PEG Ratio (19.6x)


Price to Book Ratio

PB vs Industry: EI4 is overvalued based on its PB Ratio (3.2x) compared to the DE Entertainment industry average (1.3x).


Next Steps

Future Growth

How is Square Enix Holdings forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

1.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EI4's forecast earnings growth (1.2% per year) is above the savings rate (0.2%).

Earnings vs Market: EI4's earnings (1.2% per year) are forecast to grow slower than the German market (26.8% per year).

High Growth Earnings: EI4's earnings are forecast to grow, but not significantly.

Revenue vs Market: EI4's revenue (0.2% per year) is forecast to grow slower than the German market (6.1% per year).

High Growth Revenue: EI4's revenue (0.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EI4's Return on Equity is forecast to be low in 3 years time (12.8%).


Next Steps

Past Performance

How has Square Enix Holdings performed over the past 5 years?

8.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EI4 has high quality earnings.

Growing Profit Margin: EI4's current net profit margins (10.7%) are higher than last year (6%).


Past Earnings Growth Analysis

Earnings Trend: EI4's earnings have grown by 8.7% per year over the past 5 years.

Accelerating Growth: EI4's earnings growth over the past year (88.5%) exceeds its 5-year average (8.7% per year).

Earnings vs Industry: EI4 earnings growth over the past year (88.5%) exceeded the Entertainment industry 36.2%.


Return on Equity

High ROE: EI4's Return on Equity (13.7%) is considered low.


Next Steps

Financial Health

How is Square Enix Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: EI4's short term assets (¥246.0B) exceed its short term liabilities (¥54.4B).

Long Term Liabilities: EI4's short term assets (¥246.0B) exceed its long term liabilities (¥11.4B).


Debt to Equity History and Analysis

Debt Level: EI4 is debt free.

Reducing Debt: EI4 has no debt compared to 5 years ago when its debt to equity ratio was 4.8%.

Debt Coverage: EI4 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: EI4 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Square Enix Holdings's current dividend yield, its reliability and sustainability?

0.86%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EI4's dividend (0.86%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.2%).

High Dividend: EI4's dividend (0.86%) is low compared to the top 25% of dividend payers in the German market (3.73%).


Stability and Growth of Payments

Stable Dividend: EI4's dividend payments have been volatile in the past 10 years.

Growing Dividend: EI4's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (20.4%), EI4'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?

6.8yrs

Average board tenure


CEO

Yosuke Matsuda (57 yo)

7.33yrs

Tenure

JP¥229,000,000

Compensation

Mr. Yosuke Matsuda has been President of SQUARE ENIX CO., LTD. since April 2013 and President of SQUARE ENIX HOLDINGS CO., LTD. since June 2013 and serves as its Chairman of the board. Mr. Matsuda served a ...


CEO Compensation Analysis

Compensation vs Market: Yosuke's total compensation ($USD2.19M) is below average for companies of similar size in the German market ($USD3.55M).

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


Board Members

NamePositionTenureCompensationOwnership
Yosuke Matsuda
President & Chairman of the Board7.33yrsJP¥229.00m0.00017%
¥ 10.3k
Yukinobu Chida
Director12yrsno data0.11%
¥ 6.4m
Daishiro Okada
Vice Chairman of Square Enix Inc13.5yrsno datano data
Yasuhiro Fukushima
Honorary Chairman12yrsno data25.47%
¥ 1.5b
Masato Ogawa
Independent Outside Director2.33yrsno datano data
Yukihiro Yamamura
Independent Outside Director7.33yrsno datano data
Ryoichi Kobayashi
Independent Outside Directorno datano datano data
Yuji Nishiura
Independent Outside Director6.33yrsno datano data
Tadao Toyoshima
Independent Outside Directorno datano datano data
Satoshi Fujii
Audit & Supervisory Board Memberno datano data0.000080%
¥ 4.8k
Mitsuko Okamoto
Independent Outside Director0.33yrno datano data
Hajime Shinji
Independent Outside Director0.33yrno datano data

6.8yrs

Average Tenure

65yo

Average Age

Experienced Board: EI4's board of directors are considered experienced (6.8 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

Square Enix Holdings Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Square Enix Holdings Co., Ltd.
  • Ticker: EI4
  • Exchange: DB
  • Founded: 1975
  • Industry: Interactive Home Entertainment
  • Sector: Media
  • Market Cap: JP¥749.303b
  • Listing Market Cap: JP¥6.035b
  • Shares outstanding: 119.32m
  • Website: https://www.hd.square-enix.com

Number of Employees


Location

  • Square Enix Holdings Co., Ltd.
  • Shinjuku Eastside Square
  • 6-27-30 Shinjuku
  • Tokyo
  • 160-8430
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
9684TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
SQNX.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
EI4DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992
SQNN.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDNov 2017

Biography

Square Enix Holdings Co., Ltd. operates in the content and service businesses in Japan, North America, Europe, and rest of Asia. It operates through four segments: Digital Entertainment, Amusement, Publica ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/21 21:47
End of Day Share Price2020/10/21 00:00
Earnings2020/06/30
Annual Earnings2020/03/31


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.