Executive Summary
Square Enix Holdings Co., Ltd. operates in the content and service businesses in Japan, North America, Europe, and rest of Asia.
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet with proven 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
-1.4%
EI4
2.5%
DE Entertainment
1.7%
DE Market
1 Year Return
66.1%
EI4
38.3%
DE Entertainment
15.0%
DE Market
Return vs Industry: EI4 exceeded the German Entertainment industry which returned 38.3% over the past year.
Return vs Market: EI4 exceeded the German Market which returned 15% over the past year.
Shareholder returns
| EI4 | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.4% | 2.5% | 1.7% |
| 30 Day | -2.7% | 1.4% | 0.8% |
| 90 Day | 2.4% | 9.8% | 3.7% |
| 1 Year | 68.1%66.1% | 40.1%38.3% | 18.5%15.0% |
| 3 Year | 56.1%49.9% | 45.1%38.6% | 17.1%6.9% |
| 5 Year | 168.0%150.4% | 109.5%92.8% | 24.3%7.3% |
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?
20.87x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: EI4 (€42.8) is trading above our estimate of fair value (€34.39)
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 (20.9x) compared to the Entertainment industry average (44.6x).
PE vs Market: EI4 is good value based on its PE Ratio (20.9x) compared to the German market (21.1x).
Price to Earnings Growth Ratio
PEG Ratio: EI4 is poor value based on its PEG Ratio (3.4x)
Price to Book Ratio
PB vs Industry: EI4 is overvalued based on its PB Ratio (2.7x) compared to the DE Entertainment industry average (1.5x).
Next Steps
Future Growth
How is Square Enix Holdings forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
6.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: EI4's forecast earnings growth (6.1% per year) is above the savings rate (-0.4%).
Earnings vs Market: EI4's earnings (6.1% per year) are forecast to grow slower than the German market (13.3% per year).
High Growth Earnings: EI4's earnings are forecast to grow, but not significantly.
Revenue vs Market: EI4's revenue (5% per year) is forecast to grow faster than the German market (5% per year).
High Growth Revenue: EI4's revenue (5% 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 (11.1%).
Next Steps
Past Performance
How has Square Enix Holdings performed over the past 5 years?
10.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: EI4 has a high level of non-cash earnings.
Growing Profit Margin: EI4's current net profit margins (10.2%) are higher than last year (5.1%).
Past Earnings Growth Analysis
Earnings Trend: EI4's earnings have grown by 10.5% per year over the past 5 years.
Accelerating Growth: EI4's earnings growth over the past year (131.6%) exceeds its 5-year average (10.5% per year).
Earnings vs Industry: EI4 earnings growth over the past year (131.6%) exceeded the Entertainment industry 26.4%.
Return on Equity
High ROE: EI4's Return on Equity (13%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Square Enix Holdings's financial position?
Financial Position Analysis
Short Term Liabilities: EI4's short term assets (¥240.9B) exceed its short term liabilities (¥61.2B).
Long Term Liabilities: EI4's short term assets (¥240.9B) exceed its long term liabilities (¥11.9B).
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 30%.
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
Inventory Level: EI4 has a high level of physical assets or inventory.
Debt Coverage by Assets: Insufficient data to determine if EI4's debt is covered by short term assets.
Next Steps
Dividend
What is Square Enix Holdings's current dividend yield, its reliability and sustainability?
0.85%
Current Dividend Yield
Upcoming Dividend Payment
Purchase Square Enix Holdings before the 'Buy Limit' to receive their next dividend payment.
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: EI4's dividend (0.85%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.31%).
High Dividend: EI4's dividend (0.85%) is low compared to the top 25% of dividend payers in the German market (3.59%).
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 (19.5%), 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?
6.9yrs
Average board tenure
CEO
Yosuke Matsuda (56yo)
6.7yrs
Tenure
JP¥205,000,000
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. Mr. Matsuda served as a Corporate Officer of Square Enix Hol ...
CEO Compensation Analysis
Compensation vs Market: Yosuke's total compensation ($USD1.87M) is below average for companies of similar size in the German market ($USD3.37M).
Compensation vs Earnings: Insufficient data to compare Yosuke's compensation with company performance.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President & Representative Director | 6.7yrs | JP¥205.00m | 0.00017% ¥8.6k | |
| Director | 11.3yrs | no data | 0.16% ¥7.9m | |
| Vice Chairman of Square Enix Inc | 12.8yrs | no data | no data | |
| Honorary Chairman | 11.3yrs | no data | 25.49% ¥1.3b | |
| Outside Director | 1.7yrs | no data | no data | |
| Outside Director | 6.7yrs | no data | no data | |
| Outside Director | 0yrs | no data | no data | |
| Outside Director | 0yrs | no data | no data | |
| Outside Director | 5.7yrs | no data | no data | |
| Outside Director | 0yrs | no data | no data |
6.9yrs
Average Tenure
65yo
Average Age
Experienced Board: EI4's board of directors are considered experienced (6.9 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¥599.696b
- Listing Market Cap: JP¥5.038b
- Shares outstanding: 119.22m
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 9684 | TSE (The Tokyo Stock Exchange) | Yes | Common Stock | JP | JPY | Jan 1992 |
| SQNX.F | OTCPK (Pink Sheets LLC) | Yes | Common Stock | US | USD | Jan 1992 |
| EI4 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jan 1992 |
| SQNN.Y | OTCPK (Pink Sheets LLC) | UNSPONSORD ADR | US | USD | Nov 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, Publication, and Merchandising. The Digital Entertainment segment plans, develops, distributes, and operates digital entertainment content primarily in the form of games. This segment offers digital entertainment content for various customer usage environments, including personal computers and smart devices, as well as consumer game consoles, such as handheld game machines. The Amusement segment is involved in the operation of amusement facilities. This segment also engages in the planning, development, distribution, and rental of arcade game machines and related products for amusement facilities. The Publication segment publishes comic and game strategy books, as well as comic magazines. The Merchandising segment plans, produces, distributes, and licenses products, such as character goods and soundtracks. The company publishes, distributes, and licenses entertainment content under the SQUARE ENIX and TAITO brands. Square Enix Holdings Co., Ltd. was founded in 1975 and is headquartered in Tokyo, Japan.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/16 21:36 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/03/31 |
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.