DB:KOAA

Stock Analysis Report

Konami Holdings

Executive Summary

Konami Holdings Corporation, together with its subsidiaries, primarily engages in the digital entertainment business.

Rewards

Trading at 15.1% below its fair value

Earnings are forecast to grow 12.83% per year

Risk Analysis

High level of non-cash earnings

Unstable dividend track record



Snowflake Analysis

Flawless balance sheet second-rate dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

1.1%

KOAA

2.2%

DE Entertainment

2.0%

DE Market


1 Year Return

1.6%

KOAA

36.6%

DE Entertainment

15.1%

DE Market

Return vs Industry: KOAA underperformed the German Entertainment industry which returned 38.3% over the past year.

Return vs Market: KOAA underperformed the German Market which returned 15% over the past year.


Shareholder returns

KOAAIndustryMarket
7 Day1.1%2.2%2.0%
30 Day-2.2%0.7%1.0%
90 Day-12.7%8.1%3.8%
1 Year2.8%1.6%38.5%36.6%18.6%15.1%
3 Year-0.8%-4.3%44.6%38.1%16.8%6.6%
5 Year122.4%111.9%112.0%95.1%23.7%6.7%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

15.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KOAA (€35.8) is trading below our estimate of fair value (€42.16)

Significantly Below Fair Value: KOAA is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: KOAA is good value based on its PE Ratio (25.3x) compared to the Entertainment industry average (44.6x).

PE vs Market: KOAA is poor value based on its PE Ratio (25.3x) compared to the German market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: KOAA is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: KOAA is overvalued based on its PB Ratio (2.2x) compared to the DE Entertainment industry average (1.5x).


Next Steps

Future Growth

How is Konami Holdings forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

12.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KOAA's forecast earnings growth (12.8% per year) is above the savings rate (-0.4%).

Earnings vs Market: KOAA's earnings (12.8% per year) are forecast to grow slower than the German market (13.3% per year).

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

Revenue vs Market: KOAA's revenue (2.8% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: KOAA's revenue (2.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KOAA's Return on Equity is forecast to be low in 3 years time (12.2%).


Next Steps

Past Performance

How has Konami Holdings performed over the past 5 years?

23.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KOAA has a high level of non-cash earnings.

Growing Profit Margin: KOAA's current net profit margins (8.9%) are lower than last year (12.5%).


Past Earnings Growth Analysis

Earnings Trend: KOAA's earnings have grown significantly by 23.9% per year over the past 5 years.

Accelerating Growth: KOAA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: KOAA had negative earnings growth (-26.5%) over the past year, making it difficult to compare to the Entertainment industry average (29.1%).


Return on Equity

High ROE: KOAA's Return on Equity (8.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Konami Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: KOAA's short term assets (¥168.8B) exceed its short term liabilities (¥68.5B).

Long Term Liabilities: KOAA's short term assets (¥168.8B) exceed its long term liabilities (¥54.2B).


Debt to Equity History and Analysis

Debt Level: KOAA is debt free.

Reducing Debt: KOAA has no debt compared to 5 years ago when its debt to equity ratio was 8.8%.

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

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


Balance Sheet

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

Debt Coverage by Assets: KOAA's debt is not covered by short term assets (assets are -6.5x debt).


Next Steps

Dividend

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

1.75%

Current Dividend Yield


Dividend Yield vs Market

company1.7%marketbottom25%1.3%markettop25%3.6%industryaverage1.2%forecastin3Years1.9%

Current dividend yield vs market & industry

Notable Dividend: KOAA's dividend (1.75%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: KOAA's dividend (1.75%) is low compared to the top 25% of dividend payers in the German market (3.59%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (45.6%), KOAA'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?

2.8yrs

Average management tenure


CEO

Takuya Kozuki (48yo)

7.7yrs

Tenure

0

Mr. Takuya Kozuki serves as the President at Konami Holdings Corporation since June 28, 2012. He serves as President of Konami Holdings Corporation at Konami Digital Entertainment Co., Ltd. Mr. Kozuki serv ...


Leadership Team

NamePositionTenureCompensationOwnership
Kagemasa Kozuki
Founder & Chairman of the Board33.1yrsJP¥159.00m0.12% ¥6.1m
Takuya Kozuki
President & Representative Director7.7yrsno data0.018% ¥913.3k
Junichi Motobayashi
Corporate Officer of Finance1.1yrsno datano data
Kazuhiko Uehara
Corporate Officer of Public Relations & Advertising1.1yrsno datano data
Shingo Kagawa
General Manager of Investor Relations Office1.3yrsno datano data
Satoshi Kitahama
General Manager of Legal Department6.3yrsno datano data
Kimihiko Higashio
VP & Representative Director14.7yrsno data0.021% ¥1.1m
Satoshi Sakamoto
Corporate Officer of Gaming & Systems Business and Director5.7yrsno datano data
Shinichiro Yoneyama
Corporate Officer of General Affairs0.8yrsno datano data
Osamu Nakano
Executive VP4.3yrsno data0.0022% ¥109.7k

2.8yrs

Average Tenure

65.5yo

Average Age

Experienced Management: KOAA's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kagemasa Kozuki
Founder & Chairman of the Board33.1yrsJP¥159.00m0.12% ¥6.1m
Takuya Kozuki
President & Representative Director7.7yrsno data0.018% ¥913.3k
Kimihiko Higashio
VP & Representative Director14.7yrsno data0.021% ¥1.1m
Satoshi Sakamoto
Corporate Officer of Gaming & Systems Business and Director5.7yrsno datano data
Osamu Nakano
Executive VP4.3yrsno data0.0022% ¥109.7k
Akira Gemma
Outside Director15.7yrsno data0.0059% ¥292.4k
Shinichi Furukawa
Full-Time Audit & Supervisory Board Member6.7yrsno data0.019% ¥949.9k
Yoshihiro Matsuura
Director0yrsno data0.00074% ¥36.6k
Kaori Yamaguchi
Outside Director5.7yrsno data0.0030% ¥146.2k
Kimito Kubo
Outside Director0yrsno data0.00074% ¥36.6k

7.7yrs

Average Tenure

60yo

Average Age

Experienced Board: KOAA's board of directors are considered experienced (7.7 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

Konami Holdings Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Konami Holdings Corporation
  • Ticker: KOAA
  • Exchange: DB
  • Founded: 1969
  • Industry: Interactive Home Entertainment
  • Sector: Media
  • Market Cap: JP¥588.261b
  • Listing Market Cap: JP¥4.940b
  • Shares outstanding: 135.23m
  • Website: https://www.konami.com

Number of Employees


Location

  • Konami Holdings Corporation
  • 9-7-2, Akasaka
  • Minato-ku
  • Tokyo
  • 107-8323
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KNAM.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
KNMLSE (London Stock Exchange)YesCommon StockGBJPYJan 1992
9766TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
KOADB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992
KNMC.YOTCPK (Pink Sheets LLC)ADR EACH REPR 1 COM NPVUSUSDSep 2002
KOAADB (Deutsche Boerse AG)ADR EACH REPR 1 COM NPVDEEURSep 2002

Biography

Konami Holdings Corporation, together with its subsidiaries, primarily engages in the digital entertainment business. It operates through four segments: Digital Entertainment, Health & Fitness, Gaming & Systems, and Pachislot & Pachinko Machines. The Digital Entertainment segment manufactures and sells digital content and related products, including mobile games, arcade games, card games, and computer and video games. The Health & Fitness segment operates health and fitness clubs, as well as designs, manufactures, and sells fitness machines and health products. The Gaming & Systems segment designs, manufactures, sells, and services gaming machines and casino management systems. The Pachislot & Pachinko Machines segment researches, designs, produces, and sells pachinko slot and pachinko machines. It operates in Japan and other Asia/Oceania countries, the United States, and Europe. The company was formerly known as Konami Corporation and changed its name to Konami Holdings Corporation in October 2015. Konami Holdings Corporation was founded in 1969 and is headquartered in Tokyo, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 21:52
End of Day Share Price2020/02/17 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.