DB:NTO

Stock Analysis Report

Executive Summary

Nintendo Co., Ltd., together with its subsidiaries, develops, manufactures, and distributes electronic entertainment products in Japan, the United States, Europe, Australia, Asia, and internationally.


Snowflake Analysis

Flawless balance sheet with proven track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

4.1%

NTO

8.2%

DE Entertainment

9.1%

DE Market


1 Year Return

38.9%

NTO

-8.9%

DE Entertainment

-13.1%

DE Market

Return vs Industry: NTO exceeded the German Entertainment industry which returned -8.9% over the past year.

Return vs Market: NTO exceeded the German Market which returned -13.1% over the past year.


Shareholder returns

NTOIndustryMarket
7 Day4.1%8.2%9.1%
30 Day26.1%0.8%-1.0%
90 Day4.6%-26.9%-20.7%
1 Year42.0%38.9%-7.8%-8.9%-10.6%-13.1%
3 Year81.7%71.2%-1.0%-5.7%-10.7%-18.1%
5 Year157.5%136.6%41.6%30.9%-10.7%-22.8%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

24.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NTO (€371.5) is trading below our estimate of fair value (€489.77)

Significantly Below Fair Value: NTO is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NTO is good value based on its PE Ratio (23.5x) compared to the Entertainment industry average (30x).

PE vs Market: NTO is poor value based on its PE Ratio (23.5x) compared to the German market (17.4x).


Price to Earnings Growth Ratio

PEG Ratio: NTO is poor value based on its PEG Ratio (10.2x)


Price to Book Ratio

PB vs Industry: NTO is overvalued based on its PB Ratio (3.5x) compared to the DE Entertainment industry average (1.1x).


Next Steps

Future Growth

How is Nintendo forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

2.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NTO's forecast earnings growth (2.3% per year) is above the savings rate (-0.4%).

Earnings vs Market: NTO's earnings (2.3% per year) are forecast to grow slower than the German market (14.3% per year).

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

Revenue vs Market: NTO's revenue (0.8% per year) is forecast to grow slower than the German market (3.9% per year).

High Growth Revenue: NTO's revenue (0.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NTO's Return on Equity is forecast to be low in 3 years time (14.1%).


Next Steps

Past Performance

How has Nintendo performed over the past 5 years?

38.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NTO has high quality earnings.

Growing Profit Margin: NTO's current net profit margins (18.1%) are higher than last year (14.5%).


Past Earnings Growth Analysis

Earnings Trend: NTO's earnings have grown significantly by 38.8% per year over the past 5 years.

Accelerating Growth: NTO's earnings growth over the past year (27.9%) is below its 5-year average (38.8% per year).

Earnings vs Industry: NTO earnings growth over the past year (27.9%) exceeded the Entertainment industry -50.4%.


Return on Equity

High ROE: NTO's Return on Equity (14.8%) is considered low.


Next Steps

Financial Health

How is Nintendo's financial position?


Financial Position Analysis

Short Term Liabilities: NTO's short term assets (¥1,500.4B) exceed its short term liabilities (¥365.9B).

Long Term Liabilities: NTO's short term assets (¥1,500.4B) exceed its long term liabilities (¥34.3B).


Debt to Equity History and Analysis

Debt Level: NTO is debt free.

Reducing Debt: NTO has not had any debt for past 5 years.

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

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


Balance Sheet


Next Steps

Dividend

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

1.74%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NTO's dividend (1.74%) is higher than the bottom 25% of dividend payers in the German market (1.54%).

High Dividend: NTO's dividend (1.74%) is low compared to the top 25% of dividend payers in the German market (4.57%).


Stability and Growth of Payments

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

Growing Dividend: NTO's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (58.2%), NTO's dividend payments are 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

Shuntaro Furukawa (47yo)

1.83s

Tenure

JP¥210,000,000

Compensation

Mr. Shuntaro Furukawa serves as Representative Director and President of Nintendo Co. Ltd. since June 2018 and serves as its Chairman. Mr. Furukawa served as Managing Executive Officer and Supervisor of Co ...


CEO Compensation Analysis

Compensation vs Market: Shuntaro's total compensation ($USD1.93M) is below average for companies of similar size in the German market ($USD5.19M).

Compensation vs Earnings: Insufficient data to compare Shuntaro's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Shuntaro Furukawa
Chairman & President1.83yrsJP¥210.00m0.00017% ¥74.9k
Shinya Takahashi
Senior Managing Exec. Officer6.83yrsJP¥111.00m0.000080% ¥35.3k
Shigeru Miyamoto
Creative Fellow & Representative Director19.83yrsJP¥171.00m0.000080% ¥35.3k
Hajime Murakami
Executive Officer and GM of Finance & Administration Divisionno datano datano data
Satoru Shibata
Senior Executive Officer1.83yrsno datano data
Satoshi Yamato
Senior Executive Officerno datano datano data
Hirokazu Shinshi
Senior Executive Officer & GM of Manufacturing Divisionno datano datano data
Ko Shiota
Senior Executive Officer2.83yrsno data0.000080% ¥35.3k

2.8yrs

Average Tenure

56yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
Shuntaro Furukawa
Chairman & President1.83yrsJP¥210.00m0.00017% ¥74.9k
Shinya Takahashi
Senior Managing Exec. Officer6.83yrsJP¥111.00m0.000080% ¥35.3k
Shigeru Miyamoto
Creative Fellow & Representative Director19.83yrsJP¥171.00m0.000080% ¥35.3k
Satoru Shibata
Senior Executive Officer1.83yrsno datano data
Ko Shiota
Senior Executive Officer2.83yrsno data0.000080% ¥35.3k
Katsuhiro Umeyama
Outside Director3.83yrsno datano data
Naoki Mizutani
Outside Director5.83yrsno datano data
Naoki Noguchi
Director3.83yrsno data0.000080% ¥35.3k
Masao Yamazaki
Outside Director1.83yrsno datano data

3.8yrs

Average Tenure

57yo

Average Age

Experienced Board: NTO's board of directors are considered experienced (3.8 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

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


Key Information

  • Name: Nintendo Co., Ltd.
  • Ticker: NTO
  • Exchange: DB
  • Founded: 1889
  • Industry: Interactive Home Entertainment
  • Sector: Media
  • Market Cap: JP¥5.209t
  • Listing Market Cap: JP¥44.068b
  • Shares outstanding: 119.12m
  • Website: https://www.nintendo.co.jp

Number of Employees


Location

  • Nintendo Co., Ltd.
  • 11-1 Hokotate-cho
  • Kamitoba
  • Kyoto
  • 601-8501
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NTDO.YOTCPK (Pink Sheets LLC)ADR(8 CNV INTO 1 ORD)NPVUSUSDApr 1991
NTOADB (Deutsche Boerse AG)ADR(8 CNV INTO 1 ORD)NPVDEEURApr 1991
0K85LSE (London Stock Exchange)ADR(8 CNV INTO 1 ORD)NPVGBUSDApr 1991
NTDO.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
NTODB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992
7974TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
NTDOY NBMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1992
NTOWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1992

Biography

Nintendo Co., Ltd., together with its subsidiaries, develops, manufactures, and distributes electronic entertainment products in Japan, the United States, Europe, Australia, Asia, and internationally. It provides video game platforms, playing cards, Karuta, and other products; and handheld and home console hardware systems and related software. The company was formerly known as Nintendo Playing Card Co., Ltd. and changed its name to Nintendo Co., Ltd. in 1963. Nintendo Co., Ltd. was founded in 1889 and is headquartered in Kyoto, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/10 01:52
End of Day Share Price2020/04/09 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.