Nippon Ichi Software (TSE:3851) - Share price, News & Analysis

3851 fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	5/6
Financial Health	6/6
Dividends	0/6

3851 Stock Overview

Nippon Ichi Software, Inc. develops and sells computer software in Japan, other Asian countries, North America, and Europe.

Rewards

Trading at 18.1% below our estimate of its fair value

Earnings grew by 40.7% over the past year

Risk Analysis

High level of non-cash earnings

Does not have a meaningful market cap (¥6B)

Nippon Ichi Software Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Nippon Ichi Software
Historical stock prices
Current Share Price	JP¥1,259.00
52 Week High	JP¥1,926.00
52 Week Low	JP¥1,104.00
Beta	1.35
1 Month Change	-10.07%
3 Month Change	9.57%
1 Year Change	4.92%
3 Year Change	3.71%
5 Year Change	-19.86%
Change since IPO	-17.17%

Shareholder Returns

	3851	JP Entertainment	JP Market
7D	2.9%	4.2%	0.7%
1Y	4.9%	-0.7%	-2.9%

Return vs Industry: 3851 exceeded the JP Entertainment industry which returned -0.7% over the past year.

Return vs Market: 3851 exceeded the JP Market which returned -2.9% over the past year.

Price Volatility

Is 3851's price volatile compared to industry and market?
3851 volatility
3851 Average Weekly Movement	5.6%
Entertainment Industry Average Movement	6.0%
Market Average Movement	4.6%
10% most volatile stocks in JP Market	9.1%
10% least volatile stocks in JP Market	2.5%

Stable Share Price: 3851 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 3851's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1993	215	Sohei Niikawa	https://www.nippon1.co.jp

Nippon Ichi Software, Inc. develops and sells computer software in Japan, other Asian countries, North America, and Europe. It develops software for consumer and handheld game machines, mobiles, smart phones, arcades, and web; and produces content of various genres. The company was founded in 1993 and is headquartered in Kakamigahara, Japan.

Nippon Ichi Software Fundamentals Summary

How do Nippon Ichi Software's earnings and revenue compare to its market cap?
3851 fundamental statistics
Market Cap	JP¥6.30b
Earnings (TTM)	JP¥1.27b
Revenue (TTM)	JP¥5.72b

5.0x

P/E Ratio

1.1x

P/S Ratio

Is 3851 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
3851 income statement (TTM)
Revenue	JP¥5.72b
Cost of Revenue	JP¥2.38b
Gross Profit	JP¥3.33b
Other Expenses	JP¥2.06b
Earnings	JP¥1.27b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	253.04
Gross Margin	58.29%
Net Profit Margin	22.27%
Debt/Equity Ratio	12.5%

How did 3851 perform over the long term?

See historical performance and comparison

Dividends

0.3%

Current Dividend Yield

2%

Payout Ratio

Valuation

Is Nippon Ichi Software undervalued compared to its fair value and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

18.1%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: 3851 (¥1259) is trading below our estimate of fair value (¥1537.56)

Significantly Below Fair Value: 3851 is trading below fair value, but not by a significant amount.

Price To Earnings Ratio

PE vs Industry: 3851 is good value based on its PE Ratio (5x) compared to the JP Entertainment industry average (18.4x).

PE vs Market: 3851 is good value based on its PE Ratio (5x) compared to the JP market (12.2x).

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 3851's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: 3851 is good value based on its PB Ratio (1x) compared to the JP Entertainment industry average (1.8x).

Future Growth

How is Nippon Ichi Software forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

1.5%

Forecasted Media industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Nippon Ichi Software has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Past Performance

How has Nippon Ichi Software performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

35.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 3851 has a high level of non-cash earnings.

Growing Profit Margin: 3851's current net profit margins (22.3%) are higher than last year (17.1%).

Past Earnings Growth Analysis

Earnings Trend: 3851's earnings have grown significantly by 35.7% per year over the past 5 years.

Accelerating Growth: 3851's earnings growth over the past year (40.7%) exceeds its 5-year average (35.7% per year).

Earnings vs Industry: 3851 earnings growth over the past year (40.7%) exceeded the Entertainment industry 7.3%.

Return on Equity

High ROE: 3851's Return on Equity (20.7%) is considered high.

Financial Health

How is Nippon Ichi Software's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 3851's short term assets (¥6.3B) exceed its short term liabilities (¥1.3B).

Long Term Liabilities: 3851's short term assets (¥6.3B) exceed its long term liabilities (¥798.0M).

Debt to Equity History and Analysis

Debt Level: 3851 has more cash than its total debt.

Reducing Debt: 3851's debt to equity ratio has reduced from 25.9% to 12.5% over the past 5 years.

Debt Coverage: 3851's debt is well covered by operating cash flow (154.2%).

Interest Coverage: 3851 earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

Dividend

What is Nippon Ichi Software current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.32%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 3851's dividend (0.32%) isn’t notable compared to the bottom 25% of dividend payers in the JP market (1.64%).

High Dividend: 3851's dividend (0.32%) is low compared to the top 25% of dividend payers in the JP market (3.7%).

Stability and Growth of Payments

Stable Dividend: 3851 is not paying a notable dividend for the JP market, therefore no need to check if payments are stable.

Growing Dividend: 3851 is not paying a notable dividend for the JP market, therefore no need to check if payments are increasing.

Earnings Payout to Shareholders

Earnings Coverage: 3851 is not paying a notable dividend for the JP market.

Cash Payout to Shareholders

Cash Flow Coverage: 3851 is not paying a notable dividend for the JP market.

Discover strong dividend paying companies

Management

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

12.8yrs

Average board tenure

CEO

Sohei Niikawa (48 yo)

12.83yrs

Tenure

Mr. Sohei Niikawa has been the President of Nippon Ichi Software, Inc. since July 2009. Mr. Niikawa Joined Nippon Ichi Software, Inc. in April 1996 and served as Manager, Sales Planning since June 2002, Ma...

Board Members

Experienced Board: 3851's board of directors are seasoned and experienced ( 12.8 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/23 00:00
End of Day Share Price	2022/05/23 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31