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7974

Nintendo TSE:7974 Stock Report

Last Price

JP¥5.85k

Market Cap

JP¥6.8t

7D

-4.5%

1Y

18.1%

Updated

30 Sep, 2022

Data

Company Financials +
7974 fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance5/6
Financial Health6/6
Dividends4/6

7974 Stock Overview

Nintendo Co., Ltd., together with its subsidiaries, develops, manufactures, and sells home entertainment products in Japan, the Americas, Europe, and internationally.

Nintendo Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Nintendo
Historical stock prices
Current Share PriceJP¥5,854.00
52 Week HighJP¥6,708.00
52 Week LowJP¥4,789.00
Beta0.54
1 Month Change2.50%
3 Month Change2.06%
1 Year Change18.10%
3 Year Change42.89%
5 Year Change34.05%
Change since IPO400.34%

Recent News & Updates

Shareholder Returns

7974JP EntertainmentJP Market
7D-4.5%-1.8%-3.9%
1Y18.1%9.9%-8.2%

Return vs Industry: 7974 exceeded the JP Entertainment industry which returned 12.5% over the past year.

Return vs Market: 7974 exceeded the JP Market which returned -6.7% over the past year.

Price Volatility

Is 7974's price volatile compared to industry and market?
7974 volatility
7974 Average Weekly Movement3.7%
Entertainment Industry Average Movement4.6%
Market Average Movement3.5%
10% most volatile stocks in JP Market7.4%
10% least volatile stocks in JP Market1.8%

Stable Share Price: 7974 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 7974's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
18896,717Shuntaro Furukawahttps://www.nintendo.co.jp

Nintendo Co., Ltd., together with its subsidiaries, develops, manufactures, and sells home entertainment products in Japan, the Americas, Europe, and internationally. It offers 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.

Nintendo Fundamentals Summary

How do Nintendo's earnings and revenue compare to its market cap?
7974 fundamental statistics
Market CapJP¥6.82t
Earnings (TTM)JP¥503.93b
Revenue (TTM)JP¥1.68t

13.5x

P/E Ratio

4.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
7974 income statement (TTM)
RevenueJP¥1.68t
Cost of RevenueJP¥742.38b
Gross ProfitJP¥937.78b
Other ExpensesJP¥433.85b
EarningsJP¥503.93b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Nov 08, 2022

Earnings per share (EPS)432.84
Gross Margin55.81%
Net Profit Margin29.99%
Debt/Equity Ratio0.0%

How did 7974 perform over the long term?

See historical performance and comparison

Dividends

3.5%

Current Dividend Yield

47%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 7974 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 7974?

Other financial metrics that can be useful for relative valuation.

7974 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.1x
Enterprise Value/EBITDA9x
PEG Ratio-1.8x

Price to Earnings Ratio vs Peers

How does 7974's PE Ratio compare to its peers?

7974 PE Ratio vs Peers
The above table shows the PE ratio for 7974 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average20x
3659 NEXON
17.7x10.1%JP¥2.2t
9766 Konami Group
17.1x5.6%JP¥897.0b
9684 Square Enix Holdings
13.1x-3.1%JP¥745.4b
9697 Capcom
32x7.8%JP¥775.7b
7974 Nintendo
13.5x-7.6%JP¥6.8t

Price-To-Earnings vs Peers: 7974 is good value based on its Price-To-Earnings Ratio (13.5x) compared to the peer average (20x).


Price to Earnings Ratio vs Industry

How does 7974's PE Ratio compare vs other companies in the JP Entertainment Industry?

Price-To-Earnings vs Industry: 7974 is good value based on its Price-To-Earnings Ratio (13.5x) compared to the JP Entertainment industry average (18.6x)


Price to Earnings Ratio vs Fair Ratio

What is 7974's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

7974 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13.5x
Fair PE Ratio20.3x

Price-To-Earnings vs Fair Ratio: 7974 is good value based on its Price-To-Earnings Ratio (13.5x) compared to the estimated Fair Price-To-Earnings Ratio (20.3x).


Share Price vs Fair Value

What is the Fair Price of 7974 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 7974 (¥5854) is trading above our estimate of fair value (¥3953.07)

Significantly Below Fair Value: 7974 is trading above our estimate of fair value.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is Nintendo forecast to perform in the next 1 to 3 years based on estimates from 19 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


-7.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 7974's earnings are forecast to decline over the next 3 years (-7.6% per year).

Earnings vs Market: 7974's earnings are forecast to decline over the next 3 years (-7.6% per year).

High Growth Earnings: 7974's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 7974's revenue is expected to decline over the next 3 years (-2.4% per year).

High Growth Revenue: 7974's revenue is forecast to decline over the next 3 years (-2.4% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 7974's Return on Equity is forecast to be low in 3 years time (14.5%).


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Past Performance

How has Nintendo 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


30.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 7974 has high quality earnings.

Growing Profit Margin: 7974's current net profit margins (30%) are higher than last year (27.1%).


Past Earnings Growth Analysis

Earnings Trend: 7974's earnings have grown significantly by 30.9% per year over the past 5 years.

Accelerating Growth: 7974's earnings growth over the past year (8%) is below its 5-year average (30.9% per year).

Earnings vs Industry: 7974 earnings growth over the past year (8%) exceeded the Entertainment industry -11.1%.


Return on Equity

High ROE: 7974's Return on Equity (24.8%) is considered high.


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Financial Health

How is Nintendo'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: 7974's short term assets (¥2,009.7B) exceed its short term liabilities (¥491.1B).

Long Term Liabilities: 7974's short term assets (¥2,009.7B) exceed its long term liabilities (¥59.5B).


Debt to Equity History and Analysis

Debt Level: 7974 is debt free.

Reducing Debt: 7974 has not had any debt for past 5 years.

Debt Coverage: 7974 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 7974 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


3.47%

Current Dividend Yield

Dividend Yield vs Market

Nintendo Dividend Yield vs Market
How does Nintendo dividend yield compare to the market?
SegmentDividend Yield
Company (Nintendo)3.5%
Market Bottom 25% (JP)1.7%
Market Top 25% (JP)3.8%
Industry Average (Entertainment)2.3%
Analyst forecast in 3 Years (Nintendo)3.1%

Notable Dividend: 7974's dividend (3.47%) is higher than the bottom 25% of dividend payers in the JP market (1.66%).

High Dividend: 7974's dividend (3.47%) is low compared to the top 25% of dividend payers in the JP market (3.73%).


Stability and Growth of Payments

Stable Dividend: 7974's dividend payments have been volatile in the past 10 years.

Growing Dividend: 7974's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (47.3%), 7974's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: At its current cash payout ratio (83.8%), 7974's dividend payments are covered by cash flows.


Discover strong dividend paying companies

Management

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

4.3yrs

Average management tenure


CEO

Shuntaro Furukawa (50 yo)

6.25yrs

Tenure

JP¥318,000,000

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

Shuntaro Furukawa's Compensation vs Nintendo Earnings
How has Shuntaro Furukawa's remuneration changed compared to Nintendo's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

JP¥504b

Mar 31 2022JP¥318mJP¥78m

JP¥478b

Dec 31 2021n/an/a

JP¥471b

Sep 30 2021n/an/a

JP¥439b

Jun 30 2021n/an/a

JP¥467b

Mar 31 2021JP¥318mJP¥78m

JP¥480b

Dec 31 2020n/an/a

JP¥439b

Sep 30 2020n/an/a

JP¥410b

Jun 30 2020n/an/a

JP¥349b

Mar 31 2020JP¥259mJP¥78m

JP¥259b

Dec 31 2019n/an/a

JP¥222b

Sep 30 2019n/an/a

JP¥191b

Jun 30 2019n/an/a

JP¥180b

Mar 31 2019JP¥210mJP¥61m

JP¥194b

Compensation vs Market: Shuntaro's total compensation ($USD2.20M) is above average for companies of similar size in the JP market ($USD1.47M).

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


Leadership Team

Experienced Management: 7974's management team is considered experienced (4.3 years average tenure).


Board Members

Experienced Board: 7974's board of directors are considered experienced (4.8 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

What is the ownership structure of 7974?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders11,0000.002%
Public Companies17,594,0002.5%
Institutions677,769,23297.5%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 0% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
0%
BlackRock, Inc.
73,174,725¥428.4b0%0.08%
0%
The Public Investment Fund of The Kingdom of Saudi Arabia
65,091,000¥381.0b0%0.98%
0%
Nomura Asset Management Co., Ltd.
51,112,000¥299.2b-0.46%0.99%
0%
The Bank of Kyoto, Ltd., Asset Management Arm
48,802,000¥285.7b0%32.67%
0%
MUFG Bank, Ltd., Retirement Benefit Trust
42,109,000¥246.5b0%43.98%
0%
Sumitomo Mitsui Trust Asset Management Co., Ltd.
41,077,000¥240.5b0%1.29%
0%
Mitsubishi UFJ Trust and Banking Corporation, Asset Management Arm
40,650,000¥238.0b0%1.9%
0%
The Vanguard Group, Inc.
38,399,775¥224.8b1.86%0.04%
0%
Nikko Asset Management Co., Ltd.
26,542,000¥155.4b0%0.5%
0%
Daiwa Asset Management Co. Ltd.
24,303,162¥142.3b0%1.01%
0%
GIC Private Limited
17,839,000¥104.4b0%1.28%
0%
DeNA Co., Ltd.
17,594,000¥103.0b0%no data
0%
Lindsell Train Limited
15,835,000¥92.7b0%3.53%
0%
Norges Bank Investment Management
14,945,134¥87.5b0%0.08%
0%
Mitsubishi UFJ Kokusai Asset Management Co., Ltd.
11,075,000¥64.8b0%0.57%
0%
J.P. Morgan Asset Management, Inc.
9,192,177¥53.8b0.76%0.07%
0%
Invesco Ltd.
8,576,020¥50.2b4.64%0.12%
0%
Artisan Partners Limited Partnership
7,211,000¥42.2b24.05%0.31%
0%
Geode Capital Management, LLC
6,924,523¥40.5b0.66%0.04%
0%
Teachers Insurance and Annuity Association-College Retirement Equities Fund
6,618,710¥38.7b0.51%0.09%
0%
Baillie Gifford & Co.
5,709,961¥33.4b-0.91%0.12%
0%
Union Asset Management Holding AG
5,296,290¥31.0b0%0.26%
0%
Janus Henderson Group plc
5,197,043¥30.4b1.64%0.12%
0%
Deutsche Asset & Wealth Management
4,215,340¥24.7b-0.28%0.08%
0%
Pictet Asset Management Limited
3,720,000¥21.8b-0.05%0.14%

Company Information

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


Key Information

  • Name: Nintendo Co., Ltd.
  • Ticker: 7974
  • Exchange: TSE
  • Founded: 1889
  • Industry: Interactive Home Entertainment
  • Sector: Media
  • Implied Market Cap: JP¥6.815t
  • Shares outstanding: 1.16b
  • 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

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/30 00:00
End of Day Share Price2022/09/30 00:00
Earnings2022/06/30
Annual Earnings2022/03/31


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.