TSE:9684

Stock Analysis Report

Square Enix Holdings

Executive Summary

Square Enix Holdings Co., Ltd. operates in the content and service businesses in Japan, North America, Europe, and rest of Asia.

Rewards

Earnings are forecast to grow 10.43% per year

Earnings grew by 131.6% over the past year

Risk Analysis

No risks detected for 9684 from our risk checks.


Snowflake Analysis

Flawless balance sheet with solid 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: 9684 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

5.0%

9684

2.7%

JP Entertainment

-4.6%

JP Market


1 Year Return

27.8%

9684

5.1%

JP Entertainment

-15.7%

JP Market

Return vs Industry: 9684 exceeded the JP Entertainment industry which returned 6.6% over the past year.

Return vs Market: 9684 exceeded the JP Market which returned -12.1% over the past year.


Shareholder returns

9684IndustryMarket
7 Day5.0%2.7%-4.6%
30 Day6.5%3.2%-11.2%
90 Day-11.6%-10.0%-21.0%
1 Year29.0%27.8%6.7%5.1%-13.5%-15.7%
3 Year53.6%48.4%42.8%36.5%-2.3%-9.2%
5 Year96.3%83.8%64.1%53.1%-1.1%-11.8%

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?

19.91x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 9684 (¥4800) is trading above our estimate of fair value (¥3643.93)

Significantly Below Fair Value: 9684 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 9684 is poor value based on its PE Ratio (19.9x) compared to the Entertainment industry average (18.8x).

PE vs Market: 9684 is poor value based on its PE Ratio (19.9x) compared to the JP market (12.3x).


Price to Earnings Growth Ratio

PEG Ratio: 9684 is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: 9684 is overvalued based on its PB Ratio (2.6x) compared to the JP Entertainment industry average (1.9x).


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?

10.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 9684's forecast earnings growth (10.4% per year) is above the savings rate (-0.09%).

Earnings vs Market: 9684's earnings (10.4% per year) are forecast to grow faster than the JP market (9.2% per year).

High Growth Earnings: 9684's earnings are forecast to grow, but not significantly.

Revenue vs Market: 9684's revenue (5.5% per year) is forecast to grow faster than the JP market (3.3% per year).

High Growth Revenue: 9684's revenue (5.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 9684's Return on Equity is forecast to be low in 3 years time (11.7%).


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: 9684 has high quality earnings.

Growing Profit Margin: 9684's current net profit margins (10.2%) are higher than last year (5.1%).


Past Earnings Growth Analysis

Earnings Trend: 9684's earnings have grown by 10.5% per year over the past 5 years.

Accelerating Growth: 9684's earnings growth over the past year (131.6%) exceeds its 5-year average (10.5% per year).

Earnings vs Industry: 9684 earnings growth over the past year (131.6%) exceeded the Entertainment industry 11.5%.


Return on Equity

High ROE: 9684's Return on Equity (13%) is considered low.


Next Steps

Financial Health

How is Square Enix Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 9684's short term assets (¥240.9B) exceed its short term liabilities (¥61.2B).

Long Term Liabilities: 9684's short term assets (¥240.9B) exceed its long term liabilities (¥11.9B).


Debt to Equity History and Analysis

Debt Level: 9684 is debt free.

Reducing Debt: 9684 has no debt compared to 5 years ago when its debt to equity ratio was 30%.

Debt Coverage: 9684 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 9684 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 9684 has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 9684's debt is covered by short term assets.


Next Steps

Dividend

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

0.89%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 9684's dividend (0.9%) isn’t notable compared to the bottom 25% of dividend payers in the JP market (1.69%).

High Dividend: 9684's dividend (0.9%) is low compared to the top 25% of dividend payers in the JP market (3.87%).


Stability and Growth of Payments

Stable Dividend: 9684 is not paying a notable dividend for the JP market, therefore no need to check if payments are stable.

Growing Dividend: 9684 is not paying a notable dividend for the JP market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 9684 is not paying a notable dividend for the JP market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 9684's dividend in 3 years as they are not forecast to pay a notable one for the JP market.


Next Steps

Management

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

7.1yrs

Average board tenure


CEO

Yosuke Matsuda (56yo)

6.83s

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 ($USD1.91M) is above average for companies of similar size in the JP market ($USD1.41M).

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


Board Members

NamePositionTenureCompensationOwnership
Yosuke Matsuda
President & Representative Director6.83yrsJP¥205.00m0.00017% ¥973.4k
Yukinobu Chida
Director11.5yrsno data0.16% ¥895.7m
Daishiro Okada
Vice Chairman of Square Enix Inc13yrsno datano data
Yasuhiro Fukushima
Honorary Chairman11.5yrsno data25.48% ¥145.9b
Masato Ogawa
Outside Director1.83yrsno datano data
Yukihiro Yamamura
Outside Director6.83yrsno datano data
Ryuji Matsuda
Outside Directorno datano datano data
Ryoichi Kobayashi
Outside Directorno datano datano data
Yuji Nishiura
Outside Director5.83yrsno datano data
Tadao Toyoshima
Outside Directorno datano datano data

7.1yrs

Average Tenure

65yo

Average Age

Experienced Board: 9684's board of directors are considered experienced (7.1 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: 9684
  • Exchange: TSE
  • Founded: 1975
  • Industry: Interactive Home Entertainment
  • Sector: Media
  • Market Cap: JP¥572.583b
  • Shares outstanding: 119.29m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
9684TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
SQNX.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
EI4DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992
SQNN.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDNov 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 16:55
End of Day Share Price2020/04/01 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.