Nintendo Co Ltd

Nintendo maintains a robust capital structure with a current ratio of 5.37, indicating strong short-term liquidity. The company's cash and equivalents amount to 148,435,000,000 JPY, significantly exceeding its total liabilities of 54,763,300,000 JPY, which suggests a low liquidity risk. The debt-to-equity ratio is effectively zero, as the company has no long-term debt, further reinforcing its strong balance sheet.

In terms of profitability, Nintendo's return on equity (ROE) is 3.17%, and its return on assets (ROA) is 2.62%. These figures are below the typical thresholds for high-performing companies in the entertainment and consumer products sectors, suggesting that the company's returns are moderate compared to industry standards. The operating income of 64,531,000,000 JPY and net income of 82,560,000,000 JPY reflect a healthy profit margin, but the gross profit of 176,098,000,000 JPY indicates that the company's cost of goods sold is relatively high.

Geographically, Nintendo's revenue is concentrated in Japan and other Asian markets, with a significant portion of its sales coming from its home market. The company's exposure to these regions makes it susceptible to local economic conditions and regulatory changes. The company's segments include hardware, software, and online services, with hardware sales historically being a major contributor to revenue.

Looking at the growth trajectory, Nintendo's revenue for the latest period is 277,069,000,000 JPY. Analysts have provided a range of price targets, with a mean of 11,856.33 JPY and a median of 11,500.00 JPY, indicating a generally positive outlook. The company's capital expenditure of -16,123,000,000 JPY suggests that it is investing in its operations, which could support future growth.

The risk assessment for Nintendo indicates a low liquidity risk and a low dilution risk, with no immediate filing-based liquidity or dilution flags detected. The company's strong cash position and lack of long-term debt reduce the likelihood of financial distress. Additionally, the absence of dilution potential suggests that the company is not planning to issue new shares in the near term, which is favorable for existing shareholders.

Recent events, such as the release of new game titles and hardware updates, have been positively received by the market. The company's strong brand and loyal customer base contribute to its resilience in the face of market fluctuations. Analysts have provided a mean recommendation of 2.13, with a strong-buy count of 7 and a buy count of 15, indicating a generally positive sentiment among investors.

Analysts project 67.5% upside to a mean price target of 11,856 JPY, signaling strong market confidence.

Cash conversion of 5.6 is best-in-class, significantly outperforming the cohort median of 0.86.

The company maintains a zero debt-to-equity ratio, ranking above the 75th percentile for financial stability.

Free cash flow plummeted 68.0% year-over-year in FY2025, dropping to just 82.0 billion JPY.

Revenue ¥806.32B, +86,2% YoY; Operating income +23,1% YoY.

• ▍Revenue ¥806.32B, +86,2% YoY
• ▍Operating income +23,1% YoY
• ▍Net income +24,4% YoY
• ▍Net margin 19.8%

Revenue ¥527.20B, +90,6% YoY; Operating income +31,7% YoY.

• ▍Revenue ¥527.20B, +90,6% YoY
• ▍Operating income +31,7% YoY
• ▍Net income +271,4% YoY
• ▍Net margin 19.5%

Revenue ¥572.36B, +132,1% YoY; Operating income +4,4% YoY.

• ▍Revenue ¥572.36B, +132,1% YoY
• ▍Operating income +4,4% YoY
• ▍Net income +18,6% YoY
• ▍Net margin 16.8%

Revenue ¥208.70B, −24,7% YoY; Operating income −45,8% YoY.

• ▍Revenue ¥208.70B, −24,7% YoY
• ▍Operating income −45,8% YoY
• ▍Net income −49,6% YoY
• ▍Net margin 19.9%

Revenue ¥432.92B; Operating income ¥126.08B.

• ▍Revenue ¥432.92B
• ▍Operating income ¥126.08B
• ▍Net margin 29.7%

Revenue ¥276.66B; Operating income ¥67.00B.

• ▍Revenue ¥276.66B
• ▍Operating income ¥67.00B
• ▍Net margin 10.0%

Revenue ¥246.64B; Operating income ¥54.51B.

• ▍Revenue ¥246.64B
• ▍Operating income ¥54.51B
• ▍Net margin 32.8%

Revenue ¥277.07B; Operating income ¥64.53B.

• ▍Revenue ¥277.07B
• ▍Operating income ¥64.53B
• ▍Net margin 29.8%

Revenue ¥1.16T, −30,3% YoY; Operating income −46,6% YoY.

• ▍Revenue ¥1.16T, −30,3% YoY
• ▍Operating income −46,6% YoY
• ▍Net income −43,2% YoY
• ▍Free cash flow −68,0% YoY
• ▍Net margin 23.9%

Revenue ¥1.67T, +4,4% YoY; Operating income +5,0% YoY.

• ▍Revenue ¥1.67T, +4,4% YoY
• ▍Operating income +5,0% YoY
• ▍Net income +13,4% YoY
• ▍Free cash flow +40,0% YoY
• ▍Net margin 29.3%

Revenue ¥1.60T, −5,5% YoY; Operating income −15,4% YoY.

• ▍Revenue ¥1.60T, −5,5% YoY
• ▍Operating income −15,4% YoY
• ▍Net income −9,4% YoY
• ▍Free cash flow −23,8% YoY
• ▍Net margin 27.0%

Revenue ¥1.70T, −3,6% YoY; Operating income −7,0% YoY.

• ▍Revenue ¥1.70T, −3,6% YoY
• ▍Operating income −7,0% YoY
• ▍Net income −0,6% YoY
• ▍Free cash flow −17,3% YoY
• ▍Net margin 28.2%