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ggx2ac

Sales Heaven or Sales Hell?
Member
Oct 25, 2017
3,504
At today's closing of the Tokyo Stock Exchange Capcom has seen their share price surge to ¥7200 over the last month as Monster Hunter Rise is about to release tomorrow.

Their market cap is currently at ¥975B and is expected to increase even further this year once the two-for-one stock split occurs on April 1st 2021.

Here is how Capcom compares to other Japanese third party publishers by market cap (List is sorted by publisher name, share price as of 25th of March 2021, market cap):

Bandai Namco @ ¥7823, market cap of ¥1.74T
Capcom @ ¥7200, market cap of ¥975.21B
Konami @ ¥6500, market cap of ¥932.75B
CyberAgent @ ¥7170, market cap of ¥906.48B
Koei Tecmo @ ¥6580, market cap of ¥850.58B
Square Enix @ ¥6350, market cap of ¥778.08B
Sega Sammy @ ¥1752, market cap of ¥446.43B
Kodokawa Corp @ ¥4195, market cap of ¥297.39B
GungHo Online Entertainment @ ¥2182, market cap of ¥207.75B
Marvelous Inc @ ¥903, market cap of ¥56.18B yen
Nihon Falcom @ ¥1599, market cap of ¥16.44B
Nippon Ichi Software @ ¥1162, market cap of ¥5.94B

Considering that this is a gaming enthusiast forum, you'd probably have some knowledge of gaming companies that could have lead you to invest in one of the companies above on the Tokyo Stock Exchange. For some of these companies on the list above, if you had invested in the following companies one year ago on March 26th 2020, your investment would have increased in market value by at least two times: Capcom by 2.2 times, Kadokawa Corp by 3.25 times, Konami by 2.01 times and Koei Tecmo by 2.58 times.

For the rest that increased: Bandai Namco by 1.46 times, CyberAgent by 1.91 times, GungHo by 1.44 times, Marvelous by 1.59 times, Nihon Falcom by 1.56 times, NIS by 1.48 times, Sega by 1.34 times and Square Enix by 1.38 times.

So every company in the above list has been up year over year but you'd still have to do your research for how you expect them to perform financially in the future considering that companies like Sega Sammy were significantly impacted by COVID-19.

What can also help is if you look at the history of the company, Capcom for example makes it easy to view their financial data and you would learn that their Operating Income has hit record highs over the last few years and that when you learn from Capcom's current planning that they want to focus on selling games at a higher digital ratio it means they would end up with higher operating margins that they could possibly continue increasing their net income year on year. A company with growing income year on year usually leads to the share price increasing which has occurred for Capcom if you look at its share price for the last few years.

Still, you have to understand what you are investing in that you could reasonably explain to someone else why you invested in that company. It also helps to understand the balance sheet of a company so that you know a company isn't running into financial trouble if they were having more current debt than cash available.
 

Gay Bowser

Member
Oct 30, 2017
17,707
I'm always surprised by how big Koei Tecmo's market cap is when I look it up. They don't "feel" like they should be bigger than Square Enix, but they are due to their performance over the last year.
 

Vault

▲ Legend ▲
Member
Oct 25, 2017
13,616
How the hell is Koei Tecmo above Square, did Avengers tank their stock or something?
 

CaviarMeths

Avenger
Oct 25, 2017
10,655
Western Canada
The placement of Bandai Namco and Konami doesn't surprise me. Those are hugely diversified companies that are successful in multiple ventures outside of video games. Capcom having such a tremendous valuation sure is surprising though. Square Enix, despite being one of the most diversified companies on this list, being a little low down the chain is also a bit surprising.
 

cw_sasuke

Member
Oct 27, 2017
26,400
Capcom has been on an incredible run - which is just gonna continue with MHR and RE8.
Its not just their new games, their classics catalog on digital store front sells millions every quarter - they set themselves up really good for the future and play a big role on every plattform. Hell Google probably paid them millions for RE8 Stadia as well.
 

MauroNL

What Are Ya' Buying?
Member
Oct 26, 2017
3,253
The Netherlands
Surprised Konami is that high up the list, but than again their non-gaming efforts are probably a bigger part of the company compared to some of the other publishers in the list. If we talked strictly (digital) gaming the list probably looks a lot different
 

pswii60

Member
Oct 27, 2017
26,673
The Milky Way
To think they were on the brink just a few years ago. What a turnaround in a relatively short space of time. MHW in particular gave them a ton of breathing space and MHR will do the same.
 

Deleted member 36578

Dec 21, 2017
26,561
Capcom is still the greatest. Ever since NES until now, they're my #1.
 

Gay Bowser

Member
Oct 30, 2017
17,707
How the hell is Koei Tecmo above Square, did Avengers tank their stock or something?

SE's market cap has grown over the last year, but KT's has grown about twice as much relatively speaking (2.58x vs. 1.38x).

Of all the companies listed in the OP, KT has seen the second-highest relative improvement in market cap in the last year (behind only Kadokawa), while SE has seen the second-lowest relative improvement (ahead of only Sega).

I'm not exactly sure why the market sees so much upside in KT, but it isn't just Avengers tanking SE's stock.
 

Imitatio

Member
Feb 19, 2018
14,560
Damn, Square Enix is way lower than I imagined/remembered. Koei Tecmo higher than them is huge news to me, wow.
Seeing Capcom do so well is really nice.
 

cw_sasuke

Member
Oct 27, 2017
26,400
Surprised Konami is that high up the list, but than again their non-gaming efforts are probably a bigger part of the company compared to some of the other publishers in the list. If we talked strictly (digital) gaming the list probably looks a lot different
If we talked strictly digital ? This isnt a software sales related list or charts xD
Yeah Konami has other business ventures doing well for them.....at the same time they released their biggest console (jp) game ever not too long ago.
 

DigSCCP

Banned
Nov 16, 2017
4,201
Deservedly so.
Capcom has been on fire since RE7.
Now it's time to Dragons Dogma 2 !
 

Principate

Member
Oct 31, 2017
11,186
SE's market cap has grown over the last year, but KT's has grown about twice as much relatively speaking (2.58x vs. 1.38x).

Of all the companies listed in the OP, KT has seen the second-highest relative improvement in market cap in the last year (behind only Kadokawa), while SE has seen the second-lowest relative improvement (ahead of only Sega).

I'm not exactly sure why the market sees so much upside in KT, but it isn't just Avengers tanking SE's stock.
KT is an extremely well managed company, low costs, far lower revenue than SE, roughly equivalent profits last I checked (though that's old information now). SE is much more boom bust due to their reliance on AAA games, and those bets don't always work out.
 

Oreiller

Member
Oct 25, 2017
8,839
Surprised Konami is that high up the list, but than again their non-gaming efforts are probably a bigger part of the company compared to some of the other publishers in the list. If we talked strictly (digital) gaming the list probably looks a lot different
Konami had much higher gaming related profits than any non-Nintendo japanese gaming company last year.
 

Deleted member 10737

User requested account closure
Banned
Oct 27, 2017
49,774
i wish capcom would bring back more of their old IPs, like they did with GnG

regarding SE, imo they don't always make the best decisions and have some management issues. it really feels like they should be on #2 here.
 

Boogolo

Member
Nov 1, 2020
492
A couple of things I've noticed with gaming companies in Japan. Quite a few have holdings that have branched out from gaming so their value is quite diversified. I've also seen quite a variance on the P/E ratio which I think reflects the cross holding nature of the shareholders and the difficulty foreign shareholders have pushing these companies in a direction or buying significant blocks of shares.
 

Mesharey

Member
Dec 7, 2017
2,756
Kuwait
I'm surprised that KT is a head of Sega Sammy and Square Enix.
Maybe because of the collaborations too.
Konami had much higher gaming related profits than any non-Nintendo japanese gaming company last year.
Actual games?
I remember they have a Switch game that sold really well, and probably mobile games, dunno what else.
 

MauroNL

What Are Ya' Buying?
Member
Oct 26, 2017
3,253
The Netherlands
If we talked strictly digital ? This isnt a software sales related list or charts xD
Yeah Konami has other business ventures doing well for them.....at the same time they released their biggest console (jp) game ever not too long ago.
Konami had much higher gaming related profits than any non-Nintendo japanese gaming company last year.
Yeah I just looked at their latest quarterly report. Surprised their digital entertainment segment is that high, than again I'm not that familiar with their games line-up. 73% of the first 9 months of FY21 was from digital entertainment, compared to around 56% the year prior. Looks like their pachinko business took a hit considering covid closed a lot of arcades and cafes this past year.
 

crazillo

Member
Apr 5, 2018
8,183
Perfect moment to post this



i wish capcom would bring back more of their old IPs, like they did with GnG

regarding SE, imo they don't always make the best decisions and have some management issues. it really feels like they should be on #2 here.

I did read that they chose the location of their HQ with the help of a fortune teller. If that is indeed true, well...
 

Trucy Wright

Member
Dec 15, 2020
132
I'm surprised that KT is a head of Sega Sammy and Square Enix.
Maybe because of the collaborations too.

Actual games?
I remember they have a Switch game that sold really well, and probably mobile games, dunno what else.

They had momotaro on the switch a few weeks ago, it sold millions in Japan alone
s-l300.jpg
 

Yuntu

Prophet of Regret
Member
Nov 7, 2019
10,686
Germany
SE's market cap has grown over the last year, but KT's has grown about twice as much relatively speaking (2.58x vs. 1.38x).

Of all the companies listed in the OP, KT has seen the second-highest relative improvement in market cap in the last year (behind only Kadokawa), while SE has seen the second-lowest relative improvement (ahead of only Sega).

I'm not exactly sure why the market sees so much upside in KT, but it isn't just Avengers tanking SE's stock.

I can only assume its because of their deep ties to Nintendo and sucessful old and new IPs? Everything else doesnt make sense.
 

CaviarMeths

Avenger
Oct 25, 2017
10,655
Western Canada
KT is an extremely well managed company, low costs, far lower revenue than SE, roughly equivalent profits last I checked (though that's old information now). SE is much more boom bust due to their reliance on AAA games, and those bets don't always work out.
SE has a lot of high profile blunders and questionable management, but I wouldn't say they're heavily reliant on AAA. Their output is very diverse. Some fiscal years they don't even release a new AAA game, as recently as the year ending March 2020, but it was still a growth year for them due to MMO.
 

Oregano

One Winged Slayer
Member
Oct 25, 2017
22,878
Is this the company that developed the Luigi's Mansion Arcade game?