One-glance verdict
Within fair range
$13.09 our estimate vs market $13.10
Wall Street consensus: $24.50 (87.2% higher than our fair-value estimate)
0% above our estimate
Fundamentals snapshot
Nintendo Co., Ltd.
NTDOY · PNK · Communication Services · Electronic Gaming & Multimedia
Current price
$13.10
52-week range
$10.18 - $22.89
Market cap
$60.41B
Balance sheet
Healthy
1,714.84x Strong cushion
Net cash $12.47B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 98.6% last year.
- Reward Free cash flow was positive in 3/10 years.
- Risk Stock trades 15330.0% above its 5-year average P/E.
- Risk Operating margin compressed from 31.5% to 27.5% over 3 years.
What this company does
Nintendo Co., Ltd.
Nintendo makes and sells fun video game consoles and games that people play at home and on the go. The money they make mainly comes from selling these consoles, the games you play on them, and online services that let you play with friends. This is important because it shows how much people are enjoying their products, which helps the company keep making new and exciting games and consoles.
How the company got here
Nintendo's story began in 1889, not with video games, but with handmade playing cards called hanafuda. The company, originally named Nintendo Koppai, was founded by Fusajiro Yamauchi in Kyoto, Japan. For decades, Nintendo focused on playing cards, even partnering with Disney in 1959 to create themed cards, which was an early step towards leveraging popular characters. A significant turning point came in the 1960s when Nintendo ventured into toys, with engineer Gunpei Yokoi's "Ultra Hand" becoming a major success. This paved the way for Nintendo's entry into the electronic entertainment industry in the 1970s, starting with arcade games and then its own home consoles like the Color TV-Game series. The company's global breakthrough arrived in the 1980s with the arcade hit "Donkey Kong" and the revolutionary Nintendo Entertainment System (NES), which brought video gaming into homes worldwide.
What it actually does
Nintendo is a Japanese multinational company that designs, develops, publishes, and manufactures video games and video game consoles. Think of them as the creators and sellers of both the gaming machines you play on, like the Nintendo Switch, and the games themselves, such as "Super Mario" and "The Legend of Zelda." They operate globally, with major hubs in Japan, North America, and Europe, and their products are enjoyed by people of all ages around the world. Nintendo's business model is focused on creating unique entertainment experiences through its integrated approach to hardware, software, and intellectual property.
Game Console
This is Nintendo's largest business segment, making up the vast majority of its revenue, with over 96% in a recent fiscal year. It involves the creation and sale of both the physical gaming hardware, like the Nintendo Switch console and its accessories (such as Joy-Con controllers), and the video games that run on these systems. Customers purchase these consoles and games to play at home or on the go. The revenue generated here comes directly from the sales of these hardware and software products to consumers worldwide, with the United States being a particularly significant market.
Mobile and intellectual property (IP) related income
This segment represents a smaller portion of Nintendo's overall income, accounting for about 3.2% of revenue in a recent fiscal year. It encompasses income generated from Nintendo's vast library of characters and game worlds, known as intellectual property (IP). This includes revenue from mobile applications, visual content like animated movies or shows, and licensing of their popular franchises such as Mario, Pokémon, and The Legend of Zelda for use in other products or experiences. Essentially, it's about monetizing their beloved brands beyond just console gaming.
What management is betting on now
Nintendo is strategically focused on expanding its reach within the video game and smart device sectors. The company believes its integrated approach, where hardware and software are developed in tandem, is key to its success. They are also leveraging their strong intellectual property (IP) by creating merchandise and themed entertainment experiences, such as theme park attractions, to further engage fans. This strategy aims to "put smiles on the faces of everyone we touch" by delivering unique and enjoyable entertainment across various platforms and formats.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $13.09 vs current price $13.10
Wall Street consensus is the average analyst price target: $24.50 (87.2% higher than our fair-value estimate).
Our most-likely fair value is $13.09 a share — about 0.1% away from today's price of $13.10, so the stock currently looks fairly priced.
Is it drowning in debt?
Healthy
Net cash $12.5B - more cash than debt. Interest coverage 1714.8x.
Net debt
$-12.47B
Interest coverage
1,714.84x
Nintendo Co., Ltd.'s profit covers its interest bill about 1714.8 times over. which is stronger than every peer shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
NTDOY
BASELINE
Nintendo Co., Ltd.
Total debt $0.00 Interest coverage 1,714.84x This is the baseline the peer rows are being compared against.
Total debt $11.85B Interest coverage 43.67x -97% vs NTDOY Carries about 39.3x less debt cushion than NTDOY.
Total debt $133.93B Interest coverage 50.88x -97% vs NTDOY Carries about 33.7x less debt cushion than NTDOY.
Total debt $1.87B Interest coverage 21.92x -99% vs NTDOY Carries about 78.2x less debt cushion than NTDOY.
Total debt $2.94B Interest coverage -0.67x -100% vs NTDOY This peer has almost no interest-payment cushion compared with NTDOY.
Total debt $1.91B Interest coverage -30.79x -100% vs NTDOY This peer has almost no interest-payment cushion compared with NTDOY.
What you should know
The case for and against NTDOY
3 Rewards
3 Risks
Rewards
-
Revenue grew 98.6% last year.
-
Free cash flow was positive in 3/10 years.
-
Trades at 19.8x P/E vs peer median 27.2x (27.1% cheaper).
Risks
-
Stock trades 15330.0% above its 5-year average P/E.
-
Operating margin compressed from 31.5% to 27.5% over 3 years.
-
Insider ownership is only 0.0% (peer median: 0.2%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
19.85x
Forward P/E
6.12x
P/B
3.27x
P/S
0.03x
EV/EBITDA
-4.13x
PEG ratio
2.09x
Profitability
How much profit each dollar creates
Gross margin
0.0%
Operating margin
27.5%
Net margin
0.0%
ROE
—
ROA
—
Health
Liquidity and balance-sheet strength
Debt / equity
—
Current ratio
3.73x
Quick ratio
2.67x
Total debt
$0.00
Total cash
$12.47B
Growth
How the business has been compounding
Revenue TTM
$14.31B
Revenue 5Y CAGR
13.0%
EPS TTM
0.66
EPS 5Y CAGR
-3.4%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.84B
Free CF TTM
$1.66B
FCF margin
11.6%
Dividend
Shareholder payout
Yield
2.6%
Payout ratio
51.4%
Last ex-div date
2026-03-31