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DeNA Co Ltd (JP:2432)
:2432

DeNA Co (2432) AI Stock Analysis

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DeNA Co

(OTC:2432)

65Neutral
DeNA Co's overall stock score is bolstered by its robust financial performance, highlighting strong revenue growth and a healthy balance sheet. While technical indicators present a mixed picture, the company's fair valuation offers a neutral stance. The lack of recent earnings call data and corporate events results in a focus on core financial metrics, leading to a moderate overall score.

DeNA Co (2432) vs. S&P 500 (SPY)

DeNA Co Business Overview & Revenue Model

Company DescriptionDeNA Co., Ltd. develops and operates mobile and online services worldwide. The company operates through Game Business, Sports Business, Live Streaming Business, Healthcare Business, and New Businesses and Others segments. It operates Mobage, an entertainment platform; Yahoo! Mobage, which offers games for PC browsers; and AndApp, a platform that allows users to play mobile game apps on PC browsers under the same user account; Pococha, a social live streaming community; and IRIAM, an app which allows to livestream as an anime character. The company also operates SHOWROOM, a virtual stage where fans can watch their artists perform live while interacting with them in real time; MYCODE, a direct-to-consumer genetic testing service; kencom, which supports health insurance societies to manage their members' health data; Haretoke, a web service which provides support for millennial women; Caradamo that offers diet support; and ONSEI, an app that uses AI to check for changes in cognitive function. In addition, it operates MENKYO, which enables cognitive function test for elderly drivers seeking license renewal; SHINRI-ADAS, a cognitive functional test; MRI-TAISEKI, a system that analyses brain DICOM images; Easiit, a brain performance app; and DENA SPORTS GROUP, Yokohama DeNA Baystars, Kawasaki Brave Thunders, S.C.SAGAMIHARA, and DeNA Athletics Elite sports teams. Further, the company operates Mobaoku, which allows users to manage their auction items and bids from mobile phones; Anyca, a mobile app for peer-to-peer car sharing; SOMPO DE NORU, a car leasing service; GO, a taxi dispatch app; DRIVE CHART, an accident reduction support service; Coopel, a cloud robotic process automation service; PLAYBACK 9, a NFT service; Easy Ride, a robo-vehicle mobility service; Manga Box, a weekly manga magazine app; and PICKFIVE, a NFT card game. The company was founded in 1999 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyDeNA Co., Ltd. generates revenue through several key streams. The primary source is its gaming division, where the company develops and distributes mobile games and browser-based games, earning income from in-app purchases, subscriptions, and advertising. Additionally, DeNA monetizes its e-commerce platform by facilitating transactions and taking a commission on sales. The company also generates revenue from its involvement in sports entertainment, particularly through partnerships and licensing deals. In healthcare, DeNA capitalizes on digital health solutions and services. Furthermore, DeNA is exploring opportunities in the automotive sector through its investments in autonomous driving technology and mobility services. Strategic partnerships and collaborations with other tech companies and content providers significantly enhance DeNA's revenue potential across its diverse business segments.

DeNA Co Financial Statement Overview

Summary
Income Statement
Balance Sheet
Cash Flow
Breakdown
TTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
149.31B136.73B134.91B130.87B136.97B121.39B
Gross Profit
77.47B60.99B64.09B65.94B74.93B62.78B
EBIT
21.38B661.00M4.20B11.46B22.50B-45.68B
EBITDA
25.00B-18.44B17.45B20.89B34.82B-28.66B
Net Income Common Stockholders
18.31B-28.68B8.86B30.53B25.63B-49.17B
Balance SheetCash, Cash Equivalents and Short-Term Investments
44.40B71.80B98.01B78.53B98.31B75.83B
Total Assets
105.34B335.71B348.94B340.57B327.12B255.74B
Total Debt
0.0044.51B45.16B28.27B27.14B12.84B
Net Debt
-44.40B-26.89B-52.58B-50.03B-70.16B-60.70B
Total Liabilities
32.09B115.68B114.95B95.66B98.46B68.42B
Stockholders Equity
70.58B209.20B221.63B240.63B223.71B180.49B
Cash FlowFree Cash Flow
7.32B-21.39B3.23B11.94B20.69B-1.31B
Operating Cash Flow
13.11B-10.84B10.81B18.38B29.97B12.95B
Investing Cash Flow
-10.87B-12.63B12.45B-19.92B-8.64B-8.71B
Financing Cash Flow
-5.28B-4.10B-4.93B-18.55B6.61B-32.15B

DeNA Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3584.00
Price Trends
50DMA
3498.13
Positive
100DMA
3082.46
Positive
200DMA
2399.93
Positive
Market Momentum
MACD
22.49
Negative
RSI
55.46
Neutral
STOCH
87.99
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2432, the sentiment is Positive. The current price of 3584 is above the 20-day moving average (MA) of 3430.16, above the 50-day MA of 3498.13, and above the 200-day MA of 2399.93, indicating a bullish trend. The MACD of 22.49 indicates Negative momentum. The RSI at 55.46 is Neutral, neither overbought nor oversold. The STOCH value of 87.99 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2432.

DeNA Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
$383.64B21.138.31%1.15%8.46%
58
Neutral
$13.15B6.73-2.46%3.87%2.36%-36.74%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2432
DeNA Co
3,584.00
2,046.94
133.17%
CCOEF
Capcom Co
27.78
11.88
74.72%
GUNGF
Gungho Online Entertainment
17.34
2.84
19.59%
NEXOF
NEXON Co
12.13
-3.94
-24.52%
NTDOF
Nintendo Co
72.41
25.23
53.48%
SQNXF
Square Enix Holdings Co
51.57
15.22
41.87%

DeNA Co Earnings Call Summary

Earnings Call Date: Feb 7, 2025 | % Change Since: 17.38% | Next Earnings Date: May 9, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive outlook with significant revenue growth across multiple segments, a successful recovery in the Sports business, and promising expansion in the Healthcare & Medical areas. The challenges in the mature Game market are noted but are outweighed by numerous achievements and forward-looking strategies.
Highlights
Revenue and Operating Profit Increase
Revenue for Q2 was JPY 39.0 billion, with an increase in both revenue and operating profit on a quarter-over-quarter basis.
Game Segment Growth
Revenue grew quarter-over-quarter due to new title launches and existing title seasonality. The company launched several new titles, expanding into various regions including Mainland China and Europe.
Live Streaming Business Expansion
Significant growth in Pococha Japan and IRIAM. The Live Streaming segment is prioritizing revenue growth while aiming for profitability by the end of fiscal year 2023.
Sports Segment Recovery
The Sports business has recovered from COVID-19 impacts, with the Yokohama DeNA BayStars achieving record stadium attendance.
Healthcare & Medical Segment Growth
Steady progress in revenue and profit goals, with a notable increase in data use business revenue from JPY 0.3 billion to JPY 0.84 billion year-over-year.
Lowlights
Challenges in Game Market
The Game market is described as mature, implying potential challenges in sustaining growth amid market saturation.
Company Guidance
In the earnings call for the second quarter of fiscal year 2023, Shingo Okamura provided detailed guidance on the company's performance and strategic direction. The revenue for Q2 reached JPY 39.0 billion, with an IFRS operating profit of JPY 3.1 billion and a non-GAAP operating profit of JPY 2.9 billion, indicating growth both quarter-over-quarter and year-over-year in revenue. The company's Game business saw revenue growth driven by new title launches and existing title seasonality, while the Live Streaming segment, particularly through Pococha Japan and IRIAM, achieved significant user growth and reduced losses. The Sports segment, exemplified by record-breaking attendance at Yokohama DeNA BayStars games, has recovered from COVID-19 impacts. In the Healthcare & Medical segment, strategic expansions and data utilization efforts have led to increased revenue and client acquisition, with the data health business seeing revenue grow from JPY 0.3 billion to JPY 0.84 billion year-over-year. The medical area, particularly through the Join platform, continues to expand regionally and is expected to tap into a market of several hundred billion yen. These initiatives are part of the overarching strategy to strengthen the business portfolio and achieve mid-term growth goals.

DeNA Co Corporate Events

DeNA Co., Ltd. Announces New Management Structure for April 2025
Mar 24, 2025

DeNA Co., Ltd. has announced a new management structure effective from April 1, 2025, aimed at strengthening its business execution across various units. This strategic move is expected to enhance the company’s operational efficiency and support its growth objectives, potentially impacting its market position positively.

DeNA Co., Ltd. Reports Strong Financial Growth for 2024
Feb 7, 2025

DeNA Co., Ltd. reported significant financial growth for the nine months ending December 31, 2024, with a 12.1% increase in revenue to 116,727 million yen, and a return to profitability with an operating profit of 20,979 million yen. This positive performance marks a turnaround from the previous year’s losses, positioning the company better within the industry and potentially benefiting stakeholders through improved equity attributable to owners, which rose to 64.8%.

DeNA Co. Announces Strategic Company Split for EV Data Business
Jan 29, 2025

DeNA Co., Ltd. announced a strategic move to execute a simple absorption-type company split, transferring its electric vehicle data utilization business to MobiSavi Co., Ltd. This decision aims to facilitate more agile operations and foster business growth in the EV data sector. The split involves DeNA receiving 500 newly issued ordinary shares from MobiSavi, with no significant changes to DeNA’s total assets or revenue. The transition, effective March 31, 2025, is expected to enhance DeNA’s operational focus while enabling MobiSavi to leverage EV data technology.

DeNA Announces Strategic Governance Initiatives for Sustainable Growth
Jan 22, 2025

DeNA Co., Ltd. has outlined its corporate governance strategies aimed at enhancing corporate value by focusing on growth and efficient capital utilization. The company is dedicated to creating a robust business portfolio to withstand market volatility, emphasizing long-term investment strategies and shareholder returns. With a commitment to diversity and strategic investment, DeNA seeks to foster sustainable growth and improve its market position.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.