NTDOY

Nintendo Shs Unsponsored American Deposit Receipt Repr 1/8 Sh

TMT, Consumer


Presented:10/29/2015
Price:$20.22
Cap:$19.43B
Current Price:$13.12
Cap:$61.10B

Presented

Date10/29/2015
Price$20.22
Market Cap$19.43B
Ent Value$9.81B
P/E Ratio57.84x
Book Value$10.34
Div Yield0%
Shares O/S960.89M
Ave Daily Vol101,819
Short IntN/A

Current

Price$13.12
Market Cap$61.10B
Nintendo Co., Ltd. engages in the development, manufacture, and sale of home entertainment products. Its electronic entertainment products include handheld devices, home console hardware such as Nintendo Wii, Nintendo DS, Nintendo 3DS, and others; as well as software for handheld and home console gaming machine. The company was founded by Fusajiro Yamauchi on September 23, 1889 and is headquartered in Kyoto, Japan.

Publicly traded companies mentioned herein: Nintendo (7974 JP), DeNA Co (2432 JP), Apple (AAPL), Alphabet (GOOGL), King Digital (KING), GungHo (3765 JP) and Electronic Arts (EA).

Highlights

With Nintendo’s eventual shift from console to mobile games long seen as an inevitability by many in the market. the company earlier this year finally announced a mobile partnership with DeNA Co (2432 JP) that is expected to gradually migrate Nintendo’s hit library of games to a mobile platform. The move was met with resounding investor enthusiasm, with the stock effectively doubling overnight on the news. The Street, meanwhile, quickly adjusted growth expectations, with EBIT now expected to grow to around $2 billion within a three year period on the strength of mobile, from roughly $450 million today. Currently trading at around 17 times that expected 2018 EBIT, the presenter for his part believes Nintendo is simply too late to mobile, and that the company is in no way guaranteed to ultimately create a hit game. Further, if and when Nintendo does have some success in mobile, the resulting economics could ultimately be less attractive than expected as the company is forced to give a big cut right off the top to both DeNA and potential distribution partners Apple (AAPL) or Google (GOOGL). 

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