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Square Enix Holdings Co.

9684.T
59
Electronic Gaming & Multimedia · Technology
Price
$2890.00
-24.00 (-0.82%)
Market Cap
$1.04T
Exchange
JPX
Winston Score
59
Winston is curious
A decent business — some strong pillars, some weaker.
Data as of Sep 4, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Strong
Growth
Good
Cash Flow
Weak
Stability
Good
Valuation
Good
Dividends
Weak

Winston Score History

The full picture

Square Enix Holdings Co., Ltd., founded in 1975 and headquartered in Tokyo, Japan, is a global entertainment enterprise with extensive content and service operations spanning Japan, North America, Europe, and the broader Asian market. The company's business activities are structured into four distinct areas. Its Digital Entertainment division is dedicated to the ideation, creation, deployment, and ongoing operation of digital entertainment, primarily video games, across a variety of platforms such as personal computers, mobile devices, and dedicated gaming consoles. The Amusement segment involves the management of entertainment centers, alongside the development, manufacturing, distribution, and rental of arcade gaming equipment and related merchandise for these venues. Through its Publication segment, the company publishes and licenses comic magazines, graphic novels, and books with gaming themes. Lastly, the Merchandising division concentrates on designing, producing, distributing, and licensing a range of derivative products. The company notably releases, markets, and licenses its entertainment content under the renowned SQUARE ENIX and TAITO brands.

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+32.3% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+175.5% YoY

YoY Growth Rate

Strong earnings growth

R&D Spend

¥2.5B/ year

Rising (+43% vs prior year)

0.9% of revenue

R&D investment increasing — building for the future

Cash Position

Cash flow positive

¥259.7B cash & investments

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

Square Enix Holdings Co. grew revenue 32% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Share count broadly stable

+0.4% over 4y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 359.3M (2022) → 360.8M (2026)

Score breakdown

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Quality

Profit per sale
Gross Margin
56.3%
Premium pricing power — 56.3% gross margin
Profit after running costs
Operating Margin
21.7%
Excellent — 21.7% operating margin
Return on the money invested
ROCE
17.7%
Strong — 17.7% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

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Growth

Sales growth
Sales YoY
+0.9%
Nearly flat sales (+0.9% YoY)
Profit growth
EPS YoY
+104.4%
Earnings growing fast (+104.4% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is
EPS Consistency
6/8 quarters
Earnings grew in most of the last 8 quarters

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Cash Flow

Profit that turns into cash
Cash Conversion
0%
Weak — only 0% of profit becomes cash
Spare cash per sale
FCF Margin
0.0%
Thin free cash flow (0.0%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns
Debt / Equity
N/A
Data not available
Covers its interest
Interest Cover
836.17x
Comfortably covers interest (836.2x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
27.4x
Growth-priced — P/E 27.4

P/E above the market average. People are paying up for expected growth.

Cheaper or dearer next year
P/E vs Forward
+4.0
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (27.4 → 23.4)

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Dividends

Dividend
Dividend Yield
1.73%
Small dividend — 1.73% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend record
Dividend Growth
-48.3%
Dividend cut (-48.3% YoY) — warning sign

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