| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 2478.09 | -2 |
| Intrinsic value (DCF) | 1894.85 | -25 |
| Graham-Dodd Method | 2684.04 | 6 |
| Graham Formula | 5922.27 | 134 |
DeNA Co., Ltd. (2432.T) is a Tokyo-based technology company specializing in mobile and online services, primarily operating in the electronic gaming and multimedia sector. Founded in 1999, DeNA has diversified its business across multiple segments, including Game Business (Mobage, Yahoo! Mobage, AndApp), Sports Business (Yokohama DeNA Baystars, Kawasaki Brave Thunders), Live Streaming (Pococha, SHOWROOM), Healthcare (MYCODE, kencom), and New Ventures (Anyca, Manga Box, NFT services). The company leverages its expertise in digital platforms to engage users through interactive gaming, live streaming, and AI-driven healthcare solutions. DeNA’s innovative approach extends to mobility services (peer-to-peer car sharing, robo-vehicle mobility) and emerging technologies like NFTs (PLAYBACK 9, PICKFIVE). Despite recent financial challenges, DeNA remains a key player in Japan’s digital entertainment and lifestyle services market, with a strong brand presence and a portfolio of niche platforms catering to diverse demographics.
DeNA presents a high-risk, high-reward investment case. The company’s diversified portfolio across gaming, sports, and digital services offers growth potential, particularly in live streaming and AI-driven healthcare. However, its FY 2024 net loss of ¥28.7 billion and negative operating cash flow raise concerns about profitability and cash burn. The stock’s low beta (0.22) suggests relative stability, but reliance on niche markets (e.g., NFT gaming) exposes it to volatility. A modest dividend (¥33/share) and solid cash reserves (¥71.4 billion) provide some downside protection, but investors should monitor execution in monetizing newer ventures like NFT services and mobility solutions.
DeNA’s competitive advantage lies in its vertically integrated ecosystem, combining gaming, live streaming, and healthcare under one umbrella. Its Mobage platform remains a key differentiator in Japan’s mobile gaming market, though it faces stiff competition from global giants. The company’s early bets on NFTs (PLAYBACK 9) and AI healthcare (MRI-TAISEKI) position it as an innovator, but monetization remains unproven. In live streaming, SHOWROOM competes with TikTok and YouTube Live, leveraging idol culture—a niche strength. DeNA’s sports franchises (e.g., Yokohama Baystars) provide brand loyalty but limited scalability. Weaknesses include over-diversification, which dilutes focus, and reliance on domestic revenue (90%+), leaving it vulnerable to Japan’s economic stagnation. Unlike pure-play gaming rivals, DeNA’s hybrid model lacks the scale to compete globally but offers resilience through diversification.