SEGA SAMMY HLDGS ADR 1/4

Sega Sammy had a decent quarter, driven by the success of Sonic the Hedgehog movie and Sonic X Shadow Generations back-catalogue sales, despite expected challenges in pachinko. The cancellation of Football Manager 2025 and a thin pipeline deprive Sega Sammy of catalysts right now. The Yakuza spinoff just released can't trounce last year's Infinite Wealth coming Q4. We like strategic moves like entering the US slot machine market to counteract pachinko decline, supported by acquisitions like GAN Ltd. and Stakelogic.» Mehr auf seekingalpha.com

The recent Sega Sammy Holdings Inc. releases are performing well, including the latest Sonic entry, Shadow x Sonic. In general, the games division is looking up after a tougher 2023, with issues in the Western gaming studios. The Japanese studios are doing fantastically and carrying things. Pachinko is up against tough comps this year, but is a solid business over the cycle.» Mehr auf seekingalpha.com

Sega Sammy Holdings has achieved 23% annual sales growth over the past three years, and the current undervaluation does not reflect its true worth. The underrated Japanese gaming studios consistently release profitable titles year after year, with no clear competition among their large fan base due to how unique their IPs are. The free cash flow generation capabilities of Sammy and the Pachinko/Pachislot business are the right engine to power the growth of the Gaming business.» Mehr auf seekingalpha.com