Daily Stock Analysis: Nintendo Co Ltd

selective focus photography of SNES controller

Source: Unsplash 

Nintendo Co Ltd. is known by the trading ticker symbol, NTDOY. This is my first report ever for NTDOY.

Nintendo started its video game console business in 1983 by launching the NES and started its portable console business in 1989 by launching the Game Boy. 

Since then, the firm has focused on expanding the gaming population by delivering unique entertainment experiences on its original console systems; the Wii and Nintendo DS are its most popular hardware. 

However, Nintendo not only makes game consoles, but also owns world-renowned IPs such as Super Mario, Pokemon, and Zelda, which have been a source of cash flow for more than a quarter-century. 2020 was the 35th anniversary of Super Mario, Nintendo's most famous character.

The company was formerly known as Nintendo Playing Card Co., Ltd. and changed its name to Nintendo Co., Ltd. in 1963. Nintendo Co., Ltd. was founded in 1889 and is headquartered in Kyoto, Japan.

Three key data points gauge dividend equities or funds like Nintendo Co Ltd.:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money. 

NTDOY Price

Nintendo Co Ltd.'s price per share was $68.39 as of yesterday's market close. One year ago its price was $55.25. So NTDOY's price has increased by almost 23.8% in the past year. 

If Nintendo Co's stock trades in the range of $56 to $80 this next year, its recent $68.39 price might rise by $6.61 to reach $75.00 by July 23, 2022. My estimate is based on the average of five past years of historic price upside.

NTDOY Dividends

Nintendo Co Ltd.'s most recent regular semi-annual dividend payout of  $1.593 was paid July 15, 2021, and when added to the previous normal semi-annual distribution yields 3.75% based on yesterday's $68.39 closing price and a total annual dividend of $2.56. NTDOY has paid semi-annual variable dividends for 6 years.

NTDOY Returns

Adding the $2.56 annual NTDOY forward-looking dividend to my $6.61 price upside estimate shows a $9.17 potential gross gain, per share, to be reduced by any costs to trade Nintendo Co Ltd. shares.  

At yesterday's $68.39 price per share, a little over $1000 would buy 15 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at a sale and might cost us about $0.67 per share.

Subtract that maybe $0.67 brokerage cost from my estimated $9.17 gross gain per share results in a net gain of $8.50 X 15 shares = $127.50 for a 12.75% net gain on a $1,025.85 investment.

So it is that Nintendo Co Ltd. shows a possible 12.75% net gain including a 3.75% forward estimated dividend yield. 

Over the next year at this time, a $1000 investment in Nintendo Co Ltd. could generate $37.50 in cash dividends alone. And a single share bought at yesterday's closing price was $68.39! Thus, NTDOY's share price is now 45% less than the dividend income from $1K invested. So, according to the dividend dogcatcher ideal, this is no time to pick up Nintendo Co Ltd. shares because the dividend from $1k invested trails the single share price by over 55%. Consider yourself alerted. Watch NTDOY's share price drop below $50 before you pounce on it!

All of the estimates above are speculation based on the past history of  Nintendo Co Ltd. Only time and money invested in this stock will determine its true worth.

Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

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