Nintendo is your friendo
Nov 5, 2025
Fast Growers, Video Games
After reporting earnings in November of 2025, Nintendo (NTDOY) is raising guidance for earnings and sales thanks to its newly released Switch 2 console. Net profit rose 83% YOY to $1.29 billion for the 6 months ending in September. Estimates were for $1.07 billion. It expects to sell 19 million consoles by year end March 2026. Up from its previous estimate of 15 million. As well, it now expects revenues of $14.67 billion an increase of 93%. Also, net profit is expected to rise by 25% to $2.28 billion.
Valuations are good
It has a healthy p/e ratio of 52.43 which would give it a PEG ratio of roughly 2. A little expensive by that measure. However, the company has next to no long term debt and about $2.25/share in cash and equivalents. The balance sheet is impeccable and has been for years. Gross margins are down slightly from its 5-year average of 56% to 49%. Perhaps a result of tariffs. Regardless, they’re pretty decent.
Not just video games
The company also plans to release its 2nd movie in April 2026. Super Mario Galaxy is the follow up to the hugely successful Super Mario movie which grossed $1.3 billion 3 years ago.
Shares are currently trading at $22.14 and we started buying about a year ago at $11.79 which is about a 85% gain. We’d still be buying if it weren’t already a large portion of the portfolio.