2024-06-30 02:59:13 ET
Summary
- 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.
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Despite annual sales growth of 23% over the past three years, Sega Sammy ( SGAMY , SGAMF ) is still undervalued due to its unusual mix of assets and past management decisions.
However, with the decision to sell the Phoenix Seagaia resort and the free cash flow generation of the Pachinko business, the company seems ready to focus on what it does best: games....
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Sega Sammy Holdings: A Profitable Gaming Stock With Surging Revenue And A Deep Discount