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Assessing MIXI (TSE:2121)’s Valuation After a Recent Share Price Pullback

Simply Wall St · 1d ago

MIXI (TSE:2121) has quietly slipped over the past month, even though its core sports and digital entertainment businesses are still growing. That disconnect between share price and fundamentals is starting to look interesting.

See our latest analysis for MIXI.

Over the past year MIXI’s modest 1 year total shareholder return of 1.7 percent contrasts with a much weaker recent stretch, including a 30 day share price return of minus 8.15 percent, suggesting momentum is fading despite steady business progress.

If MIXI’s recent pullback has you rethinking your watchlist, this could be a good moment to broaden your search with fast growing stocks with high insider ownership.

With revenues and profits still rising, yet the share price drifting and trading below analyst targets, is MIXI quietly slipping into undervalued territory, or is the market already pricing in all of its future growth?

Most Popular Narrative: 15.9% Undervalued

With MIXI closing at ¥2774 against a most popular narrative fair value of ¥3300, the story points to upside that the recent pullback obscures.

Ongoing integration of advanced AI across company workflows is driving significant improvements in operational efficiency, with 99% employee adoption and over 250 AI based measures implemented, supporting cost reductions and margin expansion, which should positively impact EBITDA and net income.

Read the complete narrative.

Want to see how modest top line growth, rising margins, and a lower future earnings multiple still add up to meaningful upside? Unpack the full narrative for the detailed roadmap and the assumptions powering that fair value call.

Result: Fair Value of ¥3300 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, sustained weakness in legacy titles or unprofitable overseas expansion could pressure margins and challenge the assumptions behind MIXI’s seemingly conservative valuation.

Find out about the key risks to this MIXI narrative.

Build Your Own MIXI Narrative

If you are not fully convinced by this view, or would rather dig into the numbers yourself, you can build a fresh perspective in minutes, Do it your way.

A great starting point for your MIXI research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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Before you move on, lock in an edge by scanning a wider opportunity set with targeted screens that surface strong fundamentals, growth potential, and resilient cash flows.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.