Sample Stock Pitch
This is a sample submission to show you what we're looking for. Your pitch doesn't need to be this long — this is an example, not a template. Write what you think matters.
Nintendo is a Japanese video game company headquartered in Kyoto. It develops, manufactures, and markets hardware and software under the Nintendo Switch platform. The company is listed on the Tokyo Stock Exchange Prime Market (ticker: 7974).
Nintendo's core business is the Nintendo Switch console and its game library — titles like Mario, Zelda, and Pokémon. Unlike Sony or Microsoft, Nintendo competes on unique gameplay experiences rather than raw hardware performance. This lets them maintain high software margins (over 70%) and strong franchise loyalty.
My thesis is simple: Nintendo is undervalued because the market is pricing in declining Switch sales without accounting for the upcoming Switch 2 launch cycle.
- The Switch launched in 2017. A successor console is widely expected in 2024–2025. Every prior Nintendo console transition has triggered a major re-rating.
- Nintendo has ¥1.4 trillion in net cash on its balance sheet — roughly 30% of its market cap. This is a floor on downside and signals management can sustain dividends and buybacks.
- Franchise value is durable. Mario Kart 8 Deluxe (2017) still sells over 1 million units per quarter in 2024. There is no competitor with comparable IP depth.
- The movie strategy (Super Mario Bros. Movie grossed $1.3B in 2023) opens a new revenue stream that the market hasn't fully priced.
I used a simple P/E comparison. Nintendo currently trades at ~18x forward earnings. Comparable gaming/entertainment companies (Sony, Activision pre-acquisition, EA) trade at 22–28x. Even at the low end of peers, Nintendo should be worth ~22x, implying ~20% upside from current levels.
I also looked at EV/EBITDA: Nintendo at ~12x vs. peers at 16–20x. Same conclusion — it screens cheap relative to franchise quality.
- Switch 2 could disappoint on launch — a weak hardware cycle would hurt near-term earnings significantly.
- Mobile gaming expansion has underperformed. Nintendo has struggled to monetize mobile as well as peers.
- FX risk: Nintendo earns most revenue outside Japan, so a strong yen hurts reported earnings.
- Key franchise fatigue — Mario and Zelda are evergreen, but what happens if consumer tastes shift?
Nintendo trades at a discount to peers despite superior IP, a clean balance sheet, and a major product cycle coming. I rate it a BUY with a 12-month price target of ¥9,500 (from ~¥7,800 at time of writing), based on 22x forward earnings.
The biggest risk to my thesis is a weak Switch 2 launch. If that happens, I'd reassess. But the cash position limits downside, and the franchise portfolio has proven durable for 40+ years.