Revenue GrowthAn ~87% revenue increase in 2025 reflects a durable scaling of core services and expanding market traction. Sustained top-line momentum provides structural room to invest in product capabilities, absorb fixed costs, and improve long-term profitability if maintained across upcoming quarters.

Profitability TurnaroundMove from prior loss-making periods to a positive operating profit and ~10% margin indicates structural improvements in pricing, cost control or service mix. Lasting operating profitability enhances capacity to fund growth internally and supports resilience through modest demand cycles.

Positive Return On EquityA positive ROE (~9%) alongside equity growth shows the business is generating returns on invested capital as it scales. This suggests sustainable unit economics and the potential for improving capital efficiency over time if cash conversion and reinvestment are addressed.

Bears Say

Weak Cash GenerationPersistent negative operating and free cash flow means reported profits are not converting to cash, forcing reliance on external funding or working capital cycles. Over the medium term this raises financing risk, limits self-funded investment, and can constrain durable margin improvement.

Rising LeverageMaterial increase in debt and debt-to-equity reduces financial flexibility and elevates refinancing risk. Combined with negative cash flow, higher leverage can force costly financing choices, constrain strategic options, and amplify downside in stress scenarios over the next several quarters.

Margin CompressionNet margin contraction from ~10% to ~7% while scaling suggests rising costs or heavy reinvestment that outpaced revenue gains. If sustained, this can weaken cash conversion and long-term return profiles, making recent profit gains more fragile absent structural cost control.

3719 FAQ

What was Gexeed Co., Ltd.’s price range in the past 12 months?

Gexeed Co., Ltd. lowest stock price was ¥161.00 and its highest was ¥529.00 in the past 12 months.

What is Gexeed Co., Ltd.’s market cap?

Gexeed Co., Ltd.’s market cap is ¥7.69B.

When is Gexeed Co., Ltd.’s upcoming earnings report date?

Gexeed Co., Ltd.’s upcoming earnings report date is May 20, 2026 which is in 89 days.

How were Gexeed Co., Ltd.’s earnings last quarter?

Gexeed Co., Ltd. released its earnings results on Feb 13, 2026. The company reported -¥0.542 earnings per share for the quarter, missing the consensus estimate of N/A by -¥0.542.

Is Gexeed Co., Ltd. overvalued?

According to Wall Street analysts Gexeed Co., Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Gexeed Co., Ltd. pay dividends?

Gexeed Co., Ltd. pays a Notavailable dividend of ¥3 which represents an annual dividend yield of N/A. See more information on Gexeed Co., Ltd. dividends here

What is Gexeed Co., Ltd.’s EPS estimate?

Gexeed Co., Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Gexeed Co., Ltd. have?

Gexeed Co., Ltd. has 27,971,231 shares outstanding.

What happened to Gexeed Co., Ltd.’s price movement after its last earnings report?

Gexeed Co., Ltd. reported an EPS of -¥0.542 in its last earnings report, missing expectations of N/A. Following the earnings report the stock price went down -2.402%.

Which hedge fund is a major shareholder of Gexeed Co., Ltd.?

Currently, no hedge funds are holding shares in JP:3719

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Gexeed Co., Ltd.

Gexeed Co., Ltd. (3719) is a Japanese company that specializes in providing comprehensive IT services and solutions. The company operates in sectors such as information technology, consulting, and outsourcing. Its core services include system integration, IT infrastructure management, software development, and business process outsourcing, catering primarily to corporate clients seeking to enhance their operational efficiencies through technological advancements.