Gigamedia (GIGM) AI Stock Analysis

• Market Cap: $17.02M
• Dividend Yield: N/A
• Average Volume (3M): 5.86K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.19
• Revenue Growth: 10.15%
• EPS Growth: 67.65%
• Country: US
• Employees: 87
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): -0.09
• Shares Outstanding: 11,052,235
• 10 Day Avg. Volume: 5,380
• 30 Day Avg. Volume: 5,855
• PEG Ratio: 0.23
• Price to Book (P/B): 0.42
• Price to Sales (P/S): 5.77
• P/FCF Ratio: -7.19
• Enterprise Value/Market Cap: -0.70
• Enterprise Value/Revenue: -3.49
• Enterprise Value/Gross Profit: -6.62
• Enterprise Value/Ebitda: 3.52
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: $1.50 ▲(2.74% Upside)

The score is held back primarily by weak financial performance—shrinking revenue, large operating losses, and ongoing negative free cash flow—despite a comparatively strong, low-debt balance sheet. Technical indicators are largely neutral and do not offset the fundamental profitability and cash-burn concerns, while valuation is constrained by losses (negative P/E) and no indicated dividend yield.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage indicates financial stability, providing the company with flexibility to invest in growth opportunities and weather economic downturns.

Strategic Partnerships

Strategic partnerships enhance GigaMedia's game portfolio and market reach, potentially driving revenue growth through shared profits and licensing agreements.

Revenue Model Diversification

A diversified revenue model reduces dependency on a single income stream, enhancing resilience against market fluctuations and supporting sustainable growth.

Negative Factors

Declining Revenues

Declining revenues indicate challenges in maintaining market share and customer engagement, potentially impacting long-term profitability and growth prospects.

Negative Cash Flow

Negative cash flow suggests operational inefficiencies and insufficient cash generation, limiting the company's ability to invest in growth and cover expenses.

Persistent Losses

Persistent losses reflect operational challenges and inefficiencies, which can erode shareholder value and hinder the company's ability to achieve sustainable profitability.

Gigamedia Business Overview & Revenue Model

Company Description

GigaMedia Limited, together with its subsidiaries, provides digital entertainment services in Taiwan and Hong Kong. The company operates FunTown, a digital entertainment portal that offers mobile and browser-based casual games through branded platform. It offers MahJong, a traditional Chinese tile-based game; casual card and table games; online card games; and chance-based games, including bingo, lotto, horse racing, Sic-Bo, slots, and various casual games. It also provides role-playing and sports games, such as Tales Runner, a multi-player online obstacle running game; Yume 100, a story-based game that targets female players; Akaseka, a female-oriented game; and Shinobi Master New Link, a male-oriented game. GigaMedia Limited was founded in 1998 and is headquartered in Taipei, Taiwan.

How the Company Makes Money

GigaMedia generates revenue primarily through the monetization of its online games via microtransactions, subscription fees, and advertising. The company's revenue model is supported by in-game purchases where players buy virtual goods or enhancements to improve their gaming experience. Subscription fees from premium game services also contribute significantly to its earnings. Additionally, GigaMedia collaborates with third-party developers and leverages strategic partnerships to expand its game offerings and reach, thus enhancing its revenue potential through shared profits and licensing agreements.

Gigamedia Financial Statement Overview

Summary

Balance sheet strength (very low leverage and sizable equity vs. assets) is a key positive, but it is outweighed by weak operations: multi-year revenue contraction, deeply negative operating/net margins, and persistently negative operating and free cash flow indicating ongoing cash burn.

Income Statement

Revenue has contracted materially over the last several years (down from ~$6.6–$6.9M in 2019–2020 to ~$3.0M in 2024), including a -3.76% decline in 2024. While gross margin remains relatively solid for a small revenue base (~50% in 2024), the company continues to post large operating losses (EBIT margin about -125% in 2024) and sustained net losses (net margin about -77% in 2024), indicating the cost structure is not aligned with current scale. The main positive is that losses are not new or suddenly accelerating versus 2023, but profitability remains structurally weak.

Balance Sheet

The balance sheet is a clear relative strength: leverage is very low (debt-to-equity ~0.01 in 2024) and equity remains sizable versus total assets (equity ~$40.3M vs. assets ~$42.4M in 2024). This conservative capitalization reduces financial risk and provides flexibility. The key weakness is ongoing negative returns on shareholder capital (ROE negative across all years, about -5.7% in 2024), reflecting that the asset/equity base is not currently generating profits.

Cash Flow

Cash generation is consistently negative, with operating cash flow and free cash flow both below zero each year shown (2024 operating cash flow about -$2.33M; free cash flow about -$2.38M). While free cash flow is often roughly in line with the net loss (i.e., limited additional non-cash distortion), the business is still consuming cash rather than funding itself internally. The main positive is that cash burn has not been steadily worsening year-over-year (it improved versus 2021), but it remains meaningfully negative and tied to ongoing operating losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.40M	2.97M	4.29M	5.59M	5.49M	6.88M
Gross Profit	1.79M	1.48M	2.45M	3.25M	2.91M	3.92M
EBITDA	-3.37M	-3.64M	-3.10M	-2.99M	-3.95M	-2.14M
Net Income	-1.27M	-2.30M	-3.40M	-2.75M	-3.42M	-1.29M
Balance Sheet
Total Assets	41.23M	42.36M	46.50M	52.14M	55.52M	57.02M
Cash, Cash Equivalents and Short-Term Investments	29.07M	34.78M	38.47M	46.93M	41.45M	45.70M
Total Debt	182.00K	500.00K	970.00K	893.00K	1.45M	3.00K
Total Liabilities	2.41M	2.02M	2.96M	3.53M	4.67M	2.93M
Stockholders Equity	38.82M	40.34M	43.54M	48.61M	50.85M	54.10M
Cash Flow
Free Cash Flow	0.00	-2.38M	-1.25M	-2.11M	-4.23M	-2.11M
Operating Cash Flow	0.00	-2.33M	-1.19M	-2.08M	-4.13M	-2.08M
Investing Cash Flow	0.00	-1.11M	837.00K	-10.04M	-17.00K	-10.04M
Financing Cash Flow	0.00	0.00	0.00	0.00	0.00	0.00

Gigamedia Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.46
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GIGM, the sentiment is Positive. The current price of 1.46 is below the 20-day moving average (MA) of 1.50, below the 50-day MA of 1.51, and below the 200-day MA of 1.54, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 56.25 is Neutral, neither overbought nor oversold. The STOCH value of 65.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GIGM.

Gigamedia Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MSGM	65 Neutral	$21.73M	40.87	44.93%	―	11.38%	-94.39%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
GIGM	50 Neutral	$17.02M	-13.44	-3.14%	―	10.15%	67.65%
GMHS	49 Neutral	$52.89M	―	―	―	―	―
BHAT	44 Neutral	$5.71M	-0.06	-14.99%	―	-53.11%	82.68%
TRUG	40 Underperform	$2.81M	-0.02	―	―	―	―

Gigamedia Corporate Events

GigaMedia Reports Q3 2025 Financial Results with Revenue Growth

On October 30, 2025, GigaMedia Limited announced its unaudited financial results for the third quarter of 2025, reporting revenues of $0.92 million, a 5.5% increase from the previous quarter and a 19.1% increase year-over-year. Despite the revenue growth, the company faced an operating loss of $1.00 million and a net loss of $0.97 million. The company plans to focus on developing products and services to better meet customer needs in the coming quarter. GigaMedia maintains a solid financial position with $29.4 million in cash and equivalents, and aims to continue growth through strategic investments and acquisitions.