GiG Works, Inc. (2375) AI Stock Analysis

• Market Cap: ¥4.58B
• Dividend Yield: 0.86%
• Average Volume (3M): 44.13K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.60
• Revenue Growth: -11.66%
• EPS Growth: -137.22%
• Country: JP
• Employees: 826
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 3.71
• Shares Outstanding: 22,127,985
• 10 Day Avg. Volume: 36,840
• 30 Day Avg. Volume: 44,129
• PEG Ratio: -106.91
• Price to Book (P/B): 2.49
• Price to Sales (P/S): 0.25
• P/FCF Ratio: -8.24
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 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: 40 Underperform
• Price Target: ¥212.00 ▼(-7.42% Downside)

GiG Works, Inc. is currently facing significant financial and technical challenges. The most impactful factors include declining revenues, negative profitability, and bearish technical indicators. The negative P/E ratio further highlights the company's struggles with profitability. Investors should be cautious given the current financial instability and lack of positive momentum.

Positive Factors

Gross Profit Margin

A healthy gross profit margin indicates operational efficiency, suggesting the company can manage production costs effectively, which is crucial for long-term profitability.

Balanced Debt-to-Equity Ratio

A balanced debt-to-equity ratio suggests prudent financial management, providing flexibility for future investments and growth opportunities.

Diverse Revenue Streams

Diverse revenue streams reduce dependency on a single source, enhancing resilience against market fluctuations and supporting sustainable growth.

Negative Factors

Declining Revenue

Declining revenue growth indicates challenges in market demand or competitive positioning, potentially impacting long-term business viability.

Negative Profitability

Negative profitability margins highlight operational inefficiencies and financial strain, which may hinder reinvestment and growth prospects.

Cash Flow Challenges

Negative cash flow from operations indicates liquidity issues, limiting the company's ability to fund operations and invest in growth without external financing.

GiG Works, Inc. Business Overview & Revenue Model

Company Description

GiG Works, Inc. (2375) is a dynamic company operating in the technology sector, specializing in innovative solutions that enhance digital experiences across various industries. The company focuses on providing advanced software development, digital marketing services, and data analytics, catering to businesses looking to optimize their online presence and operational efficiencies. With a commitment to leveraging cutting-edge technology, GiG Works delivers tailored solutions designed to meet the unique needs of its clients.

How the Company Makes Money

GiG Works, Inc. generates revenue through multiple streams, primarily from its core offerings in software development and digital marketing services. The company charges clients for project-based work, monthly retainers for ongoing services, and subscription fees for software products. Additionally, GiG Works has established key partnerships with technology providers and platforms, allowing it to expand its service offerings and reach a broader client base. The company also benefits from performance-based incentives tied to client success metrics, which further enhances its revenue potential.

GiG Works, Inc. Financial Statement Overview

Summary

GiG Works, Inc. is facing financial difficulties with declining revenues and profitability, coupled with cash flow challenges. The negative return on equity and cash flow issues pose significant risks, despite a reasonable gross profit margin and balanced debt-to-equity ratio.

Income Statement

GiG Works, Inc. has experienced a decline in revenue over the past year, with a negative revenue growth rate of -4.03%. The company is currently facing profitability challenges, as indicated by a negative net profit margin of -2.86% and a negative EBIT margin of -1.59%. Despite these challenges, the gross profit margin remains relatively healthy at 23.47%, suggesting some operational efficiency.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio of 0.95, indicating a balanced approach to leveraging. However, the return on equity is negative at -28.46%, reflecting the recent net losses. The equity ratio stands at 30.82%, which is reasonable but suggests room for improvement in asset management.

Cash Flow

Cash flow from operations has turned negative, with an operating cash flow to net income ratio of 0.62, indicating cash flow challenges. The free cash flow has also deteriorated significantly, with a negative free cash flow to net income ratio of 1.06. This highlights potential liquidity issues that need addressing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	22.76B	25.37B	26.43B	22.93B	21.17B	19.77B
Gross Profit	5.02B	5.95B	6.49B	5.14B	4.88B	4.81B
EBITDA	425.22M	47.05M	391.46M	940.85M	1.22B	1.29B
Net Income	-210.55M	-725.55M	-718.27M	232.92M	434.53M	657.09M
Balance Sheet
Total Assets	7.59B	8.27B	9.19B	10.68B	10.64B	10.37B
Cash, Cash Equivalents and Short-Term Investments	2.25B	1.74B	2.75B	2.59B	4.41B	4.06B
Total Debt	2.08B	2.43B	2.92B	3.32B	3.39B	2.69B
Total Liabilities	4.88B	5.72B	6.10B	6.76B	6.40B	6.44B
Stockholders Equity	2.71B	2.55B	3.10B	3.92B	4.24B	3.92B
Cash Flow
Free Cash Flow	0.00	-771.12M	784.26M	-760.56M	-53.66M	329.14M
Operating Cash Flow	0.00	-452.82M	1.13B	-369.86M	959.48M	940.71M
Investing Cash Flow	0.00	-256.47M	-389.68M	-836.43M	-1.16B	-390.75M
Financing Cash Flow	0.00	-300.19M	-576.63M	-616.12M	552.19M	728.83M

GiG Works, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 229.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2375, the sentiment is Negative. The current price of 229 is above the 20-day moving average (MA) of 220.50, below the 50-day MA of 231.45, and below the 200-day MA of 240.57, indicating a neutral trend. The MACD of -2.04 indicates Negative momentum. The RSI at 48.15 is Neutral, neither overbought nor oversold. The STOCH value of 38.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2375.

GiG Works, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3920	79 Outperform	¥5.22B	12.69	―	1.26%	10.06%	62.79%
3682	63 Neutral	¥4.32B	17.48	―	3.19%	1.14%	23.89%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6942	56 Neutral	¥5.55B	52.24	―	―	-5.20%	133.74%
3997	54 Neutral	¥13.51B	-453.77	―	0.49%	14.08%	―
2375	40 Underperform	¥4.58B	―	―	0.86%	-11.66%	-137.22%