GiG Works, Inc. (2375) AI Stock Analysis

• Market Cap: ¥5.00B
• Dividend Yield: 0.42%
• Average Volume (3M): 74.74K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.45
• Revenue Growth: -9.76%
• EPS Growth: 3.53%
• Country: JP
• Employees: 826
• Sector: Technology
• Sector Strength: 95
• Industry: Information Technology Services
• EPS (TTM): 23.19
• Shares Outstanding: 22,105,486
• 10 Day Avg. Volume: 43,630
• 30 Day Avg. Volume: 74,736
• PEG Ratio: 0.08
• Price to Book (P/B): 2.19
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥242.00
• Price Target Upside: 0.41% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 44 Neutral
• Price Target: ¥230.00 ▼(-4.56%Downside)

GiG Works, Inc. has a challenging financial outlook with declining revenues and profitability, negatively impacting its stock score. Technical analysis shows neutral momentum, while valuation metrics indicate concerns due to a negative P/E ratio. The absence of earnings call insights and corporate events leaves the financial and valuation aspects as the primary influences on the score.

GiG Works, Inc. Business Overview & Revenue Model

Company Description

GiG Works, Inc. (2375) is a dynamic technology and consulting firm specializing in digital transformation solutions across various sectors, including finance, healthcare, and retail. The company offers a range of services, including software development, data analytics, and IT consulting, aimed at helping organizations improve efficiency, reduce costs, and enhance customer experiences. With a focus on innovative technology integration and strategic partnerships, GiG Works is positioned to support businesses in navigating the complexities of the digital landscape.

How the Company Makes Money

GiG Works, Inc. generates revenue primarily through its consulting and service offerings. The company charges clients for project-based work, which includes software development, system integration, and ongoing IT support. Additionally, GiG Works earns recurring revenue from long-term contracts with clients for maintenance and support services. Key revenue streams also include data analytics services, where the company provides insights and reporting solutions that help clients make informed decisions. Strategic partnerships with technology providers enable GiG Works to offer bundled solutions, enhancing its value proposition and contributing to its earnings through shared revenue models.

GiG Works, Inc. Financial Statement Overview

Summary

GiG Works, Inc. faces significant financial challenges, including declining revenue, negative profit margins, and cash flow issues. The balance sheet shows moderate leverage but concerns over the company's ability to generate positive cash flow.

Income Statement

GiG Works, Inc. has shown a decline in revenue over the past year, with a decrease from 26.43 billion to 25.37 billion JPY. The gross profit margin has decreased slightly to 23.47%, and the net profit margin remains negative due to continued net losses. The EBIT margin has turned negative, indicating operational challenges. However, the EBITDA margin is positive at 0.19%, showing some resilience in earnings before interest, taxes, depreciation, and amortization.

Balance Sheet

The company's balance sheet shows a slight decline in total assets and stockholders' equity, with a debt-to-equity ratio of 0.95, indicating moderate leverage. The return on equity is not applicable due to negative net income, and the equity ratio stands at 30.82%, suggesting a fair level of equity financing but with potential risks from liabilities.

Cash Flow

GiG Works, Inc. experienced a significant decline in free cash flow from a positive 784 million JPY to negative 771 million JPY. This reflects challenges in cash generation, exacerbated by negative operating cash flow. The free cash flow to net income ratio is not meaningful due to negative values, highlighting cash flow issues amid negative net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	25.76B	25.37B	26.43B	22.93B	21.17B	19.77B
Gross Profit	6.33B	5.95B	6.49B	5.14B	4.88B	4.81B
EBITDA	261.16M	47.05M	391.46M	940.85M	1.22B	1.29B
Net Income	-89.99M	-725.55M	-718.27M	232.92M	434.53M	657.09M
Balance Sheet
Total Assets	8.91B	8.27B	9.19B	10.68B	10.64B	10.37B
Cash, Cash Equivalents and Short-Term Investments	2.02B	1.74B	2.75B	2.59B	4.41B	4.06B
Total Debt	2.71B	2.43B	2.92B	3.32B	3.39B	2.69B
Total Liabilities	5.96B	5.72B	6.10B	6.76B	6.40B	6.44B
Stockholders Equity	2.95B	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: Positive
• Last Price: 241.00
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 241 is above the 20-day moving average (MA) of 236.05, above the 50-day MA of 235.90, and below the 200-day MA of 268.31, indicating a neutral trend. The MACD of -0.32 indicates Negative momentum. The RSI at 53.10 is Neutral, neither overbought nor oversold. The STOCH value of 56.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	81 Outperform	¥5.49B	12.87		1.02%	13.25%	16826.25%
Sector *	69 Neutral	¥230.15B	14.83	7.55%	2.61%	9.28%	5.74%
6942	65 Neutral	¥5.49B	52.20		―	-5.20%	133.74%
3682	63 Neutral	¥4.03B	18.30		3.31%	9.26%	1.71%
3997	51 Neutral	¥4.98B	―		1.55%	15.59%	32.56%
2375	44 Neutral	¥5.00B	―		0.42%	-9.76%	3.53%