GiG Works, Inc. (2375) AI Stock Analysis

• Market Cap: ¥4.76B
• Dividend Yield: 0.43%
• Average Volume (3M): 146.84K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.68
• 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: 22,105,486
• 10 Day Avg. Volume: 63,460
• 30 Day Avg. Volume: 146,843
• 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: ¥245.00
• Price Target Upside: 6.99% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 44 Neutral
• Price Target: ¥245.00 ▲(6.99% Upside)

The overall stock score of 44 reflects significant financial challenges, including declining revenues and negative profitability, which are the primary concerns. Technical indicators suggest bearish momentum, while valuation metrics indicate potential overvaluation. The absence of positive earnings call insights or notable corporate events further contributes to the low score.

GiG Works, Inc. Business Overview & Revenue Model

Company Description

GiG Works Inc. provides marketing and communication, field support, and contact center services in Japan. It offers sales agency and sales support services; installation, replacement, and maintenance support services; call center operation and staff support service; and systems engineering development contract services. The company is also involved in the software development; planning, development, and sales of software packages; real estate services; office rental; and consulting services. In addition, it offers WEB3 services, such as development and operation of applications that utilize blockchain technology; and mail order and e-commerce services. The company was formerly known as ThreePro Group Inc. and changed its name to GiG Works Inc. in August 2019. The company was incorporated in 1977 and is headquartered in Tokyo, Japan.

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. is experiencing financial difficulties with declining revenues and profitability, as well as cash flow challenges. The negative return on equity and cash flow issues are 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: Positive
• RSI: Neutral
• STOCH: Positive

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 below the 20-day moving average (MA) of 246.80, below the 50-day MA of 257.38, and below the 200-day MA of 252.51, indicating a bearish trend. The MACD of -7.22 indicates Positive momentum. The RSI at 35.84 is Neutral, neither overbought nor oversold. The STOCH value of 16.50 is Positive, 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	¥5.56B	13.56	―	1.19%	7.38%	515.19%
3682	63 Neutral	¥4.06B	18.48	―	3.27%	2.04%	-3.43%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6942	57 Neutral	¥5.57B	52.42	―	―	-5.20%	133.74%
3997	45 Neutral	¥10.30B	―	―	0.68%	15.05%	89.12%
2375	44 Neutral	¥4.76B	―	―	0.43%	-11.66%	-137.22%