GEO Holdings Corporation (2681) AI Stock Analysis

• Market Cap: ¥65.32B
• Dividend Yield: 2.07%
• Average Volume (3M): 142.13K
• Price to Earnings (P/E): 19.0
• Beta (1Y): 0.52
• Revenue Growth: 1.10%
• EPS Growth: -64.41%
• Country: JP
• Employees: 5,912
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 61.39
• Shares Outstanding: 39,783,550
• 10 Day Avg. Volume: 146,540
• 30 Day Avg. Volume: 142,133
• PEG Ratio: -0.27
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 0.17
• P/FCF Ratio: -23.17
• 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: ¥1,753.00
• Price Target Upside: 6.76% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 62 Neutral
• Price Target: ¥1,753.00 ▲(6.76% Upside)

The overall stock score is primarily influenced by the company's mixed financial performance and bearish technical indicators. While the valuation is fair, the lack of strong momentum and cash flow management issues weigh on the stock's attractiveness. Strategic improvements in financial performance and a reversal in technical trends could enhance the stock's appeal.

GEO Holdings Corporation Business Overview & Revenue Model

Company Description

GEO Holdings Corporation (2681) is a Japanese company primarily engaged in the rental and retail business. The company operates through various segments, including the Video and CD Rental segment, which provides rental services for DVDs, CDs, and other media products; and the Bookstore segment, which engages in the sale of books, magazines, and other printed materials. GEO Holdings also extends its operations into the trading of second-hand goods, offering a wide range of used products including electronics and leisure goods.

How the Company Makes Money

GEO Holdings Corporation generates revenue through multiple streams, primarily focusing on the rental and retail sectors. The Video and CD Rental segment earns income from customers renting entertainment media, such as DVDs and CDs, for a specified period. The company's Bookstore segment contributes to its revenue by selling new and second-hand books and magazines. Additionally, GEO Holdings is involved in the purchase and sale of used goods, which includes electronics, video games, and other leisure items, providing a significant income source by capitalizing on the demand for affordable second-hand products. The company also benefits from strategic partnerships and collaborations that enhance its product offerings and expand its customer base, thereby boosting overall sales and rental income.

GEO Holdings Corporation Financial Statement Overview

Summary

GEO Holdings Corporation exhibits a mixed financial health profile with stable but modest profitability and revenue growth. The balance sheet is relatively strong, but cash flow management is a key area of concern, with negative free cash flow and challenges in translating profits into cash flow.

Income Statement

The company has shown moderate performance with fluctuating revenue and profit margins. The Gross Profit Margin has been stable, but the Net Profit Margin has seen a decline recently due to lower net income. Revenue Growth Rate has been inconsistent, with periods of growth followed by declines, indicating a volatile growth trajectory. EBIT and EBITDA margins are relatively stable but show some decline, reflecting potential operational challenges.

Balance Sheet

The company maintains a balanced Debt-to-Equity Ratio, suggesting reasonable leverage levels. Return on Equity (ROE) has seen a decline, indicating reduced efficiency in generating returns on equity. The Equity Ratio shows a stable financial structure with a healthy proportion of assets financed by equity, contributing to financial stability.

Cash Flow

Cash flow generation shows significant variability, with Free Cash Flow turning negative in recent periods. The Operating Cash Flow to Net Income Ratio reflects challenges in translating profits into cash flow, potentially pointing to operational inefficiencies. Free Cash Flow to Net Income Ratio is unfavorable, indicating cash flow management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	431.98B	427.67B	433.85B	377.30B	334.79B	328.36B
Gross Profit	173.79B	170.67B	159.82B	142.48B	130.80B	125.22B
EBITDA	15.93B	17.98B	26.28B	18.85B	17.02B	12.43B
Net Income	3.43B	4.54B	10.90B	5.68B	5.99B	-752.00M
Balance Sheet
Total Assets	268.66B	252.81B	231.13B	201.80B	174.38B	169.74B
Cash, Cash Equivalents and Short-Term Investments	69.26B	60.09B	54.98B	44.29B	45.60B	51.87B
Total Debt	135.78B	118.05B	98.79B	80.21B	59.07B	52.13B
Total Liabilities	176.52B	162.34B	143.78B	124.59B	97.18B	96.76B
Stockholders Equity	92.07B	90.40B	87.31B	77.21B	77.19B	72.98B
Cash Flow
Free Cash Flow	0.00	-3.11B	151.00M	-3.38B	-12.25B	5.25B
Operating Cash Flow	0.00	8.01B	9.30B	4.28B	-5.73B	12.43B
Investing Cash Flow	0.00	-12.49B	-10.40B	-9.59B	-6.69B	-8.22B
Financing Cash Flow	0.00	10.78B	12.40B	3.94B	5.59B	14.68B

GEO Holdings Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1642.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2681, the sentiment is Negative. The current price of 1642 is below the 20-day moving average (MA) of 1654.16, below the 50-day MA of 1657.21, and below the 200-day MA of 1681.88, indicating a bearish trend. The MACD of -5.44 indicates Positive momentum. The RSI at 47.48 is Neutral, neither overbought nor oversold. The STOCH value of 62.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2681.

GEO Holdings Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2674	74 Outperform	¥25.03B	11.44	―	4.22%	8.63%	-3.75%
7636	65 Neutral	¥11.79B	11.14	―	3.63%	2.27%	34.02%
3093	65 Neutral	¥39.39B	13.75	―	2.25%	17.90%	14.14%
2681	62 Neutral	¥65.32B	19.02	―	2.07%	1.10%	-64.41%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
9270	58 Neutral	¥12.85B	18.25	―	1.05%	4.14%	―