GENERATION PASS CO. LTD. (3195) AI Stock Analysis

• Market Cap: ¥5.71B
• Dividend Yield: N/A
• Average Volume (3M): 108.12K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.29
• Revenue Growth: 5.54%
• EPS Growth: -512.01%
• Country: JP
• Employees: 276
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): -0.72
• Shares Outstanding: 8,277,240
• 10 Day Avg. Volume: 58,610
• 30 Day Avg. Volume: 108,116
• PEG Ratio: -0.03
• Price to Book (P/B): 1.12
• Price to Sales (P/S): 0.12
• P/FCF Ratio: 10.80
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ¥587.00 ▼(-3.14% Downside)

The stock score is primarily influenced by the company's stable financial base and positive technical indicators, despite profitability challenges and valuation concerns. The absence of earnings call insights and corporate events means these factors do not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a solid demand for the company's services, suggesting a stable market position and potential for future expansion.

Cash Flow Management

Enhanced cash flow management supports operational flexibility and investment in growth initiatives, strengthening long-term business sustainability.

Stable Financial Base

A strong equity ratio indicates financial stability, providing a buffer against economic downturns and supporting strategic investments.

Negative Factors

Profitability Challenges

Ongoing profitability issues could hinder reinvestment in business operations and limit competitive positioning over the long term.

Low Operational Efficiency

Low operational efficiency may lead to higher costs and reduced competitiveness, impacting the company's ability to scale profitably.

Negative Return on Equity

A negative return on equity indicates that the company is not generating sufficient returns on shareholder investments, which could deter future investment.

GENERATION PASS CO. LTD. Business Overview & Revenue Model

Company Description

GENERATION PASS CO. LTD. (3195) is a leading provider of digital payment solutions and loyalty programs in the retail and service sectors. The company specializes in developing innovative technologies that enhance customer engagement and streamline transaction processes for businesses. Its core offerings include a range of mobile wallet services, loyalty card systems, and integrated payment processing solutions designed to meet the evolving needs of consumers and merchants alike.

How the Company Makes Money

GENERATION PASS CO. LTD. generates revenue primarily through transaction fees charged to businesses for processing payments made via its platform. Additionally, the company earns income from subscription fees for premium features of its loyalty programs and mobile wallet services. Significant partnerships with retail chains and service providers enhance its market reach and customer base, thereby driving user engagement and transaction volumes. Furthermore, the company may also explore revenue opportunities through data analytics services, offering insights derived from transaction data to help businesses optimize their operations and marketing strategies.

GENERATION PASS CO. LTD. Financial Statement Overview

Summary

The company exhibits revenue growth but struggles with profitability, as indicated by negative net profit margins and net losses. The balance sheet is stable with a solid equity ratio and manageable leverage, while cash flow management shows improvement despite negative net income.

Income Statement

The company has shown a modest revenue growth of 7.16% from the previous year. However, the net profit margin is negative due to a net loss. The gross profit margin stands at 26.27%, indicating moderate profitability at the gross level. EBIT margin is very low at 0.50%, reflecting challenges in operational efficiency. Overall, the income statement shows growth but with profitability challenges.

Balance Sheet

The company maintains a solid equity ratio of 39.09%, suggesting a stable financial base. The debt-to-equity ratio is 0.54, indicating a moderate level of leverage which is manageable. However, the negative return on equity highlights profitability issues, as net losses have been recorded. The balance sheet reflects stability but with profitability concerns.

Cash Flow

Free cash flow has increased significantly, reflecting improved cash generation capabilities. The operating cash flow to net income ratio is positive, indicating effective cash flow management despite net losses. However, the free cash flow to net income ratio is negative due to the negative net income, which is a concern for long-term sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.59B	16.24B	15.15B	15.98B	13.22B	12.60B
Gross Profit	4.50B	4.27B	4.02B	4.05B	3.67B	3.42B
EBITDA	115.61M	24.20M	168.82M	487.51M	72.45M	294.92M
Net Income	-70.65M	-138.79M	-23.33M	343.68M	-90.04M	112.22M
Balance Sheet
Total Assets	4.84B	4.52B	4.42B	4.64B	3.60B	3.71B
Cash, Cash Equivalents and Short-Term Investments	1.03B	1.25B	1.10B	1.35B	792.18M	1.27B
Total Debt	1.31B	959.19M	919.65M	1.02B	609.48M	633.23M
Total Liabilities	3.02B	2.75B	2.51B	2.64B	1.94B	1.98B
Stockholders Equity	1.82B	1.77B	1.88B	1.98B	1.65B	1.72B
Cash Flow
Free Cash Flow	0.00	183.40M	36.15M	88.99M	-501.27M	637.69M
Operating Cash Flow	0.00	261.26M	119.28M	177.51M	-432.32M	764.89M
Investing Cash Flow	0.00	78.48M	-319.92M	-87.34M	-71.09M	-111.91M
Financing Cash Flow	0.00	10.32M	-236.98M	401.08M	-23.75M	56.85M

GENERATION PASS CO. LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 606.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3195, the sentiment is Positive. The current price of 606 is above the 20-day moving average (MA) of 588.95, above the 50-day MA of 508.16, and above the 200-day MA of 450.93, indicating a bullish trend. The MACD of 15.46 indicates Positive momentum. The RSI at 58.95 is Neutral, neither overbought nor oversold. The STOCH value of 61.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3195.

GENERATION PASS CO. LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3177	80 Outperform	¥3.11B	6.88	―	3.61%	5.53%	9.08%
3192	73 Outperform	¥1.63B	3.12	―	―	0.06%	―
3181	66 Neutral	¥3.09B	10.03	―	1.12%	24.10%	-15.55%
3195	64 Neutral	¥5.71B	-80.95	―	―	5.54%	-512.01%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3138	58 Neutral	¥3.52B	59.92	―	1.46%	2.88%	-69.65%
3185	50 Neutral	¥4.33B	-13.55	―	―	-11.07%	27.85%