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

• Market Cap: ¥3.20B
• Dividend Yield: N/A
• Average Volume (3M): 108.12K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.11
• 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: ¥472.00
• Price Target Upside: 19.80% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 55 Neutral
• Price Target: ¥472.00 ▲(19.80% Upside)

The overall stock score is primarily influenced by financial performance and technical analysis. While the company shows revenue growth and stable financials, profitability challenges and negative valuation metrics weigh heavily on the score. Technical indicators suggest a lack of strong momentum, further impacting the stock's attractiveness.

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 positive revenue growth, but profitability is a concern with consistent net losses. The balance sheet is stable with a solid equity ratio and manageable leverage. Cash flow management is improving, but negative net income affects overall cash flow health.

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	16.36B	16.24B	15.15B	15.98B	13.22B	12.60B
Gross Profit	4.26B	4.27B	4.02B	4.05B	3.67B	3.42B
EBITDA	55.66M	24.20M	168.82M	487.51M	72.45M	294.92M
Net Income	-40.20M	-138.79M	-23.33M	343.68M	-90.04M	112.22M
Balance Sheet
Total Assets	4.70B	4.52B	4.42B	4.64B	3.60B	3.71B
Cash, Cash Equivalents and Short-Term Investments	943.17M	1.25B	1.10B	1.35B	792.18M	1.27B
Total Debt	1.08B	959.19M	919.65M	1.02B	609.48M	633.23M
Total Liabilities	2.86B	2.75B	2.51B	2.64B	1.94B	1.98B
Stockholders Equity	1.83B	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: Negative
• Last Price: 394.00
• 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:3195, the sentiment is Negative. The current price of 394 is below the 20-day moving average (MA) of 446.35, below the 50-day MA of 479.88, and below the 200-day MA of 411.89, indicating a bearish trend. The MACD of -18.71 indicates Positive momentum. The RSI at 33.48 is Neutral, neither overbought nor oversold. The STOCH value of 17.19 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥3.08B	6.82	―	3.73%	5.53%	9.08%
3138	77 Outperform	¥3.31B	53.65	―	1.53%	1.26%	-74.85%
3181	77 Outperform	¥3.41B	11.08	―	1.08%	24.10%	-15.55%
3192	71 Outperform	¥1.72B	3.30	―	―	0.06%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3195	55 Neutral	¥3.20B	―	―	―	5.54%	-512.01%
3185	52 Neutral	¥4.24B	―	―	―	-3.81%	39.21%