G-FACTORY Co., Ltd. (3474) AI Stock Analysis

• Market Cap: ¥3.57B
• Dividend Yield: N/A
• Average Volume (3M): 3.48K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.38
• Revenue Growth: 3.36%
• EPS Growth: -430.12%
• Country: JP
• Employees: 340
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): -6.37
• Shares Outstanding: 6,839,000
• 10 Day Avg. Volume: 3,370
• 30 Day Avg. Volume: 3,483
• PEG Ratio: 0.64
• Price to Book (P/B): 3.36
• Price to Sales (P/S): 0.61
• P/FCF Ratio: -29.31
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: ¥530.00 ▼(-12.11% Downside)
• Action: Reiterated Date: 03/24/26
• Date: Action: Reiterated 03/24/26

The score is driven primarily by weak financial performance: sustained losses and a sharp deterioration in 2025 cash flow outweigh multi-year revenue growth and only moderate leverage. Technicals are also soft with the stock trading below key moving averages and a negative MACD. Valuation offers limited support because the company is loss-making and no dividend yield is available.

Positive Factors

Strong revenue growth

Sustained top-line expansion since 2021 indicates solid demand for the company’s restaurant-opening and support services. Durable revenue growth improves scale economics, broadens client relationships, and gives management runway to focus on margin recovery and operational improvements over the coming 2–6 months.

High gross margins

Consistently mid-to-high 40% gross margins provide a structural cushion to absorb fixed costs and support path-to-profitability. If the company controls SG&A and realizes operating leverage as revenue scales, these margins make sustainable profitability and stronger cash conversion achievable over a multi-month horizon.

Fee-based recurring model

A fee-based model with recurring operational support creates predictable revenue streams and client stickiness. This structural revenue characteristic reduces customer churn sensitivity, supports steady cash inflows, and enables upsell and cross-sell opportunities as restaurant chains expand their portfolios.

Negative Factors

Persistent operating losses

Multi-year operating losses despite robust revenue signal structural issues in cost structure, scale economics or recurring one-time charges. Ongoing losses erode retained earnings, reduce reinvestment capacity, and can force reliance on external capital, weighing on strategic flexibility over the next several months.

Weakening cash generation

The recent reversal to negative operating and free cash flow indicates volatile cash conversion and raises near-term funding risk. Sustained negative cash generation can necessitate external financing or asset sales, limiting investment in growth and making operations more vulnerable to market or demand shocks.

Eroding shareholder equity

Declining equity and negative ROE reflect accumulated losses that reduce the company’s financial buffer. A weakened balance sheet constrains borrowing capacity, increases refinancing and covenant risk, and reduces resilience to adverse events, hampering strategic initiatives in the medium term.

G-FACTORY Co., Ltd. Business Overview & Revenue Model

Company Description

G-Factory Co.,Ltd. engages in the provision of management support services for restaurants. The company also manages restaurants. It serves companies that are developing store-type services, such as restaurants. The company was incorporated in 2003 and is headquartered in Tokyo, Japan.

How the Company Makes Money

The company makes money mainly by charging fees for services provided to restaurant operators and related clients. Key revenue streams are understood to include (1) fees associated with supporting restaurant store openings (e.g., store development and opening support services) and (2) ongoing fees tied to operational support provided after opening. Specific breakdowns by segment, pricing structure (e.g., success fees vs. recurring fees), the share of revenue from each stream, and any material partnerships or major customers are null.

G-FACTORY Co., Ltd. Financial Statement Overview

Summary

Revenue has grown materially over multiple years, but profitability has deteriorated with net losses in 2023–2025 and negative operating profit in 2023–2025. Cash flow weakened notably in 2025 with negative operating cash flow and meaningfully negative free cash flow, while leverage is moderate but equity has declined and ROE has been negative for three years.

Income Statement

Revenue has scaled materially over the last several years (from ~¥4.0B in 2020 to ~¥6.5B in 2025), including a strong 2025 growth rate. However, profitability has deteriorated versus the 2021–2022 period: the company moved from positive net income in 2021–2022 to net losses in 2023–2025. While gross margin has stayed relatively steady in the high-40% range, operating profitability is weak (negative operating profit in 2023–2025 and a low EBITDA margin in 2025), indicating cost pressure and limited operating leverage.

Balance Sheet

Leverage looks moderate for the profile, with debt running at roughly two-thirds of equity in recent years (debt-to-equity ~0.65–0.68 in 2022–2025), and total assets have remained sizable. That said, equity has trended down since 2022, and returns on equity have been negative for three consecutive years (2023–2025), reflecting ongoing losses and reduced balance-sheet productivity.

Cash Flow

Cash generation is volatile and has weakened recently. Operating cash flow was solid in 2021–2024, but turned slightly negative in 2025, and free cash flow swung from positive in 2024 to meaningfully negative in 2025. The pattern suggests inconsistent cash conversion and higher cash outflows (likely working capital and/or investment needs), which increases financing risk if profitability does not stabilize.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.39B	6.47B	6.35B	5.60B	4.74B	3.64B
Gross Profit	3.05B	3.06B	3.06B	2.63B	2.21B	1.60B
EBITDA	-75.98M	142.40M	252.00M	188.62M	624.33M	618.40M
Net Income	-586.91M	-251.68M	-332.89M	-194.00M	271.49M	292.94M
Balance Sheet
Total Assets	4.16B	3.97B	4.37B	4.56B	4.88B	4.67B
Cash, Cash Equivalents and Short-Term Investments	1.26B	1.23B	1.45B	1.50B	2.22B	2.24B
Total Debt	860.81M	780.74M	937.71M	1.12B	1.29B	1.52B
Total Liabilities	2.81B	2.79B	2.90B	2.83B	2.98B	3.13B
Stockholders Equity	1.33B	1.17B	1.45B	1.71B	1.89B	1.53B
Cash Flow
Free Cash Flow	0.00	-134.26M	70.30M	-398.00M	17.87M	282.79M
Operating Cash Flow	0.00	-7.32M	248.34M	96.64M	533.45M	543.51M
Investing Cash Flow	0.00	-73.57M	-160.98M	-504.00M	-468.13M	-35.02M
Financing Cash Flow	0.00	-151.44M	-180.93M	-234.00M	-256.35M	-98.12M

G-FACTORY Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 603.00
• 50DMA: Negative
• 100DMA: Negative
• 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:3474, the sentiment is Negative. The current price of 603 is above the 20-day moving average (MA) of 552.05, above the 50-day MA of 565.82, and below the 200-day MA of 604.72, indicating a neutral trend. The MACD of -5.27 indicates Negative momentum. The RSI at 45.14 is Neutral, neither overbought nor oversold. The STOCH value of 61.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3474.

G-FACTORY Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
2980	64 Neutral	¥41.20B	9.84	―	0.45%	-8.33%	-36.89%
3252	62 Neutral	¥68.48B	8.53	―	2.89%	-3.09%	-35.66%
2991	59 Neutral	¥13.53B	6.93	―	1.47%	20.82%	9.86%
5532	56 Neutral	¥15.81B	5.83	―	―	23.19%	44.46%
5527	49 Neutral	¥8.57B	7.29	―	3.45%	28.82%	672.17%
3474	44 Neutral	¥3.57B	-15.63	―	―	3.36%	-430.12%