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

• Market Cap: ¥3.69B
• Dividend Yield: N/A
• Average Volume (3M): 2.12K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.28
• Revenue Growth: 8.81%
• EPS Growth: -174.00%
• Country: JP
• Employees: 340
• Sector: Real Estate
• Sector Strength: 62
• Industry: Real Estate - Services
• EPS (TTM): -17.18
• Shares Outstanding: 6,816,500
• 10 Day Avg. Volume: 1,830
• 30 Day Avg. Volume: 2,123
• PEG Ratio: 0.05
• Price to Book (P/B): 2.59
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• Rating: 53 Neutral
• Price Target: ¥576.00 ▲(1.23%Upside)

G-FACTORY Co., Ltd. shows some financial resilience with revenue growth and improved cash flow management. However, the lack of profitability and negative P/E ratio weigh heavily on the stock's valuation. Technical indicators provide a mixed outlook with no strong trend direction. The absence of earnings call insights and corporate events left the analysis heavily reliant on financial performance and technicals.

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

Company Description

G-FACTORY Co., Ltd. is a Japan-based company primarily engaged in the restaurant and hospitality sector. The company provides comprehensive support services to restaurant operators including consulting, management, and franchise development. G-FACTORY leverages its expertise to help clients with restaurant site selection, design, and operational strategies, ensuring efficient and profitable business operations.

How the Company Makes Money

G-FACTORY Co., Ltd. generates revenue through a variety of streams within the restaurant and hospitality industry. The company's primary sources of income include consulting fees for operational and strategic advice, management fees for overseeing restaurant operations, and franchise fees from developing and supporting brand franchises. Additionally, G-FACTORY may earn revenue from partnerships with restaurant chains, providing them with expertise in market expansion and operational optimization. The company's extensive experience and industry network enable it to deliver value-added services that contribute significantly to its earnings.

G-FACTORY Co., Ltd. Financial Statement Overview

Summary

G-FACTORY Co., Ltd. demonstrates resilience with growth in revenue and improved cash flow management. However, the company faces challenges in achieving profitability, as seen in the negative net income and EBIT. The balance sheet is stable with moderate leverage, supported by a strong cash position. Continued focus on reducing operational inefficiencies and managing expenses will be crucial for future profitability and financial health.

Income Statement

G-FACTORY Co., Ltd. shows a mixed performance in its income statement. The revenue growth has been positive, with a 13.4% increase from 2023 to 2024. However, profitability remains a challenge, as evidenced by a negative net profit margin and EBIT margin for 2024. The gross profit margin stands at 48.2%, which indicates good efficiency in cost management at the gross level, but the negative net profit and EBIT margins highlight struggles with operating expenses or other non-operating costs.

Balance Sheet

The company's balance sheet reflects a solid equity position, with a debt-to-equity ratio of 0.65, indicating moderate leverage. The equity ratio is 33.1%, suggesting a stable capitalization structure. Return on equity is negative due to net losses, which affects overall financial stability. Despite this, the company maintains a healthy cash position, with net debt being negative, showing more cash reserves than debt.

Cash Flow

Cash flow analysis reveals a significant improvement in free cash flow from -398 million to 71 million year-over-year, reflecting better cash management. The operating cash flow to net income ratio is positive, indicating that the company is generating cash even with reported net losses. This suggests that non-cash charges or working capital improvements are beneficial. However, continued net losses pose a risk to sustaining this positive cash flow trajectory in the long term.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
6.35B	5.60B	4.74B	3.64B	3.96B
	Gross Profit
3.06B	2.63B	2.21B	1.60B	1.80B
	EBIT
-20.80M	-39.00M	214.63M	-9.97M	-9.66M
	EBITDA
252.00M	225.00M	385.12M	618.40M	-44.83M
	Net Income Common Stockholders
-332.89M	-194.00M	271.49M	292.94M	-229.08M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.45B	1.50B	2.22B	2.39B	2.06B
	Total Assets
4.37B	4.56B	4.88B	4.67B	4.13B
	Total Debt
937.71M	1.12B	1.29B	1.52B	1.38B
	Net Debt
-516.77M	-381.00M	-834.41M	-717.15M	-467.16M
	Total Liabilities
2.90B	2.83B	2.98B	3.13B	2.72B
	Stockholders Equity
1.45B	1.71B	1.89B	1.53B	1.25B
Cash Flow		Free Cash Flow
71.00M	-398.00M	17.87M	282.79M	185.64M
	Operating Cash Flow
248.34M	96.00M	533.45M	543.51M	224.22M
	Investing Cash Flow
-160.98M	-504.00M	-468.13M	-35.02M	-33.05M
	Financing Cash Flow
-180.93M	-234.00M	-256.35M	-98.12M	563.49M

G-FACTORY Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 569.00
• 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 Positive. The current price of 569 is above the 20-day moving average (MA) of 567.10, below the 50-day MA of 569.54, and below the 200-day MA of 640.35, indicating a neutral trend. The MACD of -1.43 indicates Negative momentum. The RSI at 50.28 is Neutral, neither overbought nor oversold. The STOCH value of 62.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
3521	76 Outperform	¥3.99B	20.85		3.38%	4.64%	99.16%
8996	69 Neutral	¥3.27B	6.00		5.55%	38.27%	172.66%
Sector *	61 Neutral	$2.83B	10.91	0.42%	8438.90%	5.74%	-20.95%
3297	61 Neutral	¥2.87B	10.24		3.65%	9.75%	22.99%
8836	60 Neutral	¥2.78B	―		―	9.74%	1.26%
3474	53 Neutral	¥3.69B	―		―	8.81%	-174.00%
8944	51 Neutral	¥3.95B	―		3.02%	171.68%	-4626.45%