GREE (3632) AI Stock Analysis

• Market Cap: ¥70.92B
• Dividend Yield: 2.09%
• Average Volume (3M): 556.04K
• Price to Earnings (P/E): 46.2
• Beta (1Y): 0.36
• Revenue Growth: -2.61%
• EPS Growth: 116.80%
• Country: JP
• Employees: 1,580
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): N/A
• Shares Outstanding: 179,749,700
• 10 Day Avg. Volume: 777,270
• 30 Day Avg. Volume: 556,043
• PEG Ratio: -1.01
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 1.56
• P/FCF Ratio: 133.52
• 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: 54 Neutral
• Price Target: ¥458.00 ▲(10.90% Upside)
• Action: Reiterated Date: 10/30/25
• Date: Action: Reiterated 10/30/25

The overall stock score is primarily impacted by financial performance challenges and bearish technical indicators. The strong balance sheet provides some stability, but the high P/E ratio and negative market momentum weigh heavily on the score.

GREE Business Overview & Revenue Model

Company Description

GREE, Inc., a technology company, engages in the online media business in Japan and internationally. The company offers various mobile social games; and develops and operates titles on the Nintendo Switch and Facebook Messenger. It also engages in the live entertainment business specializing in the virtual YouTuber (VTuber). The company discovers, produces, and manages VTubers; creates and distributes video programs of VTubers; develops and publishes platforms; and provides studio systems, as well as offers financial support for creators and start-ups. In addition, the company operates MINE, an online video magazine that features women's fashion, beauty, and lifestyle topics; LIMIA, an online magazine that features home and living lifestyle content; ARINE, an online magazine for young women; and aumo, an online lifestyle magazine. Further, it provides solutions for online advertising and marketing business; and invests in Internet business related technology services companies. GREE, Inc. was founded in 2004 and is headquartered in Tokyo, Japan.

How the Company Makes Money

GREE generates revenue primarily through in-game purchases and advertising within its mobile games. The company's revenue model is heavily reliant on the freemium model, where games are offered for free but players can purchase virtual goods and enhancements. Additionally, GREE earns money through partnerships and collaborations with other game developers, allowing it to publish and promote third-party titles on its platform, thereby earning a share of the revenue. The company also explores monetization through advertising by integrating ad placements in its games, which provides another significant revenue stream.

GREE Financial Statement Overview

Summary

The company faces revenue and profit challenges with declining margins and growth rates. Despite this, the balance sheet is strong with low leverage, providing financial stability. Cash flow generation is a concern, but cash conversion relative to net income is efficient.

Income Statement

The income statement shows a declining revenue trend with a -4.5% growth rate in the latest year, indicating potential challenges in maintaining market share or product demand. Gross profit margin remains healthy at approximately 51.1%, but net profit margin has decreased significantly to 2.1%, reflecting reduced profitability. EBIT and EBITDA margins have also declined, suggesting operational inefficiencies or increased costs.

Balance Sheet

The balance sheet reflects a strong equity position with a debt-to-equity ratio of 0.27, indicating low leverage and financial stability. Return on equity is modest at 1.3%, suggesting limited returns on shareholders' investments. The equity ratio is robust at 70.4%, highlighting a solid capital structure.

Cash Flow

Cash flow analysis reveals a significant decline in free cash flow growth, although operating cash flow remains positive. The operating cash flow to net income ratio is low, indicating potential challenges in converting income into cash. The free cash flow to net income ratio is strong, suggesting efficient cash generation relative to net income.

Breakdown	Jun 2025	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	57.11B	61.31B	74.91B	56.77B	62.66B
Gross Profit	29.21B	34.24B	44.85B	31.55B	34.06B
EBITDA	4.14B	7.68B	15.27B	14.24B	6.75B
Net Income	1.19B	4.63B	10.12B	13.53B	2.71B
Balance Sheet
Total Assets	132.90B	128.79B	116.73B	141.39B	126.49B
Cash, Cash Equivalents and Short-Term Investments	104.61B	71.89B	76.84B	94.82B	87.02B
Total Debt	25.70B	16.70B	8.00B	8.00B	150.00M
Total Liabilities	39.25B	33.26B	25.80B	21.18B	13.09B
Stockholders Equity	93.53B	95.43B	90.88B	120.16B	113.36B
Cash Flow
Free Cash Flow	668.00M	3.36B	11.87B	1.72B	1.71B
Operating Cash Flow	674.00M	3.50B	13.22B	1.77B	2.03B
Investing Cash Flow	312.00M	-23.00M	-5.30B	1.90B	4.20B
Financing Cash Flow	6.02B	-999.00M	-37.52B	-4.01B	-3.75B

GREE Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 413.00
• 50DMA: Negative
• 100DMA: Negative
• 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:3632, the sentiment is Negative. The current price of 413 is above the 20-day moving average (MA) of 387.15, above the 50-day MA of 399.46, and below the 200-day MA of 441.89, indicating a bearish trend. The MACD of -5.46 indicates Positive momentum. The RSI at 43.99 is Neutral, neither overbought nor oversold. The STOCH value of 30.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3632.

GREE Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2432	74 Outperform	¥293.83B	11.73	17.98%	2.52%	34.16%	―
2121	69 Neutral	¥176.26B	10.15	9.54%	4.61%	1.14%	77.07%
3765	61 Neutral	¥139.19B	99.65	3.38%	2.38%	-3.12%	-63.07%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
3632	54 Neutral	¥70.92B	46.19	4.14%	2.09%	-2.61%	116.80%
3903	46 Neutral	¥17.96B	5.89	―	―	-37.68%	―
3656	45 Neutral	¥26.12B	-4.24	―	―	-14.71%	-38.87%

GREE Corporate Events

GREE Discloses Fiscal 2025 Financial Position of Unlisted Parent Sequoia Inc.

GREE Holdings, Inc. announced that Sequoia Inc., its unlisted parent company, has finalized its financial results for the fiscal year ended September 30, 2025, disclosing a detailed balance sheet. Sequoia Inc., a Tokyo-based investment company led by Yoshikazu Tanaka, operates in venture capital, real estate, and securities investment, and reported total assets of ¥88.5 billion, supported largely by non-current assets including significant holdings in subsidiaries and associates, alongside substantial short-term and long-term borrowings on the liability side. The newly disclosed figures provide greater transparency into the financial position and leverage of GREE’s parent, offering stakeholders additional insight into the broader corporate structure and capital backing behind the listed entity.

The most recent analyst rating on (JP:3632) stock is a Hold with a Yen458.00 price target. To see the full list of analyst forecasts on GREE stock, see the JP:3632 Stock Forecast page.

GREE Holdings Reports Positive Turnaround Despite Market Challenges

GREE Holdings, Inc. reported its consolidated financial results for the three months ended September 30, 2025, showing a slight decrease in net sales compared to the previous year. Despite this, the company achieved a positive turnaround in operating and ordinary profits, as well as profit attributable to shareholders, indicating a recovery from the losses experienced in the same period last year. The company has suspended its earnings forecast due to rapid changes in the business environment affecting its investment business, highlighting the challenges posed by market conditions.

The most recent analyst rating on (JP:3632) stock is a Hold with a Yen458.00 price target. To see the full list of analyst forecasts on GREE stock, see the JP:3632 Stock Forecast page.