GREE (3632) AI Stock Analysis

• Market Cap: $81.31B
• Dividend Yield: 1.86%
• Average Volume (3M): 297.51K
• Price to Earnings (P/E): 65.1
• Beta (1Y): 0.33
• Revenue Growth: -6.85%
• EPS Growth: -74.31%
• Country: JP
• Employees: 1,580
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 1.72
• Shares Outstanding: 179,749,700
• 10 Day Avg. Volume: 278,470
• 30 Day Avg. Volume: 297,510
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.13
• Enterprise Value/Revenue: 0.18
• Enterprise Value/Gross Profit: 0.35
• Enterprise Value/Ebitda: 2.11
• 1Y Price Target: $458.58
• Price Target Upside: 1.01% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 54 Neutral
• Price Target: ¥458.00 ▲(0.88% Upside)

The overall stock score is primarily influenced by financial performance challenges, including declining revenue and profit margins. Technical analysis indicates bearish momentum, and valuation concerns arise from a high P/E ratio. The strong balance sheet provides some stability, but strategic adjustments are needed to improve growth and profitability.

GREE Business Overview & Revenue Model

Company Description

GREE, Inc. (3632) is a Japanese internet media company primarily known for its involvement in the mobile and social gaming sectors. The company develops and operates a wide range of mobile games, and also owns and manages several social networking services. Additionally, GREE is engaged in the advertising business, leveraging its extensive network to provide advertising solutions. The company is committed to creating enjoyable and engaging experiences for its users through innovative technology and content.

How the Company Makes Money

GREE makes money through several revenue streams, primarily driven by its mobile gaming segment. The company generates revenue from in-game purchases made by users playing its mobile games. This includes the sale of virtual goods, characters, and other digital assets that enhance the gaming experience. Additionally, GREE earns revenue from advertising by leveraging its social networking platforms to host ads for third-party companies, targeting specific user demographics. The company may also engage in strategic partnerships to enhance its service offerings, which can contribute to its earnings. Another part of GREE's revenue model involves licensing its games and technology to other companies, creating additional revenue channels.

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 the company maintains efficient cash conversion relative to net income.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	57.25B	57.11B	61.31B	75.44B	74.91B	56.77B
Gross Profit	30.13B	29.21B	34.24B	46.61B	44.85B	31.55B
EBITDA	4.97B	4.14B	7.68B	13.15B	15.27B	14.24B
Net Income	2.33B	1.19B	4.63B	9.28B	10.12B	13.53B
Balance Sheet
Total Assets	125.80B	132.90B	128.79B	124.81B	116.73B	141.39B
Cash, Cash Equivalents and Short-Term Investments	97.07B	104.61B	71.89B	69.87B	76.84B	94.82B
Total Debt	19.70B	25.70B	16.70B	15.70B	8.00B	8.00B
Total Liabilities	32.78B	39.25B	33.26B	32.26B	25.80B	21.18B
Stockholders Equity	92.91B	93.53B	95.43B	92.50B	90.88B	120.16B
Cash Flow
Free Cash Flow	0.00	668.00M	3.36B	4.16B	11.87B	1.72B
Operating Cash Flow	0.00	674.00M	3.50B	4.59B	13.22B	1.77B
Investing Cash Flow	0.00	312.00M	-23.00M	-439.00M	-5.30B	1.90B
Financing Cash Flow	0.00	6.02B	-999.00M	3.26B	-37.52B	-4.01B

GREE Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 454.00
• 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:3632, the sentiment is Negative. The current price of 454 is equal to the 20-day moving average (MA) of 454.00, below the 50-day MA of 469.72, and below the 200-day MA of 488.11, indicating a neutral trend. The MACD of -2.86 indicates Negative momentum. The RSI at 44.42 is Neutral, neither overbought nor oversold. The STOCH value of 65.18 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
3765	70 Neutral	153.17B	27.02	8.67%	2.12%	-9.67%	-56.16%
3932	63 Neutral	40.45B	53.93	3.97%	3.39%	-10.86%	-64.25%
4393	58 Neutral	34.59B	39.57	20.04%	―	-13.60%	5.59%
3632	54 Neutral	$81.31B	65.10	1.24%	1.86%	-6.85%	-74.31%
3903	51 Neutral	31.70B	9.11	12.16%	―	-39.08%	0.00%
7803	49 Neutral	47.64B	13.46	0.00%	0.67%	21.43%	334.28%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

GREE Corporate Events

GREE Holdings Revises Dividend Forecast with Commemorative Addition

GREE Holdings, Inc. announced a revision of its dividend forecast for the fiscal year ending June 30, 2025, with a total annual dividend expected to be 14.5 yen per share. This includes a 10 yen commemorative dividend celebrating the company’s 20th anniversary, in addition to the ordinary dividend of 4.5 yen per share. The decision reflects GREE’s commitment to providing returns to shareholders while maintaining business growth and stability.

GREE Holdings to Launch New Venture Capital Fund

GREE Holdings, Inc. has announced the establishment of a new investment limited liability partnership, GREE LP Fund JP II, LP, to further its venture capital investments. This strategic move, scheduled for July 2025, aims to bolster startup growth and development with a planned investment of up to ¥2.5 billion. While the initiative is not expected to significantly impact the current fiscal year’s consolidated business results, it reinforces GREE’s commitment to supporting the venture capital ecosystem.

GREE Holdings Reports Decline in Financial Performance Amid Market Challenges

GREE Holdings, Inc. reported a decline in its financial performance for the nine months ending March 31, 2025, with significant drops in net sales, operating profit, and profit attributable to shareholders compared to the previous year. The company has suspended its consolidated earnings forecast due to rapid changes in the business environment affecting its Investment Business, highlighting challenges in market conditions.