GREE (3632) AI Stock Analysis

• Market Cap: ¥72.54B
• Dividend Yield: 2.17%
• Average Volume (3M): 313.72K
• Price to Earnings (P/E): 58.1
• Beta (1Y): 0.36
• 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): 6.29
• Shares Outstanding: 179,749,700
• 10 Day Avg. Volume: 319,560
• 30 Day Avg. Volume: 313,720
• 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: 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 ▲(11.71% Upside)

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. (3632) is a Japanese company specializing in the development and publishing of mobile games and online services. Founded in 2004, GREE operates primarily in the mobile gaming sector, offering a diverse portfolio of games across various genres, including social games and role-playing games. The company also engages in the development of game-related technologies and provides a platform for game developers to publish their titles. GREE has expanded its business to include investments in gaming studios and partnerships with other developers to enhance its offerings.

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 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: 410.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• 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 410 is below the 20-day moving average (MA) of 412.05, below the 50-day MA of 435.10, and below the 200-day MA of 486.25, indicating a bearish trend. The MACD of -10.28 indicates Negative momentum. The RSI at 27.65 is Positive, neither overbought nor oversold. The STOCH value of 27.56 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	65 Neutral	$142.28B	25.10	4.72%	2.30%	-9.67%	-56.16%
3932	63 Neutral	¥38.22B	50.95	―	4.19%	-10.86%	-64.25%
4393	62 Neutral	¥29.30B	33.51	―	―	-13.60%	5.59%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
3632	54 Neutral	¥72.54B	58.07	1.24%	2.17%	-6.85%	-74.31%
7803	49 Neutral	¥41.71B	11.75	―	0.78%	21.43%	337.58%
3903	47 Neutral	¥21.91B	6.25	―	―	-39.08%	―

GREE Corporate Events

GREE Holdings Affirms Independence Amid Majority Stake by Sequoia, Inc.

GREE Holdings, Inc. announced details about its controlling shareholder, Sequoia, Inc., which holds 53.55% of the company’s voting rights. Despite this significant stake, GREE maintains operational independence with a majority of independent directors on its board, ensuring that its management decisions are made independently. The company emphasizes protecting minority shareholders by ensuring fair and appropriate business relationships in transactions with its controlling shareholder.

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 Announces Director Reappointments Ahead of Shareholder Meeting

GREE Holdings, Inc. announced the proposed reappointment of several directors at its upcoming general meeting of shareholders, scheduled for September 29, 2025. This decision reflects the company’s commitment to maintaining continuity in its leadership team, which may impact its strategic direction and reassure stakeholders about its stability and governance.

The most recent analyst rating on (JP:3632) stock is a Hold with a Yen525.00 price target. To see the full list of analyst forecasts on GREE stock, see the JP:3632 Stock Forecast page.

GREE Holdings Revises Executive Compensation to Align with Performance and Shareholder Value

GREE Holdings, Inc. announced a revision to its executive compensation system, aiming to align director compensation more closely with company performance and shareholder value. The new system, pending shareholder approval, emphasizes a balanced compensation structure with a focus on performance-linked incentives and stock compensation to ensure fairness, competitiveness, and alignment with shareholder interests.

The most recent analyst rating on (JP:3632) stock is a Hold with a Yen525.00 price target. To see the full list of analyst forecasts on GREE stock, see the JP:3632 Stock Forecast page.

GREE Holdings Reports Decline in Fiscal Year 2025 Financial Results

GREE Holdings, Inc. reported a decline in both consolidated and non-consolidated financial results for the fiscal year ending June 30, 2025, compared to the previous year. The decrease in profits was attributed to foreign exchange losses and a transition to a holding company structure, which led to reduced net sales and dividends from subsidiaries, despite an increase in operating income due to lower operating expenses.

GREE Holdings Reports Decline in Financial Performance and Suspends Earnings Forecast

GREE Holdings, Inc. reported a decline in its financial performance for the fiscal year ended June 30, 2025, with significant decreases in net sales, operating profit, and profit attributable to shareholders. The company also announced a reduction in dividends and highlighted the challenges posed by rapid changes in the business environment, leading to the suspension of its earnings forecast for the next fiscal year.