GREE (3632) AI Stock Analysis

• Market Cap: $71.64B
• Dividend Yield: 2.09%
• Average Volume (3M): 556.04K
• Price to Earnings (P/E): 17.5
• 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): 6.29
• 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: 0.43
• Enterprise Value/Revenue: 0.54
• Enterprise Value/Gross Profit: 1.06
• Enterprise Value/Ebitda: 7.49
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 26.9
• Revenue Forecast (FY): $59.50B

• Rating: 54 Neutral
• Price Target: ¥458.00 ▲(13.65% 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., 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	TTM	Dec 2025	Dec 2023	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	57.11B	57.11B	75.44B	61.31B	74.91B	56.77B
Gross Profit	29.21B	29.21B	46.61B	34.24B	44.85B	31.55B
EBITDA	4.14B	4.14B	13.15B	7.68B	15.27B	14.24B
Net Income	1.20B	1.19B	9.28B	4.63B	10.12B	13.53B
Balance Sheet
Total Assets	132.90B	132.90B	124.81B	128.79B	116.73B	141.39B
Cash, Cash Equivalents and Short-Term Investments	104.61B	104.61B	69.87B	71.89B	76.84B	94.82B
Total Debt	25.70B	25.70B	15.70B	16.70B	8.00B	8.00B
Total Liabilities	39.25B	39.25B	32.26B	33.26B	25.80B	21.18B
Stockholders Equity	93.53B	93.53B	92.50B	95.43B	90.88B	120.16B
Cash Flow
Free Cash Flow	0.00	668.00M	4.16B	3.36B	11.87B	1.72B
Operating Cash Flow	0.00	674.00M	4.59B	3.50B	13.22B	1.77B
Investing Cash Flow	0.00	312.00M	-439.00M	-23.00M	-5.30B	1.90B
Financing Cash Flow	0.00	6.02B	3.26B	-999.00M	-37.52B	-4.01B

GREE Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 403.00
• 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 Positive. The current price of 403 is above the 20-day moving average (MA) of 402.10, below the 50-day MA of 404.40, and below the 200-day MA of 470.53, indicating a neutral trend. The MACD of -1.24 indicates Negative momentum. The RSI at 49.41 is Neutral, neither overbought nor oversold. The STOCH value of 47.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3632.

GREE Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7803	67 Neutral	¥43.00B	8.16	―	0.74%	22.82%	811.76%
3765	64 Neutral	¥132.64B	30.98	3.38%	2.38%	-3.12%	-63.07%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
3932	60 Neutral	¥37.86B	18.12	―	4.06%	-15.30%	39.61%
4393	58 Neutral	¥23.27B	18.56	―	―	-9.17%	51.84%
3632	54 Neutral	$71.64B	17.50	4.14%	2.09%	-2.61%	116.80%
3903	46 Neutral	¥17.60B	6.14	―	―	-37.68%	―

GREE Corporate Events

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.

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.