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GREE (JP:3632)
:3632
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GREE
(OTC:3632)
Rating:63Neutral
Price Target:
¥510.00
▲(6.47%Upside)
GREE (3632) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥85.79B
Dividend Yield3.03%
Average Volume (3M)263.07K
Price to Earnings (P/E)35.2
Beta (1Y)0.38
Revenue Growth-14.96%
EPS Growth-72.07%
CountryJP
Employees1,580
SectorCommunication Services
Sector Strength87
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)-0.32
Shares Outstanding179,749,700
10 Day Avg. Volume207,030
30 Day Avg. Volume263,066
Financial Highlights & Ratios
PEG Ratio-0.67
Price to Book (P/B)0.88
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥561.62Price Target Upside17.25% Upside
Rating ConsensusHold
Number of Analyst Covering0
GREE Business Overview & Revenue Model
Company DescriptionGREE, 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 MoneyGREE 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 Earnings Call Summary
Earnings Call Date:May 09, 2025
(Q1-2025)
| % Change Since: -6.13%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture, with strong growth in the Metaverse and VTuber businesses counterbalanced by significant challenges in the Investment and Game and Anime businesses, as well as foreign exchange losses.Q1-2025 Updates
Positive Updates
Strong Start for Heaven Burns Red
The Chinese version of Heaven Burns Red had a strong start, contributing positively to the Game and Anime business.
Metaverse Business Growth
The Metaverse business continued its growth with sales and profit increasing quarter-on-quarter, driven by live streaming and the VTuber business.
Solid Performance in the DX Business
The DX business achieved steady sales and operating profit, aligning with forecasts despite challenging conditions.
VTuber Business Expansion
The VTuber business expanded its talent pool by 12 VTubers and saw a 71% year-on-year increase in sales, indicating strong growth.
Continuous Growth Strategy
The company continues to focus on long-term growth, especially in the Metaverse and DX businesses, with a targeted CAGR of 120% to 140%.
Negative Updates
Operating Loss in Investment Business
The Investment business posted an operating loss of JPY 0.81 billion, primarily due to valuation losses and low dividend distributions.
Foreign Exchange Losses
The company faced foreign exchange losses of approximately JPY 1.4 billion due to yen appreciation, impacting ordinary and net profit.
Decline in Game and Anime Business
Sales and profit in the Game and Anime business declined quarter-on-quarter and year-on-year due to increased costs and development stages of titles.
Continued Losses in aumo Business
The aumo business remained in the red at the operating level due to declining sales and challenging market conditions.
High Volatility in Investment Business
The Investment business experienced high volatility with realized losses and write-downs amounting to JPY 0.4 billion.
Company Guidance
During the earnings call for GREE, Inc.'s Q1 2025 results, several key financial metrics were highlighted. The company reported net sales of JPY 12.9 billion, an operating loss of JPY 0.1 billion, and a negative EBITDA of JPY 0.1 billion. In the Investment business, GREE faced an operating loss of JPY 0.8 billion largely due to valuation losses, while the Game and Anime, Metaverse, and DX businesses exceeded expectations. The company also incurred foreign exchange losses of approximately JPY 1.4 billion, impacting ordinary and net profits. Despite these challenges, the Metaverse and DX businesses are targeted for stable growth with a CAGR of 120% to 140%, while the Game and Anime business is positioned for long-term investment. Looking forward, GREE anticipates Q-on-Q growth in sales and profit for the Game and Anime business in the second quarter, supported by anniversary events for key titles.GREE Financial Statement Overview
Summary
The company demonstrates solid profitability and a robust balance sheet, with a strong equity ratio and low debt. However, challenges include declining revenue growth and cash flow issues, posing potential liquidity risks.Income Statement
The company shows strong profitability with a gross profit margin of 54.47% and a net profit margin of 8.14% in TTM. However, the revenue has decreased by 2.46% from the last annual report, indicating potential challenges in growth. Despite this, the EBIT margin of 10.13% and EBITDA margin of 10.57% reflect efficient operations.74
Positive
Balance Sheet
The balance sheet is strong with a healthy equity ratio of 74.26% and a low debt-to-equity ratio of 0.18, which indicates low leverage and strong financial stability. The return on equity is moderate at 5.20%, suggesting room for enhanced profitability.82
Very Positive
Cash Flow
The cash flow statement indicates challenges with no operating or free cash flow reported in the TTM period. Historical data shows a decline in free cash flow from the previous year, highlighting potential liquidity issues. The free cash flow to net income ratio is not calculable due to zero free cash flow.61
Positive
| Breakdown | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 61.31B | 75.44B | 74.91B | 56.77B | 62.66B |
| Gross Profit | 34.24B | 46.61B | 44.85B | 31.55B | 34.06B |
| EBITDA | 7.68B | 12.83B | 12.12B | 6.20B | 6.75B |
| Net Income | 4.63B | 9.28B | 10.12B | 13.53B | 2.71B |
Balance Sheet | |||||
| Total Assets | 128.79B | 124.81B | 116.73B | 141.39B | 126.49B |
| Cash, Cash Equivalents and Short-Term Investments | 71.89B | 69.87B | 76.84B | 94.82B | 87.02B |
| Total Debt | 16.70B | 15.70B | 8.00B | 8.00B | 150.00M |
| Total Liabilities | 33.26B | 32.26B | 25.80B | 21.18B | 13.09B |
| Stockholders Equity | 95.43B | 92.50B | 90.88B | 120.16B | 113.36B |
Cash Flow | |||||
| Free Cash Flow | 3.36B | 4.16B | 11.87B | 1.72B | 1.71B |
| Operating Cash Flow | 3.50B | 4.59B | 13.22B | 1.77B | 2.03B |
| Investing Cash Flow | -23.00M | -439.00M | -5.30B | 9.29B | 4.20B |
| Financing Cash Flow | -999.00M | 3.26B | -37.52B | -4.01B | -3.75B |
GREE Technical Analysis
Negative
479.00
Price Trends
498.51
Negative
514.19
Negative
483.00
Negative
Market Momentum
-5.05
Positive
41.15
Neutral
61.97
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 479 is below the 20-day moving average (MA) of 493.22, below the 50-day MA of 498.51, and below the 200-day MA of 483.00, indicating a bearish trend. The MACD of -5.05 indicates Positive momentum. The RSI at 41.15 is Neutral, neither overbought nor oversold. The STOCH value of 61.97 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
Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $151.71B | 18.00 | 6.97% | 2.14% | -17.33% | -28.64% | |
69 Neutral | ¥46.19B | 85.62 | ― | -18.69% | -48.21% | ||
66 Neutral | ¥375.24B | 14.94 | 2.24% | 2.50% | 5.43% | -14.83% | |
63 Neutral | ¥42.54B | 25.84 | 3.22% | -1.33% | 5.97% | ||
63 Neutral | ¥85.79B | 35.23 | 2.39% | 3.03% | -14.96% | -72.07% | |
48 Neutral | ¥32.12B | 15.81 | ― | -12.61% | -314.92% | ||
47 Neutral | ¥47.84B | 18.40 | 0.69% | 13.49% | 233.58% |
* Communication Services Sector Average
Performance Comparison
JP:3632
GREE
479.00
-49.77
-9.41%
JP:3903
gumi, Inc.
622.00
289.00
86.79%
JP:3932
Akatsuki, Inc.
2,926.00
561.65
23.75%
JP:4393
Bank of Innovation, Inc.
11,870.00
6,580.00
124.39%
JP:7803
Bushiroad, Inc.
653.00
261.40
66.75%
JP:3765
Gungho Online Entertainment
2,773.00
-86.50
-3.03%
GREE Corporate Events
GREE Holdings Revises Dividend Forecast with Commemorative Addition
May 9, 2025
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
May 9, 2025
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
May 9, 2025
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.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.