GMO Pepabo, Inc. (3633) AI Stock Analysis

• Market Cap: ¥12.20B
• Dividend Yield: 2.4%
• Average Volume (3M): 25.29K
• Price to Earnings (P/E): 15.0
• Beta (1Y): 0.69
• Revenue Growth: 2.75%
• EPS Growth: 25.24%
• Country: JP
• Employees: 338
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 69.52
• Shares Outstanding: 5,468,700
• 10 Day Avg. Volume: 16,420
• 30 Day Avg. Volume: 25,286
• PEG Ratio: -0.07
• Price to Book (P/B): 3.32
• Price to Sales (P/S): 0.73
• P/FCF Ratio: 8.80
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ¥2,469.00 ▲(7.11% Upside)

GMO Pepabo, Inc. receives a strong overall stock score driven by its solid financial performance and positive technical indicators. The company's robust balance sheet and improving profitability provide a stable foundation, while the bullish technical trend supports potential price appreciation. The valuation is reasonable, offering a good balance between growth and income potential. The absence of earnings call and corporate events data does not impact the overall positive outlook.

Positive Factors

Strong Financial Performance

The company's strong financial performance, marked by improving profitability and efficient cost control, indicates a robust business model capable of sustaining growth and competitiveness in the long term.

Healthy Balance Sheet

A healthy balance sheet with a strong equity position and low debt-to-equity ratio provides financial stability, enabling the company to invest in growth opportunities and weather economic downturns effectively.

Improving Profit Margins

The significant improvement in net profit margins reflects successful cost management and operational efficiency, which enhances the company's profitability and competitive edge over time.

Negative Factors

Decreasing Operating Cash Flow

The decrease in operating cash flow, despite remaining positive, could signal potential challenges in cash management, affecting the company's ability to fund operations and growth initiatives sustainably.

Revenue Growth Fluctuations

Fluctuations in revenue growth can indicate market volatility or competitive pressures, potentially impacting the company's ability to maintain consistent growth and market share in the long term.

Potential Cash Flow Alignment Issues

Misalignment between operating cash flow and net income suggests inefficiencies in cash conversion, which may hinder the company's financial flexibility and ability to invest in strategic initiatives.

GMO Pepabo, Inc. Business Overview & Revenue Model

Company Description

GMO Pepabo, Inc. provides consumer-targeted Internet services in Japan. It operates through four segments: Hosting, Ecommerce Support, Customer to Customer (C2C), and Community. The Hosting segment offers consumer domain registration and web hosting services. The Ecommerce Support segment provides ecommerce platform solutions. The C2C segment offers marketplace for handmade products. The Community segment facilitates communication among Internet users through blogging. The company was formerly known as Paperboy&Co., Inc. and changed its name to GMO Pepabo, Inc. in March 2014. The company was founded in 2003 and is headquartered in Tokyo, Japan. GMO Pepabo, Inc operates as a subsidiary of GMO Internet, Inc

How the Company Makes Money

GMO Pepabo generates revenue primarily through its diverse range of internet-related services. Key revenue streams include subscription fees from web hosting and domain registration services, which cater to both individual users and businesses. The company also earns income from e-commerce solutions, offering platforms that allow users to create online stores. Additionally, GMO Pepabo benefits from partnerships with various technology providers and has a strong presence in the Japanese market, which enhances its customer base and drives consistent revenue growth. Special promotions, value-added services, and customer retention strategies further contribute to its earnings.

GMO Pepabo, Inc. Financial Statement Overview

Summary

GMO Pepabo, Inc. demonstrates a solid financial foundation with improving profitability and efficient cost control, as reflected in the income statement. The balance sheet is strong, supported by prudent leverage and a healthy equity base. Cash flow management is effective, although there is potential for enhancing cash flow alignment with profitability. The company is well-positioned for future growth, with minimal financial risk.

Income Statement

GMO Pepabo, Inc. shows a stable revenue base with slight growth fluctuations. The Gross Profit Margin is strong at approximately 52.9% for 2024, indicating good cost management. The Net Profit Margin improved significantly in 2024 to around 5.4% from a negative margin in 2023, highlighting a recovery in profitability. EBIT and EBITDA margins are also showing upward trends, reflecting improved operational efficiency.

Balance Sheet

The company maintains a strong equity position with an Equity Ratio of about 20.9% for 2024. The Debt-to-Equity Ratio is low at approximately 0.5, indicating prudent financial leverage and a solid capital structure. ROE has improved to about 24.7% in 2024, suggesting effective use of shareholder equity to generate profits.

Cash Flow

Operating cash flow remains positive, though it has decreased from 2023 levels. Free Cash Flow is robust, ensuring liquidity and financial flexibility. The Free Cash Flow to Net Income Ratio indicates strong cash conversion, though there is room for improvement in aligning operating cash flow more closely with net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.10B	10.92B	10.90B	10.53B	11.88B	11.01B
Gross Profit	6.00B	5.78B	5.93B	6.08B	6.73B	6.48B
EBITDA	1.53B	1.47B	84.16M	1.12B	1.36B	1.18B
Net Income	663.90M	591.63M	-628.79M	510.09M	715.41M	829.92M
Balance Sheet
Total Assets	10.98B	11.42B	10.87B	11.44B	8.87B	8.21B
Cash, Cash Equivalents and Short-Term Investments	5.04B	4.92B	4.36B	3.61B	3.62B	3.62B
Total Debt	600.00M	1.19B	1.48B	1.57B	209.15M	0.00
Total Liabilities	8.61B	9.03B	9.06B	8.75B	5.92B	5.67B
Stockholders Equity	2.37B	2.39B	1.81B	2.69B	2.93B	2.54B
Cash Flow
Free Cash Flow	0.00	901.23M	1.38B	-708.88M	338.84M	892.51M
Operating Cash Flow	0.00	1.21B	1.78B	-213.40M	669.08M	1.25B
Investing Cash Flow	0.00	-292.00M	-325.63M	-510.15M	-278.35M	-5.65M
Financing Cash Flow	0.00	-361.39M	-702.63M	712.28M	-392.52M	-78.82M

GMO Pepabo, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2305.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3633, the sentiment is Positive. The current price of 2305 is above the 20-day moving average (MA) of 2145.10, above the 50-day MA of 2084.02, and above the 200-day MA of 1659.55, indicating a bullish trend. The MACD of 66.83 indicates Negative momentum. The RSI at 73.24 is Negative, neither overbought nor oversold. The STOCH value of 92.57 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3633.

GMO Pepabo, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3623	78 Outperform	¥6.44B	16.25	―	1.17%	6.95%	-9.62%
4374	76 Outperform	¥10.70B	24.36	―	0.46%	19.35%	71.74%
3741	76 Outperform	¥27.07B	19.25	―	4.27%	21.97%	15.89%
3633	76 Outperform	¥12.20B	15.02	―	2.40%	2.75%	25.24%
3694	66 Neutral	¥28.82B	21.61	―	―	6.33%	14.82%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3778	52 Neutral	¥133.33B	83.34	―	0.12%	36.42%	28.23%

GMO Pepabo, Inc. Corporate Events

GMO Pepabo Reports Growth in Profits and Announces Higher Dividends

GMO Pepabo, Inc. reported a 1.9% increase in net sales for the nine months ending September 30, 2025, with significant growth in profit attributable to owners of the parent, which rose by 37.7%. The company also announced a revision in its dividend forecast, indicating a higher year-end dividend for 2025, which includes a special dividend, reflecting its strong financial performance and commitment to shareholder returns.

The most recent analyst rating on (JP:3633) stock is a Buy with a Yen2295.00 price target. To see the full list of analyst forecasts on GMO Pepabo, Inc. stock, see the JP:3633 Stock Forecast page.