GMO Pepabo, Inc. (JP:3633)
:3633
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GMO Pepabo, Inc.
(3633)
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Rating:65Neutral
Price Target:
¥1,819.00
▼(-18.50% Downside)
Action:Downgraded
Date:02/18/26
The score is led by improved financial fundamentals (margin recovery, better leverage, and solid 2025 free cash flow) and supportive valuation (low P/E with a ~3.29% yield). These positives are offset by weak technicals (below key moving averages and negative MACD) and limited revenue growth, which reduce confidence in near-term momentum.
Positive Factors
Margin recovery
Margins have meaningfully recovered to sustainable levels (operating ~8.5%, net ~8.0%, gross 53–58%) suggesting resilient unit economics for hosting and e‑commerce services. Durable margins improve free cash flow potential and provide a buffer vs. revenue volatility over the medium term.
Negative Factors
Flat/weak revenue growth
Top-line stagnation (flat-to-slight decline) limits scalability and constrains operating leverage: with little revenue growth the company must rely on cost control to lift profits. Over 2–6 months this structural flatness restricts market share expansion and long-term margin upside.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin recovery
Margins have meaningfully recovered to sustainable levels (operating ~8.5%, net ~8.0%, gross 53–58%) suggesting resilient unit economics for hosting and e‑commerce services. Durable margins improve free cash flow potential and provide a buffer vs. revenue volatility over the medium term.
Read all positive factors
GMO Pepabo, Inc. (3633) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥8.95B
Dividend Yield2.16%
Average Volume (3M)25.29K
Price to Earnings (P/E)12.5
Beta (1Y)0.53
Revenue Growth-1.76%
EPS Growth25.65%
CountryJP
Employees338
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)125.87
Shares Outstanding5,468,700
10 Day Avg. Volume16,420
30 Day Avg. Volume25,286
Financial Highlights & Ratios
PEG Ratio0.26
Price to Book (P/B)4.15
Price to Sales (P/S)1.06
P/FCF Ratio8.48
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)133.6
Revenue Forecast (FY)¥10.87B
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 hosti...
How the Company Makes Money
The company primarily makes money through recurring subscription and usage-based fees from its web infrastructure and commerce-support services. Key revenue streams include (1) monthly/annual subscription fees for web hosting and related web servi...
GMO Pepabo, Inc. Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
70
Positive
Cash Flow
73
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 11.10B | 10.96B | 10.92B | 10.90B | 10.53B | 11.88B |
| Gross Profit | 6.00B | 5.96B | 5.78B | 5.93B | 6.08B | 6.73B |
| EBITDA | 1.53B | 1.44B | 1.47B | 84.16M | 1.12B | 1.36B |
| Net Income | 663.90M | 878.44M | 591.63M | -628.79M | 510.09M | 715.41M |
Balance Sheet | ||||||
| Total Assets | 10.98B | 11.32B | 11.47B | 10.95B | 11.52B | 8.91B |
| Cash, Cash Equivalents and Short-Term Investments | 5.04B | 5.75B | 4.92B | 4.36B | 3.61B | 3.62B |
| Total Debt | 600.00M | 857.45M | 1.19B | 1.48B | 1.57B | 172.15M |
| Total Liabilities | 8.61B | 8.52B | 9.08B | 9.14B | 8.83B | 5.96B |
| Stockholders Equity | 2.37B | 2.80B | 2.39B | 1.81B | 2.69B | 2.93B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 1.37B | 901.23M | 1.38B | -708.88M | 338.84M |
| Operating Cash Flow | 0.00 | 1.46B | 1.21B | 1.78B | -213.40M | 669.08M |
| Investing Cash Flow | 0.00 | 236.62M | -292.00M | -325.63M | -510.15M | -278.35M |
| Financing Cash Flow | 0.00 | -859.23M | -361.39M | -702.63M | 712.28M | -392.52M |
GMO Pepabo, Inc. Technical Analysis
Negative
2232.00
Price Trends
1878.12
Negative
2004.19
Negative
1938.04
Negative
Market Momentum
-55.25
Positive
20.72
Positive
13.68
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3633, the sentiment is Negative. The current price of 2232 is above the 20-day moving average (MA) of 1834.00, above the 50-day MA of 1878.12, and above the 200-day MA of 1938.04, indicating a bearish trend. The MACD of -55.25 indicates Positive momentum. The RSI at 20.72 is Positive, neither overbought nor oversold. The STOCH value of 13.68 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3633.
GMO Pepabo, Inc. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | ¥44.33B | 20.49 | ― | 0.52% | 25.31% | 22.71% | |
68 Neutral | ¥16.49B | -40.95 | ― | ― | 12.01% | -191.13% | |
67 Neutral | ¥647.16B | 22.60 | 20.54% | 1.47% | 11.96% | 18.70% | |
65 Neutral | ¥8.95B | 12.54 | ― | 2.16% | -1.76% | 25.65% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
55 Neutral | ¥14.66B | 9.42 | ― | 2.31% | 6.19% | -24.70% | |
45 Neutral | ¥129.33B | 32.36 | ― | 0.14% | 12.38% | -92.66% |
* Technology Sector Average
JP:3633
GMO Pepabo, Inc.
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GMO Pepabo, Inc. Corporate Events
GMO Pepabo Sees Profit Decline in Q1 2026 and Guides for Tougher Full Year
May 14, 2026
GMO Pepabo reported consolidated net sales of ¥2.61 billion for the three months ended March 31, 2026, down 4.8% year on year, with operating profit falling 23.8% to ¥255 million and profit attributable to owners of parent declining 20.5...
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.