GMO Pepabo, Inc. (3633) AI Stock Analysis

• Market Cap: ¥8.11B
• Dividend Yield: 3.46%
• Average Volume (3M): 4.11K
• Price to Earnings (P/E): 12.0
• Beta (1Y): 0.78
• Revenue Growth: 1.91%
• EPS Growth: N/A
• Country: JP
• Employees: 338
• Sector: Technology
• Sector Strength: 86
• Industry: Software - Infrastructure
• EPS (TTM): 44.96
• Shares Outstanding: 5,468,700
• 10 Day Avg. Volume: 2,710
• 30 Day Avg. Volume: 4,106
• PEG Ratio: 0.86
• Price to Book (P/B): 3.50
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• Rating: 71 Outperform
• Price Target: ¥1,679.00 ▲(9.74%Upside)

The most significant factor for GMO Pepabo, Inc. is its strong financial performance, highlighted by improving profitability and a solid balance sheet. The valuation is attractive with a reasonable P/E ratio and a strong dividend yield. However, technical indicators show mixed signals, with bearish momentum and potential overbought conditions, which slightly dampen the overall score.

GMO Pepabo, Inc. Business Overview & Revenue Model

Company Description

GMO Pepabo, Inc. (3633) is a Japanese company primarily engaged in providing web services, including domain registration, hosting, and e-commerce solutions. The company operates in sectors such as internet infrastructure and e-commerce, offering a range of products and services designed to support individuals and small to medium-sized enterprises in establishing and growing their online presence.

How the Company Makes Money

GMO Pepabo, Inc. generates revenue through several key streams. The company earns money by providing domain registration services, which are essential for customers looking to secure web addresses. Additionally, GMO Pepabo offers hosting services, which involve renting out server space and providing the necessary infrastructure for clients to host their websites. Another significant revenue stream is its e-commerce solutions, which include platforms and tools to help businesses set up and manage online stores. The company benefits from subscription fees, service charges, and transaction fees associated with these offerings. Partnerships with other technology companies and service providers also play a role in expanding their service capabilities and customer base, further contributing to their revenue.

GMO Pepabo, Inc. Financial Statement Overview

Summary

GMO Pepabo, Inc. demonstrates a solid financial foundation with improving profitability and efficient cost control. The income statement highlights a recovery in profitability with strong gross and net profit margins. The balance sheet shows prudent leverage and a strong equity position, while cash flow management is effective, although there is room for improvement in aligning operating cash flow with net income.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.92B	10.90B	10.53B	11.88B	11.01B
Gross Profit	5.78B	5.93B	6.08B	6.73B	6.48B
EBITDA	1.47B	84.16M	1.12B	1.36B	1.49B
Net Income	591.63M	-628.79M	510.09M	715.41M	829.92M
Balance Sheet
Total Assets	11.42B	10.87B	11.44B	8.87B	8.21B
Cash, Cash Equivalents and Short-Term Investments	4.92B	2.76B	2.56B	2.37B	2.47B
Total Debt	1.19B	1.48B	1.57B	172.15M	0.00
Total Liabilities	9.03B	9.06B	8.75B	5.92B	5.67B
Stockholders Equity	2.39B	1.81B	2.69B	2.93B	2.54B
Cash Flow
Free Cash Flow	901.23M	1.38B	-708.88M	338.84M	892.51M
Operating Cash Flow	1.21B	1.78B	-213.40M	669.08M	1.25B
Investing Cash Flow	-292.00M	-443.92M	-510.15M	-278.35M	-5.65M
Financing Cash Flow	-361.39M	-702.63M	712.28M	-392.52M	-78.82M

GMO Pepabo, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1530.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 1530 is above the 20-day moving average (MA) of 1516.65, below the 50-day MA of 1542.76, and above the 200-day MA of 1449.60, indicating a neutral trend. The MACD of 0.82 indicates Negative momentum. The RSI at 50.86 is Neutral, neither overbought nor oversold. The STOCH value of 71.73 is Neutral, 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	¥6.73B	16.56		1.14%	11.52%	35.61%
4374	76 Outperform	¥9.37B	26.07		0.57%	24.77%	116.47%
3741	72 Outperform	¥25.58B	18.97		2.04%	20.63%	21.52%
3633	71 Outperform	¥8.11B	12.00		3.46%	1.91%	―
3694	66 Neutral	¥28.93B	24.55		―	0.14%	-21.25%
3778	60 Neutral	¥146.52B	48.72		0.11%	43.92%	302.88%
Sector *	57 Neutral	HK$14.57B	5.76	-5.77%	4.75%	9.65%	-43.80%

GMO Pepabo, Inc. Corporate Events

GMO Pepabo Reports Strong Q1 2025 Financial Results

GMO Pepabo, Inc. reported its consolidated financial results for the first quarter of 2025, showing a notable increase in profits compared to the previous year. The company experienced a 3.7% rise in net sales, with significant growth in operating profit and profit attributable to owners of the parent, reflecting a strong performance in its core business areas. The financial outlook for the full year of 2025 anticipates continued growth in net sales and operating profit, although ordinary profit and profit attributable to owners are expected to decline slightly. The dividend forecast remains unchanged, indicating stability in shareholder returns.