GMO Pepabo, Inc. (3633) AI Stock Analysis

• Market Cap: ¥7.96B
• Dividend Yield: 3.52%
• Average Volume (3M): 3.70K
• Price to Earnings (P/E): 11.8
• Beta (1Y): 0.79
• 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: 4,160
• 30 Day Avg. Volume: 3,696
• PEG Ratio: -0.68
• Price to Book (P/B): 3.68
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -13.96
• 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: 69 Neutral
• Price Target: ¥1,644.00 ▲(9.38%Upside)

GMO Pepabo's solid financial performance and attractive valuation are the primary drivers of its stock score. The company's strong balance sheet and improving profitability position it well for future growth. However, recent technical indicators suggest bearish momentum, which tempers the overall score.

GMO Pepabo, Inc. Business Overview & Revenue Model

Company Description

GMO Pepabo, Inc. (3633) is a Japanese internet services company specializing in hosting solutions, e-commerce platforms, and online media services. The company is a part of the GMO Internet Group and offers a variety of services including web hosting, domain registration, and e-commerce support, catering to both individuals and businesses. Its core products and services are designed to empower users to establish and maintain an online presence efficiently.

How the Company Makes Money

GMO Pepabo makes money primarily through its subscription-based web hosting services, domain sales, and e-commerce solutions. Customers pay recurring fees for hosting services and domains, creating a steady revenue stream. Additionally, the company earns from e-commerce platform usage fees and transaction fees when users sell products through its platforms. Partnerships with other technology and service providers also contribute to its income by expanding service offerings and enhancing customer experience. These diversified revenue streams ensure a stable income and growth potential.

GMO Pepabo, Inc. Financial Statement Overview

Summary

GMO Pepabo, Inc. shows a solid financial foundation with stable revenue and improving profitability. The balance sheet is strong with prudent leverage, and cash flow management is effective, though there is room for better alignment with profitability.

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: 1503.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 1503 is below the 20-day moving average (MA) of 1540.40, below the 50-day MA of 1520.40, and above the 200-day MA of 1440.25, indicating a neutral trend. The MACD of -8.31 indicates Positive momentum. The RSI at 47.14 is Neutral, neither overbought nor oversold. The STOCH value of 69.49 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	¥6.82B	16.77		1.12%	11.52%	35.61%
4374	76 Outperform	¥9.70B	27.01		0.55%	24.77%	116.47%
3741	73 Outperform	¥25.58B	18.97		2.04%	20.63%	21.52%
3633	69 Neutral	¥7.96B	11.77		3.52%	1.91%	―
Sector *	69 Neutral	¥228.24B	14.40	7.64%	2.72%	9.13%	8.48%
3778	66 Neutral	¥172.11B	57.23		0.09%	43.92%	302.88%
3694	66 Neutral	¥27.94B	23.66		―	0.14%	-21.25%

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.