GMO Pepabo, Inc. (JP:3633)
:3633
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GMO Pepabo, Inc.
(3633)
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Rating:65Neutral
Price Target:
¥1,979.00
▼(-11.34% Downside)
Action:DowngradedDate: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
Sustained mid-single-digit operating and net margins with stable gross margins indicate resilient unit economics for hosting and platform services. This margin base supports reinvestment, dividend capacity and buffers earnings through modest demand swings over the next 2–6 months.
Negative Factors
Stagnant Revenue
Persistent flat-to-declining top line limits scalability of fixed-cost leverage and constrains long-term EPS expansion. Without durable revenue growth, margin improvements and cash generation may be harder to sustain or to translate into meaningful market-share gains.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin Recovery
Sustained mid-single-digit operating and net margins with stable gross margins indicate resilient unit economics for hosting and platform services. This margin base supports reinvestment, dividend capacity and buffers earnings through modest demand swings over the next 2–6 months.
Read all positive factors
GMO Pepabo, Inc. (3633) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥10.05B
Dividend Yield2.16%
Average Volume (3M)25.29K
Price to Earnings (P/E)13.2
Beta (1Y)0.57
Revenue Growth2.75%
EPS Growth25.24%
CountryJP
Employees338
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)23.36
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
GMO Pepabo primarily makes money by charging customers recurring and usage-based fees for online services. Key revenue streams include: (1) Subscription fees for web infrastructure services such as rental servers/hosting plans, where customers pay...
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
Neutral
2232.00
Price Trends
1980.58
Negative
2081.03
Negative
1884.96
Positive
Market Momentum
-25.80
Negative
47.24
Neutral
74.60
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3633, the sentiment is Neutral. The current price of 2232 is above the 20-day moving average (MA) of 1895.15, above the 50-day MA of 1980.58, and above the 200-day MA of 1884.96, indicating a neutral trend. The MACD of -25.80 indicates Negative momentum. The RSI at 47.24 is Neutral, neither overbought nor oversold. The STOCH value of 74.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 | ¥44.70B | 20.49 | ― | 0.52% | 26.98% | 19.69% | |
65 Neutral | ¥10.05B | 13.23 | ― | 2.16% | 2.75% | 25.24% | |
64 Neutral | ¥651.79B | 35.93 | 20.54% | 1.47% | 11.81% | 16.69% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | ¥15.78B | 8.71 | ― | ― | ― | ― | |
55 Neutral | ¥16.07B | 48.95 | ― | 2.31% | 9.71% | -70.49% | |
52 Neutral | ¥127.13B | 367.27 | ― | 0.14% | 36.42% | 28.23% |
* Technology Sector Average
JP:3633
GMO Pepabo, Inc.
1,900.00
583.45
44.32%
JP:3769
GMO Payment Gateway
8,594.00
392.40
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ENIGMO, Inc.
386.00
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54.76%
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SAKURA Internet Inc.
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-353.25
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JP:4431
Smaregi, Inc.
2,285.00
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-19.36%
JP:4434
Serverworks Co., Ltd.
1,989.00
-130.94
-6.18%
GMO Pepabo, Inc. Corporate Events
GMO Pepabo Boosts Profit and Dividend on Stable 2025 Sales
Feb 10, 2026
GMO Pepabo reported flat net sales of ¥10.96 billion for the year ended 31 December 2025, but sharply higher profitability, with operating profit up 12.5% to ¥932 million and profit attributable to owners of parent surging 48.5% to ¥...
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.