G Three Holdings Corporation (3647) AI Stock Analysis

• Market Cap: ¥2.45B
• Dividend Yield: N/A
• Average Volume (3M): 870.32K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.45
• Revenue Growth: 134.07%
• EPS Growth: 58.39%
• Country: JP
• Employees: 11
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -5.32
• Shares Outstanding: 21,412,720
• 10 Day Avg. Volume: 1,673,620
• 30 Day Avg. Volume: 870,323
• PEG Ratio: 0.15
• Price to Book (P/B): 4.07
• Price to Sales (P/S): 4.66
• P/FCF Ratio: 10.21
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: ¥122.00 ▲(3.39% Upside)

The score is primarily constrained by poor financial performance—declining revenue and very large losses with negative ROE—despite low leverage and relatively resilient cash flow metrics. Technicals are mixed with short-term strength but longer-term downtrend signals (below 100/200-day averages and negative MACD). Valuation is impaired by negative earnings (negative P/E) and no dividend yield data.

Positive Factors

Diversified business model

G Three's mix of real estate, infrastructure and technology investments creates multiple, structurally different cash streams (rentals, development proceeds, JV returns). This diversification reduces single-market exposure and supports steadier cash flow across 2-6 months.

Conservative leverage

A debt-to-equity ratio near 0.045 indicates a conservative capital structure, lowering bankruptcy and refinancing risk. This financial flexibility gives management time to execute strategic adjustments and fund projects without urgent external financing pressure.

Strong cash conversion

Operating cash flow exceeding accounting losses (OCF/net income 1.72) and FCF close to net income show the business converts reported earnings into real cash. Durable cash generation supports working capital, project funding and resilience despite reported losses.

Negative Factors

Negative profitability

Extremely negative EBIT and net margins signal core operations are loss-making. Persistent operating losses erode equity, limit reinvestment capacity, and force management to deliver structural cost or revenue fixes to achieve sustainable profitability over the medium term.

Declining revenue trend

An 8.5% revenue decline indicates weakening top-line momentum. Continued contraction can reflect demand loss, execution challenges or portfolio disposals, constraining margin recovery and making multi-quarter stabilization necessary before durable earnings improvement is probable.

Negative return on equity

ROE of -45.48% shows shareholder capital is destroying value, not generating returns. Over 2-6 months this undermines ability to attract new equity, increases reliance on internal cash or debt, and pressures management to implement a credible turnaround to restore investor confidence.

G Three Holdings Corporation Business Overview & Revenue Model

Company Description

G Three Holdings Corporation engages in constructing and operating of solar power plants in Japan. It is also involved in the sale of power generated from solar power plants; and development of an emergency generator equipped with an engine that uses LP gas and city gas as fuel. The company was formerly known as Connect Holdings Corporation and changed its name to G Three Holdings Corporation in January 2016. G Three Holdings Corporation was founded in 2000 and is headquartered in Tokyo, Japan.

How the Company Makes Money

G Three Holdings Corporation generates revenue through several key streams. Primarily, it earns income from its real estate investments by leasing properties and collecting rental income. Additionally, the company engages in development projects, which provide capital gains upon completion and sale. In the infrastructure sector, G Three Holdings may enter into long-term contracts that yield steady revenue from operational services. The consumer goods segment contributes through the sale of products, either directly or through partnerships with retailers. Strategic partnerships with local and international firms also play a critical role in expanding market access and enhancing revenue potential. Overall, the company's diversified portfolio and strategic investments allow it to capitalize on multiple income sources, contributing to its financial stability and growth.

G Three Holdings Corporation Financial Statement Overview

Summary

Weak profitability and fundamentals: revenue declined (-8.5%) with very large losses (net margin -52.05%, EBIT margin -51.10%) and negative ROE (-45.48%). Low leverage (debt-to-equity 0.045) and comparatively solid cash conversion (operating cash flow to net income 1.72; free cash flow to net income ~1) are offsets but do not outweigh persistent losses.

Income Statement

G Three Holdings Corporation has experienced a significant decline in revenue over the past years, with a negative revenue growth rate of -8.5% in the most recent year. The company is facing substantial losses, as indicated by a negative net profit margin of -52.05% and a negative EBIT margin of -51.10%. These metrics suggest challenges in maintaining profitability and controlling costs.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.045, indicating conservative leverage. However, the return on equity is negative at -45.48%, reflecting ongoing losses and challenges in generating returns for shareholders. The equity ratio is relatively stable, but the negative ROE highlights profitability concerns.

Cash Flow

G Three Holdings Corporation shows a strong operating cash flow to net income ratio of 1.72, indicating efficient cash generation relative to net income. However, the free cash flow growth has been volatile, with a significant improvement in recent years. The free cash flow to net income ratio is close to 1, suggesting that the company is managing its cash flow effectively despite profitability challenges.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	662.89M	606.55M	259.13M	1.19B	1.93B	3.31B
Gross Profit	-289.82M	28.23M	-284.56M	249.17M	527.32M	602.80M
EBITDA	-555.00M	-218.91M	-579.54M	-293.88M	-253.19M	188.04M
Net Income	-689.22M	-315.73M	-742.62M	-488.08M	-452.89M	35.05M
Balance Sheet
Total Assets	1.31B	1.22B	1.55B	2.14B	2.93B	3.76B
Cash, Cash Equivalents and Short-Term Investments	631.51M	556.87M	334.45M	225.71M	1.30B	1.65B
Total Debt	386.17M	31.02M	53.28M	92.01M	171.79M	248.58M
Total Liabilities	517.78M	528.08M	534.42M	608.24M	912.55M	1.29B
Stockholders Equity	783.41M	694.16M	1.01B	1.53B	2.02B	2.47B
Cash Flow
Free Cash Flow	0.00	276.56M	-68.27M	-979.33M	63.59M	1.94B
Operating Cash Flow	0.00	282.05M	-67.85M	-840.41M	64.41M	2.58B
Investing Cash Flow	0.00	-1.29M	33.83M	-122.90M	-18.33M	-1.10B
Financing Cash Flow	0.00	-54.73M	142.07M	-114.10M	-391.96M	-546.36M

G Three Holdings Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 118.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3647, the sentiment is Negative. The current price of 118 is below the 20-day moving average (MA) of 119.30, below the 50-day MA of 121.18, and below the 200-day MA of 136.45, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 49.44 is Neutral, neither overbought nor oversold. The STOCH value of 9.62 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3647.

G Three Holdings Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6193	70 Outperform	¥2.99B	13.50	―	1.52%	4.73%	135.75%
7046	66 Neutral	¥3.09B	22.06	―	0.69%	12.15%	-33.34%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
5247	54 Neutral	¥2.07B	-131.94	―	―	15.55%	-114.56%
4814	53 Neutral	¥3.06B	-40.75	―	―	-4.07%	53.47%
9563	45 Neutral	¥2.16B	-3.10	―	―	4.49%	-158.12%
3647	43 Neutral	¥2.45B	-6.98	―	―	134.07%	58.39%