G Three Holdings Corporation (3647) AI Stock Analysis

• Market Cap: ¥2.46B
• Dividend Yield: N/A
• Average Volume (3M): 870.32K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.42
• Revenue Growth: 134.07%
• EPS Growth: 58.39%
• Country: JP
• Employees: 11
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -4.87
• Shares Outstanding: 19,373,720
• 10 Day Avg. Volume: 1,673,620
• 30 Day Avg. Volume: 870,323
• PEG Ratio: -0.07
• Price to Book (P/B): 2.25
• Price to Sales (P/S): 8.75
• P/FCF Ratio: -33.22
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: ¥158.00 ▲(24.41% Upside)

The overall stock score is primarily impacted by the company's poor financial performance, characterized by declining revenues and profitability, and negative cash flows. While technical analysis shows some positive momentum, the negative P/E ratio and lack of dividend yield weigh heavily on the valuation, resulting in a low overall score.

Positive Factors

Diversified Revenue Streams

G Three Holdings' diversified revenue streams from real estate, infrastructure, and consumer goods provide a stable financial base, reducing reliance on any single sector and enhancing resilience against market fluctuations.

Strategic Partnerships

Strategic partnerships expand market access and revenue potential, leveraging external expertise and networks to drive growth and competitive advantage in core sectors.

Manageable Leverage

A low debt-to-equity ratio indicates that the company has manageable leverage, providing financial flexibility and reducing risk associated with high debt levels.

Negative Factors

Declining Revenue

A significant decline in revenue indicates challenges in maintaining market position and competitiveness, potentially impacting long-term growth and profitability.

Negative Cash Flow

Negative operating cash flow suggests difficulties in generating sufficient cash from operations, which can strain liquidity and limit the ability to invest in growth opportunities.

Negative Profit Margins

Negative profit margins highlight operational inefficiencies and pricing pressures, which can undermine financial health and the ability to sustain long-term profitability.

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

The company faces significant financial challenges, with declining revenues and profitability, negative cash flows, and reduced financial stability. Despite manageable leverage, the overall financial position is weak, necessitating strategic improvements.

Income Statement

The company has experienced a significant decline in revenue over the years, with a sharp drop from 2019 to 2024. The gross profit margin has turned negative, indicating cost inefficiencies or pricing pressures. Net profit margins have also been negative, reflecting ongoing losses. The EBIT and EBITDA margins are negative, highlighting operational challenges. Overall, the income statement shows a concerning trend of declining revenue and profitability.

Balance Sheet

The balance sheet shows a decrease in total assets and stockholders' equity over the years. The debt-to-equity ratio remains relatively low, suggesting manageable leverage. However, the return on equity is negative due to consistent net losses. The equity ratio has decreased, indicating a reduction in the company's financial stability. While the company maintains a strong cash position, the overall balance sheet reflects financial strain.

Cash Flow

The cash flow statement reveals negative operating cash flow in recent years, indicating challenges in generating cash from operations. Free cash flow has also been negative, reflecting insufficient cash generation to cover capital expenditures. The operating cash flow to net income ratio is negative, highlighting cash flow issues. Despite some positive financing cash flows, the overall cash flow position is weak, raising concerns about liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	662.89M	259.13M	1.19B	1.93B	3.31B	5.47B
Gross Profit	-289.82M	-284.56M	249.17M	527.32M	602.80M	1.48B
EBITDA	-555.00M	-579.54M	-293.88M	-253.19M	188.04M	1.13B
Net Income	-689.22M	-742.62M	-488.08M	-452.89M	35.05M	825.00M
Balance Sheet
Total Assets	1.31B	1.55B	2.14B	2.93B	3.76B	4.54B
Cash, Cash Equivalents and Short-Term Investments	631.51M	334.45M	225.71M	1.30B	1.65B	1.24B
Total Debt	386.17M	53.28M	92.01M	171.79M	248.58M	98.28M
Total Liabilities	517.78M	534.42M	608.24M	912.55M	1.29B	2.10B
Stockholders Equity	783.41M	1.01B	1.53B	2.02B	2.47B	2.44B
Cash Flow
Free Cash Flow	0.00	-68.27M	-979.33M	63.59M	1.94B	-343.00M
Operating Cash Flow	0.00	-67.85M	-840.41M	64.41M	2.58B	-274.96M
Investing Cash Flow	0.00	33.83M	-122.90M	-18.33M	-1.10B	1.28B
Financing Cash Flow	0.00	142.07M	-114.10M	-391.96M	-546.36M	-906.62M

G Three Holdings Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 127.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 127 is below the 20-day moving average (MA) of 131.05, below the 50-day MA of 141.34, and below the 200-day MA of 139.89, indicating a bearish trend. The MACD of -3.95 indicates Negative momentum. The RSI at 42.38 is Neutral, neither overbought nor oversold. The STOCH value of 37.61 is Neutral, 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
7046	74 Outperform	¥3.36B	29.52	―	0.62%	12.15%	-33.34%
6193	70 Outperform	¥2.95B	13.33	―	1.47%	4.73%	135.75%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
5247	54 Neutral	¥2.30B	―	―	―	15.55%	-114.56%
4814	53 Neutral	¥2.22B	-29.08	―	―	-4.07%	53.47%
9563	51 Neutral	¥2.14B	―	―	―	4.49%	-158.12%
3647	48 Neutral	¥2.46B	-7.78	―	―	134.07%	58.39%