G Three Holdings Corporation (3647) AI Stock Analysis

• Market Cap: ¥2.86B
• Dividend Yield: N/A
• Average Volume (3M): 870.32K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.77
• 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: 44 Neutral
• Price Target: ¥125.00 ▲(5.93% Upside)
• Action: Reiterated Date: 03/05/26
• Date: Action: Reiterated 03/05/26

The score is primarily held down by weak financial performance driven by declining revenue and substantial losses, despite low leverage and comparatively solid cash flow conversion. Technicals are soft with the price below the 20-day average and weak stochastic momentum, while valuation is constrained by negative earnings and no dividend yield data.

Positive Factors

Low Leverage / Balance Sheet Conservatism

Very low debt-to-equity gives the company durable financial flexibility, reducing refinancing and interest risk. That conservatism supports long-term capital allocation to property development and infrastructure projects, and provides a buffer to absorb operating losses while pursuing strategic investments.

Strong Operating Cash Conversion

An operating cash flow to net income ratio of 1.72 shows the business converts reported losses into cash effectively. This sustained cash generation can fund working capital, capex and joint-venture commitments without heavy new debt, making the firm's operations more resilient over months.

Diversified Investment Holding Model

A diversified model spanning real estate, infrastructure and technology creates multiple, structurally different revenue streams (rental, development returns, tech investments). Recurring rental income and strategic partnerships reduce single-market exposure and support steadier cash flow across business cycles.

Negative Factors

Declining Revenue and Deep Losses

Sustained revenue decline and very large negative margins indicate structural demand or pricing challenges and weak operating leverage. Over 2-6 months this undermines reinvestment capacity, reduces retained earnings and pressures management to either reshape operations or monetize assets to stabilize profitability.

Negative Return on Equity

A deeply negative ROE signals persistent destruction of shareholder capital and a failure to generate returns on invested equity. This long-term metric can limit access to equity financing, increase cost of capital and constrain the company's ability to fund growth initiatives or large development projects.

Volatile Free Cash Flow

Volatility in free cash flow reduces predictability for capex, dividends and project funding despite recent improvement. Given revenue decline and negative earnings, reliance on unstable FCF heightens execution risk for longer-term developments and can force procyclical asset sales in stress periods.

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

Financials are pressured by declining revenue (-8.5% YoY) and deep losses (net margin -52.05%, EBIT margin -51.10%). Low leverage (debt-to-equity 0.045) and comparatively resilient cash generation (operating cash flow to net income 1.72) are positives, but overall profitability and shareholder returns remain weak (ROE -45.48%).

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

G Three Holdings Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 118.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• 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 Neutral. The current price of 118 is below the 20-day moving average (MA) of 146.65, below the 50-day MA of 131.48, and below the 200-day MA of 139.81, indicating a neutral trend. The MACD of -0.32 indicates Positive momentum. The RSI at 48.90 is Neutral, neither overbought nor oversold. The STOCH value of 32.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
4421	79 Outperform	¥2.80B	22.68	―	2.86%	5.74%	5.97%
3996	67 Neutral	¥3.08B	38.31	―	―	-1.26%	-39.08%
4068	66 Neutral	¥3.35B	11.79	―	―	9.33%	133.75%
4736	66 Neutral	¥3.19B	30.93	―	1.54%	7.59%	16.93%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4260	46 Neutral	¥3.15B	-12.98	―	―	-3.52%	-65.34%
3647	44 Neutral	¥2.86B	-6.01	―	―	134.07%	58.39%