G Three Holdings Corporation (3647) AI Stock Analysis

• Market Cap: ¥3.10B
• Dividend Yield: N/A
• Average Volume (3M): 870.32K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.74
• 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: 22,219,720
• 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: 10.02
• 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: ¥157.00 ▲(33.05% 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

A very low debt-to-equity ratio provides a durable capital structure buffer, lowering default and refinancing risk. This conservative leverage supports funding flexibility for property development and strategic investments across cycles, enabling the firm to pursue opportunities without urgent external financing.

Strong Cash Conversion

Operating cash flow significantly exceeds accounting losses, indicating the business generates real cash despite reported losses. This sustained cash conversion supports operations, funds capex and joint ventures, and provides flexibility to manage working capital and weather near-term profitability headwinds.

Recurring Rental Income & Diversification

A primary revenue base of rental income yields recurring, predictable cash flows, while operations across real estate, infrastructure and technology diversify revenue sources. This mix reduces single-market exposure and creates durable income streams to support long-term project investment and portfolio resilience.

Negative Factors

Declining Revenue & Large Losses

Sustained revenue decline and very negative margins signal structural demand or cost issues that impair profitability. Persistent losses erode equity and constrain reinvestment capacity, making it harder to fund growth initiatives, maintain assets, or scale operations without strategic remediation.

Negative Return on Equity

A deeply negative ROE indicates the company is destroying shareholder value, reducing investor confidence and limiting access to equity capital. Over the medium term this can force asset sales, restructure plans, or dilutive financing, impeding long-term project execution and strategic expansion.

Volatile Free Cash Flow Growth

Fluctuating free cash flow growth complicates capital allocation and planning for multi-year developments. Even with good cash conversion, volatility raises execution risk on infrastructure and tech projects, increases reliance on external funding in weak periods, and reduces predictability for investors.

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 generates revenue primarily through rental income from its real estate properties, which include commercial spaces and residential units. Additionally, the company earns income from development projects and joint ventures in infrastructure and technology sectors. Key revenue streams include leasing agreements, property management fees, and returns on investment from technology initiatives. Strategic partnerships with local governments and private enterprises also contribute to its earnings, facilitating access to lucrative projects and enhancing its market presence.

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	-295.18M	143.68M	421.61M	550.29M
EBITDA	-208.63M	-518.63M	-85.30M	239.73M	323.20M
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	408.29M	466.50M	505.23M	653.74M	1.04B
Total Liabilities	528.08M	534.42M	608.24M	912.54M	1.29B
Stockholders Equity	694.16M	1.01B	1.53B	2.02B	2.47B
Cash Flow
Free Cash Flow	282.05M	-68.27M	-979.33M	63.59M	1.95B
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: Positive
• Last Price: 118.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 118 is below the 20-day moving average (MA) of 141.25, below the 50-day MA of 135.46, and below the 200-day MA of 140.72, indicating a bullish trend. The MACD of 3.20 indicates Negative momentum. The RSI at 52.12 is Neutral, neither overbought nor oversold. The STOCH value of 56.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	¥2.84B	22.68	―	2.86%	5.74%	5.97%
3996	67 Neutral	¥2.90B	38.31	―	―	-1.26%	-39.08%
4068	66 Neutral	¥3.34B	11.79	―	―	9.33%	133.75%
4736	66 Neutral	¥3.08B	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	¥3.16B	-12.98	―	―	-3.52%	-65.34%
3647	44 Neutral	¥3.10B	-6.01	―	―	134.07%	58.39%