GMO Research & AI,Inc. (3695) AI Stock Analysis

• Market Cap: ¥10.57B
• Dividend Yield: 4.78%
• Average Volume (3M): 3.69K
• Price to Earnings (P/E): 165.2
• Beta (1Y): 0.45
• Revenue Growth: -1.38%
• EPS Growth: -91.00%
• Country: JP
• Employees: 135
• Sector: Technology
• Sector Strength: 94
• Industry: Software - Infrastructure
• EPS (TTM): -41.07
• Shares Outstanding: 4,446,357
• 10 Day Avg. Volume: 6,230
• 30 Day Avg. Volume: 3,693
• PEG Ratio: -1.91
• Price to Book (P/B): 2.21
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• Rating: 58 Neutral
• Price Target: ¥2,650.00 ▲(9.73%Upside)

The overall stock score reflects concerns over high valuation and bearish technical indicators, despite strong financial stability. The high P/E ratio suggests potential overvaluation, and technical analysis points to a possible downtrend. The company's financial performance remains robust, but recent declines in revenue and net income are notable risks.

GMO Research & AI,Inc. Business Overview & Revenue Model

Company Description

GMO Research & AI, Inc. (3695) is a company specializing in providing market research solutions and artificial intelligence services. Operating within the technology and research sectors, the company focuses on delivering comprehensive data analysis, consumer insights, and AI-driven platforms to support businesses in making informed decisions. Their core offerings include online research panels, survey solutions, and AI-based analytics tools designed to optimize market strategies and enhance customer engagement.

How the Company Makes Money

GMO Research & AI, Inc. generates revenue primarily through its market research services and AI solutions. The company offers subscription-based services for access to its online research panels and survey platforms, enabling clients to conduct targeted market research efficiently. Additionally, the firm provides customized AI analytics tools that businesses utilize to analyze consumer behavior, predict trends, and improve operational efficiency. These services are often delivered through long-term contracts and partnerships with various companies across different industries. By leveraging its proprietary technology and data assets, GMO Research & AI, Inc. secures a steady income stream while also expanding its client base through strategic collaborations and service offerings.

GMO Research & AI,Inc. Financial Statement Overview

Summary

GMO Research & AI, Inc. demonstrates solid financial health with strong balance sheet metrics and consistent operational efficiency. Nonetheless, recent declines in revenue and net income signal potential challenges ahead. While the company manages its debt well, improving cash flow generation and sustaining revenue growth are crucial for future success.

Income Statement

The company's revenue has shown volatility, with a decline from 2023 to 2024. Although gross profit margins have remained stable around 50%, the net profit margin has decreased from 2023 to 2024, indicating potential challenges in cost management. Stability in EBIT and EBITDA margins suggests operational efficiency but the recent decline in net income is a concern.

Balance Sheet

The company exhibits strong financial stability with a low debt-to-equity ratio, suggesting prudent leverage management. The equity ratio is healthy, indicating a strong capital base. However, the return on equity has weakened from 2023 to 2024, reflecting reduced profitability from shareholders' equity.

Cash Flow

The cash flow position is relatively stable, with positive free cash flow and a reasonable operating cash flow to net income ratio. However, the decline in free cash flow from 2023 to 2024 raises concerns about future cash generation capabilities. The company maintains a strong liquidity position.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.03B	5.12B	5.20B	4.09B	3.39B
Gross Profit	2.55B	2.54B	2.46B	1.98B	1.59B
EBITDA	354.23M	518.18M	544.66M	454.54M	311.69M
Net Income	183.15M	307.31M	356.38M	274.06M	175.67M
Balance Sheet
Total Assets	3.00B	2.99B	3.07B	2.80B	2.23B
Cash, Cash Equivalents and Short-Term Investments	1.19B	1.33B	767.04M	664.93M	663.18M
Total Debt	5.50M	12.22M	16.80M	19.29M	12.33M
Total Liabilities	883.41M	946.14M	1.16B	1.12B	748.50M
Stockholders Equity	2.10B	2.05B	1.91B	1.68B	1.48B
Cash Flow
Free Cash Flow	236.00M	354.53M	39.82M	406.93M	268.05M
Operating Cash Flow	237.50M	475.49M	131.65M	482.16M	363.00M
Investing Cash Flow	-221.00M	-131.49M	-111.34M	-50.65M	-95.03M
Financing Cash Flow	-195.90M	-187.50M	-145.31M	-96.53M	-82.56M

GMO Research & AI,Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2415.00
• 50DMA: Positive
• 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:3695, the sentiment is Positive. The current price of 2415 is below the 20-day moving average (MA) of 2484.40, below the 50-day MA of 2504.50, and below the 200-day MA of 2578.44, indicating a neutral trend. The MACD of -19.90 indicates Negative momentum. The RSI at 55.53 is Neutral, neither overbought nor oversold. The STOCH value of 58.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3695.

GMO Research & AI,Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3633	71 Outperform	¥8.04B	11.90		7.11%	1.91%	―
4488	70 Outperform	¥16.01B	77.06		―	4.98%	-192.51%
5582	69 Neutral	¥11.26B	21.04		―	52.86%	1255.76%
3694	66 Neutral	¥28.11B	23.84		―	0.14%	-21.25%
Sector *	63 Neutral	$34.27B	4.89	-11.70%	1.94%	5.41%	-20.02%
3680	63 Neutral	¥4.66B	―		1.01%	-15.90%	-388.21%
3695	58 Neutral	¥10.57B	165.18		4.78%	-1.38%	-91.00%