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GMO Research & AI,Inc. (JP:3695)
:3695
Japanese Market

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

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JP

GMO Research & AI,Inc.

(3695)

Rating:60Neutral
Price Target:
¥2,871.00
▲(17.38%Upside)
GMO Research & AI, Inc. demonstrates solid financial health with strong balance sheet metrics and consistent operational efficiency. However, recent declines in revenue and net income are concerning. The stock's technical indicators show bearish momentum, and although the valuation is moderate, it does not suggest an undervalued opportunity. The attractive dividend yield is a positive aspect for income-focused investors.

GMO Research & AI,Inc. (3695) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionGMO Research & AI, Inc. (3695) is a company specializing in the integration of artificial intelligence technologies with research and data analysis services. Operating within the technology and information sectors, the company provides solutions that leverage AI to optimize research methodologies, enhance data-driven decision-making, and deliver comprehensive insights to its clients. Its core offerings include AI-powered data analytics, market research services, and customized AI solutions tailored to meet the needs of various industries.
How the Company Makes MoneyGMO Research & AI, Inc. generates revenue through a combination of service fees and subscription models. The company offers its AI-driven research and analytics services to businesses and organizations across different sectors, charging fees based on the scope and complexity of each project. Additionally, it provides subscription-based access to its proprietary data analytics platforms and tools, allowing clients to utilize its AI capabilities on an ongoing basis. The company also engages in strategic partnerships with other technology firms and research institutions, further expanding its market reach and creating additional revenue streams through collaborative projects and shared resources.

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
62
Positive
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
75
Positive
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
68
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue5.03B5.12B5.20B4.09B3.39B
Gross Profit2.55B2.54B2.46B1.98B1.59B
EBITDA354.23M518.18M544.66M454.54M311.69M
Net Income183.15M307.31M356.38M274.06M175.67M
Balance Sheet
Total Assets3.00B2.99B3.07B2.80B2.23B
Cash, Cash Equivalents and Short-Term Investments1.19B1.33B767.04M664.93M663.18M
Total Debt5.50M12.22M16.80M19.29M12.33M
Total Liabilities883.41M946.14M1.16B1.12B748.50M
Stockholders Equity2.10B2.05B1.91B1.68B1.48B
Cash Flow
Free Cash Flow236.00M354.53M39.82M406.93M268.05M
Operating Cash Flow237.50M475.49M131.65M482.16M363.00M
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
Negative
Last Price2446.00
Price Trends
50DMA
2624.66
Negative
100DMA
2685.15
Negative
200DMA
2589.48
Negative
Market Momentum
MACD
-37.39
Negative
RSI
42.80
Neutral
STOCH
69.59
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3695, the sentiment is Negative. The current price of 2446 is below the 20-day moving average (MA) of 2497.10, below the 50-day MA of 2624.66, and below the 200-day MA of 2589.48, indicating a bearish trend. The MACD of -37.39 indicates Negative momentum. The RSI at 42.80 is Neutral, neither overbought nor oversold. The STOCH value of 69.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3695.

GMO Research & AI,Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (69)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
¥12.02B22.47
52.86%1255.76%
69
Neutral
¥231.71B14.677.64%2.71%9.09%8.52%
69
Neutral
¥8.00B11.84
3.50%1.91%
68
Neutral
¥13.86B77.06
4.98%-192.50%
66
Neutral
¥29.98B25.43
0.14%-21.25%
63
Neutral
¥4.74B
-15.90%-388.21%
60
Neutral
¥10.76B168.28
4.70%-1.38%-91.00%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3695
GMO Research & AI,Inc.
2,483.00
-298.06
-10.72%
JP:3633
GMO Pepabo, Inc.
1,510.00
71.66
4.98%
JP:3680
Hotto Link, Inc.
301.00
-58.38
-16.24%
JP:3694
OPTiM Corp.
542.00
-147.00
-21.34%
JP:4488
AI inside, Inc.
3,595.00
-1,100.00
-23.43%
JP:5582
GRID Inc.
2,531.00
95.00
3.90%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 13, 2025