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

• Market Cap: ¥8.72B
• Dividend Yield: 5.69%
• Average Volume (3M): 7.74K
• Price to Earnings (P/E): 50.2
• Beta (1Y): 0.48
• Revenue Growth: 14.59%
• EPS Growth: -71.29%
• Country: JP
• Employees: 135
• Sector: Technology
• Sector Strength: 88
• Industry: Specialty Business Services
• EPS (TTM): 12.64
• Shares Outstanding: 4,446,357
• 10 Day Avg. Volume: 8,380
• 30 Day Avg. Volume: 7,740
• PEG Ratio: -0.55
• Price to Book (P/B): 1.95
• Price to Sales (P/S): 0.82
• P/FCF Ratio: 17.38
• 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: ¥2,490.00
• Price Target Upside: 25.69% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 61 Neutral
• Price Target: ¥2,490.00 ▲(25.69% Upside)

The overall stock score of 61 reflects a combination of solid financial health and operational efficiency, offset by recent declines in revenue and net income. The technical analysis suggests a bearish trend, while the valuation indicates potential overvaluation despite an attractive dividend yield. The absence of earnings call data and corporate events limits further insights.

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

Company Description

GMO Research & AI, Inc. provides an audience engagement platform in Japan and internationally. The company's audience engagement platform provides access to Asia Cloud Panel, a multi-panel and multi-country online panel network. The company provides quick and custom survey services. It also provides automated and agile data collection management solutions. The company was formerly known as GMO Research, Inc. and changed its name to GMO Research & AI, Inc. in May 2024. GMO Research & AI, Inc. was incorporated in 2002 and is headquartered in Tokyo, Japan. GMO Research & AI, Inc. is a subsidiary of GMO internet group, Inc.

How the Company Makes Money

GMO Research & AI generates revenue through multiple streams, primarily by offering subscription-based access to its AI-driven research platforms and analytics tools. Additionally, the company earns money by providing customized market research services and consulting solutions tailored to the specific needs of clients. Key revenue streams include licensing fees from its proprietary software, charges for survey deployments, and project-based consulting fees. The company also benefits from partnerships with academic institutions and other technology firms, which enhance its service offerings and expand its market reach.

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. However, recent declines in revenue and net income signal potential challenges ahead. The company manages its debt well, but 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.73B	5.03B	5.12B	5.20B	4.09B	3.39B
Gross Profit	3.12B	2.55B	2.54B	2.46B	1.98B	1.59B
EBITDA	277.62M	354.23M	518.18M	544.66M	454.54M	311.69M
Net Income	99.54M	183.15M	307.31M	356.38M	274.06M	175.67M
Balance Sheet
Total Assets	3.84B	3.00B	2.99B	3.07B	2.80B	2.23B
Cash, Cash Equivalents and Short-Term Investments	1.68B	1.19B	1.33B	1.17B	1.26B	913.00M
Total Debt	4.56M	5.50M	12.22M	16.80M	19.29M	12.33M
Total Liabilities	1.58B	883.41M	946.14M	1.16B	1.12B	748.50M
Stockholders Equity	2.24B	2.10B	2.05B	1.91B	1.68B	1.48B
Cash Flow
Free Cash Flow	0.00	236.00M	354.53M	39.82M	406.93M	268.05M
Operating Cash Flow	0.00	237.50M	475.49M	131.65M	482.16M	363.00M
Investing Cash Flow	0.00	-221.00M	-131.49M	-111.34M	-50.65M	-95.03M
Financing Cash Flow	0.00	-195.90M	-187.50M	-145.31M	-96.53M	-82.56M

GMO Research & AI,Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1981.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 1981 is below the 20-day moving average (MA) of 2122.65, below the 50-day MA of 2251.02, and below the 200-day MA of 2525.51, indicating a bearish trend. The MACD of -77.24 indicates Positive momentum. The RSI at 27.03 is Positive, neither overbought nor oversold. The STOCH value of 8.27 is Positive, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3633	71 Outperform	¥11.01B	16.47	―	2.55%	3.28%	13.20%
5582	67 Neutral	¥11.57B	38.67	―	―	24.90%	-26.71%
3694	66 Neutral	¥30.09B	25.12	―	―	4.86%	7.22%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3695	61 Neutral	¥8.72B	50.20	―	5.69%	14.59%	-71.29%
4488	60 Neutral	¥11.22B	77.06	―	―	6.29%	-180.52%
3680	52 Neutral	¥4.11B	―	―	1.15%	-22.88%	-441.25%