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Gungho Online Entertainment
(3765)
Select Model
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Rating:63Neutral
Price Target:
¥2,502.00
▲(2.46% Upside)
Action:Reiterated
Date:08/06/26
The score is primarily supported by an exceptionally strong, low-leverage balance sheet, but is held back by the sharp 2025 deterioration in earnings and free cash flow. Technical signals are neutral and do not indicate strong momentum, while valuation is pressured by a very high P/E despite a supportive dividend yield.
Positive Factors
Extremely low leverage / strong equity
Gungho's exceptionally low leverage and large equity base provide durable financial flexibility and downside protection. This capitalization lets management fund game development, marketing or M&A without urgent refinancing, smoothing investment through cyclic content cycles and downturns.
Negative Factors
Two-year revenue decline
Consecutive annual revenue declines imply weakening title performance or market share loss. Sustained top-line contraction reduces resources for content updates and marketing, raising the risk that diminished engagement becomes self-reinforcing and extends recovery timelines.
Read all positive and negative factors
Positive Factors
Negative Factors
Extremely low leverage / strong equity
Gungho's exceptionally low leverage and large equity base provide durable financial flexibility and downside protection. This capitalization lets management fund game development, marketing or M&A without urgent refinancing, smoothing investment through cyclic content cycles and downturns.
Read all positive factors
Gungho Online Entertainment (3765) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥126.82B
Dividend Yield3.72%
Average Volume (3M)141.23K
Price to Earnings (P/E)86.6
Beta (1Y)0.33
Revenue Growth-5.49%
EPS Growth-82.16%
CountryJP
Employees1,614
SectorCommunication Services
Sector Strength97
IndustrySoftware - Application
Share Statistics
EPS (TTM)27.96
Shares Outstanding53,161,415
10 Day Avg. Volume125,650
30 Day Avg. Volume141,233
Financial Highlights & Ratios
PEG Ratio-1.14
Price to Book (P/B)1.12
Price to Sales (P/S)1.47
P/FCF Ratio-301.26
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)84.35
Revenue Forecast (FY)¥99.65B
Gungho Online Entertainment Business Overview & Revenue Model
Company Description
GungHo Online Entertainment, Inc. engages in the planning, development, operation and distribution of smartphone applications and online computer games and also engages in the planning, development and sale of console games. The users purchase ite...
How the Company Makes Money
Gungho primarily makes money by operating and publishing digital games, where revenue is generated mainly through ongoing monetization of live-service titles. Key revenue streams typically include: (1) in-game purchases (microtransactions) within ...
Gungho Online Entertainment Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
92
Very Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 96.06B | 93.24B | 103.60B | 125.31B | 105.50B | 104.63B |
| Gross Profit | 42.76B | 42.33B | 53.41B | 56.97B | 58.42B | 61.06B |
| EBITDA | 6.96B | 6.07B | 18.44B | 29.09B | 28.63B | 33.72B |
| Net Income | 1.50B | 1.41B | 11.17B | 16.43B | 19.02B | 22.88B |
Balance Sheet | ||||||
| Total Assets | 169.65B | 169.47B | 175.46B | 168.04B | 152.21B | 135.18B |
| Cash, Cash Equivalents and Short-Term Investments | 128.98B | 136.25B | 104.62B | 140.03B | 127.21B | 116.46B |
| Total Debt | 2.60B | 1.35B | 759.00M | 722.00M | 1.13B | 1.37B |
| Total Liabilities | 24.76B | 18.14B | 21.93B | 18.55B | 19.37B | 16.51B |
| Stockholders Equity | 115.91B | 123.02B | 128.78B | 128.76B | 118.38B | 108.40B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -456.00M | 16.89B | 19.90B | 18.23B | 22.98B |
| Operating Cash Flow | 0.00 | 149.00M | 17.13B | 20.51B | 18.66B | 23.65B |
| Investing Cash Flow | 0.00 | -28.68B | -47.59B | -14.61B | -2.79B | -5.25B |
| Financing Cash Flow | 0.00 | -8.83B | -12.22B | -7.03B | -9.27B | -12.56B |
Gungho Online Entertainment Technical Analysis
Negative
2442.00
Price Trends
2294.04
Positive
2393.25
Negative
2439.39
Negative
Market Momentum
28.33
Positive
48.39
Neutral
42.20
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3765, the sentiment is Negative. The current price of 2442 is above the 20-day moving average (MA) of 2376.60, above the 50-day MA of 2294.04, and above the 200-day MA of 2439.39, indicating a neutral trend. The MACD of 28.33 indicates Positive momentum. The RSI at 48.39 is Neutral, neither overbought nor oversold. The STOCH value of 42.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3765.
Gungho Online Entertainment Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | ¥182.01B | 8.77 | 9.75% | 4.24% | 19.88% | 34.50% | |
69 Neutral | ¥273.01B | 14.42 | 7.42% | 2.69% | -9.94% | -21.11% | |
63 Neutral | ¥126.82B | 86.62 | 1.24% | 3.69% | -5.49% | -82.16% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
54 Neutral | ¥72.00B | 31.26 | 2.38% | 5.42% | -8.43% | -5.44% | |
54 Neutral | ¥13.64B | 8.89 | ― | ― | 2.70% | -28.19% | |
42 Neutral | ¥18.79B | -2.98 | ― | ― | -17.15% | -70.83% |
* Communication Services Sector Average
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Gungho Online Entertainment Corporate Events
GungHo Tightens Controls After Former Employee Arrest Over Fund Misappropriation
Jul 8, 2026
GungHo Online Entertainment has disclosed that a former employee, previously dismissed for misconduct, was arrested on July 8, 2026 on suspicion of criminal breach of trust related to misappropriation of company funds through fictitious business o...
GungHo Discloses Financials of Key Affiliate Belleisle Japan
May 19, 2026
GungHo Online Entertainment has disclosed the financial results of its other affiliated company, Belleisle Japan Inc., an unlisted asset management firm based in Tokyo with capital stock of ¥80 million. Belleisle is wholly owned by Representa...
GungHo Posts Strong Q1 Profit Gains but Withholds Full-Year Outlook
May 8, 2026
GungHo Online Entertainment reported consolidated net sales of ¥26.6 billion for the first quarter of 2026, an 11.9% year-on-year increase, with operating profit rising 30.5% to ¥3.7 billion and ordinary profit jumping 41.9% to ¥4.6...
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.