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Gungho Online Entertainment (JP:3765)
:3765
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Gungho Online Entertainment (3765) AI Stock Analysis

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JP:3765

Gungho Online Entertainment

(OTC:3765)

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Neutral 68 (OpenAI - 4o)
Rating:68Neutral
Price Target:
¥3,130.00
▲(10.52% Upside)
Gungho Online Entertainment's overall stock score reflects its strong financial stability and solid profitability, despite recent revenue challenges. The technical indicators suggest moderate performance with some bearish signals, while the valuation metrics indicate fair pricing with a modest dividend yield. The absence of earnings call data and corporate events limits additional insights.

Gungho Online Entertainment (3765) vs. iShares MSCI Japan ETF (EWJ)

Gungho Online Entertainment Business Overview & Revenue Model

Company DescriptionGungHo Online Entertainment, Inc. plans, develops, operates, and distributes online computer games, smartphone applications, and console games. The company was formerly known as ONSale Co., Ltd. and changed its name to GungHo Online Entertainment, Inc. in August 2002. GungHo Online Entertainment, Inc. was founded in 1998 and is based in Tokyo, Japan.
How the Company Makes MoneyGungho Online Entertainment generates revenue primarily through in-game purchases and microtransactions associated with its games, particularly 'Puzzle & Dragons.' Players can buy virtual currency and items that enhance their gaming experience. Additionally, the company earns revenue from advertising, partnerships, and collaborations with other game developers and brands. The company has also engaged in licensing agreements for merchandise and promotional content, further diversifying its income streams. Strategic partnerships with global platforms and participation in gaming events contribute to its visibility and player acquisition, positively impacting its overall earnings.

Gungho Online Entertainment Financial Statement Overview

Summary
Gungho Online Entertainment demonstrates solid financial health with strong profitability margins and a robust balance sheet. However, the notable decline in revenue in 2024 suggests challenges in maintaining growth momentum. Despite this, the company's low leverage and strong cash position provide a buffer against potential risks, allowing for sustained operations and potential growth opportunities.
Income Statement
75
Positive
The company demonstrates strong profitability with a gross profit margin averaging around 50% over the years. However, the recent decline in total revenue from 125.3 billion in 2023 to 103.6 billion in 2024, a decrease of 17.3%, indicates a significant drop in revenue growth. Net profit margin also decreased from 13.1% in 2023 to 10.8% in 2024. Despite this, EBIT and EBITDA margins remain healthy, reflecting efficient cost management.
Balance Sheet
85
Very Positive
The company's balance sheet shows exceptional strength with a high equity ratio of approximately 73% in 2024, indicating low leverage and solid financial stability. The debt-to-equity ratio is minimal at 0.01, and a strong return on equity averaging around 12% over the years suggests efficient use of equity capital. The company's substantial cash reserves further enhance its financial stability.
Cash Flow
80
Positive
Cash flow analysis reveals a mixed performance. Although free cash flow decreased by 15% from 19.9 billion in 2023 to 16.9 billion in 2024, the company maintains a robust free cash flow to net income ratio, reflecting good cash generation relative to net income. The operating cash flow to net income ratio remains strong, indicating consistent cash flow from operations.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue101.64B103.60B125.31B105.50B104.63B98.84B
Gross Profit51.57B53.41B56.97B58.42B61.06B55.35B
EBITDA17.12B20.81B30.96B29.94B37.64B29.46B
Net Income8.78B11.17B16.43B19.02B22.88B16.37B
Balance Sheet
Total Assets166.30B175.46B168.04B152.21B134.93B122.25B
Cash, Cash Equivalents and Short-Term Investments96.64B104.62B140.03B127.21B116.46B102.72B
Total Debt1.22B1.28B722.00M489.00M508.00M614.00M
Total Liabilities21.34B21.93B18.55B19.38B16.26B17.53B
Stockholders Equity120.41B128.77B128.76B118.38B108.40B97.51B
Cash Flow
Free Cash Flow0.0016.89B19.90B18.23B22.98B21.57B
Operating Cash Flow0.0017.13B20.51B18.66B23.65B24.21B
Investing Cash Flow0.00-47.59B-14.61B-2.79B-5.41B-6.47B
Financing Cash Flow0.00-12.22B-7.03B-9.27B-12.39B-4.71B

Gungho Online Entertainment Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price2832.00
Price Trends
50DMA
2846.00
Negative
100DMA
2826.95
Positive
200DMA
2956.45
Negative
Market Momentum
MACD
-13.63
Negative
RSI
49.51
Neutral
STOCH
63.40
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3765, the sentiment is Neutral. The current price of 2832 is above the 20-day moving average (MA) of 2824.95, below the 50-day MA of 2846.00, and below the 200-day MA of 2956.45, indicating a neutral trend. The MACD of -13.63 indicates Negative momentum. The RSI at 49.51 is Neutral, neither overbought nor oversold. The STOCH value of 63.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3765.

Gungho Online Entertainment Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
218.93B13.599.50%3.60%5.64%115.77%
68
Neutral
¥153.44B27.064.72%2.12%-9.67%-56.16%
68
Neutral
261.74B8.1610.01%2.74%27.63%0.00%
63
Neutral
41.95B55.933.97%3.27%-10.86%-64.25%
54
Neutral
31.85B9.1512.16%-39.08%0.00%
54
Neutral
81.67B65.381.28%1.85%-6.85%-74.31%
60
Neutral
$48.67B4.58-11.27%4.14%2.83%-41.78%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3765
Gungho Online Entertainment
2,871.50
-104.45
-3.51%
DNACF
DeNA Co
15.53
4.07
35.51%
GREZF
GREE
3.16
0.13
4.29%
MIXIF
Mixi
22.87
3.02
15.21%
JP:3903
gumi, Inc.
620.00
274.00
79.19%
JP:3932
Akatsuki, Inc.
2,895.00
972.28
50.57%

Gungho Online Entertainment Corporate Events

GungHo Online Entertainment Settles Misconduct Case with Counterparty
Sep 8, 2025

GungHo Online Entertainment, Inc. has reached a settlement with a counterparty involved in a misconduct case where a former employee improperly paid outsourcing fees, resulting in a financial loss of approximately 100 million yen. The settlement includes a lump-sum repayment of 70 million yen and the remaining balance to be paid in installments, with the overall impact on the company’s financial results expected to be minimal.

The most recent analyst rating on (JP:3765) stock is a Hold with a Yen3017.00 price target. To see the full list of analyst forecasts on Gungho Online Entertainment stock, see the JP:3765 Stock Forecast page.

GungHo Online Entertainment Receives Shareholder Petition for Extraordinary Meeting
Aug 21, 2025

GungHo Online Entertainment has announced that it received a petition from shareholders seeking permission to convene an extraordinary general meeting. The company has already scheduled this meeting for September 24, 2025, and believes there is no need to grant additional permissions for the meeting. The company plans to submit necessary arguments to the Tokyo District Court and will make further announcements if required.

GungHo Online Entertainment Proposes Amendment to Enhance Governance
Aug 15, 2025

GungHo Online Entertainment, Inc. announced a proposal to amend its Articles of Incorporation by removing a clause that adds requirements for resolutions to dismiss directors. This change, aimed at enhancing corporate governance, will be presented at an Extraordinary General Meeting of Shareholders on September 24, 2025.

GungHo Online Entertainment Opposes Proposal to Dismiss President
Aug 15, 2025

GungHo Online Entertainment’s Board of Directors opposes Proposal No. 2 from Strategic Capital, which suggests dismissing President Morishita. The Board believes that President Morishita’s continued leadership is crucial for maintaining and enhancing the company’s corporate value, and dismissing him could significantly impair the company’s performance.

GungHo Online Entertainment Schedules Extraordinary Shareholders Meeting to Address Governance Proposals
Aug 15, 2025

GungHo Online Entertainment has announced the details of an upcoming Extraordinary General Meeting of Shareholders scheduled for September 24, 2025. The meeting will address two main proposals: a partial amendment of the Articles of Incorporation to improve corporate governance by removing specific requirements for dismissing directors, and a shareholder proposal to dismiss Director Kazuki Morishita. The board of directors has unanimously resolved on the agenda and venue for the meeting, indicating a significant focus on corporate governance and shareholder engagement.

GungHo Online Entertainment Issues Correction on Employee Misconduct Notice
Aug 14, 2025

GungHo Online Entertainment, Inc. issued a correction regarding a previous notice about misconduct by a former employee. The correction involves the fiscal year end date, changing it from March 2026 to December 2025. The company stated that the misconduct’s impact on financial results is immaterial and promised to disclose any future matters requiring attention, along with updates on measures to prevent recurrence by the end of the year.

GungHo Online Entertainment Addresses Executive Misconduct and Financial Safeguards
Aug 14, 2025

GungHo Online Entertainment has uncovered misconduct by a former executive who misappropriated company funds through fictitious business orders, causing financial damage of approximately 346 million yen. The company has taken strict measures, including dismissal and legal consultations, to address the issue and prevent recurrence, while assuring stakeholders that the financial impact is minimal and promising further updates on preventive measures.

GungHo Online Entertainment Announces Change in Major Shareholder
Aug 8, 2025

GungHo Online Entertainment, Inc. announced a change in its major shareholders, effective July 31, 2025, due to a Large Shareholding Report submitted by Strategic Capital, Inc. The report indicates an increase in Strategic Capital’s voting rights from 9.71% to 11.01%. This change reflects a shift in shareholder dynamics but does not impact the company’s future outlook.

GungHo Online Entertainment Reports Decline in Q2 Financial Results
Aug 8, 2025

GungHo Online Entertainment reported a significant decline in its financial performance for the second quarter of the fiscal year ending December 31, 2025. The company experienced a decrease in net sales, operating profit, ordinary profit, and quarterly net profit compared to the previous year. The company has not disclosed its full-year earnings forecast due to the volatile nature of its business and has decided not to pay an interim dividend for the second quarter. This financial downturn may impact the company’s market positioning and stakeholder confidence.

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: Sep 17, 2025