Gungho Online Entertainment Inc (JP:3765)
:3765
Top Page
Gungho Online Entertainment
(3765)
Select Model
Select Model
Rating:61Neutral
Price Target:
¥2,638.00
▲(2.01% Upside)
Action:ReiteratedDate:02/18/26
The score is primarily supported by an exceptionally strong, low-debt balance sheet, but it is pulled down by the sharp 2025 deterioration in earnings and free cash flow. Technical indicators also lean soft (price below key moving averages and low RSI), and valuation is a headwind due to the very high P/E despite only a modest dividend yield.
Positive Factors
Very strong balance sheet
Extremely low leverage and large, stable equity provide durable downside protection and financial flexibility. This allows multi-year investment in game development, marketing or M&A without pressing liquidity risk, supporting resilience through title cycles and industry downturns.
Negative Factors
Multi-year revenue decline
Consecutive revenue declines indicate weakening product momentum or retention. For a games publisher, sustained top-line erosion reduces resources for live-ops and new title investment, heightening risk of further share loss and making recovery dependent on successful new releases.
Read all positive and negative factors
Positive Factors
Negative Factors
Very strong balance sheet
Extremely low leverage and large, stable equity provide durable downside protection and financial flexibility. This allows multi-year investment in game development, marketing or M&A without pressing liquidity risk, supporting resilience through title cycles and industry downturns.
Read all positive factors
Gungho Online Entertainment (3765) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥138.05B
Dividend Yield2.38%
Average Volume (3M)141.23K
Price to Earnings (P/E)―
Beta (1Y)0.44
Revenue Growth-3.12%
EPS Growth-63.07%
CountryJP
Employees1,583
SectorCommunication Services
Sector Strength97
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)-27.13
Shares Outstanding69,161,415
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)117.05
Revenue Forecast (FY)¥106.70B
Gungho Online Entertainment Business Overview & Revenue Model
Company Description
GungHo 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,...
How the Company Makes Money
Gungho Online Entertainment generates revenue primarily through in-game purchases and microtransactions associated with its mobile and online games. The company offers free-to-play games that entice users to spend on virtual goods, character upgra...
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 | 100.53B | 93.24B | 103.60B | 125.31B | 105.50B | 104.63B |
| Gross Profit | 48.85B | 42.33B | 53.41B | 56.97B | 58.42B | 61.06B |
| EBITDA | 11.27B | 6.07B | 18.44B | 29.09B | 28.63B | 33.72B |
| Net Income | 5.81B | 1.41B | 11.17B | 16.43B | 19.02B | 22.88B |
Balance Sheet | ||||||
| Total Assets | 168.58B | 169.47B | 175.46B | 168.04B | 152.21B | 135.18B |
| Cash, Cash Equivalents and Short-Term Investments | 136.83B | 136.25B | 104.62B | 140.03B | 127.21B | 116.46B |
| Total Debt | 1.18B | 1.35B | 759.00M | 722.00M | 1.13B | 1.37B |
| Total Liabilities | 20.22B | 18.14B | 21.93B | 18.55B | 19.37B | 16.51B |
| Stockholders Equity | 122.46B | 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
Positive
2586.00
Price Trends
2553.54
Negative
2500.24
Positive
2602.16
Negative
Market Momentum
-6.74
Negative
52.08
Neutral
71.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3765, the sentiment is Positive. The current price of 2586 is above the 20-day moving average (MA) of 2531.70, above the 50-day MA of 2553.54, and below the 200-day MA of 2602.16, indicating a neutral trend. The MACD of -6.74 indicates Negative momentum. The RSI at 52.08 is Neutral, neither overbought nor oversold. The STOCH value of 71.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 | ¥292.79B | -11.40 | 17.98% | 2.52% | 34.16% | ― | |
69 Neutral | ¥167.79B | 7.96 | 10.05% | 4.61% | 1.14% | 77.07% | |
61 Neutral | ¥138.05B | -23.19 | 3.38% | 2.38% | -3.12% | -63.07% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
54 Neutral | ¥69.31B | 111.53 | 1.59% | 2.09% | -2.61% | 116.80% | |
52 Neutral | ¥24.95B | -95.92 | ― | ― | -14.71% | -38.87% | |
46 Neutral | ¥18.15B | 9.33 | ― | ― | -37.68% | ― |
* Communication Services Sector Average
JP:3765
Gungho Online Entertainment
2,559.00
-40.28
-1.55%
JP:2432
DeNA Co
2,678.50
-294.43
-9.90%
JP:3632
GREE
390.00
-91.14
-18.94%
JP:2121
Mixi
2,580.00
-273.19
-9.58%
JP:3656
KLab Inc.
320.00
206.00
180.70%
JP:3903
gumi, Inc.
337.00
-57.00
-14.47%
Gungho Online Entertainment Corporate Events
GungHo Overhauls Executive Pay With Performance-Linked Stock Plan
Feb 13, 2026
GungHo Online Entertainment has approved partial revisions to its directors’ remuneration system, following recommendations from its Nomination and Remuneration Committee led by an independent outside director. The company aims to better ali...
GungHo Board Rejects Activist Shareholder Proposals Ahead of AGM
Feb 13, 2026
GungHo Online Entertainment’s board of directors has formally opposed all shareholder proposals submitted by Strategic Capital and LIM Japan Event Master Fund ahead of its annual general meeting. The company stated that it will continue to p...
GungHo Board Rejects Activist Shareholder Proposals Ahead of March AGM
Feb 13, 2026
GungHo Online Entertainment’s board has unanimously decided to oppose all shareholder proposals submitted by activist investors Strategic Capital-linked entities and LIM Japan Event Master Fund ahead of its 29th annual general meeting on Mar...
GungHo Overhauls Board With New Independent Outside Directors
Feb 13, 2026
GungHo Online Entertainment, Inc. has nominated certified public accountant and tax accountant Hiroyuki Uchida, and attorney and patent attorney Emiko Maki, as new outside director candidates to be formally elected at the March 30, 2026 shareholde...
GungHo Online Entertainment Launches Major Share Buyback and Cancellation Program
Feb 13, 2026
GungHo Online Entertainment’s board has approved a new share buyback and cancellation program aimed at enhancing shareholder value and improving capital efficiency. The company plans to respond flexibly to shifts in its business environment ...
GungHo Online Entertainment Lifts Shareholder Payout Targets and Hikes Year-End Dividend
Feb 13, 2026
GungHo Online Entertainment has overhauled its shareholder return policy to pursue more proactive profit distribution, introducing a 4% Dividend on Equity (DOE) target while lifting its consolidated dividend payout ratio benchmark from 30% or more...
GungHo Profit Slumps as Puzzle & Dragons Sales Weaken Despite Solid Ragnarok Performance
Feb 13, 2026
GungHo Online Entertainment reported a sharp year-on-year decline in earnings for the fiscal year ended December 31, 2025, as net sales fell 10.0% to ¥93.2 billion and profit attributable to owners of parent plunged 87.4% to ¥1.4 billion...
GungHo Profit Slumps in 2025 as Dividend Payout Jumps
Feb 13, 2026
GungHo Online Entertainment reported a sharp deterioration in results for the fiscal year ended December 31, 2025, with net sales falling 10% to ¥93.2 billion and operating income plunging 71.1%. Ordinary income dropped 66.1% and profit attri...
GungHo Revamps Directors’ Pay to Tie Incentives to Corporate Value and Shareholder Interests
Jan 9, 2026
GungHo Online Entertainment has introduced a new directors’ remuneration system designed to better reflect the business environment the company faces and to align management incentives with long-term corporate value creation. The framework e...
GungHo Online Entertainment Plans Overhaul of Director Pay, Adding Performance-Linked Stock Awards
Jan 9, 2026
GungHo Online Entertainment’s Nomination and Remuneration Committee, dominated by independent outside directors, has recommended significant revisions to the remuneration system for executive directors, aiming to better link pay with busines...
GungHo Reshapes Top Management as Founder Focuses on Game Development
Jan 9, 2026
GungHo Online Entertainment has announced a management reshuffle effective February 1, 2026, under which long-time president and CEO Kazuki Morishita will step down from his representative role to become chairman of the board and chief development...
GungHo Online Entertainment Strengthens Controls Following Misconduct
Dec 17, 2025
GungHo Online Entertainment has announced progress in addressing misconduct by a former executive-level employee who misappropriated company funds through fictitious business orders. The company has taken steps to prevent future incidents by decen...
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.