GMO Payment Gateway (3769) AI Stock Analysis

• Market Cap: $639.05B
• Dividend Yield: 1.43%
• Average Volume (3M): 194.85K
• Price to Earnings (P/E): 31.9
• Beta (1Y): 0.96
• Revenue Growth: 11.81%
• EPS Growth: 16.69%
• Country: JP
• Employees: 853
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 82.29
• Shares Outstanding: 76,557,550
• 10 Day Avg. Volume: 198,670
• 30 Day Avg. Volume: 194,853
• PEG Ratio: 0.92
• Price to Book (P/B): 6.49
• Price to Sales (P/S): 9.05
• P/FCF Ratio: 14.82
• Enterprise Value/Market Cap: 0.74
• Enterprise Value/Revenue: 5.86
• Enterprise Value/Gross Profit: 8.73
• Enterprise Value/Ebitda: 13.97
• 1Y Price Target: $10,141.79
• Price Target Upside: 1.01% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ¥9,480.00 ▼(-5.58% Downside)

GMO Payment Gateway's strong financial performance is the most significant factor, indicating robust profitability and cash flow generation. Technical analysis shows neutral momentum, while valuation metrics suggest the stock is relatively expensive. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Cash Generation Ability

Strong cash generation supports financial stability, enabling reinvestment in growth opportunities and providing a buffer against economic downturns.

Profitability

High profitability margins indicate efficient operations and pricing power, contributing to long-term financial health and competitive positioning.

Revenue Growth

Positive revenue growth, even at a slower pace, suggests sustained demand for services and potential for market expansion.

Negative Factors

Slowing Revenue Growth

Slowing revenue growth may signal market saturation or increased competition, potentially impacting future earnings expansion.

Debt Levels

While leverage is moderate, any increase in debt levels could strain cash flows, limiting financial flexibility and increasing risk.

Market Saturation

Slowing growth rates may indicate market saturation, challenging the company's ability to maintain its growth trajectory in the long term.

GMO Payment Gateway Business Overview & Revenue Model

Company Description

GMO Payment Gateway, Inc., together with its subsidiaries, provides financial services and integrated payment related services. It operates through three segments: Payment Enhancement Business, Payment Processing Business, and Money Service Business. The company offers PG multi-payment service, a payment platform that provides credit card payment, convenience store payment, account transfer, and multi-currency credit card payment. It also provides GMO payment after delivery; Ginko Pay Base System, a smartphone app that enables payments to be made by an immediate debit from the bank account; and GMO-PG processing platform, which helps financial institutions or financial service providers start payment-related services by enabling payment infrastructure building, as well as security services. In addition, the company offers global payment services; and early payment, GMO-PG remittance, guarantees, and transaction lending services. Further, it offers online advertising services consisting of administrative services for listing ads that use Yahoo! Promotional Ads and Google AdWords; and administrative services for Facebook Ads, Google Analytics, etc. It serves online merchants and public organizations, such as NHK, National Tax Agency, and Tokyo Metropolitan Government; and banks and other financial institutions. GMO Payment Gateway, Inc. was founded in 1995 and is headquartered in Tokyo, Japan.

How the Company Makes Money

GMO Payment Gateway generates revenue primarily through transaction fees charged to merchants for processing payments. Each time a customer makes a purchase using the payment gateway, the company receives a percentage of the transaction amount as a fee. Additionally, the company offers subscription-based services for its advanced payment solutions, which provide merchants with enhanced features and tools for managing their online transactions. Significant partnerships with financial institutions and e-commerce platforms further contribute to its earnings, as these collaborations enable the company to expand its customer base and improve service offerings. Furthermore, the company may earn revenue from value-added services such as fraud prevention, analytics, and other financial services that enhance the overall payment processing experience for businesses.

GMO Payment Gateway Financial Statement Overview

Summary

GMO Payment Gateway demonstrates strong financial health with robust profitability, stable growth, moderate leverage, and effective equity utilization. Cash flow metrics highlight strong cash generation and conversion, supporting financial stability and growth potential.

Income Statement

GMO Payment Gateway shows strong profitability with a consistent gross profit margin around 66-67% and a net profit margin over 25% in the TTM. Revenue growth is positive, albeit slowing, with a TTM growth rate of 2.74% compared to higher rates in previous years. EBIT and EBITDA margins remain robust, indicating efficient operations.

Balance Sheet

The company maintains a healthy balance sheet with a debt-to-equity ratio around 0.51, indicating moderate leverage. Return on equity is strong at 19.58% in the TTM, reflecting effective use of equity capital. The equity ratio is stable, suggesting a solid financial foundation.

Cash Flow

Cash flow performance is strong, with a significant free cash flow growth of 26.33% in the TTM. The operating cash flow to net income ratio is healthy, indicating good cash generation relative to net income. The free cash flow to net income ratio is close to 1, showing efficient cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	80.59B	73.79B	63.12B	50.30B	41.67B	33.05B
Gross Profit	54.09B	48.10B	39.99B	33.64B	28.10B	23.85B
EBITDA	33.81B	31.47B	23.22B	20.62B	15.98B	12.72B
Net Income	20.04B	18.71B	13.48B	24.15B	8.82B	7.62B
Balance Sheet
Total Assets	368.13B	344.70B	292.35B	273.41B	215.46B	192.02B
Cash, Cash Equivalents and Short-Term Investments	185.63B	174.76B	138.96B	130.47B	106.52B	100.83B
Total Debt	48.08B	53.10B	49.11B	42.68B	34.75B	35.75B
Total Liabilities	255.90B	238.88B	197.54B	184.15B	157.64B	158.57B
Stockholders Equity	109.23B	102.90B	92.27B	87.12B	55.85B	31.73B
Cash Flow
Free Cash Flow	52.09B	45.03B	1.50B	4.69B	-8.27B	47.25B
Operating Cash Flow	52.60B	49.47B	6.13B	7.66B	-6.34B	49.19B
Investing Cash Flow	-11.63B	-5.23B	17.76B	-2.44B	2.23B	-4.49B
Financing Cash Flow	-16.40B	-3.73B	-6.42B	2.64B	12.78B	-785.11M

GMO Payment Gateway Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10040.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3769, the sentiment is Positive. The current price of 10040 is above the 20-day moving average (MA) of 9089.55, above the 50-day MA of 8637.94, and above the 200-day MA of 8417.88, indicating a bullish trend. The MACD of 418.14 indicates Negative momentum. The RSI at 70.32 is Negative, neither overbought nor oversold. The STOCH value of 87.25 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3769.

GMO Payment Gateway Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3623	78 Outperform	¥6.44B	16.25	―	1.20%	6.95%	-9.62%
4374	76 Outperform	¥10.70B	24.36	―	0.46%	19.35%	71.74%
3769	75 Outperform	$639.05B	31.89	19.76%	1.43%	11.81%	16.69%
2428	69 Neutral	¥12.27B	11.74	―	4.31%	0.54%	9.99%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4180	58 Neutral	¥128.74B	41.43	―	0.19%	25.88%	80.30%
3778	52 Neutral	¥133.33B	83.34	―	0.12%	36.42%	28.23%

GMO Payment Gateway Corporate Events

GMO Payment Gateway Reports Q3 FY2025 Financial Results with Strategic Expansion

GMO Payment Gateway reported a 12.6% increase in revenue for the nine months ending June 30, 2025, with operating profit rising by 20.1%. The company has also included a new subsidiary, GMO Enpay, Inc., in its consolidation, indicating strategic expansion. Despite the positive financial performance, total comprehensive income saw a decline of 13.0%, which may impact stakeholder confidence.

The most recent analyst rating on (JP:3769) stock is a Buy with a Yen10650.00 price target. To see the full list of analyst forecasts on GMO Payment Gateway stock, see the JP:3769 Stock Forecast page.