GMO GlobalSign Holdings K.K. (3788) AI Stock Analysis

• Market Cap: ¥23.93B
• Dividend Yield: 1.76%
• Average Volume (3M): 14.60K
• Price to Earnings (P/E): 33.1
• Beta (1Y): 1.04
• Revenue Growth: 7.60%
• EPS Growth: -6.99%
• Country: JP
• Employees: 993
• Sector: Technology
• Sector Strength: 90
• Industry: Information Technology Services
• EPS (TTM): 17.63
• Shares Outstanding: 11,693,000
• 10 Day Avg. Volume: 21,470
• 30 Day Avg. Volume: 14,600
• PEG Ratio: -2.17
• Price to Book (P/B): 2.72
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥2,228.00
• Price Target Upside: 7.37% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: ¥2,326.00 ▲(12.10%Upside)

GMO GlobalSign Holdings scores well in financial performance, with strong revenue growth and profitability margins. Technical indicators suggest a neutral market sentiment. However, the valuation score is lower due to a high P/E ratio, indicating potential overvaluation.

GMO GlobalSign Holdings K.K. Business Overview & Revenue Model

Company Description

GMO GlobalSign Holdings K.K. (3788) is a Japanese company operating primarily in the information technology and services sector. It specializes in providing digital identity services, including SSL/TLS certificates, electronic signatures, and identity and access management solutions. The company serves a wide range of clients globally, aiming to enhance online security and trust for businesses and individuals.

How the Company Makes Money

GMO GlobalSign Holdings K.K. generates revenue through the sale of digital certificates and identity verification services. Its primary revenue streams include the provision of SSL/TLS certificates, which are crucial for ensuring secure communications over the internet, and digital signing solutions that facilitate legally binding electronic signatures. Additionally, the company offers identity and access management services that allow businesses to effectively manage user identities, enhancing security and compliance. Strategic partnerships with technology and security firms, as well as a robust global distribution network, further bolster its revenue by expanding its reach and customer base.

GMO GlobalSign Holdings K.K. Financial Statement Overview

Summary

GMO GlobalSign Holdings exhibits strong financial health with consistent revenue growth, solid profitability margins, and efficient cash flow management. The balance sheet reflects a stable financial structure with low leverage, indicating a well-managed company with potential for continued growth and stability.

Income Statement

GMO GlobalSign Holdings has shown a consistent growth trajectory with a revenue growth rate of 9.50% from 2023 to 2024. The gross profit margin stands strong at 60.18%, while the net profit margin is at a healthy 4.46%. EBIT and EBITDA margins are robust at 6.50% and 14.74% respectively, indicating efficient operational management and profitability.

Balance Sheet

The company's financial leverage is moderate with a debt-to-equity ratio of 0.32, showcasing a relatively low reliance on debt. The return on equity (ROE) is 9.03%, reflecting decent profitability. The equity ratio is a solid 52.47%, indicating stability and a strong equity base.

Cash Flow

GMO GlobalSign Holdings exhibits strong cash flow management with a significant free cash flow growth rate of 359.95% from 2023 to 2024. The operating cash flow to net income ratio is 3.29, and the free cash flow to net income ratio is 1.44, which are indicative of robust cash flow generation relative to income.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.17B	17.50B	15.96B	14.05B	13.33B
Gross Profit	11.54B	10.94B	9.68B	8.44B	7.95B
EBITDA	2.86B	2.59B	2.31B	1.73B	2.10B
Net Income	854.56M	739.69M	846.76M	483.62M	1.17B
Balance Sheet
Total Assets	18.03B	15.69B	14.57B	11.51B	11.06B
Cash, Cash Equivalents and Short-Term Investments	8.46B	6.66B	6.68B	4.59B	4.67B
Total Debt	3.02B	2.01B	1.96B	693.48M	524.70M
Total Liabilities	8.54B	7.03B	6.62B	4.36B	3.77B
Stockholders Equity	9.46B	8.64B	7.93B	7.13B	7.00B
Cash Flow
Free Cash Flow	1.23B	267.18M	293.69M	327.16M	614.76M
Operating Cash Flow	2.81B	2.20B	1.68B	1.56B	1.90B
Investing Cash Flow	-1.60B	-1.80B	-1.14B	-1.19B	-1.16B
Financing Cash Flow	280.79M	-645.92M	763.68M	-822.04M	-64.61M

GMO GlobalSign Holdings K.K. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2075.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3788, the sentiment is Positive. The current price of 2075 is above the 20-day moving average (MA) of 2049.40, above the 50-day MA of 2046.84, and below the 200-day MA of 2331.22, indicating a neutral trend. The MACD of 2.44 indicates Negative momentum. The RSI at 52.61 is Neutral, neither overbought nor oversold. The STOCH value of 27.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3788.

GMO GlobalSign Holdings K.K. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3393	81 Outperform	¥25.89B	12.68		4.36%	13.49%	24.79%
4498	77 Outperform	¥20.57B	20.87		0.70%	15.09%	85.53%
3788	74 Outperform	¥23.93B	33.08		1.76%	7.60%	-6.99%
6050	66 Neutral	¥25.49B	22.53		1.40%	-2.15%	-13.31%
2158	56 Neutral	¥29.28B	63.38		―	-17.30%	―
Sector *	51 Neutral	AU$1.67B	2.34	-31.66%	3.52%	16.55%	-7.79%

GMO GlobalSign Holdings K.K. Corporate Events

GMO GlobalSign Holdings Reports Q1 2025 Financial Results

GMO GlobalSign Holdings K.K. reported its consolidated financial results for the first quarter of 2025, showing a slight increase in net sales by 4% year-on-year to ¥4,909 million. However, the company experienced a decline in operating profit, ordinary profit, and profit attributable to owners of the parent, with decreases of 32.6%, 39.1%, and 39.6% respectively. The company’s financial position showed a slight decrease in total assets and net assets compared to the end of 2024, with a capital adequacy ratio of 50.3%. Despite these challenges, the company forecasts a positive outlook for the full fiscal year ending December 31, 2025, with expected growth in net sales and profits.