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

• Market Cap: ¥27.51B
• Dividend Yield: 1.53%
• Average Volume (3M): 14.69K
• Price to Earnings (P/E): 26.6
• Beta (1Y): 0.99
• Revenue Growth: 7.83%
• EPS Growth: 49.73%
• Country: JP
• Employees: 993
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 25.22
• Shares Outstanding: 11,693,000
• 10 Day Avg. Volume: 15,870
• 30 Day Avg. Volume: 14,693
• PEG Ratio: 2.05
• Price to Book (P/B): 2.87
• Price to Sales (P/S): 1.42
• P/FCF Ratio: 22.12
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ¥2,684.00 ▲(12.40% Upside)

GMO GlobalSign Holdings is a strong performer in the Information Technology Services industry, with robust financial health and positive technical indicators. While the valuation is fair, the stock's consistent growth and stability make it an attractive investment option. The absence of recent earnings call data and corporate events does not detract from its overall appeal.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Cash Flow Management

Robust cash flow generation enhances financial flexibility, allowing for strategic investments and debt reduction, supporting sustainable growth.

Profitability Margins

Strong margins reflect efficient cost management and pricing power, contributing to stable profitability and competitive advantage.

Negative Factors

Earnings Decline

Declining EPS suggests potential challenges in cost control or revenue generation, which could affect investor confidence and long-term growth.

Debt Levels

While moderate, the reliance on debt could limit financial flexibility and increase risk if revenue growth slows or interest rates rise.

Market Valuation Concerns

High valuation metrics may limit stock price appreciation and reflect high investor expectations, posing risks if growth does not meet forecasts.

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

Company Description

GMO GlobalSign Holdings K.K. engages in the development and operation of hosting services, security services, and various other Internet solutions in Japan and internationally. The company was formerly known as GMO Cloud K.K. and changed its name to GMO GlobalSign Holdings K.K. in September 2020. GMO GlobalSign Holdings K.K. was founded in 1993 and is based in Tokyo, Japan.

How the Company Makes Money

GMO GlobalSign Holdings generates revenue primarily through the sale of digital certificates and security solutions. The company’s key revenue streams include subscription fees for its certificate services, one-time fees for issuing SSL/TLS certificates, and revenue from value-added services such as managed PKI solutions and identity verification services. Additionally, GlobalSign partners with major technology firms and resellers to expand its distribution channels, enhancing its market reach and customer base. The increasing demand for online security, driven by the rise of cyber threats and regulatory requirements, further supports the company's revenue growth.

GMO GlobalSign Holdings K.K. Financial Statement Overview

Summary

GMO GlobalSign Holdings demonstrates 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.54B	19.17B	17.50B	15.96B	14.05B	13.33B
Gross Profit	11.58B	11.54B	10.94B	9.68B	8.44B	7.95B
EBITDA	2.63B	2.86B	2.59B	2.31B	1.73B	2.10B
Net Income	760.55M	854.56M	739.69M	846.76M	483.62M	1.17B
Balance Sheet
Total Assets	17.83B	18.03B	15.69B	14.57B	11.51B	11.06B
Cash, Cash Equivalents and Short-Term Investments	8.49B	8.46B	6.66B	6.68B	5.04B	5.27B
Total Debt	3.29B	3.02B	2.01B	1.96B	693.48M	524.70M
Total Liabilities	8.55B	8.54B	7.03B	6.62B	4.36B	3.77B
Stockholders Equity	9.25B	9.46B	8.64B	7.93B	7.13B	7.00B
Cash Flow
Free Cash Flow	0.00	1.23B	267.18M	293.69M	327.16M	614.76M
Operating Cash Flow	0.00	2.81B	2.20B	1.68B	1.56B	1.90B
Investing Cash Flow	0.00	-1.60B	-1.80B	-1.14B	-1.19B	-1.16B
Financing Cash Flow	0.00	280.79M	-645.92M	763.68M	-822.04M	-64.61M

GMO GlobalSign Holdings K.K. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2388.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 2388 is below the 20-day moving average (MA) of 2392.90, above the 50-day MA of 2278.50, and above the 200-day MA of 2194.18, indicating a neutral trend. The MACD of 27.73 indicates Positive momentum. The RSI at 53.61 is Neutral, neither overbought nor oversold. The STOCH value of 35.39 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
3788	76 Outperform	¥27.51B	26.64	―	1.53%	7.83%	49.73%
3393	74 Outperform	¥26.84B	13.56	―	4.51%	12.32%	10.42%
6050	66 Neutral	¥19.00B	20.16	―	2.13%	-0.62%	-11.36%
4498	66 Neutral	¥20.48B	21.54	―	0.93%	17.75%	44.95%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
2158	55 Neutral	¥35.21B	127.66	―	―	-10.49%	―

GMO GlobalSign Holdings K.K. Corporate Events

GMO GlobalSign Holdings Reports Interim Status of Share Repurchase Program

GMO GlobalSign Holdings K.K. announced an interim report on its share repurchase program, revealing that no shares were repurchased between November 17 and November 30, 2025. Despite the lack of repurchase activity, the company plans to continue its share buyback initiative, which was approved by the Board of Directors, allowing for the repurchase of up to 45,000 shares by January 30, 2026. This move is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value.

GMO GlobalSign Holdings K.K. Reports Strong Q3 Growth

GMO GlobalSign Holdings K.K. reported significant growth in the third quarter of FY2025, driven by a rapid recovery in sales of SSL server certificates, especially in overseas markets. The company also noted strong performance from its ‘GMO Sign’ product and has implemented a plan revision aimed at enhancing profitability, indicating a positive trajectory toward its full-year goals.

GMO GlobalSign Announces Share Repurchase Plan to Enhance Shareholder Returns

GMO GlobalSign Holdings K.K. announced a share repurchase plan, aiming to buy back up to 45,000 shares, equivalent to 0.39% of its outstanding shares, for a total of up to JPY 150 million. This move is intended to enhance shareholder returns and allow for flexible capital management in response to the evolving business environment, potentially impacting the company’s financial strategy and market positioning.

GMO GlobalSign Holdings Reports Strong Financial Growth in 2025

GMO GlobalSign Holdings K.K. reported a positive financial performance for the nine months ending September 30, 2025, with a 7.4% increase in net sales and a significant rise in profit attributable to owners of the parent by 33.1% compared to the previous year. The company forecasts continued growth for the full fiscal year, with expected increases in net sales and profits, indicating a strong market position and potential positive implications for stakeholders.