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

• Market Cap: ¥23.15B
• Dividend Yield: 1.85%
• Average Volume (3M): 17.41K
• Price to Earnings (P/E): 32.0
• Beta (1Y): 1.11
• Revenue Growth: 7.60%
• EPS Growth: -6.99%
• Country: JP
• Employees: 993
• Sector: Technology
• Sector Strength: 82
• Industry: Information Technology Services
• EPS (TTM): 17.63
• Shares Outstanding: 11,693,000
• 10 Day Avg. Volume: 13,430
• 30 Day Avg. Volume: 17,413
• PEG Ratio: -2.10
• Price to Book (P/B): 2.63
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: ¥2,312.00 ▲(13.50%Upside)

GMO GlobalSign Holdings shows strong financial performance with consistent revenue growth and robust cash flow management, which are the primary drivers of the stock score. However, technical analysis indicates a bearish trend, and the high P/E ratio suggests potential overvaluation concerns. The absence of new earnings call data or corporate events leaves these analyses as the main factors influencing the stock's overall score.

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

Company Description

GMO GlobalSign Holdings K.K. is a prominent provider of identity and cybersecurity solutions, primarily focusing on digital certificate services. As a part of the GMO Internet Group, the company operates in sectors such as IT security, web hosting, and digital certification. Its core products and services include SSL certificates, identity and access management solutions, and other authentication services that help businesses secure online communications and transactions.

How the Company Makes Money

GMO GlobalSign Holdings K.K. generates revenue through the sale of digital certificates and cybersecurity solutions. The company's key revenue streams include the issuance of SSL/TLS certificates, which are used by businesses to encrypt data and secure websites, as well as identity and access management services that help organizations control and protect access to their networks and data. Additionally, the company earns money from providing managed PKI (Public Key Infrastructure) services, which offer scalable and flexible certificate management solutions for enterprises. Partnerships with technology companies and resellers also contribute to its revenue, as they expand the reach and adoption of GlobalSign's products and services globally.

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. These factors suggest a well-managed company with potential for continued growth and stability in the Information Technology Services industry.

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
	EBIT
1.25B	1.29B	1.14B	1.17B	1.36B
	EBITDA
2.86B	2.59B	2.31B	1.73B	2.10B
	Net Income Common Stockholders
854.56M	739.69M	846.76M	483.62M	1.17B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.46B	6.66B	6.68B	4.59B	4.67B
	Total Assets
18.03B	15.69B	14.57B	11.51B	11.06B
	Total Debt
3.02B	2.01B	1.96B	693.48M	524.70M
	Net Debt
-5.44B	-4.65B	-4.72B	-3.90B	-4.15B
	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: Negative
• Last Price: 2037.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3788, the sentiment is Negative. The current price of 2037 is below the 20-day moving average (MA) of 2071.95, below the 50-day MA of 2125.06, and below the 200-day MA of 2446.39, indicating a bearish trend. The MACD of -36.98 indicates Positive momentum. The RSI at 43.67 is Neutral, neither overbought nor oversold. The STOCH value of 14.62 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥27.31B	13.36		4.14%	13.49%	24.76%
4498	80 Outperform	¥21.28B	21.98		0.88%	15.09%	83.99%
3788	69 Neutral	¥23.15B	32.02		1.85%	7.60%	-6.99%
6050	66 Neutral	¥23.25B	20.55		1.54%	-2.15%	-13.31%
2158	65 Neutral	¥23.85B	43.82		―	-17.30%	―
Sector *	62 Neutral	$11.90B	10.64	-7.50%	2.90%	7.41%	-8.19%

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.