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GMO GlobalSign Holdings K.K. (JP:3788)
:3788
Japanese Market

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

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JP

GMO GlobalSign Holdings K.K.

(3788)

Rating:69Neutral
Price Target:
¥2,312.00
▲(15.02%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. (3788) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionGMO 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 MoneyGMO 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
85
Very Positive
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
78
Positive
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
79
Positive
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 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
19.17B17.50B15.96B14.05B13.33B
Gross Profit
11.54B10.94B9.68B8.44B7.95B
EBIT
1.25B1.29B1.14B1.17B1.36B
EBITDA
2.86B2.59B2.31B1.73B2.10B
Net Income Common Stockholders
854.56M739.69M846.76M483.62M1.17B
Balance SheetCash, Cash Equivalents and Short-Term Investments
8.46B6.66B6.68B4.59B4.67B
Total Assets
18.03B15.69B14.57B11.51B11.06B
Total Debt
3.02B2.01B1.96B693.48M524.70M
Net Debt
-5.44B-4.65B-4.72B-3.90B-4.15B
Total Liabilities
8.54B7.03B6.62B4.36B3.77B
Stockholders Equity
9.46B8.64B7.93B7.13B7.00B
Cash FlowFree Cash Flow
1.23B267.18M293.69M327.16M614.76M
Operating Cash Flow
2.81B2.20B1.68B1.56B1.90B
Investing Cash Flow
-1.60B-1.80B-1.14B-1.19B-1.16B
Financing Cash Flow
280.79M-645.92M763.68M-822.04M-64.61M

GMO GlobalSign Holdings K.K. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2010.00
Price Trends
50DMA
2132.64
Negative
100DMA
2235.13
Negative
200DMA
2448.13
Negative
Market Momentum
MACD
-38.26
Positive
RSI
40.26
Neutral
STOCH
9.65
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 2010 is below the 20-day moving average (MA) of 2086.25, below the 50-day MA of 2132.64, and below the 200-day MA of 2448.13, indicating a bearish trend. The MACD of -38.26 indicates Positive momentum. The RSI at 40.26 is Neutral, neither overbought nor oversold. The STOCH value of 9.65 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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
¥27.31B13.36
4.14%13.49%24.76%
80
Outperform
¥21.28B21.98
0.88%15.09%83.99%
69
Neutral
¥23.15B32.02
1.85%7.60%-6.99%
66
Neutral
¥23.25B20.55
1.54%-2.15%-13.31%
65
Neutral
¥23.85B42.97
-17.30%
62
Neutral
$11.81B10.34-7.44%2.91%7.41%-7.93%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3788
GMO GlobalSign Holdings K.K.
2,037.00
-897.40
-30.58%
JP:2158
FRONTEO, Inc.
618.00
-8.00
-1.28%
JP:3393
Startia Holdings,Inc.
2,740.00
779.45
39.76%
JP:4498
Cybertrust Japan Co.Ltd.
2,580.00
864.23
50.37%
JP:6050
E-Guardian Inc.
2,011.00
146.30
7.85%

GMO GlobalSign Holdings K.K. Corporate Events

GMO GlobalSign Holdings Reports Q1 2025 Financial Results
May 13, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.