gumi, Inc. (3903) AI Stock Analysis

• Market Cap: ¥30.24B
• Dividend Yield: N/A
• Average Volume (3M): 640.66K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.63
• Revenue Growth: -12.61%
• EPS Growth: -314.92%
• Country: JP
• Employees: 689
• Sector: Communication Services
• Sector Strength: 86
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): -92.29
• Shares Outstanding: 49,491,234
• 10 Day Avg. Volume: 1,058,720
• 30 Day Avg. Volume: 640,663
• PEG Ratio: -0.73
• Price to Book (P/B): 1.41
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 281.78
• 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: 59 Neutral
• Price Target: ¥639.00 ▲( 25.05% Upside)

The stock score is significantly impacted by the company's weak financial performance, which weighs heavily against the positive technical indicators. While the stock shows strong technical momentum, the fundamental financial challenges and poor valuation metrics are major concerns.

gumi, Inc. Business Overview & Revenue Model

Company Description

gumi, Inc. (3903) is a Japanese mobile online game developer and publisher. The company operates in the technology and entertainment sectors, focusing on creating engaging and interactive games for smartphones and other mobile devices. gumi is known for its expertise in developing mobile gaming content that appeals to global audiences, offering a diverse portfolio of games across various genres.

How the Company Makes Money

gumi, Inc. primarily generates revenue through its mobile gaming operations. The company earns money via in-app purchases, where players can buy virtual goods, currency, and other items to enhance their gaming experience. Additionally, gumi may incorporate advertising within its games, providing another stream of income. The company also engages in strategic partnerships and collaborations with other gaming companies and platforms to broaden its market reach and monetize its game content effectively. Licensing its gaming intellectual properties to third parties could serve as an additional revenue channel.

gumi, Inc. Financial Statement Overview

Summary

Overall, gumi, Inc. is facing significant financial challenges. The company is struggling with declining revenues, negative profitability, and cash flow issues. While the balance sheet shows some stability in terms of equity, the negative returns and high operational costs pose risks. The company needs to address its operational inefficiencies and improve its cash generation capabilities to stabilize its financial position.

Income Statement

The income statement shows a concerning decline in performance. The revenue has consistently decreased over the years, with a significant drop from 2023 to 2024. The company reported a negative gross profit margin for 2024, indicating that the cost of production exceeded revenues. Additionally, the net profit margin is negative, reflecting substantial losses, and EBIT and EBITDA margins are also negative, suggesting operational inefficiencies and high operating costs.

Balance Sheet

The balance sheet displays a relatively stable equity position, but there are notable concerns. The company's debt-to-equity ratio is moderate, indicating some leverage, but not excessively high. However, the return on equity is negative due to losses, which is a risk factor. The equity ratio shows a good proportion of assets financed by equity, suggesting some financial stability despite the negative profitability.

Cash Flow

The cash flow statement raises red flags about the company's cash management. Operating cash flow is negative, indicating that the company is not generating sufficient cash from its core operations. The free cash flow is also significantly negative, showing challenges in maintaining liquidity. The free cash flow to net income ratio is not favorable given the negative net income, suggesting cash flow issues.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
11.71B	12.07B	16.01B	18.94B	18.63B	19.83B
	Gross Profit
-323.09M	-1.56B	3.43B	1.90B	5.00B	6.43B
	EBIT
-2.89B	-5.04B	447.18M	-2.26B	1.51B	2.23B
	EBITDA
-2.46B	-3.79B	265.48M	-5.40B	4.68B	1.42B
	Net Income Common Stockholders
-3.90B	-5.93B	445.93M	-6.27B	1.84B	1.76B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.39B	4.78B	10.46B	6.30B	8.49B	5.83B
	Total Assets
22.71B	19.33B	26.55B	18.36B	25.01B	20.01B
	Total Debt
4.82B	4.24B	4.94B	5.42B	4.50B	2.46B
	Net Debt
-2.57B	-538.72M	-5.52B	-885.41M	-3.99B	-3.37B
	Total Liabilities
6.76B	7.09B	7.89B	8.28B	7.82B	4.84B
	Stockholders Equity
15.79B	12.24B	18.51B	9.61B	16.51B	14.45B
Cash Flow		Free Cash Flow
84.48M	-6.49B	-2.00B	-4.19B	201.02M	-282.65M
	Operating Cash Flow
84.67M	-5.15B	-171.36M	-2.47B	2.81B	2.66B
	Investing Cash Flow
-666.01M	-271.09M	-2.35B	398.64M	-2.16B	-3.61B
	Financing Cash Flow
1.84B	-898.94M	6.71B	-248.46M	1.92B	-3.04B

gumi, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 511.00
• 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:3903, the sentiment is Positive. The current price of 511 is above the 20-day moving average (MA) of 487.00, above the 50-day MA of 477.44, and above the 200-day MA of 400.63, indicating a bullish trend. The MACD of 17.04 indicates Negative momentum. The RSI at 74.90 is Negative, neither overbought nor oversold. The STOCH value of 83.50 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3903.

gumi, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3928	64 Neutral	¥2.17B	10.77		―	0.08%	43.63%
3932	64 Neutral	¥42.39B	25.76		3.23%	1.15%	1150.40%
Sector *	60 Neutral	$14.21B	6.47	-3.76%	3.69%	2.48%	-35.46%
3903	59 Neutral	¥30.24B	―		―	-12.61%	-314.92%
3911	59 Neutral	¥12.19B	31.89		―	<0.01%	―
3667	34 Underperform	¥3.32B	―		―	-8.79%	49.62%

gumi, Inc. Corporate Events

gumi, Inc. Reports Turnaround with Profits for Nine Months Ending January 2025

gumi, Inc. reported its consolidated financial results for the nine months ending January 31, 2025, showing a significant turnaround with a net profit of ¥1,505 million compared to a loss in the previous year. The company’s improved financial performance, marked by a 14.6% decrease in net sales but a substantial increase in profits, indicates a positive shift in its operational efficiency and market strategy.