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gumi, Inc. (JP:3903)
:3903
Japanese Market

gumi, Inc. (3903) AI Stock Analysis

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JP:3903

gumi, Inc.

(3903)

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Neutral 46 (OpenAI - 5.2)
Rating:46Neutral
Price Target:
¥328.00
▼(-7.61% Downside)
Action:ReiteratedDate:11/15/25
The overall stock score is primarily influenced by financial performance challenges, including declining revenues and cash flow issues. Technical analysis indicates bearish momentum, further weighing down the score. The low P/E ratio suggests potential undervaluation, but the lack of a dividend yield reduces its appeal. The absence of earnings call data and corporate events limits additional insights.
Positive Factors
Recurring live-service revenue
gumi's core business is live-service mobile/online games monetized via in-game purchases and licensing. That model creates recurring revenue streams and customer lifetime value, supporting predictable cash inflows over multi-month cycles and enabling steady reinvestment in content and retention.
Improved profitability margins
Despite falling top-line, gumi has raised gross and net margins to ~23%, indicating stronger cost control and pricing power on live titles. Sustained margins increase free cash potential per revenue dollar and improve buffer against revenue volatility if operational discipline continues.
Low leverage and higher ROE
A conservative debt-to-equity ratio (~0.24) and improved ROE (12.16%) enhance financial flexibility and lower solvency risk. This balance-sheet strength supports investment in new titles or Web3 initiatives without jeopardizing liquidity, improving resilience through industry cycles.
Negative Factors
Sustained revenue decline
Material multi-year revenue shrinkage erodes scale economics for live-service games, reducing resources for content updates and user acquisition. If top-line contraction persists, it undermines the recurring revenue model, risks attrition of engaged players and pressures long-term profitability.
Weak operating cash generation
Negative operating cash flow and a misaligned FCF-to-income ratio indicate cash is not keeping pace with reported earnings. Poor cash conversion reduces ability to self-fund development, increases reliance on external financing or asset sales, and elevates execution risk over months ahead.
Volatile revenue mix from investments/Web3
Revenue from blockchain, digital-asset projects and investments adds earnings volatility tied to market and project timelines. Dependence on such variable streams alongside game lifecycles raises structural unpredictability of cash flows and complicates long-term planning and margin stability.

gumi, Inc. (3903) vs. iShares MSCI Japan ETF (EWJ)

gumi, Inc. Business Overview & Revenue Model

Company Descriptiongumi Inc. provides mobile online games in Japan and internationally. It also engages in block chain, and XR business. The company was incorporated in 2007 and is headquartered in Tokyo, Japan.
How the Company Makes Moneygumi generates revenue primarily through in-app purchases within its mobile games, allowing players to buy virtual goods, currency, and premium content that enhance their gaming experience. Additionally, the company earns revenue from advertisements displayed within its games and through partnerships with other developers and publishers for co-development and distribution of mobile titles. gumi also explores collaborations with established franchises to create themed games, which further contribute to its revenue streams by attracting fans of those franchises. Furthermore, the company may receive licensing fees from third-party developers who utilize its proprietary technology or intellectual property.

gumi, Inc. Financial Statement Overview

Summary
The company faces challenges with declining revenues and cash flow issues, despite some improvements in profitability margins and leverage. The income statement shows a significant decline in revenue, and the cash flow statement highlights negative operating cash flow. However, there are improvements in gross and net profit margins and a low debt-to-equity ratio.
Income Statement
45
Neutral
The income statement shows a significant decline in revenue over the years, with a negative revenue growth rate of -23.65% in the most recent year. Despite this, the company has managed to improve its gross and net profit margins to 23.37% and 23.07%, respectively, indicating better cost management. However, the historical volatility in EBIT and EBITDA margins suggests inconsistent operational efficiency.
Balance Sheet
55
Neutral
The balance sheet reflects a relatively low debt-to-equity ratio of 0.24, indicating a conservative leverage position. The return on equity has improved to 12.16%, showcasing better profitability relative to shareholders' equity. However, the equity ratio is not explicitly provided, which limits a full assessment of asset financing.
Cash Flow
30
Negative
The cash flow statement highlights significant challenges, with a drastic decline in free cash flow growth and negative operating cash flow. The free cash flow to net income ratio is high at 2.88, suggesting that cash generation is not aligned with reported earnings, potentially due to non-cash adjustments or working capital changes.
BreakdownTTMApr 2024Apr 2023Apr 2023Apr 2022Apr 2021
Income Statement
Total Revenue7.45B8.94B12.07B16.01B18.94B18.63B
Gross Profit2.04B2.09B-1.56B3.43B1.90B5.00B
EBITDA1.90B2.59B-3.79B265.48M-5.40B4.68B
Net Income3.48B2.06B-5.93B445.93M-6.27B1.84B
Balance Sheet
Total Assets24.85B23.88B19.33B26.55B18.36B25.01B
Cash, Cash Equivalents and Short-Term Investments4.86B6.08B4.78B10.46B6.30B8.49B
Total Debt3.76B4.03B4.24B4.94B5.42B4.50B
Total Liabilities5.41B6.00B7.09B7.89B8.28B7.82B
Stockholders Equity18.44B16.97B12.24B18.51B9.61B16.51B
Cash Flow
Free Cash Flow84.48M-2.54B-6.49B-2.00B-4.19B201.02M
Operating Cash Flow84.67M-881.11M-5.15B-171.36M-2.47B2.81B
Investing Cash Flow-666.01M-1.66B-271.09M-2.35B398.64M-2.16B
Financing Cash Flow1.84B3.77B-898.94M6.71B-248.46M1.92B

gumi, Inc. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price355.00
Price Trends
50DMA
355.60
Negative
100DMA
388.30
Negative
200DMA
499.49
Negative
Market Momentum
MACD
-8.85
Negative
RSI
43.99
Neutral
STOCH
29.06
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3903, the sentiment is Negative. The current price of 355 is above the 20-day moving average (MA) of 338.45, below the 50-day MA of 355.60, and below the 200-day MA of 499.49, indicating a bearish trend. The MACD of -8.85 indicates Negative momentum. The RSI at 43.99 is Neutral, neither overbought nor oversold. The STOCH value of 29.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3903.

gumi, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
62
Neutral
¥9.95B9.1511.15%
60
Neutral
$48.67B4.58-11.27%4.14%2.83%-41.78%
58
Neutral
¥20.78B18.75-9.17%51.84%
46
Neutral
¥17.96B5.89-37.68%
45
Neutral
¥26.12B-4.24-14.71%-38.87%
44
Neutral
¥10.21B-149.6816.70%87.76%
42
Neutral
¥11.88B-6.0193.85%-216.24%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3903
gumi, Inc.
335.00
-196.00
-36.91%
JP:3656
KLab Inc.
335.00
195.00
139.29%
JP:3793
Drecom Co., Ltd.
409.00
-375.00
-47.83%
JP:3911
Aiming, Inc.
213.00
-25.00
-10.50%
JP:4175
coly Inc.
1,855.00
374.00
25.25%
JP:4393
Bank of Innovation, Inc.
5,340.00
-2,640.00
-33.08%

gumi, Inc. Corporate Events

gumi Extends 3 Billion Yen Loan Maturity to Bolster Financial Stability
Feb 25, 2026

Gumi Inc. has extended the maturity on a 3 billion yen unsecured loan from SBI SECURITIES Co., Ltd., shifting the repayment date from February 27, 2026, to August 31, 2026, while keeping all other terms unchanged. The move is intended to further stabilize the company’s financial position amid current business conditions, and management expects only a minor impact on consolidated results for the fiscal year ending April 2026, suggesting limited immediate downside for investors but added liquidity flexibility for operations.

By lengthening the borrowing period, gumi secures additional time to manage its balance sheet without altering the size or structure of the debt, which may support smoother funding for future strategic or operational initiatives. The extension underlines a cautious stance in response to the recent business environment, signaling a priority on financial stability that may reassure creditors and shareholders while the company navigates market uncertainties.

The most recent analyst rating on (JP:3903) stock is a Hold with a Yen322.00 price target. To see the full list of analyst forecasts on gumi, Inc. stock, see the JP:3903 Stock Forecast page.

Gumi Secures ¥1 Billion Commitment Line to Support Working Capital Needs
Feb 25, 2026

Gumi Inc., a Tokyo Stock Exchange Prime Market-listed digital entertainment and gaming company, has secured a new financing facility to support its operational liquidity. The firm continues to emphasize mobile and online game development, where maintaining sufficient working capital is key to sustaining content creation and global expansion efforts.

The board has approved a commitment line of up to 1 billion yen from Resona Bank, with an unsecured, unguaranteed structure and a base rate plus spread interest, scheduled for drawdown on February 27, 2026 and maturing on September 30, 2026. The company expects only a minor impact on its consolidated results for the fiscal year ending April 2026, suggesting the borrowing is a measured step to bolster short-term funding without materially altering its financial outlook.

The most recent analyst rating on (JP:3903) stock is a Hold with a Yen322.00 price target. To see the full list of analyst forecasts on gumi, Inc. stock, see the JP:3903 Stock Forecast page.

gumi Reports January Exercise of 26th Series Stock Acquisition Rights
Feb 2, 2026

gumi Inc. reported the January 2026 exercise status of its 26th Series of Stock Acquisition Rights, which were allotted to SBI SECURITIES Co., Ltd. in October 2025. During the month, 10,400 units of these rights, corresponding to 1,040,000 shares and 9.72% of the total rights issued, were exercised, reducing the number of unexercised rights from 76,762 to 66,362 units and resulting in new share issuance against a base of 52,563,034 shares. The company also confirmed that the aggregate 1,040,000 shares delivered under all related series represent 2.1% of the listed shares as of the payment date, indicating that the capital-raising and dilution remain within the exercise restrictions set by the Tokyo Stock Exchange and industry self-regulatory rules.

The most recent analyst rating on (JP:3903) stock is a Hold with a Yen346.00 price target. To see the full list of analyst forecasts on gumi, Inc. stock, see the JP:3903 Stock Forecast page.

gumi Reports December Exercise of 26th Series Stock Acquisition Rights
Jan 5, 2026

gumi Inc. reported the December 2025 monthly exercise status of its 26th Series of Stock Acquisition Rights, which include an exercise price adjustment clause and were allotted to SBI SECURITIES in October 2025. During the month, 15,627 units of these rights were exercised—representing 14.60% of the total issued—resulting in the delivery of 1,562,700 shares and reducing the number of unexercised rights from 92,389 to 76,762 units, while staying within Tokyo Stock Exchange and industry exercise restriction rules. The ongoing conversion of these rights into shares modestly increases gumi’s outstanding share base and signals continued progress in the staged financing structure, with potential implications for existing shareholder dilution and the company’s capital-raising flexibility.

The most recent analyst rating on (JP:3903) stock is a Hold with a Yen402.00 price target. To see the full list of analyst forecasts on gumi, Inc. stock, see the JP:3903 Stock Forecast page.

gumi Reports Large-Scale Exercise of 26th Series Stock Acquisition Rights
Dec 26, 2025

gumi Inc. has reported the large-scale exercise status of its 26th Series of Stock Acquisition Rights with an exercise price adjustment clause, allotted to SBI SECURITIES Co., Ltd. in October 2025. Between December 1 and December 26, 2025, 15,627 units of these rights, corresponding to 1,562,700 shares and 14.60% of the total rights issued, were exercised, reducing the remaining unexercised rights from 92,389 units at the end of the previous month to 76,762 units. The exercised rights have resulted in a notable increase in the number of shares delivered during the month, which could lead to equity dilution for existing shareholders but also strengthens the company’s capital base and financial flexibility as it continues to pursue its business strategy.

The most recent analyst rating on (JP:3903) stock is a Hold with a Yen402.00 price target. To see the full list of analyst forecasts on gumi, Inc. stock, see the JP:3903 Stock Forecast page.

gumi Inc. Reports Significant Crypto Asset Revaluation Gain
Dec 12, 2025

gumi Inc. announced a significant non-operating income gain due to the revaluation of its crypto assets, amounting to 1,683 million yen for the second quarter of the fiscal year ending April 2026. This financial adjustment reflects the company’s strategic positioning in the cryptocurrency market and is expected to impact its consolidated financial results positively.

The most recent analyst rating on (JP:3903) stock is a Hold with a Yen402.00 price target. To see the full list of analyst forecasts on gumi, Inc. stock, see the JP:3903 Stock Forecast page.

gumi Inc. Announces Resignation of Director Amid New Shareholding Developments
Dec 12, 2025

gumi Inc. announced the resignation of its outside director, Daisuke Okazaki, due to his new role as a major shareholder in AltPlus Inc., a competitor in certain business areas. Although no conflicts of interest were identified, the resignation was approved to preemptively avoid potential risks, ensuring compliance with corporate governance standards.

The most recent analyst rating on (JP:3903) stock is a Hold with a Yen402.00 price target. To see the full list of analyst forecasts on gumi, Inc. stock, see the JP:3903 Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Nov 15, 2025