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gumi, Inc. (JP:3903)
:3903
Japanese Market
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gumi, Inc. (3903) AI Stock Analysis

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JP:3903

gumi, Inc.

(3903)

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Neutral 46 (OpenAI - 4o)
Rating:46Neutral
Price Target:
¥402.00
▼(-6.07% Downside)
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
Profit Margin Improvement
Improved profit margins indicate better cost management, which can enhance long-term profitability and operational efficiency.
Low Debt-to-Equity Ratio
A low debt-to-equity ratio suggests conservative leverage, providing financial stability and flexibility for future investments.
Return on Equity Improvement
Improved ROE indicates enhanced profitability relative to shareholders' equity, reflecting efficient use of investor capital.
Negative Factors
Declining Revenue
Declining revenue suggests challenges in market demand or competitive positioning, potentially impacting long-term growth prospects.
Negative Operating Cash Flow
Negative operating cash flow indicates potential liquidity issues, which could constrain the company's ability to fund operations and growth.
Volatile EBIT and EBITDA Margins
Inconsistent margins can lead to unpredictable earnings, affecting investor confidence and long-term financial planning.

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 with a negative growth rate, and the cash flow statement highlights negative operating cash flow. However, the balance sheet reflects a conservative leverage position.
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue10.80B8.94B12.07B16.01B18.94B18.63B
Gross Profit509.82M2.09B-1.56B3.43B1.90B5.00B
EBITDA-2.97B2.59B-3.79B265.48M-5.40B4.68B
Net Income-3.33B2.06B-5.93B445.93M-6.27B1.84B
Balance Sheet
Total Assets23.23B23.88B19.33B26.55B18.36B25.01B
Cash, Cash Equivalents and Short-Term Investments11.50B6.08B4.78B10.46B6.30B8.49B
Total Debt4.55B4.03B4.24B4.94B5.42B4.50B
Total Liabilities6.07B6.00B7.09B7.89B8.28B7.82B
Stockholders Equity16.93B16.97B12.24B18.51B9.61B16.51B
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 Price428.00
Price Trends
50DMA
476.44
Negative
100DMA
550.72
Negative
200DMA
541.77
Negative
Market Momentum
MACD
-22.15
Negative
RSI
40.90
Neutral
STOCH
63.25
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 428 is above the 20-day moving average (MA) of 411.95, below the 50-day MA of 476.44, and below the 200-day MA of 541.77, indicating a bearish trend. The MACD of -22.15 indicates Negative momentum. The RSI at 40.90 is Neutral, neither overbought nor oversold. The STOCH value of 63.25 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
65
Neutral
¥1.96B14.96-10.80%-64.63%
60
Neutral
$48.67B4.58-11.27%4.14%2.83%-41.78%
60
Neutral
¥38.22B50.954.09%-15.30%39.61%
48
Neutral
¥10.23B5.6611.15%
46
Neutral
¥21.91B6.25-39.08%
37
Underperform
¥3.31B-3.14-22.21%32.20%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3903
gumi, Inc.
401.00
43.00
12.01%
JP:3667
enish, Inc.
69.00
-91.00
-56.88%
JP:3911
Aiming, Inc.
234.00
31.00
15.27%
JP:3928
Mynet, Inc.
256.00
-92.00
-26.44%
JP:3932
Akatsuki, Inc.
2,646.00
287.92
12.21%

gumi, Inc. Corporate Events

gumi Inc. Launches Joint Crypto Asset Fund with SBI Holdings
Nov 6, 2025

gumi Inc. has announced the establishment of the SBI Crypto Fund I TK, a joint venture with SBI Holdings, to manage listed crypto assets. The fund aims to bridge Japanese enterprises with Web3 innovation and achieve significant returns through strategic investments in Bitcoin and major altcoins. This initiative is part of gumi’s broader collaboration with SBI to create new value in finance and blockchain, although the immediate financial impact is expected to be minimal.

The most recent analyst rating on (JP:3903) stock is a Hold with a Yen461.00 price target. To see the full list of analyst forecasts on gumi, Inc. stock, see the JP:3903 Stock Forecast page.

gumi Inc. Reports October Exercise of Stock Acquisition Rights
Nov 4, 2025

gumi Inc. announced the exercise status for its 26th Series of Stock Acquisition Rights for October 2025, revealing that 3.52% of the rights were exercised, resulting in the delivery of 376,500 shares. This activity indicates a strategic financial maneuver to adjust the company’s capital structure, potentially impacting its market positioning and shareholder value.

The most recent analyst rating on (JP:3903) stock is a Hold with a Yen461.00 price target. To see the full list of analyst forecasts on gumi, Inc. stock, see the JP:3903 Stock Forecast page.

gumi Inc. Completes Payment for Stock Acquisition Rights Issuance
Oct 20, 2025

gumi Inc. has completed the payment for the issuance of its 26th series of stock acquisition rights through a third-party allotment to SBI SECURITIES Co., Ltd. This strategic financial move, involving a total issue price of 54,035,000 yen, is expected to raise significant funds, potentially impacting the company’s market positioning and providing capital for future growth initiatives.

The most recent analyst rating on (JP:3903) stock is a Hold with a Yen461.00 price target. To see the full list of analyst forecasts on gumi, Inc. stock, see the JP:3903 Stock Forecast page.

gumi Inc. Issues Stock Acquisition Rights to Fund Strategic Growth
Oct 2, 2025

gumi Inc. announced the issuance of its 26th Series Stock Acquisition Rights through a third-party allotment to raise funds. This move aims to stabilize revenue in the mobile game sector amid declining sales and operating losses, while also investing in growth areas like blockchain-related businesses. The issuance is expected to generate significant proceeds, which will help the company navigate the competitive market and rising costs.

The most recent analyst rating on (JP:3903) stock is a Hold with a Yen589.00 price target. To see the full list of analyst forecasts on gumi, Inc. stock, see the JP:3903 Stock Forecast page.

gumi Inc. Secures New Loan and Commitment Lines for Financial Flexibility
Sep 24, 2025

gumi Inc. announced a resolution to borrow 500 million yen from Sumitomo Mitsui Banking Corporation to support its working capital needs, with the loan scheduled for drawdown on September 30, 2025. Additionally, gumi Inc. has secured two commitment line agreements with Resona Bank, Ltd., each for 1,000 million yen, to ensure financial flexibility. The company anticipates a minor impact on its financial results for the fiscal year ending April 2026.

The most recent analyst rating on (JP:3903) stock is a Hold with a Yen632.00 price target. To see the full list of analyst forecasts on gumi, Inc. stock, see the JP:3903 Stock Forecast page.

gumi Inc. Reports Strong Preregistration for New Game and Strategic Shift in Development
Sep 17, 2025

gumi Inc. announced that its upcoming mobile game, JoJo’s Bizarre Adventure Ora Ora Overdrive, has surpassed 700,000 preregistrations, indicating strong market interest and potential earnings growth from the second quarter of fiscal year 2026. The company is shifting its strategy to focus on leveraging major IPs and commissioned development, aiming to release one new title annually, while minimizing risks associated with original game development.

The most recent analyst rating on (JP:3903) stock is a Hold with a Yen656.00 price target. To see the full list of analyst forecasts on gumi, Inc. stock, see the JP:3903 Stock Forecast page.

gumi Inc. Reports Crypto Asset Gains as Non-Operating Income
Sep 12, 2025

gumi Inc. announced it will record significant non-operating income due to revaluation gains from its crypto assets for the first quarter of the fiscal year ending April 2026. This financial move reflects positively on the company’s operations and could enhance its market positioning, potentially benefiting stakeholders by showcasing its strategic asset management.

The most recent analyst rating on (JP:3903) stock is a Hold with a Yen615.00 price target. To see the full list of analyst forecasts on gumi, Inc. stock, see the JP:3903 Stock Forecast page.

gumi, Inc. Reports Q1 2025 Financial Results with Increased Profitability
Sep 12, 2025

gumi, Inc. reported its consolidated financial results for the three months ended July 31, 2025, showing a significant decrease in net sales by 52.5% compared to the previous year. Despite the drop in sales, the company achieved a substantial increase in ordinary profit by 371.1%, indicating improved operational efficiency or cost management. The company’s equity-to-asset ratio also improved from 69.9% to 73.3%, reflecting a stronger financial position.

The most recent analyst rating on (JP:3903) stock is a Hold with a Yen615.00 price target. To see the full list of analyst forecasts on gumi, Inc. stock, see the JP:3903 Stock Forecast page.

gumi Inc. Secures 3 Billion Yen Loan for Financial Stability
Aug 29, 2025

gumi Inc. has announced a decision to borrow 3 billion yen from SBI Securities Co., Ltd. to stabilize its financial base and prepare for future capital needs. The loan is unsecured and unguaranteed, with a bullet repayment scheduled for February 2026. The company expects the impact on its financial results for the fiscal year ending April 2026 to be minor.

The most recent analyst rating on (JP:3903) stock is a Hold with a Yen615.00 price target. To see the full list of analyst forecasts on gumi, Inc. stock, see the JP:3903 Stock Forecast page.

gumi Inc. to Acquire 2.5 Billion Yen in XRP to Boost Blockchain Business
Aug 29, 2025

gumi Inc. has announced its decision to purchase 2.5 billion yen worth of XRP as part of its strategy to strengthen its blockchain-related business. This move aligns with its focus on enhancing financial infrastructure and increasing corporate value over the medium to long term, leveraging its relationship with major shareholder SBI Holdings.

The most recent analyst rating on (JP:3903) stock is a Hold with a Yen615.00 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