gumi, Inc. (3903) AI Stock Analysis

• Market Cap: ¥17.60B
• Dividend Yield: N/A
• Average Volume (3M): 1.80M
• Price to Earnings (P/E): 6.0
• Beta (1Y): 0.88
• Revenue Growth: -37.68%
• EPS Growth: N/A
• Country: JP
• Employees: 689
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 2.08
• Shares Outstanding: 51,000,336
• 10 Day Avg. Volume: 1,076,120
• 30 Day Avg. Volume: 1,796,693
• PEG Ratio: -0.09
• Price to Book (P/B): 1.36
• Price to Sales (P/S): 2.58
• P/FCF Ratio: -9.07
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: ¥402.00 ▲(16.52% Upside)

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. Business Overview & Revenue Model

Company Description

gumi, Inc. (3903) is a Japanese mobile game development company that specializes in creating and publishing free-to-play games for smartphones and tablets. Founded in 2007, gumi operates primarily in the mobile gaming sector and has developed a range of popular titles, including 'Brave Frontier' and 'Final Fantasy: Record Keeper'. The company focuses on delivering engaging gaming experiences, leveraging advanced technologies and creative storytelling to attract a diverse player base across global markets.

How the Company Makes Money

gumi 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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.45B	8.94B	12.07B	16.01B	18.94B	18.63B
Gross Profit	2.04B	2.09B	-1.56B	3.43B	1.90B	5.00B
EBITDA	1.90B	2.59B	-3.79B	265.48M	-5.40B	4.68B
Net Income	3.48B	2.06B	-5.93B	445.93M	-6.27B	1.84B
Balance Sheet
Total Assets	24.85B	23.88B	19.33B	26.55B	18.36B	25.01B
Cash, Cash Equivalents and Short-Term Investments	4.86B	6.08B	4.78B	10.46B	6.30B	8.49B
Total Debt	3.76B	4.03B	4.24B	4.94B	5.42B	4.50B
Total Liabilities	5.41B	6.00B	7.09B	7.89B	8.28B	7.82B
Stockholders Equity	18.44B	16.97B	12.24B	18.51B	9.61B	16.51B
Cash Flow
Free Cash Flow	84.48M	-2.54B	-6.49B	-2.00B	-4.19B	201.02M
Operating Cash Flow	84.67M	-881.11M	-5.15B	-171.36M	-2.47B	2.81B
Investing Cash Flow	-666.01M	-1.66B	-271.09M	-2.35B	398.64M	-2.16B
Financing Cash Flow	1.84B	3.77B	-898.94M	6.71B	-248.46M	1.92B

gumi, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 345.00
• 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:3903, the sentiment is Negative. The current price of 345 is below the 20-day moving average (MA) of 371.55, below the 50-day MA of 414.80, and below the 200-day MA of 528.94, indicating a bearish trend. The MACD of -22.40 indicates Positive momentum. The RSI at 34.76 is Neutral, neither overbought nor oversold. The STOCH value of 15.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3903.

gumi, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3928	65 Neutral	¥2.17B	17.25	―	―	-10.80%	-64.63%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
3932	60 Neutral	¥39.45B	18.88	―	4.02%	-15.30%	39.61%
3911	48 Neutral	¥10.37B	5.64	―	―	11.15%	―
3903	46 Neutral	¥17.60B	6.03	―	―	-37.68%	―
3667	37 Underperform	¥1.97B	-1.55	―	―	-22.21%	32.20%

gumi, Inc. Corporate Events

gumi Inc. Reports November 2025 Stock Acquisition Rights Exercise Status

gumi Inc. announced the exercise status for November 2025 of its 26th Series of Stock Acquisition Rights, initially allotted to SBI SECURITIES Co., Ltd. A total of 1,084,600 shares were delivered, with 10.14% of the stock acquisition rights exercised. This development reflects the company’s ongoing financial strategies and impacts its stock market activities, potentially influencing investor confidence and market positioning.

gumi Inc. Announces Large-Scale Exercise of Stock Acquisition Rights

gumi Inc. announced the large-scale exercise of its 26th Series of Stock Acquisition Rights, initially issued on October 20, 2025, and allocated to SBI SECURITIES Co., Ltd. This exercise, which took place throughout November 2025, involved the delivery of 1,084,600 shares and the exercise of 10,846 stock acquisition rights, representing 10.14% of the total issued. The announcement indicates a significant movement in the company’s stock acquisition activities, potentially impacting its financial strategy and market positioning.

gumi Inc. Launches Joint Crypto Asset Fund with SBI Holdings

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.

gumi Inc. Reports October Exercise of Stock Acquisition Rights

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.

gumi Inc. Completes Payment for Stock Acquisition Rights Issuance

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.

gumi Inc. Issues Stock Acquisition Rights to Fund Strategic Growth

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.

gumi Inc. Secures New Loan and Commitment Lines for Financial Flexibility

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.

gumi Inc. Reports Strong Preregistration for New Game and Strategic Shift in Development

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.

gumi Inc. Reports Crypto Asset Gains as Non-Operating Income

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.

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

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.