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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)

Rating:50Neutral
Price Target:
¥615.00
▼(-2.84% Downside)
The overall stock score reflects significant challenges in financial performance, particularly in revenue decline and cash flow issues. Technical analysis suggests a neutral to bearish outlook, while valuation appears moderate. The absence of earnings call data and corporate events limits additional insights.

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

gumi, Inc. Business Overview & Revenue Model

Company Descriptiongumi, Inc. (3903) is a Japan-based mobile gaming company that specializes in the development and publishing of free-to-play mobile games. The company operates primarily in the gaming sector and is known for its engaging titles that often utilize popular anime and RPG themes. gumi, Inc. also engages in partnerships with other game developers and publishers to expand its offerings and reach within the gaming community.
How the Company Makes Moneygumi, Inc. generates revenue primarily through in-app purchases within its mobile games, allowing players to buy virtual goods and enhancements to enhance their gaming experience. Additionally, the company earns income through advertising within its games and from partnerships with other companies for game co-development and publishing. Collaborations with franchises and licensing agreements also contribute to its revenue streams, as they often lead to increased player engagement and monetization opportunities.

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, improved gross and net profit margins and a low debt-to-equity ratio are positive aspects.
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
Positive
Last Price633.00
Price Trends
50DMA
636.48
Positive
100DMA
559.08
Positive
200DMA
489.33
Positive
Market Momentum
MACD
1.37
Negative
RSI
54.21
Neutral
STOCH
83.65
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 633 is above the 20-day moving average (MA) of 624.00, below the 50-day MA of 636.48, and above the 200-day MA of 489.33, indicating a bullish trend. The MACD of 1.37 indicates Negative momentum. The RSI at 54.21 is Neutral, neither overbought nor oversold. The STOCH value of 83.65 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

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
¥2.17B11.54
0.08%43.63%
64
Neutral
¥41.50B55.33
3.27%-10.86%-64.25%
64
Neutral
¥13.31B9.19
4.13%
60
Neutral
$44.00B1.87-10.43%4.00%2.46%-39.70%
50
Neutral
¥31.48B15.43
-25.89%
48
Neutral
¥3.89B
-12.26%44.44%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3903
gumi, Inc.
639.00
340.00
113.71%
JP:3667
enish, Inc.
123.00
-217.00
-63.82%
JP:3911
Aiming, Inc.
280.00
34.00
13.82%
JP:3928
Mynet, Inc.
257.00
-54.00
-17.36%
JP:3932
Akatsuki, Inc.
2,904.00
881.00
43.55%

gumi, Inc. Corporate Events

gumi Inc. Strengthens Alliance with SBI Holdings to Enhance Blockchain Business
Jul 31, 2025

gumi Inc. has announced a strengthened alliance with SBI Holdings, Inc., which now holds 33.28% of gumi’s voting rights. This partnership aims to boost both companies’ blockchain business capabilities and corporate value. An outside director recommended by SBI Holdings has been appointed, ensuring gumi’s operational independence while fostering collaboration.

gumi, Inc. Issues Stock Acquisition Rights to Boost Growth
Jul 30, 2025

gumi, Inc. announced the issuance of stock acquisition rights to its directors and employees, aiming to boost motivation and align interests with corporate growth objectives. The stock rights, contingent on achieving performance goals, are expected to increase the company’s shares by 6.1% if fully exercised, reflecting a strategic move to enhance corporate and shareholder value while maintaining reasonable dilution.

gumi Inc. Announces Major Shareholder Changes
Jun 27, 2025

gumi Inc. announced the completion of a significant change in its major shareholders, with SUPER STATE HOLDINGS Inc. transferring 6,500,000 shares to SBI Holdings, Inc. This transaction increases SBI’s shareholding to 33.28%, solidifying its position as the largest shareholder. This shift in shareholding structure may impact gumi’s strategic direction and stakeholder dynamics, given SBI’s enhanced influence.

gumi Inc. Reports Financial Adjustments for Q4 FY2025
Jun 11, 2025

gumi Inc. has announced several financial adjustments for the fourth quarter of the fiscal year ending April 30, 2025. These include a provision for doubtful accounts due to a subsidiary’s negative equity, crypto-asset valuation gains, and extraordinary losses from impaired investment securities. The company will also record deferred income taxes due to taxable temporary differences. These financial measures reflect the company’s ongoing efforts to manage its assets and liabilities effectively, with implications for its financial health and market positioning.

gumi Inc. Reports Financial Variances Amid Strategic Shifts
Jun 11, 2025

gumi Inc. has reported significant variances between its consolidated and non-consolidated financial results for the fiscal year ending April 2025 compared to the previous year. The company experienced a decline in net sales primarily due to strategic withdrawals from unprofitable mobile game titles and the sale of a subsidiary. However, the blockchain-related business saw revenue growth due to successful token projects and optimized asset management. Overall, the company achieved an increase in operating and ordinary profits, driven by reduced costs and gains from crypto-asset revaluation and investment sales.

gumi Inc. Completes 1 Billion Yen Bitcoin Purchase
Jun 11, 2025

gumi Inc. has completed its purchase of 1 billion yen worth of Bitcoin, acquiring 80.352 BTC at an average price of 12,430,257 yen per Bitcoin. The company plans to evaluate the market value of its Bitcoin holdings quarterly, reflecting any gains or losses in its income statement, and intends to continue acquiring Bitcoin actively.

gumi Inc. Foregoes Dividend to Focus on Growth
Jun 11, 2025

gumi Inc. has decided not to issue a dividend for the fiscal year ended April 2025, despite returning to profitability. The company plans to concentrate its management resources on future growth and enhancing corporate value, expressing regret to shareholders and aiming to resume dividends as soon as possible.

gumi Inc. Announces Board Changes and Strategic Alignments
Jun 11, 2025

gumi Inc. announced changes to its board of directors, with the reappointment of Hiroyuki Kawamoto and Makoto Motoyoshi, and the nomination of Yuichiro Arai as a new director who will serve as an Audit & Supervisory Committee Member. This change is part of a strategic alignment with SBI Holdings, Inc., reflecting a continued partnership and potential influence on gumi’s governance and strategic direction.

gumi Inc. and SBI Holdings Launch Crypto Asset Management Fund
Jun 11, 2025

gumi Inc. has announced the establishment of a fund for managing listed crypto assets in collaboration with SBI Holdings. This initiative aims to leverage both companies’ expertise in blockchain and finance to create a new financial market. The fund, structured as a silent partnership, will initially be a private placement with a size in the several billion yen range and a duration of three years. Although the immediate financial impact on gumi Inc. is expected to be insignificant, the fund represents a strategic move to capitalize on the growing recognition of crypto assets as a new asset class and the global trend towards deregulation and tax reforms.

gumi, Inc. Reports Financial Turnaround for Fiscal Year 2025
Jun 11, 2025

gumi, Inc. reported its consolidated financial results for the fiscal year ended April 30, 2025, showing a significant recovery with net sales of ¥8,942 million and a profit attributable to owners of the parent of ¥2,063 million, compared to a loss in the previous year. The company also noted changes in its consolidation scope, including the inclusion of Hinode Technologies Inc. and the exclusion of Alim Co., Ltd., reflecting strategic adjustments in its business operations.

gumi Inc. to Absorb Subsidiary FgG Inc. in Strategic Merger
May 28, 2025

gumi Inc. announced its decision to absorb its wholly owned subsidiary, FgG Inc., through a simplified absorption-type merger, effective August 1, 2025. This strategic move aims to consolidate management resources and streamline the organizational structure, with minimal impact expected on the company’s consolidated business results.

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: Aug 08, 2025