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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)
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Neutral 46 (OpenAI - 5.2)
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Neutral 46 (OpenAI - 5.2)
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Neutral 46 (OpenAI - 5.2)
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Neutral 46 (OpenAI - 5.2)
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Neutral 46 (OpenAI - 5.2)
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Neutral 46 (OpenAI - 5.2)
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Neutral 46 (OpenAI - 5.2)
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Neutral 46 (OpenAI - 5.2)
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Neutral 46 (OpenAI - 5.2)
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Neutral 46 (OpenAI - 5.2)
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Neutral 46 (OpenAI - 5.2)
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Neutral 46 (OpenAI - 5.2)
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Neutral 46 (OpenAI - 5.2)
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Neutral 46 (OpenAI - 5.2)
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Neutral 46 (OpenAI - 5.2)
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Neutral 46 (OpenAI - 5.2)
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Neutral 46 (OpenAI - 5.2)
Rating:46Neutral
Price Target:
¥315.00
▼(-11.27% 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 model
A live-service, in‑game purchase model yields recurring revenue streams and customer lifetime value that persist beyond single releases. This business model supports predictable monetization from engaged users and enables incremental content investment, aiding durable revenue generation over months.
Improved profit margins
Sustained gross and net margin improvement suggests better cost control and higher per-unit profitability. Higher margins provide a structural buffer during revenue pressure, enabling reinvestment in content, marketing, or R&D without immediately eroding shareholder returns.
Conservative leverage and stronger ROE
Low leverage reduces financial risk and preserves flexibility for M&A or funding new titles, while improving ROE indicates more efficient use of equity. Together these factors support durable capital allocation and the ability to fund long‑cycle game development or Web3 projects without overburdening the balance sheet.
Negative Factors
Sustained revenue decline
A multi-year, double-digit revenue contraction undermines scale economics and weakens market positioning for live titles. Persistent top-line decline makes it harder to fund content cadence and user acquisition, increasing dependency on fewer hit titles and elevating long‑term execution risk.
Weak cash generation
Negative operating cash flow and falling free cash flow constrain the company’s ability to sustain live operations, pay for continuous content updates, or self‑fund new projects. Over time this forces reliance on external financing or asset sales, reducing strategic independence.
Volatility from blockchain/investments
Dependence on blockchain and investment returns introduces earnings volatility tied to crypto cycles and project milestones. Such variability complicates cash flow predictability and planning for multi‑month content roadmaps, increasing structural uncertainty for long‑term operational performance.

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 MoneyThe company’s main revenue model is service-based game operations (live service), where it earns money from its portfolio of online/mobile games through in-game purchases (microtransactions), time-limited virtual item sales, and other digital content monetization tied to ongoing game operation. Revenue is also generated through licensing and related arrangements where gumi collaborates with IP holders or partners for game development/operation and shares economics based on contract terms (e.g., revenue sharing, royalties, or development/operation fees); specific contract structures vary by title and are not publicly consistent in a single standardized form. In addition, gumi has generated revenue and/or gains (and can also incur losses) from blockchain-related and investment activities, which may include development/operation of Web3-related businesses and returns from holdings or transactions in digital assets and investments; the magnitude of these contributions can fluctuate materially depending on project progress and market conditions. Overall earnings are influenced by the performance and lifecycle of individual game titles (launch success, user retention, and ongoing content updates), user spending behavior, platform fees paid to app stores, and partnership terms with co-developers, publishers, and IP owners.

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
EBITDA406.26M429.95M-3.57B770.66M-1.38B2.42B
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 Investments14.75B13.66B7.41B11.01B6.90B9.77B
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-687.38M-4.78B81.42M-1.03B2.79B
Operating Cash Flow84.67M-672.07M-4.72B161.94M-1.00B2.81B
Investing Cash Flow-666.01M-698.55M-271.09M-2.68B-1.07B-2.16B
Financing Cash Flow1.84B2.60B-898.94M6.71B-248.46M1.92B

gumi, Inc. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price355.00
Price Trends
50DMA
348.46
Negative
100DMA
367.69
Negative
200DMA
486.08
Negative
Market Momentum
MACD
-0.81
Negative
RSI
43.22
Neutral
STOCH
54.60
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 330.25, above the 50-day MA of 348.46, and below the 200-day MA of 486.08, indicating a bearish trend. The MACD of -0.81 indicates Negative momentum. The RSI at 43.22 is Neutral, neither overbought nor oversold. The STOCH value of 54.60 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
¥9.57B9.6311.15%
60
Neutral
$48.67B4.58-11.27%4.14%2.83%-41.78%
58
Neutral
¥19.61B19.12-9.17%51.84%
52
Neutral
¥29.86B-95.92-14.71%-38.87%
48
Neutral
¥10.91B137.8516.70%87.76%
46
Neutral
¥17.21B9.33-37.68%
42
Neutral
¥11.62B4.6693.85%-216.24%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3903
gumi, Inc.
321.00
-162.00
-33.54%
JP:3656
KLab Inc.
383.00
237.00
162.33%
JP:3793
Drecom Co., Ltd.
400.00
-201.00
-33.44%
JP:3911
Aiming, Inc.
205.00
-63.00
-23.51%
JP:4175
coly Inc.
1,983.00
624.00
45.92%
JP:4393
Bank of Innovation, Inc.
5,040.00
-3,320.00
-39.71%

gumi, Inc. Corporate Events

Gumi Books Crypto Revaluation Loss on Parent Accounts but Gain on Consolidated Basis
Mar 13, 2026

Gumi Inc. has recognized a significant revaluation of its cryptocurrency holdings for the third quarter of the fiscal year ending April 2026, highlighting the financial impact of volatility in digital asset markets on its balance sheet. The company will book a 330 million yen crypto-asset revaluation loss as a non-operating expense on a non-consolidated basis, while at the consolidated level it records a 19 million yen valuation gain as non-operating income, with these effects already incorporated into its latest nine-month consolidated results.

The differing non-consolidated loss and consolidated gain underscore how group-wide positions and entities alter the net impact of crypto market swings on reported earnings. This accounting treatment signals to investors that gumi’s financial performance can be meaningfully influenced by movements in cryptocurrency prices, reinforcing both the potential risk and diversification effects of its digital asset strategy across the corporate group.

The most recent analyst rating on (JP:3903) stock is a Hold with a Yen342.00 price target. To see the full list of analyst forecasts on gumi, Inc. stock, see the JP:3903 Stock Forecast page.

Gumi Scales Back Planned XRP Purchases Amid Market Volatility
Mar 13, 2026

Gumi Inc. reported that it did not complete its planned purchase of up to 2.5 billion yen in XRP during the designated period, citing rapid market fluctuations and a decision to prioritize investment efficiency. The company indicated it will continue monitoring crypto market conditions and may pursue additional XRP acquisitions when it deems conditions more favorable.

The company also said it will perform quarterly mark-to-market valuations on its crypto asset holdings, with gains or losses reflected in its income statement. Gumi noted that any material impact from these valuations on consolidated financial results will be disclosed in a timely manner, underscoring the potential earnings volatility associated with its crypto asset strategy.

The most recent analyst rating on (JP:3903) stock is a Hold with a Yen342.00 price target. To see the full list of analyst forecasts on gumi, Inc. stock, see the JP:3903 Stock Forecast page.

Gumi Posts Higher Profit Despite Lower Sales, Tightens Group Structure
Mar 13, 2026

Gumi, Inc., a Tokyo-listed mobile game developer, reported consolidated net sales of ¥6.83 billion for the nine months ended Jan. 31, 2026, down 7.7% year on year, while operating profit fell 56.5% to ¥130 million. Despite weaker sales and operating income, ordinary profit nearly doubled to ¥1.97 billion and profit attributable to owners rose 22.7% to ¥1.85 billion, supported by improved non-operating income and a stronger equity base as total assets increased to ¥29.87 billion and the equity ratio climbed to 71.0%.

The company maintained a no-dividend policy for the current fiscal year and continues to refrain from issuing earnings forecasts due to business environment volatility. Gumi also reduced its consolidation scope by excluding two subsidiaries, FgG Inc. and gumi China Inc., a move that, together with higher equity and an expanded share count, signals an ongoing restructuring of its portfolio and capital structure that could reshape its future profitability profile.

The most recent analyst rating on (JP:3903) stock is a Hold with a Yen342.00 price target. To see the full list of analyst forecasts on gumi, Inc. stock, see the JP:3903 Stock Forecast page.

gumi Inc. Outlines Q3 FY2026 Performance and New Disclosures
Mar 13, 2026

gumi Inc. released materials for its fiscal 2026 third-quarter financial briefing, covering the period from May 2025 to April 2026, which outline its financial highlights, progress by business segment, and an executive summary. The briefing also introduces newly disclosed information in specific sections, signaling updates on the company’s operational performance and strategic topics that may be relevant for investors and other stakeholders.

gumi’s Q3 documents organize key data into segments such as financial highlights, business progress, and other topics, indicating a structured approach to transparency and disclosure. The inclusion of an appendix and marked pages for first-time disclosures suggests the company is providing additional detail and updated figures that could inform market assessment of its current trajectory and segment performance.

The most recent analyst rating on (JP:3903) stock is a Hold with a Yen342.00 price target. To see the full list of analyst forecasts on gumi, Inc. stock, see the JP:3903 Stock Forecast page.

Gumi Reports Minimal February Exercise of 26th Series Stock Acquisition Rights
Mar 2, 2026

Gumi Inc., a Tokyo Stock Exchange Prime Market-listed digital entertainment and mobile gaming company, continues to leverage stock acquisition rights as part of its financing strategy, reflecting an ongoing focus on capital market tools to support its operations and expansion. The company reported that in February 2026 only 50 units, or 0.05% of its 26th Series of Stock Acquisition Rights with an exercise price adjustment clause allotted to SBI SECURITIES, were exercised, resulting in the issuance of 5,000 new shares and leaving 66,312 units unexercised, indicating minimal shareholder dilution and a very low 0.01% exercise ratio relative to listed shares under exchange restrictions.

The limited exercise activity suggests that the immediate impact on gumi’s capital structure and existing shareholders is modest, while preserving substantial remaining capacity for future exercises if market conditions become more favorable. By maintaining a disciplined pace of rights exercises within Tokyo Stock Exchange and Japan Securities Dealers Association restrictions, gumi keeps flexibility to raise additional equity over time without significantly disrupting its share base or breaching regulatory thresholds.

The most recent analyst rating on (JP:3903) stock is a Hold with a Yen328.00 price target. To see the full list of analyst forecasts on gumi, Inc. stock, see the JP:3903 Stock Forecast page.

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.

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