Globalway, Inc. (3936) AI Stock Analysis

• Market Cap: ¥5.16B
• Dividend Yield: N/A
• Average Volume (3M): 211.24K
• Price to Earnings (P/E): 63.3
• Beta (1Y): 0.57
• Revenue Growth: 33.73%
• EPS Growth: N/A
• Country: JP
• Employees: 139
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 2.28
• Shares Outstanding: 36,566,450
• 10 Day Avg. Volume: 158,640
• 30 Day Avg. Volume: 211,236
• PEG Ratio: -0.19
• Price to Book (P/B): 5.18
• Price to Sales (P/S): 1.21
• P/FCF Ratio: -6.84
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: ¥140.00 ▲(16.67% Upside)

The overall stock score is primarily influenced by financial performance challenges, particularly in profitability and cash flow management. Technical analysis indicates a bearish trend, while valuation metrics suggest overvaluation. These factors collectively result in a moderate risk profile for the stock.

Positive Factors

Revenue Growth

Sustained ~34% revenue growth indicates the company is expanding sales and market traction, supporting longer-term scale. This trend provides a durable foundation for investing in product development and customer acquisition, assuming margins and cash conversion improve.

Low Financial Leverage

A solid equity base and relatively low leverage reduce solvency and refinancing risk, giving the company flexibility to fund growth or absorb shocks. This structural strength supports resilience across economic cycles and capacity for strategic investments.

Stable Gross Profit Margin

A stable gross margin suggests the core product/service retains pricing power and cost structure at the gross level is resilient. That stability provides a platform to drive operating efficiencies and eventually translate revenue growth into improved operating profitability over time.

Negative Factors

Negative Free Cash Flow

Persistent negative free cash flow means the business is spending more cash than it generates, eroding liquidity and forcing reliance on external financing. Over months this constrains reinvestment, increases financing costs, and raises execution risk for strategic initiatives.

Declining Stockholders' Equity

A falling shareholders' equity trend signals erosion of retained earnings or capital base, weakening balance sheet resilience. If sustained, this limits capacity to absorb losses, reduces financial flexibility, and can hamper long-term ability to fund growth organically.

Profitability Weakness

Negative net income and EBIT margins indicate the company is not currently converting revenue into profit. Over the medium term this undermines retained earnings, raises breakeven requirements, and necessitates structural cost or revenue model changes to achieve sustainable profitability.

Globalway, Inc. Business Overview & Revenue Model

Company Description

Globalway, Inc. (3936) is a multinational technology company specializing in advanced logistics and supply chain management solutions. The company operates in various sectors, including e-commerce, transportation, and software development. Globalway offers a suite of products and services designed to optimize supply chain operations, enhance delivery efficiency, and provide real-time tracking and analytics for businesses across the globe.

How the Company Makes Money

Globalway generates revenue primarily through its logistics software solutions, subscription-based services, and consulting fees. The company charges clients for the use of its proprietary software platforms, which help streamline supply chain processes and improve operational efficiency. Additionally, Globalway offers custom consulting services to help businesses implement best practices in logistics and supply chain management, contributing significantly to its revenue. The company has established strategic partnerships with major e-commerce platforms and logistics providers, which not only expands its customer base but also enhances its service offerings, creating additional revenue streams through collaborative projects and integrations.

Globalway, Inc. Financial Statement Overview

Summary

Globalway, Inc. shows strong revenue growth but faces significant challenges in profitability and cash flow management. The balance sheet is relatively strong, but ongoing cash flow issues may pose risks to future financial stability.

Income Statement

Globalway, Inc. has shown a positive revenue growth trend, with a year-over-year increase in total revenue. However, the company is struggling with profitability, as evidenced by negative net income and EBIT margins. The gross profit margin remains stable, but the inability to convert revenue into profit is concerning. This reflects challenges in controlling costs and achieving operational efficiency.

Balance Sheet

The balance sheet shows a solid equity base with a relatively low debt-to-equity ratio, indicating lower leverage risk. However, the company has a decreasing trend in stockholders' equity over time, which could signal challenges in sustaining financial stability. The equity ratio is healthy, suggesting that assets are primarily financed by equity rather than debt.

Cash Flow

The cash flow statement reveals significant negative free cash flow, indicating that the company is spending more cash than it generates. The operating cash flow to net income ratio is unfavorable, showing inefficiencies in converting revenue into cash. There is a concerning trend of declining operating cash flows, which could impact the company's liquidity position.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.29B	3.07B	2.46B	1.75B	1.82B	1.22B
Gross Profit	1.78B	1.57B	1.24B	782.15M	1.09B	534.39M
EBITDA	-31.25M	-282.47M	-367.38M	-425.68M	523.18M	-332.39M
Net Income	-182.56M	-320.05M	-199.14M	-218.94M	419.21M	-187.68M
Balance Sheet
Total Assets	1.69B	1.77B	1.95B	1.71B	1.75B	631.65M
Cash, Cash Equivalents and Short-Term Investments	674.00M	559.01M	917.49M	946.95M	1.31B	207.19M
Total Debt	123.00M	241.64M	51.10M	63.31M	89.99M	142.33M
Total Liabilities	564.00M	596.62M	467.10M	378.65M	484.60M	430.67M
Stockholders Equity	681.00M	716.89M	1.04B	1.12B	1.15B	196.75M
Cash Flow
Free Cash Flow	0.00	-542.98M	-520.88M	-688.49M	274.52M	-434.54M
Operating Cash Flow	0.00	-542.78M	-505.91M	-635.78M	280.70M	-429.19M
Investing Cash Flow	0.00	23.80M	53.06M	-210.97M	301.65M	50.52M
Financing Cash Flow	0.00	191.43M	488.70M	476.43M	507.22M	258.73M

Globalway, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 120.00
• 50DMA: Positive
• 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:3936, the sentiment is Negative. The current price of 120 is below the 20-day moving average (MA) of 145.95, below the 50-day MA of 139.24, and below the 200-day MA of 169.90, indicating a neutral trend. The MACD of 0.24 indicates Positive momentum. The RSI at 47.67 is Neutral, neither overbought nor oversold. The STOCH value of 19.31 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3936.

Globalway, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4440	77 Outperform	¥6.49B	12.29	―	1.35%	39.66%	57.28%
4492	72 Outperform	¥5.50B	17.00	―	4.06%	15.79%	-33.67%
4446	69 Neutral	¥16.53B	194.79	―	―	14.10%	-53.62%
4060	64 Neutral	¥6.24B	22.07	―	0.57%	21.03%	32.29%
3841	62 Neutral	¥4.99B	26.07	―	3.14%	-1.09%	-14.08%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3936	48 Neutral	¥5.16B	63.32	―	―	33.73%	―