GMO Financial Gate, Inc. (4051) AI Stock Analysis

• Market Cap: ¥43.70B
• Dividend Yield: 1.88%
• Average Volume (3M): 48.15K
• Price to Earnings (P/E): 26.5
• Beta (1Y): 0.99
• Revenue Growth: -4.16%
• EPS Growth: 66.20%
• Country: JP
• Employees: 123
• Sector: Technology
• Sector Strength: 88
• Industry: Business Equipment & Supplies
• EPS (TTM): 34.01
• Shares Outstanding: 8,339,480
• 10 Day Avg. Volume: 38,560
• 30 Day Avg. Volume: 48,146
• PEG Ratio: 2.02
• Price to Book (P/B): 10.55
• Price to Sales (P/S): 3.18
• P/FCF Ratio: 51.93
• 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: 55 Neutral
• Price Target: ¥4,982.00 ▼(-15.99% Downside)

The overall stock score of 55 reflects a mixed outlook for GMO Financial Gate, Inc. The company's strong financial stability and profitability are offset by bearish technical indicators and a high valuation. The absence of earnings call insights and corporate events limits the assessment of future prospects.

Positive Factors

Profitability

Improved net profit margins indicate stronger profitability, reflecting the company's ability to manage costs effectively and enhance earnings.

Balance Sheet Health

A stable balance sheet with low leverage and a strong equity base suggests financial stability and reduced risk, supporting long-term sustainability.

Operational Efficiency

Consistent improvement in EBIT and EBITDA margins highlights operational efficiency, which can lead to sustained profitability and competitive advantage.

Negative Factors

Revenue Growth Decline

A decline in revenue growth can hinder future expansion and market share gains, potentially impacting long-term business momentum.

Free Cash Flow Challenges

Declining free cash flow growth may limit the company's ability to reinvest in growth opportunities, affecting future financial flexibility and expansion.

Revenue Growth Concerns

Ongoing concerns about revenue growth can signal potential difficulties in maintaining market position and achieving long-term strategic goals.

GMO Financial Gate, Inc. Business Overview & Revenue Model

Company Description

GMO Financial Gate, Inc. (4051) is a leading financial technology company that specializes in providing a range of digital finance solutions. Operating primarily in the fintech sector, the company offers services including payment processing, online banking, and investment management. With a focus on enhancing user experience through innovative technology, GMO Financial Gate aims to streamline financial transactions and empower consumers and businesses with accessible financial tools.

How the Company Makes Money

GMO Financial Gate, Inc. generates revenue through multiple streams, including transaction fees from payment processing services, subscription fees for premium banking services, and commissions from investment products. The company partners with various merchants and financial institutions to facilitate seamless payment solutions, which contributes to its earnings. Additionally, strategic alliances with technology providers enhance its service offerings, enabling the company to tap into new markets and customer bases, thereby boosting its overall revenue.

GMO Financial Gate, Inc. Financial Statement Overview

Summary

GMO Financial Gate, Inc. shows strong financial health with robust revenue growth and stable profitability margins. The balance sheet is solid with low leverage and a strong equity base. However, cash flow management requires attention due to fluctuating free cash flow.

Income Statement

GMO Financial Gate, Inc. has demonstrated robust revenue growth, with TTM revenue at 18.79 billion, a significant increase from 10.29 billion in 2022 and 7.08 billion in 2021. The gross profit margin is strong at approximately 33.8% for TTM, indicating effective cost management. Net profit margin also improved, reaching around 7.05% in TTM. Both EBIT and EBITDA margins have been stable, reflecting consistent operational efficiency. However, the firm needs to be cautious about maintaining these margins amidst market fluctuations.

Balance Sheet

The balance sheet shows a healthy equity position with a debt-to-equity ratio of approximately 0.40 in TTM, indicating low leverage risk. The equity ratio is strong at around 45.7%, reflecting financial stability. However, total assets have decreased from the previous year, and careful asset management is required to maintain this stability.

Cash Flow

The cash flow statement highlights a positive free cash flow in TTM of 488 million, although it has decreased from the previous year, reflecting potential investment or operational cash demands. Operating cash flow to net income is favorable, indicating good cash conversion from earnings, but free cash flow growth has witnessed fluctuations that might impact liquidity positions.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	18.30B	17.93B	18.71B	15.91B	10.30B	7.09B
Gross Profit	6.81B	6.27B	6.05B	3.91B	2.77B	2.02B
EBITDA	2.54B	2.87B	2.06B	1.52B	1.11B	893.28M
Net Income	1.50B	1.63B	1.01B	746.43M	472.52M	411.38M
Balance Sheet
Total Assets	12.58B	13.83B	14.21B	9.26B	6.64B	7.14B
Cash, Cash Equivalents and Short-Term Investments	4.22B	4.27B	5.07B	4.02B	2.52B	3.43B
Total Debt	2.00B	2.00B	2.00B	1.50B	646.00K	6.94M
Total Liabilities	6.36B	7.34B	8.32B	4.15B	1.97B	2.76B
Stockholders Equity	5.97B	6.26B	5.63B	4.91B	4.50B	4.22B
Cash Flow
Free Cash Flow	1.51B	1.10B	1.14B	366.07M	-719.20M	488.44M
Operating Cash Flow	1.64B	1.23B	1.71B	865.91M	-212.18M	957.08M
Investing Cash Flow	-890.20M	-898.86M	-719.17M	-529.93M	-531.21M	-465.67M
Financing Cash Flow	-1.17B	-1.13B	63.81M	1.28B	-303.04M	-3.81M

GMO Financial Gate, Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 5930.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4051, the sentiment is Neutral. The current price of 5930 is above the 20-day moving average (MA) of 5114.75, above the 50-day MA of 5263.50, and above the 200-day MA of 5378.49, indicating a neutral trend. The MACD of -10.60 indicates Negative momentum. The RSI at 52.52 is Neutral, neither overbought nor oversold. The STOCH value of 77.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4051.

GMO Financial Gate, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6418	71 Outperform	¥30.56B	6.05	―	4.54%	-20.75%	7.75%
7314	66 Neutral	¥3.69B	-39.61	―	2.15%	23.24%	-111.63%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
7957	61 Neutral	¥2.22B	3.93	―	5.27%	0.34%	―
4051	55 Neutral	¥43.70B	26.53	―	1.88%	-4.16%	66.20%

GMO Financial Gate, Inc. Corporate Events

GMO Financial Gate Details Relationship with Controlling Shareholders

GMO Financial Gate, Inc. announced its relationship with its controlling shareholders, GMO Internet Group, Inc. and GMO Payment Gateway, Inc., which hold significant voting rights and influence over the company. The company emphasizes its strategic position within the group, focusing on face-to-face payment solutions, while ensuring that transactions with parent companies protect minority shareholders’ interests through careful examination and independent oversight.

The most recent analyst rating on (JP:4051) stock is a Hold with a Yen6456.00 price target. To see the full list of analyst forecasts on GMO Financial Gate, Inc. stock, see the JP:4051 Stock Forecast page.

GMO Financial Gate Secures JPY 3 Billion in Overdraft Agreements

GMO Financial Gate, Inc. announced its decision to borrow funds under overdraft agreements totaling JPY 3 billion from major banks to secure liquidity and strengthen its financial base. This move is aimed at preparing for future working capital needs, particularly for terminal purchases, and is expected to have an immaterial impact on the company’s financial results for the fiscal year ending September 30, 2026.

The most recent analyst rating on (JP:4051) stock is a Hold with a Yen6456.00 price target. To see the full list of analyst forecasts on GMO Financial Gate, Inc. stock, see the JP:4051 Stock Forecast page.

GMO Financial Gate Proposes Amendments to Articles of Incorporation

GMO Financial Gate, Inc. announced proposed amendments to its Articles of Incorporation, which will be presented at the upcoming Annual General Meeting. These amendments aim to clarify the company’s corporate philosophy, prepare for future business developments, and allow for more flexible dividend payments, potentially enhancing shareholder value and aligning with the company’s strategic goals.

The most recent analyst rating on (JP:4051) stock is a Hold with a Yen6456.00 price target. To see the full list of analyst forecasts on GMO Financial Gate, Inc. stock, see the JP:4051 Stock Forecast page.

GMO Financial Gate Announces Increased Dividends for Shareholders

GMO Financial Gate, Inc. has announced a resolution to pay dividends of surplus with a record date of September 30, 2025. The dividend per share is set at JPY 99, reflecting the company’s earnings trend and internal reserves. This decision underscores the company’s commitment to delivering stable and continuous dividends, with a forecasted increase to JPY 125 per share for the fiscal year ending September 30, 2026.

The most recent analyst rating on (JP:4051) stock is a Hold with a Yen6456.00 price target. To see the full list of analyst forecasts on GMO Financial Gate, Inc. stock, see the JP:4051 Stock Forecast page.

GMO Financial Gate Reports Strong Profit Growth and Strategic Expansion

GMO Financial Gate, Inc. has reported significant growth in operating profit for FY2025, driven by its recurring-model revenue. The company is strengthening its foundation for sustainable growth by expanding its merchant base in essential daily life sectors, indicating a strategic move to solidify its market position.

The most recent analyst rating on (JP:4051) stock is a Hold with a Yen6456.00 price target. To see the full list of analyst forecasts on GMO Financial Gate, Inc. stock, see the JP:4051 Stock Forecast page.

GMO Financial Gate Considers Lowering Investment Units to Boost Market Liquidity

GMO Financial Gate, Inc. has announced its stance on lowering investment units, aiming to enhance market liquidity and broaden its shareholder base. The company previously implemented a stock split and is considering further actions based on market conditions and shareholder interests, though no specific measures or timing have been determined yet.

The most recent analyst rating on (JP:4051) stock is a Hold with a Yen6456.00 price target. To see the full list of analyst forecasts on GMO Financial Gate, Inc. stock, see the JP:4051 Stock Forecast page.

GMO Financial Gate Increases Year-End Dividend Forecast

GMO Financial Gate, Inc. announced a revision to its dividend forecast for the fiscal year ending September 30, 2025, increasing the year-end dividend from JPY 90.00 to JPY 99.00 per share. This decision reflects the company’s strong business performance and commitment to enhancing shareholder value, indicating a positive outlook and robust financial health.

The most recent analyst rating on (JP:4051) stock is a Hold with a Yen6456.00 price target. To see the full list of analyst forecasts on GMO Financial Gate, Inc. stock, see the JP:4051 Stock Forecast page.

GMO Financial Gate Reports Strong Profit Growth Despite Revenue Dip

GMO Financial Gate, Inc. reported its consolidated financial results for the fiscal year ending September 30, 2025, showing a slight decrease in revenue but significant growth in profitability metrics such as operating profit and profit attributable to owners of the parent. The company also announced an increase in dividends, reflecting its strong financial performance and commitment to returning value to shareholders. The financial outlook for the next fiscal year is positive, with expected growth in revenue and profits, indicating a strong market position and operational efficiency.

The most recent analyst rating on (JP:4051) stock is a Hold with a Yen6456.00 price target. To see the full list of analyst forecasts on GMO Financial Gate, Inc. stock, see the JP:4051 Stock Forecast page.