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

• Market Cap: ¥43.87B
• Dividend Yield: 1.18%
• Average Volume (3M): 82.91K
• Price to Earnings (P/E): 29.7
• Beta (1Y): 1.03
• Revenue Growth: 3.46%
• EPS Growth: 62.65%
• Country: JP
• Employees: 123
• Sector: Technology
• Sector Strength: 90
• Industry: Business Equipment & Supplies
• EPS (TTM): 52.38
• Shares Outstanding: 8,339,480
• 10 Day Avg. Volume: 46,160
• 30 Day Avg. Volume: 82,910
• PEG Ratio: 9.02
• Price to Book (P/B): 11.75
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -73.59
• 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: ¥6,967.50
• Price Target Upside: 32.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 67 Neutral
• Price Target: ¥5,710.00 ▲(8.56%Upside)

The stock's score reflects strong financial performance, which is the primary strength. However, technical analysis and valuation suggest caution due to mixed signals and potential overvaluation. The absence of significant earnings call data and notable corporate events means these factors have no impact on the score.

GMO Financial Gate, Inc. Business Overview & Revenue Model

Company Description

GMO Financial Gate, Inc. (4051) is a Japan-based company primarily engaged in the provision of payment services. The company operates within the financial technology sector, offering a wide range of payment gateway services, including credit card payment processing, electronic money solutions, and other online transaction services. GMO Financial Gate, Inc. aims to facilitate seamless and secure financial transactions for its clients across various industries.

How the Company Makes Money

GMO Financial Gate, Inc. generates revenue primarily through transaction fees charged to merchants and businesses for processing payments via its platform. These fees are typically a percentage of the transaction value or a fixed fee per transaction. The company also earns money from service fees for additional payment solutions such as fraud prevention, data analytics, and customer support services. Partnerships with banks, financial institutions, and e-commerce platforms enhance its service offerings and expand its customer base, contributing to its revenue streams. Additionally, GMO Financial Gate may benefit from recurring revenue through subscription-based models or long-term service agreements with clients.

GMO Financial Gate, Inc. Financial Statement Overview

Summary

GMO Financial Gate, Inc. exhibits strong financial health with impressive 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 to sustain liquidity amidst 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	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	18.51B	18.71B	15.91B	10.30B	7.09B	3.69B
Gross Profit	6.72B	6.05B	3.91B	2.77B	2.02B	1.62B
EBITDA	2.55B	2.06B	1.54B	1.11B	893.28M	658.83M
Net Income	1.50B	1.01B	746.43M	472.52M	411.38M	291.86M
Balance Sheet
Total Assets	12.47B	14.21B	9.26B	6.64B	7.14B	6.12B
Cash, Cash Equivalents and Short-Term Investments	4.12B	5.07B	4.02B	2.52B	3.43B	2.95B
Total Debt	2.00B	2.00B	1.50B	646.00K	6.94M	15.10M
Total Liabilities	6.56B	8.32B	4.15B	1.97B	2.76B	2.11B
Stockholders Equity	5.65B	5.63B	4.91B	4.50B	4.22B	3.82B
Cash Flow
Free Cash Flow	1.15B	1.14B	366.07M	-719.20M	488.44M	-858.85M
Operating Cash Flow	1.16B	1.71B	865.91M	-212.18M	957.08M	-537.31M
Investing Cash Flow	-543.24M	-719.17M	-529.93M	-531.21M	-465.67M	-336.75M
Financing Cash Flow	-1.13B	63.81M	1.28B	-303.04M	-3.81M	684.60M

GMO Financial Gate, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5260.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 5260 is below the 20-day moving average (MA) of 5312.75, below the 50-day MA of 5297.10, and below the 200-day MA of 6213.45, indicating a bearish trend. The MACD of -55.64 indicates Positive momentum. The RSI at 47.15 is Neutral, neither overbought nor oversold. The STOCH value of 29.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	73 Outperform	¥27.50B	6.58		2.16%	19.63%	23.87%
7957	68 Neutral	¥2.26B	5.22		5.29%	12.55%	―
4051	67 Neutral	¥43.87B	29.67		1.18%	3.46%	62.65%
7314	59 Neutral	¥3.41B	12.36		2.63%	47.88%	-21.61%
Sector *	50 Neutral	AU$1.47B	2.06	-28.25%	3.11%	16.21%	-7.40%

GMO Financial Gate, Inc. Corporate Events

GMO Financial Gate Transitions to TSE Prime Market

GMO Financial Gate, Inc. has announced its transition from the Tokyo Stock Exchange Growth Market to the Tokyo Stock Exchange Prime Market. This move signifies a strategic step in the company’s growth trajectory, aiming to boost business performance and corporate value, while reinforcing its commitment to stakeholders.

The most recent analyst rating on (JP:4051) stock is a Buy with a Yen10200.00 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 Approved for Tokyo Stock Exchange Prime Market Listing

GMO Financial Gate, Inc. announced its approval to move its stock listing from the Growth Market to the Prime Market of the Tokyo Stock Exchange, effective June 5, 2025. This transition is expected to accelerate the company’s growth, strengthen corporate governance, and enhance information disclosure, thereby increasing corporate value and meeting stakeholder expectations.

The most recent analyst rating on (JP:4051) stock is a Buy with a Yen10200.00 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, Inc. Reports Q2 FY2025 Financial Results

GMO Financial Gate, Inc. reported lower initial revenues for Q2 FY2025 due to a downward trend in the SME sector, but recurring revenue has contributed positively to operating profit. The company aims to expand its total addressable market by broadening its business domain, which could enhance its industry positioning and potentially benefit stakeholders.

The most recent analyst rating on (JP:4051) stock is a Buy with a Yen10200.00 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 in Q2 FY2025

GMO Financial Gate, Inc. reported its consolidated financial results for the second quarter of FY2025, showing a slight decrease in revenue by 2.1% year-on-year. However, the company experienced significant growth in operating profit and profit attributable to owners of the parent, with increases of 48.5% and 66.4% respectively. The financial forecast for the full fiscal year 2025 indicates a positive outlook with expected revenue growth of 18.7% and a substantial increase in profits. This performance underscores the company’s strong market position and operational efficiency, which are likely to benefit stakeholders.

The most recent analyst rating on (JP:4051) stock is a Buy with a Yen10200.00 price target. To see the full list of analyst forecasts on GMO Financial Gate, Inc. stock, see the JP:4051 Stock Forecast page.