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

• Market Cap: ¥51.95B
• Dividend Yield: 0.99%
• Average Volume (3M): 84.52K
• Price to Earnings (P/E): 34.9
• Beta (1Y): 1.01
• Revenue Growth: 4.58%
• EPS Growth: 49.20%
• Country: JP
• Employees: 123
• Sector: Technology
• Sector Strength: 86
• Industry: Business Equipment & Supplies
• EPS (TTM): 38.39
• Shares Outstanding: 8,339,480
• 10 Day Avg. Volume: 77,550
• 30 Day Avg. Volume: 84,520
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥7,102.50
• Price Target Upside: 10.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 68 Neutral
• Price Target: ¥6,205.00 ▼(-3.50% Downside)

GMO Financial Gate, Inc. demonstrates strong financial performance with robust revenue growth and stable margins, which is the most significant factor in its score. Technical analysis indicates bullish momentum, but the stock appears overbought, warranting caution. Valuation metrics suggest the stock is expensive, which could limit upside potential.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.30B	18.71B	15.91B	10.30B	7.09B	3.69B
Gross Profit	6.81B	6.05B	3.91B	2.77B	2.02B	1.62B
EBITDA	2.54B	2.06B	1.52B	1.11B	893.28M	658.83M
Net Income	1.50B	1.01B	746.43M	472.52M	411.38M	291.86M
Balance Sheet
Total Assets	12.58B	14.21B	9.26B	6.64B	7.14B	6.12B
Cash, Cash Equivalents and Short-Term Investments	4.22B	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	6.36B	8.32B	4.15B	1.97B	2.76B	2.11B
Stockholders Equity	5.97B	5.63B	4.91B	4.50B	4.22B	3.82B
Cash Flow
Free Cash Flow	1.51B	1.14B	366.07M	-719.20M	488.44M	-858.85M
Operating Cash Flow	1.64B	1.71B	865.91M	-212.18M	957.08M	-537.31M
Investing Cash Flow	-890.20M	-719.17M	-529.93M	-531.21M	-465.67M	-336.75M
Financing Cash Flow	-1.17B	63.81M	1.28B	-303.04M	-3.81M	684.60M

GMO Financial Gate, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6430.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4051, the sentiment is Positive. The current price of 6430 is above the 20-day moving average (MA) of 5627.75, above the 50-day MA of 5317.80, and above the 200-day MA of 5866.95, indicating a bullish trend. The MACD of 335.08 indicates Negative momentum. The RSI at 74.60 is Negative, neither overbought nor oversold. The STOCH value of 76.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
7957	73 Outperform	¥2.37B	5.64		5.17%	9.24%	―
6418	69 Neutral	¥29.49B	14.22		3.99%	-0.01%	-56.62%
4051	68 Neutral	¥51.95B	34.89		0.99%	4.58%	49.20%
7314	66 Neutral	¥4.04B	135.30		2.26%	62.76%	-94.53%
Sector *	61 Neutral	$36.05B	6.66	-10.10%	1.86%	8.68%	-8.81%

GMO Financial Gate, Inc. Corporate Events

GMO Financial Gate Reports Q3 FY2025 Growth and Strategic Goals

GMO Financial Gate, Inc. has announced its financial results for Q3 FY2025, highlighting significant growth in recurring revenue driven by the acquisition of merchants in the daily life necessities sector. The company aims to achieve a cumulative total of 1.2 million IDs as part of its strategy to reach ¥10 billion in operating profit, indicating a strong focus on expanding its market footprint and enhancing profitability.

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 to Acquire TakeMe’s Mobile Ordering Business

GMO Financial Gate, Inc. announced a decision to acquire the rights and obligations of TakeMe Co., Ltd.’s restaurant operation support and mobile ordering business through a simplified absorption-type company split. The move aims to integrate TakeMe’s products and insights, allowing GMO Financial Gate to enhance its cashless platform and improve service quality, ultimately driving long-term corporate value. The financial impact of this acquisition on GMO Financial Gate is expected to be minimal, with no significant changes to assets or revenue.

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 Revises Financial Forecast and Increases Dividend Amid Strategic Shift

GMO Financial Gate, Inc. has revised its financial forecast for the fiscal year ending September 30, 2025, due to a shift in focus towards terminal-less solutions and an increase in cashless payments. Despite a projected decrease in revenue, the company expects higher profits due to the growth of recurring-model revenue. Additionally, the company announced a voluntary return of part of officers’ compensation and an increase in the annual dividend forecast to 90 yen per share, reflecting a commitment to shareholder returns.

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 Q3 FY2025 Financial Growth Amid Revenue Dip

GMO Financial Gate, Inc. reported its consolidated financial results for the third quarter of FY2025, showing a slight decline in revenue but significant growth in profits. The company’s operating profit increased by 27.9%, and profit attributable to owners rose by 44.5% compared to the same period last year. The company has revised its full-year financial forecast upwards, indicating confidence in its operational strategy and market position. Additionally, the dividend forecast has been increased, reflecting a positive outlook for shareholders.

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 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.