G-NEXT, Inc. (4179) AI Stock Analysis

• Market Cap: ¥1.49B
• Dividend Yield: N/A
• Average Volume (3M): 22.23K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.64
• Revenue Growth: 30.10%
• EPS Growth: 40.65%
• Country: JP
• Employees: 48
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -2.13
• Shares Outstanding: 5,430,916
• 10 Day Avg. Volume: 10,170
• 30 Day Avg. Volume: 22,233
• PEG Ratio: -0.25
• Price to Book (P/B): 9.35
• Price to Sales (P/S): 2.28
• P/FCF Ratio: -6.74
• 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: 35 Underperform
• Price Target: ―

G-NEXT, Inc.'s overall stock score is significantly hampered by its poor financial performance, highlighted by persistent losses and liquidity issues. The bearish technical indicators and unappealing valuation further contribute to a low score. The company needs to address these fundamental challenges to improve its market position.

Positive Factors

Revenue Growth

Despite financial challenges, G-NEXT, Inc. has achieved a notable revenue growth rate of 23.48%, indicating potential market demand and business expansion opportunities.

New Product Collaboration

The collaboration to launch a blockchain-based credit management service could enhance G-NEXT's market position by leveraging innovative technology and expanding service offerings.

Gross Profit Margin

A gross profit margin of 32.94% reflects efficiency in managing production costs, providing a foundation for potential profitability improvements if operational issues are addressed.

Negative Factors

High Debt Levels

The high debt-to-equity ratio indicates financial instability, limiting G-NEXT's ability to invest in growth opportunities and increasing vulnerability to economic downturns.

Negative Cash Flows

Persistent negative cash flows highlight liquidity challenges, constraining G-NEXT's ability to cover operational costs and invest in future growth, impacting long-term viability.

Profitability Challenges

The negative net profit margin underscores ongoing profitability issues, necessitating strategic changes to improve cost management and revenue generation for sustainable growth.

G-NEXT, Inc. Business Overview & Revenue Model

Company Description

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How the Company Makes Money

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G-NEXT, Inc. Financial Statement Overview

Summary

G-NEXT, Inc. faces significant financial challenges with declining revenue, persistent losses, negative cash flows, high leverage, and a low equity position. Improvements in gross margins are overshadowed by profitability and liquidity issues.

Income Statement

G-NEXT, Inc. has experienced a decline in revenue over the past year, with a negative revenue growth rate of -5.63%. The gross profit margin stands at 32.94%, indicating some efficiency in handling production costs. However, the significant negative net profit margin of -24.54% and negative EBIT and EBITDA margins highlight ongoing profitability challenges. While there was an improvement from the prior year's net income, the company remains unprofitable.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio due to the substantial liabilities compared to equity, posing a risk to financial stability. The equity ratio is low at 0.95%, indicating limited shareholder equity relative to total assets. The return on equity is negative, consistent with net losses, which reflects challenges in generating returns for shareholders.

Cash Flow

G-NEXT, Inc. faces cash flow difficulties with negative operating and free cash flows. The free cash flow has shown slight improvement from the previous year but remains negative, indicating challenges in covering operating costs and capital expenditures. The operating cash flow to net income ratio is unavailable due to negative figures, highlighting liquidity constraints.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	648.37M	691.65M	610.78M	647.18M	495.15M	872.86M
Gross Profit	270.36M	204.29M	201.43M	295.24M	187.79M	584.74M
EBITDA	-165.64M	-214.22M	-145.30M	-279.59M	-393.35M	193.22M
Net Income	-173.15M	-218.57M	-149.86M	-296.35M	-421.74M	181.93M
Balance Sheet
Total Assets	525.89M	529.33M	424.45M	558.20M	808.91M	1.23B
Cash, Cash Equivalents and Short-Term Investments	354.13M	418.30M	322.32M	415.34M	520.21M	982.42M
Total Debt	184.00M	135.17M	174.85M	211.45M	247.88M	279.35M
Total Liabilities	479.91M	360.62M	420.41M	404.70M	359.36M	485.07M
Stockholders Equity	45.99M	168.71M	4.04M	153.50M	441.32M	746.89M
Cash Flow
Free Cash Flow	7.25M	-233.99M	-59.63M	-66.21M	-485.08M	143.96M
Operating Cash Flow	7.25M	-233.99M	-57.99M	-54.30M	-460.58M	151.26M
Investing Cash Flow	0.00	0.00	1.17M	-19.22M	-55.57M	-1.68M
Financing Cash Flow	0.00	329.97M	-36.20M	-31.35M	64.92M	701.36M

G-NEXT, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 307.00
• 50DMA: Positive
• 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:4179, the sentiment is Positive. The current price of 307 is above the 20-day moving average (MA) of 284.10, above the 50-day MA of 293.00, and below the 200-day MA of 333.81, indicating a neutral trend. The MACD of 0.73 indicates Negative momentum. The RSI at 63.32 is Neutral, neither overbought nor oversold. The STOCH value of 27.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4179.

G-NEXT, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4165	60 Neutral	¥33.71B	30.36	―	―	21.87%	240.10%
3976	54 Neutral	¥2.32B	―	―	―	-4.52%	2.56%
4052	52 Neutral	¥1.87B	-48.50	―	―	-9.71%	-1076.54%
3917	50 Neutral	¥3.84B	―	―	―	17.30%	99.39%
3910	44 Neutral	¥1.60B	-20.09	―	1.34%	9.45%	―
4179	35 Underperform	¥1.49B	-6.38	―	―	30.10%	40.65%

G-NEXT, Inc. Corporate Events

G-Next Collaborates to Launch Blockchain-Based Credit Management Service

G-Next Co., Ltd. has entered into a business collaboration with ONFET and OIO to launch the ‘Discoveriez Credit Database,’ a blockchain-based customer information and credit management service. This initiative aims to address the growing issue of customer harassment in Japan by providing a transparent and secure platform for managing customer data, thereby enhancing trust and operational efficiency. The collaboration leverages ONFET’s blockchain infrastructure, TSURU, to offer a flexible and enterprise-optimized solution, with plans to expand the service across Japan and the APAC region.