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GALA INC
(4777)
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Rating:40Underperform
Price Target:
¥187.00
▼(-8.33% Downside)
Action:Downgraded
Date:03/24/26
The score is primarily held down by weak financial performance—persistent losses, cash burn, and sharply higher leverage. Technicals add modest downside bias with the stock trading below major moving averages and a negative MACD, while valuation is constrained by negative earnings and no stated dividend support.
Positive Factors
High gross margins
Sustained gross margins near 60% indicate healthy unit economics for digital game sales and virtual goods. High product-level margins provide room to scale marketing and R&D, and support operating leverage as revenues grow, improving the odds of durable profitability once fixed costs are absorbed.
Negative Factors
Persistent operating losses
Three consecutive years of material operating losses have eroded profitability resilience and equity. Continued negative earnings mean the company must rely on external funding or cost cuts to survive, limiting strategic flexibility and making long-term execution contingent on restoring consistent profits.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margins
Sustained gross margins near 60% indicate healthy unit economics for digital game sales and virtual goods. High product-level margins provide room to scale marketing and R&D, and support operating leverage as revenues grow, improving the odds of durable profitability once fixed costs are absorbed.
Read all positive factors
GALA INC (4777) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥5.63B
Dividend YieldN/A
Average Volume (3M)62.15K
Price to Earnings (P/E)―
Beta (1Y)0.90
Revenue Growth14.35%
EPS Growth48.62%
CountryJP
Employees93
SectorCommunication Services
Sector Strength97
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)-33.83
Shares Outstanding28,024,900
10 Day Avg. Volume55,360
30 Day Avg. Volume62,153
Financial Highlights & Ratios
PEG Ratio0.25
Price to Book (P/B)12.84
Price to Sales (P/S)2.21
P/FCF Ratio-33.02
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
GALA INC Business Overview & Revenue Model
Company Description
Gala Incorporated, operating alongside its various subsidiaries, is primarily focused on the comprehensive planning, development, provision, and management of mobile applications for smartphones and tablet PCs, serving both the Japanese and South ...
GALA INC Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
28
Negative
Cash Flow
22
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.29B | 2.59B | 2.35B | 2.00B | 3.21B | 600.96M |
| Gross Profit | 1.34B | 1.53B | 1.41B | 1.28B | 2.13B | 472.43M |
| EBITDA | -433.27M | -81.45M | -286.08M | -315.31M | 368.89M | -269.06M |
| Net Income | -948.11M | -532.30M | -907.98M | -307.23M | 320.40M | -186.14M |
Balance Sheet | ||||||
| Total Assets | 4.30B | 3.64B | 4.37B | 3.36B | 3.02B | 1.05B |
| Cash, Cash Equivalents and Short-Term Investments | 670.87M | 779.24M | 854.84M | 1.38B | 1.87B | 415.14M |
| Total Debt | 1.38B | 1.46B | 1.35B | 336.80M | 40.80M | 48.00M |
| Total Liabilities | 2.81B | 2.62B | 2.56B | 1.34B | 788.61M | 609.22M |
| Stockholders Equity | 776.43M | 445.32M | 968.20M | 1.63B | 1.85B | 80.84M |
Cash Flow | ||||||
| Free Cash Flow | -1.84B | -173.15M | -2.01B | -319.13M | 275.02M | -647.09M |
| Operating Cash Flow | -265.25M | -86.21M | -298.87M | -130.85M | 546.15M | -595.89M |
| Investing Cash Flow | -1.32B | -89.55M | -1.67B | -826.46M | -271.14M | 62.31M |
| Financing Cash Flow | 1.58B | 98.05M | 1.56B | 15.81M | 1.28B | 0.00 |
GALA INC Technical Analysis
Negative
204.00
Price Trends
201.66
Negative
204.68
Negative
212.03
Negative
Market Momentum
-0.67
Positive
46.88
Neutral
64.91
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4777, the sentiment is Negative. The current price of 204 is above the 20-day moving average (MA) of 201.50, above the 50-day MA of 201.66, and below the 200-day MA of 212.03, indicating a bearish trend. The MACD of -0.67 indicates Positive momentum. The RSI at 46.88 is Neutral, neither overbought nor oversold. The STOCH value of 64.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4777.
GALA INC Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | ¥6.97B | 15.29 | 15.74% | 5.18% | 5.09% | -25.54% | |
66 Neutral | ¥9.01B | 10.14 | ― | ― | -21.20% | 141.82% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
58 Neutral | ¥11.35B | 54.69 | ― | ― | 38.66% | ― | |
56 Neutral | ¥6.31B | 13.51 | ― | 0.75% | 17.98% | 9.85% | |
54 Neutral | ¥12.29B | 8.01 | ― | ― | 2.70% | -30.63% | |
40 Underperform | ¥5.63B | -12.32 | ― | ― | 14.35% | 48.62% |
* Communication Services Sector Average
JP:4777
GALA INC
201.00
-48.00
-19.28%
JP:3912
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1,074.00
198.35
22.65%
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391.00
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-26.37%
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gumi, Inc.
228.00
-362.00
-61.36%
JP:3904
KAYAC, Inc.
392.00
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-21.22%
GALA INC Corporate Events
Gala Narrows Losses But Balance Sheet Weakens and Withholds 2026 Outlook
Feb 13, 2026
Gala Inc. reported a 10.1% year-on-year rise in net sales to ¥2.59 billion for the fiscal year ended December 31, 2025, but remained loss-making, with operating and ordinary losses of ¥221 million and ¥252 million respectively and a...
Gala Narrows Losses but Withholds 2026 Outlook Amid Business Uncertainty
Feb 13, 2026
Gala Inc. reported a 10.1% rise in net sales to ¥2.59 billion for the fiscal year ended December 31, 2025, but remained loss-making, with operating and ordinary losses narrowing versus 2024 and a reduced net loss of ¥532 million. The com...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.