GALA INC (JP:4777)
:4777
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GALA INC
(4777)
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Rating:40Underperform
Price Target:
¥187.00
▼(-8.33% Downside)
Action:DowngradedDate: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
Revenue Growth Momentum
Gala has shown improved top-line momentum with revenue growth accelerating to ~13% in the latest period and net sales rising year‑on‑year. Durable revenue expansion supports scale effects and provides a growing base to absorb fixed costs, aiding a path to sustainable profitability once operating leverage kicks in.
Negative Factors
Negative Operating Cash Flow
The company has produced negative operating and free cash flow across 2023–2025, including a very large outflow in 2024. Persistent cash burn forces reliance on external financing or equity issuance, creating structural funding and dilution risk until operating cash flow turns sustainably positive.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth Momentum
Gala has shown improved top-line momentum with revenue growth accelerating to ~13% in the latest period and net sales rising year‑on‑year. Durable revenue expansion supports scale effects and provides a growing base to absorb fixed costs, aiding a path to sustainable profitability once operating leverage kicks in.
Read all positive factors
GALA INC (4777) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥5.75B
Dividend YieldN/A
Average Volume (3M)62.15K
Price to Earnings (P/E)―
Beta (1Y)0.88
Revenue Growth10.10%
EPS Growth-82.90%
CountryJP
Employees93
SectorCommunication Services
Sector Strength97
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)N/A
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, together with its subsidiaries, plans, develops, provides, and operates applications for smartphones and tablet PCs in Japan and Korea. The company also develops and operates online games and HTML5 games. In addition, it is invo...
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
209.96
Negative
212.11
Negative
222.36
Negative
Market Momentum
-1.98
Positive
44.86
Neutral
18.14
Positive
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 below the 20-day moving average (MA) of 204.75, below the 50-day MA of 209.96, and below the 200-day MA of 222.36, indicating a bearish trend. The MACD of -1.98 indicates Positive momentum. The RSI at 44.86 is Neutral, neither overbought nor oversold. The STOCH value of 18.14 is Positive, 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 | ¥10.28B | 16.35 | 15.74% | 5.18% | 5.17% | 1662.63% | |
62 Neutral | ¥9.43B | 9.63 | ― | ― | 11.15% | ― | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
56 Neutral | ¥6.93B | 11.77 | ― | 0.75% | 12.70% | 2207.66% | |
46 Neutral | ¥17.85B | 9.33 | ― | ― | -37.68% | ― | |
42 Neutral | ¥11.64B | 4.66 | ― | ― | 93.85% | -216.24% | |
40 Underperform | ¥5.75B | -10.74 | ― | ― | 10.10% | -82.90% |
* Communication Services Sector Average
JP:4777
GALA INC
205.00
-36.00
-14.94%
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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.