GALA INC (4777) AI Stock Analysis

• Market Cap: ¥5.91B
• Dividend Yield: N/A
• Average Volume (3M): 62.15K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.97
• Revenue Growth: 10.10%
• EPS Growth: -82.90%
• Country: JP
• Employees: 93
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): -1.85
• Shares Outstanding: 28,024,900
• 10 Day Avg. Volume: 55,360
• 30 Day Avg. Volume: 62,153
• PEG Ratio: >-0.01
• Price to Book (P/B): 6.87
• Price to Sales (P/S): 2.83
• P/FCF Ratio: -3.32
• 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: 46 Neutral
• Price Target: ¥221.00 ▲(8.33% Upside)

The overall stock score for GALA INC is primarily influenced by its weak financial performance, characterized by declining revenue and profitability issues. Technical analysis suggests a bearish trend with potential stabilization, while valuation metrics highlight unattractive investment prospects due to negative earnings. The absence of earnings call data and corporate events further emphasizes the need for strategic improvements to enhance financial stability and investor confidence.

Positive Factors

Innovative Technology Use

GALA INC's focus on innovative technologies like blockchain for gaming enhances its competitive edge and market differentiation, potentially driving long-term growth.

Diverse Revenue Streams

Multiple revenue streams, including in-game purchases and subscriptions, provide GALA INC with a stable income base, reducing reliance on any single source and enhancing financial resilience.

Strong Gross Profit Margin

A strong gross profit margin indicates efficient cost management and pricing power, supporting long-term profitability despite current revenue challenges.

Negative Factors

Declining Revenue

Declining revenue growth signals potential issues in market demand or competitive positioning, posing risks to future financial performance and strategic objectives.

Negative Cash Flow

Negative cash flow from operations indicates challenges in sustaining business activities and could limit investment in growth opportunities, impacting long-term viability.

High Debt Levels

High debt levels increase financial risk and interest obligations, potentially constraining GALA INC's ability to invest in strategic initiatives and weather economic downturns.

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 involved in cloud- and blockchain-related businesses; and the development and operation of Treehouse resort. The company was incorporated in 1993 and is based in Tokyo, Japan.

How the Company Makes Money

GALA INC generates revenue through multiple key streams, including in-game purchases, subscription models, and advertising partnerships. The company monetizes its games by offering players the option to buy virtual goods, upgrades, and exclusive content, which enhances their gaming experience. Additionally, GALA INC has implemented a subscription service that provides users with premium access to certain games and features. Advertising partnerships also contribute to its earnings by integrating sponsored content within its platforms. Furthermore, the company's focus on blockchain technology allows it to create unique digital assets that can be traded, providing additional revenue opportunities through the sale of NFTs and other digital collectibles.

GALA INC Financial Statement Overview

Summary

GALA INC's financial health is under pressure with declining revenue, increasing net losses, and negative cash flows. The company faces significant financial stability concerns due to its reliance on debt financing and inability to generate positive operating cash flow. Strategic restructuring and improved operational efficiency are critical for future growth and sustainability.

Income Statement

GALA INC has shown a decline in revenue growth with a recent drop from the previous year. The gross profit margin remains relatively strong, but the company is facing significant challenges with negative EBIT and EBITDA margins, as well as a substantial net loss. These issues indicate operational inefficiencies and profitability concerns.

Balance Sheet

The balance sheet shows a concerning debt-to-equity ratio due to increased leverage in recent periods. The equity ratio has decreased, indicating a shift towards debt financing. Return on equity is negative, reflecting the company's unprofitable state. These factors highlight solvency and liquidity risks, though cash reserves remain significant.

Cash Flow

The cash flow statement reveals negative operating cash flow and free cash flow, pointing to difficulties in generating cash from operations. The free cash flow to net income ratio is poor, illustrating cash management struggles. However, financing activities have been robust, providing some liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.29B	2.35B	2.18B	3.21B	600.96M	985.41M
Gross Profit	1.33B	1.41B	1.41B	2.13B	472.43M	818.02M
EBITDA	-489.72M	-287.00M	-133.04M	368.89M	-189.68M	-805.00K
Net Income	-947.00M	-907.00M	-93.00M	320.40M	-186.14M	-131.09M
Balance Sheet
Total Assets	4.30B	4.37B	3.35B	3.02B	1.05B	1.09B
Cash, Cash Equivalents and Short-Term Investments	670.87M	807.00M	1.34B	1.87B	415.14M	825.38M
Total Debt	1.38B	1.35B	336.00M	40.80M	48.00M	0.00
Total Liabilities	2.81B	2.56B	1.34B	788.61M	609.22M	781.59M
Stockholders Equity	776.43M	968.00M	1.63B	1.85B	80.84M	299.56M
Cash Flow
Free Cash Flow	-1.84B	-2.01B	-424.00M	275.02M	-647.09M	377.26M
Operating Cash Flow	-265.25M	-298.00M	-173.33M	546.15M	-595.89M	381.85M
Investing Cash Flow	-1.32B	-1.69B	-1.11B	-271.14M	62.31M	623.00K
Financing Cash Flow	1.58B	1.58B	26.67M	1.28B	0.00	310.10M

GALA INC Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 204.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4777, the sentiment is Neutral. The current price of 204 is below the 20-day moving average (MA) of 205.15, below the 50-day MA of 214.82, and below the 200-day MA of 224.98, indicating a neutral trend. The MACD of -1.65 indicates Negative momentum. The RSI at 53.91 is Neutral, neither overbought nor oversold. The STOCH value of 86.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4777.

GALA INC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
3656	56 Neutral	¥28.27B	-3.62	―	―	-14.71%	-38.87%
3851	51 Neutral	¥4.10B	-19.54	―	0.64%	-13.35%	-258.79%
3760	49 Neutral	¥4.94B	-1.35	―	1.44%	4.29%	-123.59%
4777	46 Neutral	¥5.91B	-6.77	―	―	10.10%	-82.90%
3758	46 Neutral	¥6.14B	-136.95	―	1.70%	-22.98%	83.75%
3810	41 Neutral	¥20.80B	-3.43	―	―	-15.04%	25.50%

GALA INC Corporate Events

Gala Inc. Reports Continued Financial Challenges Amid Slight Sales Growth

Gala Inc. reported its consolidated financial results for the nine months ending September 30, 2025, revealing a slight increase in net sales compared to the previous year, but continued to face losses in operating and ordinary profits. The company’s financial position weakened with a decrease in total assets and net assets, reflecting challenges in achieving profitability. The lack of dividend payments and the absence of a forecast for the fiscal year ending December 31, 2025, indicate ongoing financial uncertainties, impacting stakeholders’ expectations.

The most recent analyst rating on (JP:4777) stock is a Hold with a Yen221.00 price target. To see the full list of analyst forecasts on GALA INC stock, see the JP:4777 Stock Forecast page.