GMO AD Partners Inc. (4784) AI Stock Analysis

• Market Cap: ¥185.82B
• Dividend Yield: 2.18%
• Average Volume (3M): 1.04M
• Price to Earnings (P/E): 39.1
• Beta (1Y): 0.98
• Revenue Growth: 377.76%
• EPS Growth: N/A
• Country: JP
• Employees: 453
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 5.84
• Shares Outstanding: 274,698,520
• 10 Day Avg. Volume: 711,680
• 30 Day Avg. Volume: 1,038,946
• PEG Ratio: 35.62
• Price to Book (P/B): 3.72
• Price to Sales (P/S): 1.49
• P/FCF Ratio: 920.06
• 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): 2,882.07
• Revenue Forecast (FY): ¥12.29T

• Rating: 58 Neutral
• Price Target: ―

GMO AD Partners Inc. has a mixed outlook. Financial performance is struggling with declining revenues and profitability issues, despite a strong balance sheet. Technical analysis shows strong upward momentum but warns of overbought conditions. Valuation metrics are concerning with a very negative P/E ratio and low dividend yield. Overall, the stock has significant risks, primarily related to its financial performance and valuation.

Positive Factors

Strong Balance Sheet

A strong balance sheet with no debt provides financial stability and flexibility, allowing the company to invest in growth opportunities without the burden of interest payments.

Advanced Technology and Data Analytics

Utilizing advanced technology and data analytics enhances the company's service offerings, making it more competitive and attractive to clients seeking effective marketing solutions.

Diverse Client Base

A diverse client base reduces dependency on any single customer, providing revenue stability and opportunities for cross-selling and upselling services.

Negative Factors

Declining Revenue

Declining revenue trends indicate challenges in maintaining market share and competitiveness, potentially impacting long-term growth and profitability.

Negative Free Cash Flow

Negative free cash flow suggests struggles in converting revenue into cash, which can limit the company's ability to invest in growth and manage financial obligations.

Profitability Challenges

Negative profitability margins reflect operational inefficiencies and cost management issues, which could hinder the company's ability to sustain long-term financial health.

GMO AD Partners Inc. Business Overview & Revenue Model

Company Description

GMO AD Partners Inc. (4784) is a Japanese company that operates in the digital marketing and advertising industry. It provides a wide range of services, including digital advertising solutions, media planning, and buying, as well as creative services. The company leverages advanced technology and data analytics to optimize marketing campaigns, thus supporting clients in enhancing their online presence and achieving their marketing objectives.

How the Company Makes Money

GMO AD Partners Inc. generates revenue through a variety of channels primarily centered around its digital marketing services. The company earns money by providing advertising solutions and media strategies to clients, charging fees for campaign management, media buying, and data-driven marketing insights. Additionally, it may receive commissions or fees from partnerships with media and technology platforms. The firm's expertise in data analytics and technology-enhanced marketing allows it to offer premium services that attract a diverse client base, thus contributing to its overall earnings.

GMO AD Partners Inc. Financial Statement Overview

Summary

GMO AD Partners Inc. faces significant challenges in revenue and profitability, impacting its income statement scores. While the balance sheet shows financial stability with no debt, the cash flow statement reveals volatility and negative free cash flow, suggesting struggles in cash management. Overall, the company needs to address declining revenues and improve operational efficiencies to enhance its financial health.

Income Statement

Revenue has significantly declined over the years, with a notable drop from 2022 to 2023. The gross profit margin has decreased, indicating pressure on cost management. Net profit margin turned negative in 2024, highlighting profitability challenges. EBIT and EBITDA margins have also deteriorated, reflecting operational inefficiencies.

Balance Sheet

The company maintains a strong equity base with no debt, resulting in a solid debt-to-equity ratio. However, the return on equity has been inconsistent, reflecting fluctuating profitability. The equity ratio is healthy, indicating financial stability despite declining asset levels.

Cash Flow

Operating cash flow has been volatile, with significant negative values in 2023. Free cash flow has also been negative in recent years, indicating cash generation difficulties. The free cash flow to net income ratio is concerning, highlighting challenges in converting income into cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	44.97B	13.00B	14.90B	16.63B	34.52B	34.52B
Gross Profit	15.68B	5.97B	6.33B	7.20B	6.16B	5.93B
EBITDA	6.15B	300.51M	126.53M	859.60M	623.76M	605.68M
Net Income	2.49B	-4.84M	40.34M	395.97M	328.21M	260.99M
Balance Sheet
Total Assets	49.37B	10.36B	10.85B	12.42B	11.63B	11.90B
Cash, Cash Equivalents and Short-Term Investments	10.86B	4.92B	5.04B	6.20B	5.57B	5.01B
Total Debt	8.17B	0.00	0.00	0.00	0.00	0.00
Total Liabilities	36.01B	5.11B	5.61B	6.99B	6.43B	6.52B
Stockholders Equity	13.28B	5.20B	5.21B	5.40B	5.17B	5.35B
Cash Flow
Free Cash Flow	0.00	21.01M	-1.06B	765.28M	-38.11M	1.02B
Operating Cash Flow	0.00	30.46M	-912.47M	881.19M	195.81M	1.23B
Investing Cash Flow	0.00	-144.39M	-68.36M	-197.21M	-206.43M	53.32M
Financing Cash Flow	0.00	-22.82M	-177.09M	-55.58M	-285.80M	-326.52M

GMO AD Partners Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1002.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4784, the sentiment is Negative. The current price of 1002 is above the 20-day moving average (MA) of 760.90, above the 50-day MA of 919.74, and below the 200-day MA of 1615.27, indicating a bearish trend. The MACD of -74.40 indicates Negative momentum. The RSI at 26.48 is Positive, neither overbought nor oversold. The STOCH value of 6.31 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4784.

GMO AD Partners Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3633	76 Outperform	¥11.88B	14.53	―	2.39%	2.75%	25.24%
3769	75 Outperform	$639.05B	31.89	19.76%	1.46%	11.81%	16.69%
3695	65 Neutral	¥9.65B	30.38	―	5.27%	26.41%	-20.60%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4784	58 Neutral	¥185.82B	39.13	―	2.18%	377.76%	―
4180	58 Neutral	¥128.74B	41.43	―	0.16%	25.88%	80.30%
3778	52 Neutral	¥133.33B	83.34	―	0.13%	36.42%	28.23%