GMO TECH, Inc. (6026) AI Stock Analysis

• Market Cap: ¥7.15B
• Dividend Yield: 4.54%
• Average Volume (3M): 3.61K
• Price to Earnings (P/E): 16.2
• Beta (1Y): 0.74
• Revenue Growth: -11.55%
• EPS Growth: -13.99%
• Country: JP
• Employees: 230
• Sector: Communication Services
• Sector Strength: 90
• Industry: Internet Content & Information
• EPS (TTM): 22.67
• Shares Outstanding: 1,100,620
• 10 Day Avg. Volume: 2,540
• 30 Day Avg. Volume: 3,606
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥7,906.00
• Price Target Upside: 17.30% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 66 Neutral
• Price Target: ¥7,906.00 ▲(17.30% Upside)

The strong financial performance of GMO TECH, Inc. is the most significant factor, contributing positively to the score. However, bearish technical indicators heavily weigh down the overall assessment. The valuation is favorable, offering some upside potential, but short-term technical weaknesses are a concern.

GMO TECH, Inc. Business Overview & Revenue Model

Company Description

GMO TECH, Inc. (6026) is a Japan-based company primarily engaged in the internet service business. The company specializes in digital marketing solutions, with a focus on search engine optimization (SEO), app advertising, and online advertising services. It offers a range of internet marketing solutions to help businesses enhance their online presence and improve the efficiency of their digital advertising strategies.

How the Company Makes Money

GMO TECH, Inc. generates revenue through multiple streams within the digital marketing sector. The primary source of income is its suite of online advertising services, which includes search engine optimization and app advertising, where businesses pay for improved visibility and reach in search engine results and app marketplaces. Additionally, the company earns from performance-based advertising, where it charges clients based on the effectiveness and results of their campaigns. Partnerships with other digital platforms and agencies also play a role in its revenue, as these collaborations can expand its client base and service offerings. The company's expertise in leveraging data analytics to optimize advertising strategies helps in delivering value to its clients, thereby driving its earnings.

GMO TECH, Inc. Financial Statement Overview

Summary

GMO TECH, Inc. demonstrates strong financial performance with consistent revenue growth and improved profitability margins. The balance sheet is solid with low debt and high return on equity, while cash flows remain positive. However, historical volatility in earnings and cash flows suggests some caution.

Income Statement

GMO TECH, Inc. shows strong revenue growth with a rate of 9.78% from 2023 to 2024. The gross profit margin is healthy at 41.78%, and the net profit margin has improved significantly to 9.74% in 2024 from previous years. The EBIT and EBITDA margins indicate good operational efficiency. Overall, profitability metrics reflect a robust financial performance, although historical volatility in net income presents a cautionary note.

Balance Sheet

The company maintains a solid balance sheet with a low debt-to-equity ratio of 0.17, suggesting prudent financial leverage. The return on equity improved significantly to 54.78% in 2024, indicating effective use of shareholders' equity. The equity ratio of 44.11% reflects a balanced capital structure, although relatively low equity in earlier years could signify potential risk if liabilities increase.

Cash Flow

Operating cash flow has grown steadily, with a positive free cash flow reaching ¥402 million in 2024. With a free cash flow to net income ratio of 0.60, the company efficiently converts earnings into cash. However, cash flow volatility in previous years suggests the need for careful cash management as the company scales.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.62B	6.87B	6.26B	5.46B	4.25B	2.70B
Gross Profit	2.87B	2.87B	2.46B	1.99B	1.40B	853.60M
EBITDA	837.00M	985.00M	582.00M	-141.00M	-204.99M	29.80M
Net Income	595.00M	669.00M	405.00M	-295.00M	-288.00M	14.06M
Balance Sheet
Total Assets	2.40B	2.77B	2.76B	2.23B	1.72B	1.23B
Cash, Cash Equivalents and Short-Term Investments	940.00M	1.26B	1.28B	1.12B	590.00M	607.00M
Total Debt	192.00M	210.00M	280.00M	350.00M	210.00M	0.00
Total Liabilities	1.40B	1.55B	1.95B	1.84B	1.24B	458.98M
Stockholders Equity	1.00B	1.22B	806.00M	393.00M	483.00M	771.79M
Cash Flow
Free Cash Flow	0.00	402.00M	223.00M	-162.00M	-221.00M	-113.01M
Operating Cash Flow	0.00	402.00M	354.00M	-33.00M	62.00M	-11.54M
Investing Cash Flow	0.00	-117.00M	-135.00M	-125.00M	-88.00M	-90.00M
Financing Cash Flow	0.00	-318.00M	-60.00M	690.00M	209.00M	-72.10M

GMO TECH, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6740.00
• 50DMA: Negative
• 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:6026, the sentiment is Negative. The current price of 6740 is above the 20-day moving average (MA) of 6665.00, below the 50-day MA of 6809.00, and below the 200-day MA of 7726.98, indicating a neutral trend. The MACD of -3.29 indicates Negative momentum. The RSI at 49.31 is Neutral, neither overbought nor oversold. The STOCH value of 47.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6026.

GMO TECH, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6180	76 Outperform	¥8.59B	12.80		3.91%	4.74%	54.18%
7082	75 Outperform	¥14.78B	31.02		―	1.45%	41.89%
4176	74 Outperform	¥11.68B	37.97		―	69.74%	-7.82%
3981	74 Outperform	¥7.64B	6.78		1.82%	-9.46%	43.67%
6026	66 Neutral	¥7.15B	16.16		4.54%	-11.55%	-13.99%
Sector *	60 Neutral	$44.01B	4.42	-12.81%	4.08%	1.86%	-42.71%
4436	41 Neutral	¥7.75B	―		5.38%	7.38%	-317.56%