Gunosy, Inc. (6047) AI Stock Analysis

• Market Cap: ¥13.53B
• Dividend Yield: 3.38%
• Average Volume (3M): 238.07K
• Price to Earnings (P/E): 49.3
• Beta (1Y): 0.90
• Revenue Growth: -11.85%
• EPS Growth: N/A
• Country: JP
• Employees: 206
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -1.04
• Shares Outstanding: 24,237,774
• 10 Day Avg. Volume: 214,980
• 30 Day Avg. Volume: 238,066
• PEG Ratio: -1.80
• Price to Book (P/B): 1.33
• Price to Sales (P/S): 2.46
• P/FCF Ratio: 0.00
• 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: 50 Neutral
• Price Target: ―

Gunosy, Inc. is experiencing significant financial difficulties, with declining revenues and negative profitability impacting its outlook. Despite a strong balance sheet with no debt, the company faces challenges in asset management and cash flow generation. The technical indicators present a mixed picture, with a bearish trend yet some short-term bullish signals. Valuation is constrained by the negative P/E ratio and lack of dividends, highlighting risks for potential investors.

Positive Factors

Profitability Turnaround

Achieving profitability despite declining sales suggests effective cost management and strategic adjustments, potentially improving long-term financial stability.

Strong Balance Sheet

A debt-free balance sheet provides financial flexibility and reduces risk, enabling the company to invest in growth opportunities without the burden of interest payments.

Revised Shareholder Return Policy

The revised policy enhances shareholder value and signals confidence in future earnings, potentially attracting long-term investors and supporting stock price stability.

Negative Factors

Declining Revenue

Continued revenue decline indicates challenges in market demand or competitive positioning, which could hinder growth and profitability if not addressed.

Negative Free Cash Flow

Negative free cash flow suggests operational inefficiencies and limits the company's ability to reinvest in growth or weather financial downturns, posing a risk to long-term sustainability.

Decreased Gross Profit Margin

A declining gross profit margin indicates increased costs or pricing pressures, which can erode profitability and reduce competitive advantage over time.

Gunosy, Inc. Business Overview & Revenue Model

Company Description

Gunosy Inc. provides information curation services in Japan. The company offers Internet services related to games and hints-and-tips, and marketing solutions for smart devices, as well as investment business and consulting services. It is also involved in research and content production; and media, advertising, and entertainment businesses. The company was incorporated in 2012 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Gunosy, Inc. generates revenue primarily through advertising. The company's applications, including its flagship Gunosy app, monetize user engagement by displaying targeted advertisements to their audience. This advertising revenue is derived from partnerships with businesses and advertisers who wish to reach the app's user base. Additionally, Gunosy leverages its data analytics capabilities to offer advertising solutions, helping brands optimize their marketing efforts on the platform. Significant partnerships with media outlets and advertisers are crucial to sustaining and growing its revenue streams.

Gunosy, Inc. Financial Statement Overview

Summary

Gunosy, Inc. is facing significant financial challenges. The income statement reveals declining revenues and profitability, which is concerning for future growth. The balance sheet remains strong with no debt, but declining assets pose risks. Cash flow issues, particularly negative free cash flow, highlight operational inefficiencies but are partly offset by a strong cash position.

Income Statement

Gunosy, Inc. has faced challenges with declining revenues over the years, with a revenue drop from 2019 to 2024 indicating negative growth. Gross profit margin has also decreased significantly, suggesting decreased operational efficiency. Net profit margin has turned negative, highlighting ongoing net losses, which is concerning for the company's profitability outlook.

Balance Sheet

The balance sheet shows a strong equity position with no debt, which is a positive indicator of financial stability. The equity ratio is high at approximately 88% in 2024, suggesting that the company is well-capitalized. However, the continuous decline in total assets raises concerns about asset management and growth potential.

Cash Flow

The company has struggled with negative free cash flow in recent years, indicating challenges in generating cash from its operations. The operating cash flow to net income ratio is negative, reflecting inefficiencies in converting earnings into cash. Despite this, the cash position remains strong, providing some buffer.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.33B	6.10B	7.34B	8.05B	9.00B	8.91B
Gross Profit	3.00B	2.90B	2.97B	3.11B	3.99B	3.83B
EBITDA	593.50M	292.00M	-819.00M	-803.00M	285.00M	1.02B
Net Income	-69.00M	78.00M	-1.19B	-1.15B	130.00M	383.00M
Balance Sheet
Total Assets	12.50B	13.22B	11.34B	12.32B	13.52B	13.28B
Cash, Cash Equivalents and Short-Term Investments	5.70B	5.37B	5.87B	5.92B	6.49B	8.95B
Total Debt	0.00	266.00M	0.00	0.00	0.00	0.00
Total Liabilities	1.09B	1.94B	1.37B	1.47B	1.58B	1.87B
Stockholders Equity	11.41B	11.23B	9.97B	10.86B	11.89B	11.37B
Cash Flow
Free Cash Flow	-418.00M	0.00	-206.00M	-433.00M	-43.00M	977.00M
Operating Cash Flow	-418.00M	-26.00M	-206.00M	-433.00M	-33.00M	983.00M
Investing Cash Flow	775.00M	-1.08B	271.00M	604.00M	-4.06B	-1.08B
Financing Cash Flow	-1.00M	-5.00M	-103.00M	0.00	9.00M	-1.00M

Gunosy, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 541.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6047, the sentiment is Negative. The current price of 541 is below the 20-day moving average (MA) of 571.65, below the 50-day MA of 605.74, and below the 200-day MA of 626.19, indicating a bearish trend. The MACD of -17.13 indicates Positive momentum. The RSI at 33.20 is Neutral, neither overbought nor oversold. The STOCH value of 7.85 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6047.

Gunosy, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4299	79 Outperform	¥13.88B	11.44	―	3.71%	3.96%	-3.68%
3648	76 Outperform	¥22.95B	11.34	―	2.39%	21.57%	129.44%
3800	68 Neutral	¥13.88B	18.79	―	3.67%	0.85%	12.73%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3905	57 Neutral	¥46.88B	-42.76	―	―	27.58%	-1.50%
6047	50 Neutral	¥13.53B	49.27	―	3.38%	-11.85%	―
4382	43 Neutral	¥14.72B	-101.66	―	―	17.83%	87.36%

Gunosy, Inc. Corporate Events

Gunosy Inc. Reports Turnaround in Profitability Despite Sales Decline

Gunosy Inc. reported a decline in net sales by 18% for the nine months ending February 28, 2025, compared to the same period in the previous year. Despite the decrease in sales, the company achieved a positive turnaround in profitability, recording an operating profit of 593 million yen, compared to a loss in the previous year. This improvement in financial performance indicates a strategic shift that may positively impact the company’s market position and stakeholder confidence.

Gunosy Inc. Revises Shareholder Return Policy and Dividend Forecast

Gunosy Inc. has announced a revision in its shareholder return policy and year-end dividend forecast for the fiscal year ending May 2025. The company aims to maintain a stable dividend policy of at least 3% per fiscal year and plans to return 5% of consolidated shareholders’ equity for the current fiscal year, with 4% as dividends and 1% as share buybacks. This strategic move is part of Gunosy’s efforts to enhance earnings per share and return on equity while supporting its growth ambitions and investment in slice, an India-originated fintech bank.