GMO Media, Inc. (6180) AI Stock Analysis

• Market Cap: ¥9.70B
• Dividend Yield: 3.33%
• Average Volume (3M): 6.53K
• Price to Earnings (P/E): 13.8
• Beta (1Y): 0.54
• Revenue Growth: 7.47%
• EPS Growth: 55.61%
• Country: JP
• Employees: 214
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 91.15
• Shares Outstanding: 1,868,839
• 10 Day Avg. Volume: 7,120
• 30 Day Avg. Volume: 6,533
• PEG Ratio: 0.25
• Price to Book (P/B): 2.79
• Price to Sales (P/S): 1.19
• P/FCF Ratio: 19.21
• 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: 77 Outperform
• Price Target: ¥6,595.00 ▲(13.12% Upside)

GMO Media, Inc. scores well due to its strong financial performance and technical indicators showing upward momentum. The reasonable valuation with a solid dividend yield further supports the stock's attractiveness. However, overbought technical conditions suggest caution for short-term investors.

Positive Factors

Revenue Growth

Consistent revenue growth over the years indicates strong market demand and effective business strategies, enhancing long-term stability.

Balance Sheet Health

A strong equity position and minimal debt reliance provide financial stability and flexibility, supporting sustainable growth.

Cash Generation

Strong free cash flow growth indicates efficient operations and the ability to fund future investments and return capital to shareholders.

Negative Factors

Liability Increase

An increase in liabilities, even if modest, could impact financial flexibility and requires careful management to avoid future constraints.

Industry Competition

High competition in digital content and gaming can pressure margins and require continuous innovation to maintain market position.

Investment Cash Flow Fluctuations

Volatility in cash flows from investments may indicate challenges in capital allocation, affecting long-term strategic initiatives.

GMO Media, Inc. Business Overview & Revenue Model

Company Description

GMO Media, Inc. (6180) is a leading Japanese company operating in the digital content and online gaming sectors. The company specializes in developing and publishing a wide range of mobile and PC games, as well as providing various internet-related services. With a strong focus on innovation and user engagement, GMO Media aims to enhance the digital entertainment experience for its users through high-quality game development and strategic partnerships within the industry.

How the Company Makes Money

GMO Media generates revenue primarily through the sale of in-game purchases, subscriptions, and advertising within its gaming platforms. The company also earns income from partnerships with other gaming developers and publishers, as well as through licensing agreements for its intellectual properties. Additionally, revenue is supplemented by the provision of digital marketing and advertising services, leveraging its extensive user base to attract advertisers seeking to reach a targeted audience. Strategic collaborations with technology companies further enhance its product offerings and revenue potential.

GMO Media, Inc. Financial Statement Overview

Summary

GMO Media, Inc. demonstrates strong financial performance with consistent revenue and profit growth, robust margins, and a healthy balance sheet. The company maintains low leverage and efficient cash flow management, ensuring liquidity and operational flexibility. Attention to liability management and sustaining profitability growth is crucial.

Income Statement

GMO Media, Inc. has shown robust financial performance with consistent revenue growth, increasing from ¥4.15 billion in 2019 to ¥6.61 billion in 2024. The gross profit margin improved significantly, reaching 44.94% in 2024. Net profit margin has also improved, with a notable increase to 8.64% in 2024. The company's EBIT and EBITDA margins are solid, reflecting strong operational performance. This trend indicates effective cost management and profitability improvement over the years.

Balance Sheet

The balance sheet of GMO Media, Inc. reflects a strong equity position with an equity ratio of 47.97% in 2024, indicating financial stability. The debt-to-equity ratio remains low at 0.01, showcasing minimal reliance on debt financing. The return on equity has improved to 20.29% in 2024, demonstrating effective utilization of shareholders' funds. However, the modest increase in total liabilities warrants cautious monitoring.

Cash Flow

The cash flow statements reveal a healthy increase in free cash flow, which grew to ¥408.47 million in 2024. The operating cash flow to net income ratio is strong, highlighting efficient cash generation relative to earnings. The free cash flow to net income ratio further supports a positive cash flow outlook. Despite fluctuations in investing and financing cash flows, the company maintains a solid cash position.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.93B	6.61B	6.27B	5.59B	8.58B	5.00B
Gross Profit	3.24B	2.97B	2.78B	2.30B	2.16B	1.22B
EBITDA	977.47M	813.03M	573.96M	313.66M	98.39M	-283.94M
Net Income	698.36M	571.35M	361.33M	183.03M	7.20M	-408.67M
Balance Sheet
Total Assets	6.12B	5.86B	5.47B	4.98B	4.63B	3.62B
Cash, Cash Equivalents and Short-Term Investments	3.11B	3.20B	3.28B	2.87B	2.64B	2.20B
Total Debt	68.02M	24.61M	7.45M	14.44M	25.71M	30.22M
Total Liabilities	3.22B	3.05B	3.07B	2.89B	2.74B	1.73B
Stockholders Equity	2.90B	2.81B	2.40B	2.09B	1.89B	1.88B
Cash Flow
Free Cash Flow	0.00	408.47M	503.17M	248.87M	447.22M	134.78M
Operating Cash Flow	0.00	500.64M	592.13M	395.18M	510.77M	168.20M
Investing Cash Flow	0.00	-399.04M	-111.68M	-171.31M	-54.05M	-106.54M
Financing Cash Flow	0.00	-176.05M	-71.21M	2.10M	-11.17M	-170.71M

GMO Media, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5830.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6180, the sentiment is Positive. The current price of 5830 is above the 20-day moving average (MA) of 5812.00, above the 50-day MA of 5618.20, and above the 200-day MA of 4989.78, indicating a neutral trend. The MACD of 45.20 indicates Positive momentum. The RSI at 53.22 is Neutral, neither overbought nor oversold. The STOCH value of 58.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6180.

GMO Media, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6180	77 Outperform	¥9.70B	13.78	―	3.33%	7.47%	55.61%
6026	76 Outperform	―	―	―	―	-11.55%	-13.99%
4176	74 Outperform	¥8.32B	26.71	―	―	42.83%	26.89%
3981	74 Outperform	¥7.92B	6.84	―	1.76%	-10.62%	44.02%
7082	64 Neutral	¥8.71B	18.87	―	―	3.38%	47.24%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
4436	44 Neutral	¥6.69B	―	―	―	-0.30%	-304.34%